Global sales of acetone stood at USD 6,955.1 million in 2023. It is further projected to exhibit a Y-O-Y growth of 5.2% in 2024 and reach USD 7,314.2 million in the same year. It is anticipated to surge at a CAGR of 6.3% between 2024 and 2034, and will likely reach USD 13,521.8 million by 2034.
Acetone or dimethyl ketone is projected to command a significant share due to its extensive use as a solvent in paints, coatings, and adhesives. Its significant role in producing methyl methacrylate and bisphenol A is another factor bolstering demand.
Among grades, the < 99.5% segment is set to remain at the forefront backed by its exponential use in paints and coatings, printing ink, rubber processing, agricultural chemicals, adhesives, and cosmetics and personal care industries. As of 2024, the segment holds a prominent share of about 69.4% in terms of volume.
| Attributes | Description |
|---|---|
| Estimated Global Acetone Market Size (2024E) | USD 7,314.2 million |
| Projected Global Acetone Market Value (2034F) | USD 13,521.8 million |
| Value-based CAGR (2024 to 2034) | 6.3% |
By 2034, demand for acetone is projected to increase by 1.9 times from the current value. This surge in consumption is mainly attributed to increasing demand from various industries worldwide. The organic compound is anticipated to become more widely used in manufacturing processes, especially as a solvent in chemicals and pharmaceuticals.
As of 2024, the solvent application segment is likely to generate more than 35% of the total demand. This growth is backed by several macroeconomic factors, such as rising construction activities and the booming automotive industry globally.
High demand for innovative pharmaceuticals and adhesives will likely fuel sales of this organic compound as it is an all-purpose solvent. These trends particularly underline the importance of dimethyl ketone in a number of industrial uses and commercial applications.
Due to its superior solvent properties, dimethyl ketone is projected to be immensely utilized in the production of paints and coatings. It aids in dissolving and facilitating the mixing of multiple components while boosting ease of application and drying speeds, thereby augmenting sales.
Through its high evaporation rate, dimethyl ketone enables fast-track drying times, a critical factor required in industrial operations and commercial painting facilities. These facilities are often equipped with heavy machinery.
The organic compound is set to be extensively utilized to clean the machines thoroughly to prevent residues of dust and paint from building up. The demand for acetone is also projected to be pushed by the increasing need for high-quality paints and coatings in the construction and automotive industries to maintain durability and aesthetic appeal.
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The annual growth rates of the global acetone market from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2). It gives stakeholders a comprehensive picture of the performance over time and insights into potential future developments.
The figures provided show the growth for each half-year between 2023 and 2024. The market was projected to rise at a CAGR of 4.8% in the first half (H1) of 2023. The second half (H2) had a noticeable surge of 5% CAGR.
| Particular | Value CAGR |
|---|---|
| H1 | 4.8% (2023 to 2033) |
| H2 | 5% (2023 to 2033) |
| H1 | 5.1% (2024 to 2034) |
| H2 | 5.3% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly increase to 5.1% in the first half and relatively broaden to 5.3% in the second half. In the first half (H1), there was a surge of 30 BPS while in the second half (H2), there was a slight increase of 30 BPS.
Pharmaceutical Industry Augments Demand with Requirement for Solvents
The pharmaceutical industry is booming due to increasing healthcare requirements backed by the growing prevalence of chronic diseases and ongoing drug development activities. This will likely influence demand as the organic compound is widely used as a solvent in pharmaceutical manufacturing.
Drug manufacturing processes like formulation, extraction, and purification often require the organic compound. Its capability of dissolving a wide range of solutes helps produce pharmaceutical products with high quality. This further leads to efficient and stable therapeutic applications.
Strict regulatory standards and requirements for efficient, high-purity solvents in pharmaceutical production are also estimated to contribute to growth. With increasing innovation and the developing pharmaceutical industry, demand for reliable solvents like dimethyl ketone is projected to increase through 2034.
Increasing Use of Nail Care Products to Create Growth Avenues
Increasing consumer awareness of personal grooming is leading to the rising consumption of dimethyl ketone. The chemical serves as an efficient solvent and is projected to be utilized in the production of nail care and cosmetic products.
