Acetic Acid Market size is expected to cross USD 11 Billion by the end of 2033, growing at a CAGR of 6% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of acetic acid was USD 8 Billion. The growth of the market can be attributed to the increasing use of acetic acid in the manufacturing of paints, coatings, sealants, greasers, plastics, polyesters, and the rising use of plastic is estimated to fuel the market’s growth during the forecast period. Plastic production in 2019 was more than 360 million tons, which increased from 2 million tons in 1950 across the globe. Also, as per the estimations, most of the plastic production started in the year 2000. The easy production process, stability, and low cost of plastic increase its use across the world. The increasing manufacturing of automobiles, cell phones, the electronic sector, and infrastructure rises the use of plastic, which increases the growth of the market.
Rising demand for polyethylene terephthalate (PET) bottles as they have lightweight and eco-friendly characteristics. PET is made from purified terephthalic acid and ethylene glycol is estimated to rise the growth of the global acetic acid market during the forecast period. PET plastic accounts for 10% of plastic production worldwide in the form of water, soda bottles, and others. PET is recyclable and lightweight, which makes it consumer-and eco-friendly. It is considered ideal for packaging owing to a high preference for quality by manufacturers. Moreover, PET is used in the food and beverage, personal care, and pharmaceutical industries for packaging end products. Hence, the increasing packaging industry is projected to have a positive impact on market growth.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
6% |
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Base Year Market Size (2022) |
USD 8 Billion |
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Forecast Year Market Size (2033) |
USD 11 Billion |
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Regional Scope |
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Application (Vinyl Acetate Monomer [VAM], Purified Terephthalic Acid [PTA], Ester Solvents, Acetic Anhydride)
The global acetic acid market is segmented and analyzed for demand and supply by application into vinyl acetate monomer [VAM], purified terephthalic acid [PTA], ester solvents, acetic anhydride, and others. Out of these segments, the VAM segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing construction and infrastructure industries across the world. The growing cosmetics and textile industries are also estimated to impact the market growth, as VAM is used for packaging in these sectors. The advancement in the packaging sector with the introduction of multilayer barrier technology increases e-commerce sales. The e-commerce sales in the U.S. between 2011-2021 raised by five times with estimations of over USD 500 billion worth of sales in the first six months of 2022. Moreover, the escalation in the chemical industry where VAM is highly utilized in the production of polyvinyl acetate and polyvinyl alcohol is further expected to boost the segment’s growth in the market.
End-user (Plastics & Polymers, Food & Beverages, Inks, Paints, & Coatings, Chemicals, Pharmaceuticals)
The global acetic acid market is also segmented and analyzed for demand and supply by end-user into plastics & polymers, food & beverages, inks, paints, & coatings, chemicals, and pharmaceuticals. Out of these, the paints and coatings segment are anticipated to hold the largest market size by the end of 2033 on account of the surge in demand for the growing construction, architecture, and automotive sectors. As per the U.S. Bureau of Transportation Statistics, the number of new vehicle sales and leases raised from 57,545 in 2018 to 57,865 in 2019. Moreover, the increasing spending ability of people across the world rises with urbanization. This results in increasing residential buildings and commercial building construction. Also, the increasing government initiatives to improve architectural services increase the use of paints and coatings. The renovation works for tourism structures, and the building of medical facilities together increase the growth of the market segment, as per the market analysis.
Our in-depth analysis of the global acetic acid market includes the following segments:
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By Application |
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By End-User |
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North America Market Forecast
The North America acetic acid market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the increasing use of paints and coatings as of the growth in construction sector, and the rising disposable income of the population. The disposable personal income of U.S residents raised to 0.1% in Aug 2022 from -0.4% in Jun 2022. Furthermore, increasing investments from prominent players in the market in the expansion of their business rises the construction of new facilities in the region. The increasing textile industry is owing to the growing fashion sector, with more people interested in buying fashion clothes. Moreover, there has been an expanding chemical production to meet the rising demand of the end-users. All these factors are estimated to enhance the market’s growth during the forecast period.
BP p.l.c. and Lotte together agreed to expand the production capacity of their joint venture BP Lotte Chemical Company Limited in Ulsan of South Korea. This is estimated to double the current 200,000 tons per year of vinyl acetate monomer (VAM) and add 100,000 tons per year of acetic acid capacity.
INEOS Capital Limited to build a world-scale acetic plant and related derivatives on the US Gulf Coast.
Author Credits: Rajrani Baghel
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