Acetone Market size is anticipated to surpass USD 15 billion by the end of 2035, growing at a CAGR of 7% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of acetone was over USD 7 billion. The growth of the market can be attributed to the increasing demand for lightweight automobiles all over the globe. Polycarbonates derived from acetone help in making lightweight cars at the same time they also fuel the efficiency of the vehicle. These two factors attract more people towards buying these automobiles. For instance, lightweight cars industry reached the market value of ~USD 70 billion in 2021 and is expected to reach a market value ~USD 94 billion by the end of 2028.
On the other hand, increasing concern towards personal care and skin care, especially amongst young population in developed and developing countries is driving the growth of the acetone market. Acetone plays a significant role in the personal care and cosmetic industry as it is used in the manufacturing of skincare creams, nail polish, and cosmetic products, and also used in skin treatment such as skin peeling treatment to beat acne and more. The skincare industry in North America is anticipated to reach a market value of USD 188 billion by 2026. Also, as of 2021, the cosmetic market in the North Asia region covered approximately 35% of the global market
Growth Drivers
Growing Demand for Acetone – Acetone is used as a solvent for fats, oils, waxes, rubber, resins, plastics, lacquers, vanishes, and rubber cement and as an intermediate for bisphenol-A, methyl methacrylate, and methyl isobutyl ketone formation. All these factors are estimated to have a positive impact on market growth. The imported value of acetone in 2021 was worth ~USD 2,356,449.
Increasing Paints and Coating Industries – Increasing construction activities is one of the major factor fueling up the paint and coating industries. For instance, about 1 billion new homes were constructed in 2022 in the U.S. Furthermore, according to estimates the value of the painting and coating industry across the world was about 9.8 billion gallons in the same year.
Rising Consumption in Pharmaceuticals and Cosmetics – Based on the observations, more than 60% of all consumers use makeup products or cosmetics as of 2022. The global pharmaceutical market is anticipated to hold a revenue of ~USD 12oo billion by the end of 2023.
Elevating Demand for Solvents – The imported value of organic solvents and thinners in 2021 was ~USD 2,277,915.
Increasing Demand for Plastics – The primary production of plastic across the globe was 270 million tons.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023 – 2035 |
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CAGR |
~7% |
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Base Year Market Size(2022) |
~USD 7 billion |
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Forecast Year Market Size(2035) |
~USD 15 billion |
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Regional Synopsis |
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End-user (Pharmaceuticals Plastics, Construction, Paints & Coatings, Personal Care, Electricals & Electronics)
The global acetone market is segmented and analyzed for demand and supply by end-user into pharmaceuticals, plastics, construction, paints & coatings, personal care, and electrical & electronics. Out of these, the pharmaceuticals segment is anticipated to hold the largest market size by the end of 2035. Acetone is frequently utilized in the pharmaceutical industries as a solvent in fillers and active ingredients to guarantee proper dosage of medicine. Additionally, it is also used as a disinfectant and to clean and sterilize surgical tools and equipment. In the U.S. 48.6% of people used at least one prescription drug from 2019-2020.
Application (Methyl Methacrylate, Solvent, Bisphenol A)
The global acetone market is segmented and analyzed for demand and supply by application into the solvent, methyl methacrylate, and bisphenol A. Out of which, the methyl methacrylate segment is anticipated to hold the highest market share in the forecast period. This can be attributed owing to its demand in the automotive industry for manufacturing various car parts. Acetone is used to create methyl methacrylate and this later is used in auto glazing, exterior car coating, and also used in the production of various car parts such as windows, bulletproof glasses, car sunroofs, and taillights. Besides the automotive industry, MMA is widely used in the construction sector, especially in infrastructure and the development of roads and highways. In 2021, the number of roads, bridges, and highways constructed in China was 962 thousand.
Our in-depth analysis of the global market includes the following segments:
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By End User |
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By Application |
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North American Market Forecast
The market in the North American region is projected to hold the largest market share by the end of 2035. Increasing production of flat screen computers that increase the usage rate of acetone. As per the estimations, in 2019 Gen 10 and larger flat panel display capacity across the world reached 12 million. Besides, the United States is also the powerhouse of the automotive industry. In 2021, the United States Auto Plant produced 6.5 million passenger cars which increased by 4% as compared to 2020. Future expansion in the automotive industry in this region is expected to fuel the market in North America.
Europe Market Forecast
On the other hand, the market in Europe is also anticipated to grow significantly in the forecast period. The cosmetic industry in Europe is driving the growth of the acetone market. As more & more people get aware of their skin problems, makeup, and skincare. People are ending up spending on skincare, personal care, and makeup products which boosts the acetone market in the region. Besides, the cosmetic industry, there is high demand for the painting and coating industry in Europe which is also driving the growth of this market.
APAC Market Statistics
The market in the Asia Pacific region is anticipated to hold the second-largest market share in the forecast period. This can be attributed owing to the great demand for the pharmaceutical, cosmetic, personal care, and automotive industry in this region, especially from countries including China, Japan, and India. China is the biggest consumer of acetone due to the fact China has the largest pharmaceutical and automotive market and this product consumption is more in China as compared to other countries.
ALTIVIA Ketones & Additives, LLC, completed Dow’s Acetone Derivatives Business Acquisition and associated chemical manufacturing assets at Institute, West Virginia, as well as the Institute Industrial Park.
Formosa Chemicals and Fibre Corp. has successfully accepted Lummus Technology's application to build the company's expanded cumene and phenol plant in Ningbo, China. An existing 450 kMTA cumene and 300 kMTA phenol factory underwent an expansion, increasing its capacity to 600 kMTA cumene and 400 kMTA phenol.
Author Credits: Smruti Ranjan, Rajrani Baghel
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