India Acetic Acid Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Acetic Acid Market Analysis
India Acetic Acid Market is estimated to reach 1.24 million tons by the end of this year and is projected to reach 1.76 million tons in the next five years, registering a CAGR of 7.3% during the forecast period.
The COVID-19 pandemic negatively impacted the market in 2020, owing to several restrictions imposed by the government of India. The shortage of labor and production halts has affected the acetic acid market in the country. However, the sector has been recovering well since restrictions were lifted. The market recovered significantly in 2021, owing to rising consumption from paints and coatings, food and beverage, and the pharmaceutical sectors. Further, the market is projected to grow significantly in the coming years.
- The increasing demand for vinyl acetate monomer (VAM), the increasing use of ester solvents in the paints and coatings industry, and the increasing demand from the food and beverage industry have been driving the growth of the acetic acid market in the country.
- On the contrary, environmental concerns regarding the harmful effects of acetic acid and increasing prices of raw materials are hindering the market growth.
- The development of new separation technologies to increase the production efficiency of acetic acid is expected to create opportunities for the market during the forecast period.
India Acetic Acid Market Trends
Vinyl Acetate Monomer to Dominate the Market
- Vinyl Acetate Monomer (VAM) is a colorless, volatile, flammable organic liquid widely used as an industrial intermediate for producing homopolymers and copolymers critical for various applications. The vinyl acetate monomer is commercially synthesized by the liquid-phase acetylation of acetic acid with oxygen and ethylene.
- Vinyl Acetate Monomer (VAM) is a highly preferred material in hot melt adhesives owing to its bonding ability with a broad range of substrates and stability at a wide temperature range. Other important uses of EVA include hoses and tubes, medical packaging, and encapsulation in photovoltaic modules. VAM is used as a precursor for producing ethylene vinyl acetate (EVA) on co-polymerization with ethylene. EVA resin has good crack and puncture resistance properties and is used in sealants, coatings, and adhesive production.
- Over the past few years, the VAM industry has emerged as a highly viable investment avenue, attracting numerous financial backers due to its escalating use as a chemical intermediate. The end products of vinyl acetate monomers such as PVA, PVOH, and EVA are used in formulations of laminate films, adhesives, paints, cosmetics, and lacquers.
- In India, the demand for paints and coatings has increased in the construction and automotive industries since 2021. Thus several companies are planning to increase the production capacities of paints and coatings in the country. For instance, in 2022, Aditya Birla Group announced an investment of INR 100 billion (~USD 1.21 billion) to expand its paints business in India.
- Furthurmore, the export value of paints and allied products in India is registered at INR 22.96 billion (~USD 278 million) compared to INR 17.43 billion (~USD 211 million) in 2021 at a growth rate of 31.7%. Thus, the growth in the paints and coatings business is excepted to drive the current studied market in the country.
- Thus, the vinyl acetate monomer is expected to dominate the market demand for acetic acid during the forecast period.
Adhesives, Paints, and Coatings Segment to Dominate The Market
- Acetic acid finds application in the production of ethyl acetate, a solvent commonly used in coatings. Ethyl acetate is a suitable solvent for many resins, including cellulose acetate, nitrocellulose, and polyester. Acetic acid also helps to stabilize the pH of the coating, preventing the formation of bubbles or blisters.
- Acetic acid can act as an emulsifier in paint and coating formulations. It helps to disperse pigments and other solids in the formulation, making it easier to apply and improving the quality of the finish.
- In India, the demand for paints and coatings is mainly increasing from the automotive and construction industries. The Indian government is actively boosting residential construction, aiming to provide homes to about 1.3 billion people. The country will likely witness around USD 1.3 trillion of investment in housing over the next six to seven years. It is likely to witness the construction of 60 million new homes in the country.
- Furthermore, the availability of affordable housing in the country is expected to rise by around 70% by 2024. Also, by 2030, more than 40% of the population is expected to live in Urban India (34% in 2022), creating a demand for 25 million additional mid-end and affordable homes. Thus, the increasing construction activities will likely drive the paint and coatings market.
- India has become the fourth largest automotive vehicle manufacturer in the world. According to OICA, the total production volume of automotive vehicles reached 5.45 million units in 2022, indicating a growth of 24% as compared to 4.39 million units registered in 2021. Increasing automotive vehicle production will drive the country's automotive coatings market.
- Thus, the above-mentioned factors are excepted to drive the market for acetic acid in the country.