Growing beauty and personal care industry on a global scale is set to augment the production of nail polish removers, fragrances, bath products, skin care products, and cleansing items, bolstering demand for dimethyl ketone. Individuals are more likely to change their nail polish frequently due to the rapidly evolving fashion trends and the influence of social media. This is projected to further boost sales in the forecast period.
Development of new dimethyl ketone formulations that are not harsh on the skin and nails is anticipated to attract modern health-conscious consumers. This rise in consumer awareness and usage of personal care products is set to boost growth.
High Demand for Methyl Methacrylate in Construction Projects is a Key Trend
Robust growth in the construction and automotive industries is anticipated to bolster the need for methyl methacrylate (MMA). In the construction industry, MMA is mainly utilized for producing long-lasting, weather-resistant materials, such as acrylic sheets and coatings.
It is highly preferred due to its enhanced aesthetic appeal and endurance trait, which is a prerequisite to any contemporary construction project. The rapid pace of infrastructure development activities is further estimated to foster the requirement for these high-performance materials.
In the automotive industry, methyl methacrylate plays an essential role in producing lightweight components, such as automobile windows, light covers, and interior parts that are resistant to breakage. Increasing demand for fuel-efficient vehicles along with technological strides witnessed by electric vehicle manufacturers has resulted in surging demand for methyl methacrylate-based products.
Methyl methacrylate in adhesives and coatings improves vehicle performance and aesthetics. With both segments developing new technologies, demand for methyl methacrylate is predicted to increase substantially.
Key Companies Adopt Bio-based Feedstock to Lower Environmental Impact
The conventional production process of acetone is based on the utilization of fossil fuels as petroleum-based feedstock depleted finite resources. It also emits greenhouse gases into the atmosphere and exacerbates climate change. The environmental load originating from fossil fuel extraction and processing brings about serious concerns related to sustainability.
Governments of different countries worldwide are imposing stringent regulations with respect to the environment and climate change. They are striving to minimize ecological footprints resulting from industry-related activities.
Dimethyl ketone producers are anticipated to face new challenges that involve adaptation to those regulations. These include reduced targets for emissions, strict standards of waste management, or the need for sustainable methods of production.
To address these environmental challenges, key producers are exploring alternative, sustainable methods of production. A few promising approaches involve utilizing bio-based feedstock, such as agricultural residues or waste streams and employing innovative, energy-efficient processes to reduce both resource consumption and emissions. These help in aligning with the evolving landscape of eco-friendly industrial practices.
Health and Safety Risks Associated with Dimethyl Ketone Production Hinder Sales
Acetone poses health and safety risks during production and handling, thereby impacting growth. It is highly flammable and might lead to several health hazards, such as respiratory issues and skin irritation.
Governing bodies across the globe have hence imposed strict regulations for the production and handling of this organic compound, leading to high costs for manufacturers. Expensive nature associated with the implementation of safety measures, coupled with concerns regarding environmental pollution due to emissions from industrial processes is inhibiting growth.
Principal Consultant
The global acetone industry recorded a CAGR of 3.4% during the historical period between 2019 and 2023. The growth was positive as it reached a value of USD 6,955.1 million in 2023 from USD 6,090.4 million in 2019.
The industry experienced significant fluctuations due to economic qualms during the historical period. The global economy encountered several challenges, such as trade disputes, currency fluctuations, and geopolitical conflicts impacting industries dependent on these compounds.
The COVID-19 pandemic disrupted global supply chains and industrial activities, causing a temporary downturn in the industry. This resulted in delays and decreased the manufacturing capacity. Lockdowns and restrictions impacted transportation and logistics, making it difficult to maintain regular supply and distribution channels.
Decreased industrial activities and demand fluctuations in key end-use industries, such as automotive, construction, and paints and coatings made the situation more challenging for the dimethyl ketone market participants. The industry is anticipated to reach a value of USD 6,955.1 million by 2024. It is further expected to grow at a CAGR of 6.3% to reach USD 13,521.8 million by 2034.
The industry demonstrated resilient growth in the post-COVID-19 period with a slow but steady recovery owing to the easing lockdown restrictions globally. The supply chains are being incorporated with new changes as part of the new normal.
