Market Trends of Bio-Acetic Acid Industry
Vinyl Acetate Monomer (VAM) Segment to Dominate the Market
Vinyl Acetate Monomer (VAM) produces water-based paints, adhesives, waterproofing coatings, and paper and paperboard coatings that can be used in various end-use industries such as construction, paints & coatings, plastic, solvents, adhesives, textiles, and others.
According to American Coatings Association, in 2021, the United States exported paint and coatings for USD 1.1 billion to Canada, and USD 632 million to Mexico, accounting for USD 1.7 billion in total.
The chemical industry plays an important role in the growth of the vinyl acetate monomer market. Over the three years till 2024, the industry is expected to grow in every segment, with overall industry growth expected to be 1.8% in 2024.
According to The European Chemical Industry Council, AISBL, the worldwide sales of chemicals increased by 15.2% and reached USD 4332.38 billion in 2021 from USD 3759.89 billion in the previous year.
Moreover, the consumption of VAMs in the construction industry drives the market's growth. The rising construction activities boost the demand for paints and coatings to be applied to the buildings, increasing the demand for VAMs.
According to the United States Census Bureau, the United States was among the top construction markets globally in 2021 and stood at USD 1.589 trillion, accounting for around 4.3% of the country's total GDP.
According to the European Commission, by the year 2030, Europe's Renovation Wave aims at least to double the annual energy renovation rate of buildings and focus on a goal of renovating more than 35 million buildings, which means 13% of the total establishments in the region.
Vinyl acetate monomer (VAM) is a significant intermediate used in producing a wide range of resins and polymers for paints & coatings, adhesives, glues & sealants. In 2022, the production volume of the paint and coatings industry in the United States reached 1.36 billion gallons.
Thus, all such trends in the VAM market are expected to drive the demand for the bio-acetic acid market during the forecast period.
Asia-Pacific Region is Expected to be the Fastest Growing Market
Asia-Pacific is the largest consumer of acetic acid in the global market and stands to be the fastest-growing market for bio-acetic acid.
Acetic acid is an important chemical reagent and industrial chemical used in producing plastic soft drink bottles, photographic films, paints, and coatings. The increasing construction activities boost the demand for paints and coatings to be used, boosting the demand for acetic acid.
There have been gradual developments in the Asian-Pacific construction sector and the growing production. The demand for adhesives in China, India, and the ASEAN countries from other sectors is increasing the demand for acetic acid used in coatings and adhesive production.
The increasing demand for acetic anhydride in the pharmaceutical industry also boosts the demand, which helps the market to grow. China's pharmaceutical industry has experienced rapid progress since the country entered the World Trade Organization. As of 2021, China holds 12% of the global pharmaceutical market, following the United States, responsible for 40% of the total revenue worldwide.
The Indian pharmaceutical sector is expected to grow to USD 100 billion, while the medical device market will grow by USD 25 billion by 2025. In 2022, pharmaceutical exports from India were valued at USD 24.62 billion, which included pharmaceutical exports of bulk drugs, intermediates, drug formulations, and biologicals, among other products.
The factors above will likely increase the demand and consumption of bio-acetic acid in the region during the forecast period.