India Acetic Acid Industry Overview
The India acetic acid market is partially consolidated in nature. Some of the major players in the market include (not in any particular order) Assam Bio-Refinery Private Limited, Celanese Corporation, Gujarat Narmada Valley Fertilizers & Chemicals Limited, GODAVARI BIOREFINERIES LTD, and Jubilant Ingrevia Limited, among others.
India Acetic Acid Market Leaders
Celanese Corporation
Gujarat Narmada Valley Fertilizers & Chemicals Limited
Jubilant Ingrevia Limited
GODAVARI BIOREFINERIES LTD.
Assam Bio Refinery Private Limited.
*Disclaimer: Major Players sorted in no particular order
India Acetic Acid Market News
- In April 2022, Jubilant Ingrevia Limited announced the commissioning of its new Green Ethanol based food-grade Acetic Acid plant at its manufacturing facility in Gajraula, Uttar Pradesh. The plant has a production capacity of 25,000 tons of food-grade acetic acid per annum.
- In March 2022, Anupam Rasayan India Ltd, a manufacturer of specialty chemicals, acquired 24.96% of the stock shareholding of Tanfac Industries Ltd (TIL), a manufacturer of Acetophenone, Acetic Acid, Peracetic Acid, and Poly Aluminium Chloride. The acquisition will help Anupam Rasayan India Ltd to further strengthen its position in India.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand for Vinyl Acetate Monomer (VAM)
4.1.2 Increasing Use of Ester Solvents in The Paints and Coatings Industry
4.1.3 The Increasing demand from The Food and Beverage
4.2 Restraints
4.2.1 Environmental Concerns Regarding the Harmful Effects
4.2.2 Increasing Prices of Raw Materials
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Derivative
5.1.1 Vinyl Acetate Monomer (VAM)
5.1.2 Purified Terephthalic Acid (PTA)
5.1.3 Ethyl Acetate
5.1.4 Acetic Anhydride
5.1.5 Other Derivatives
5.2 Application
5.2.1 Plastics and Polymers
5.2.2 Food and Beverage
5.2.3 Adhesives, Paints, and Coatings
5.2.4 Textile
5.2.5 Medical
5.2.6 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Celanese Corporation
6.4.2 Eastman Chemical Company
6.4.3 FINAR LIMITED
6.4.4 GODAVARI BIOREFINERIES LTD.
6.4.5 Gujarat Narmada Valley Fertilizers & Chemicals Limited
6.4.6 Jubilant Life Sciences
6.4.7 Pon Pure Chemicals Group
6.4.8 Saanvi Corp
6.4.9 Tanfac Industries Ltd
6.4.10 Vizag Chemicals
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of New Separation Technologies to Increase The Production Efficiency
India Acetic Acid Industry Segmentation
Acetic acid is a monocarboxylic acid containing two carbons. It is a clear, colorless liquid with a strong, pungent odor, like vinegar. Acetic acid can be derived from the carbonylation of methanol, the oxidation of acetaldehyde and ethylene, or a biological method like bacterial fermentation. It is used as a chemical reagent to produce several chemical compounds like acetic anhydride, ester, vinyl acetate monomer, vinegar, and many other polymeric materials.
The India acetic acid market is segmented by derivative, application, and geography. By derivative, the market is segmented into vinyl acetate monomer (VAM), purified terephthalic acid (PTA), ethyl acetate, acetic anhydride, and other derivatives. By application, the market is segmented into plastics and polymers, food and beverage, adhesives, paints and coatings, textiles, medical, and other applications. Each segment's market sizing and forecasts are based on volume (tons).
| Derivative | |
| Vinyl Acetate Monomer (VAM) | |
| Purified Terephthalic Acid (PTA) | |
| Ethyl Acetate | |
| Acetic Anhydride | |
| Other Derivatives |
| Application | |
| Plastics and Polymers | |
| Food and Beverage | |
| Adhesives, Paints, and Coatings | |
| Textile | |
| Medical | |
| Other Applications |
Frequently Asked Questions
What is the current India Acetic Acid Market size?
The India Acetic Acid Market is projected to register a CAGR of 7.30% during the forecast period (2024-2029)
Who are the key players in India Acetic Acid Market?
Celanese Corporation , Gujarat Narmada Valley Fertilizers & Chemicals Limited, Jubilant Ingrevia Limited, GODAVARI BIOREFINERIES LTD. and Assam Bio Refinery Private Limited. are the major companies operating in the India Acetic Acid Market.
What years does this India Acetic Acid Market cover?
The report covers the India Acetic Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Acetic Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Acetic Acid Industry Report
Statistics for the 2024 India Acetic Acid market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Acetic Acid analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