Once economic activity reaches pre-crisis levels, industrial activity is expected to reach its trend performance after a delay of 3 years, growing steadily for the next 4 years before coming to a stable position in the later period of 2030. The acetone demand pattern is anticipated to reflect the same trend during this period.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1,000 to 1,200 million. These companies capture a significant global share ranging from 58% to 61%. These frontrunners are generally characterized by high production capacity and a wide product portfolio.
Tier 1 organizations are distinguished by extensive expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base. These businesses provide a wide range of products and deploy the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Ineos Phenol, Royal Dutch Shell PLC, Formos, Chemical and Fibre Corporation, Mitsubishi Chemical Corporation, ExxonMobil Chemical Company, and BASF.
Tier 2 companies encompass mid-sized participants, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
Businesses in Tier 2 possess strong technological capabilities and strictly adhere to regulatory requirements. These firms, however, may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Barentz, Gulf Chemical International Corp., Sumitomo Chemical Co., Ltd, Titan Chemicals Corporation Ltd., and Wacker Chemie AG.
Tier 3 comprises a huge amount of small-scale enterprises operating within the regional sphere and catering to specialized needs. These enterprises have revenues below USD 50 million to 100 million. They are focused on meeting local demands and are therefore categorized within the Tier 3 segment.
Companies in Tier 3 are prominently small-scale participants with a limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by lack of extensive organization and formal structure in comparison to the structured organizations in Tier 1 and Tier 2. Renowned companies in Tier 3 include EMCO Limited, and Reda Chemicals India Pvt Ltd.
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The section provides businesses with an overview of the industry. It consists of a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination is projected to assist organizations in understanding the complex nature of the business.
China is estimated to emerge as a dominating country during the forecast period with a projected CAGR of 8.3% through 2034. South Korea, Japan, and Brazil are likely to follow to become the prominent countries with projected CAGRs of 7.3%, 6.8%, and 6.7%, respectively.
| Country | Value CAGR (2024 to 2034) |
|---|---|
| China | 8.3% |
| South Korea | 7.3% |
| Japan | 6.8% |
| Brazil | 6.7% |
| United States | 5.8% |
Sales of dimethyl ketone in China are projected to surge at a CAGR of 8.3% during the forecast period. The country is expected to reach USD 4,820.3 million by 2034 owing to thriving construction and infrastructure industries.
The country’s increasing number of infrastructure projects, including residential, commercial, and industrial units have resulted in a massive requirement for paints and coatings. Dimethyl ketone is a crucial component in paints and coatings.
The compound is used as a solvent aiding paint formulations to ensure their proper mixing and application. It also facilitates quick drying and enhances the finish of coatings.
China’s automotive and electronics industries use acetone in paint formulations and surface treatments to improve the durability and appearance of their products. Government investments in infrastructure, housing, and industrial projects are set to fuel demand for paints and coatings during the forecast period.
China is one of the leading manufacturers of electronic goods such as mobile phones, computers, and television sets. Manufacturers are projected to utilize acetone for cleaning these devices during their production.
The acetone market in South Korea is projected to surge at a CAGR of 7.3% during the assessment period. The country is expected to be worth USD 670.5 million by 2034.
South Korea is one of the leading producers and exporters of semiconductors and electronic products across the globe. These industries have a high demand for ultra-pure acetone. The compound is set to be used for surface cleaning and preparation application in the manufacturing process as it removes surface contaminants selectively without leaving any residues.
South Korea’s high-tech industry heavily relies on innovation and superior technologies. This dependency is resulting in an increasing demand for high-quality solvents, such as acetone. Increased research and development investments coupled with a robust electronics industry contribute toward a stable demand in the country.
Acetone is also utilized in other high-tech processes, such as the manufacturing of special materials and machines, further augmenting sales of the compound. The robust technological base along with continuous progression in electronics has assisted in securing a steady demand and increasing consumption of the compound, pushing its requirement in South Korea.
Japan’s acetone industry is predicted to rise steadily at a CAGR of 6.8% during the forecast period, attaining a value of USD 940.3 million by 2034. High demand for the compound is associated with the presence of a well-established and developed pharmaceutical industry in the country.
In the pharmaceutical industry, the compound is set to be used for formulation, extraction, and purification processes. As a solvent, it will likely play a crucial role in the production of high-quality medicines as it assists in dissolving and separating active pharmaceutical ingredients.
Research and development activities coupled with the stringent regulatory framework facilitate the utilization of dimethyl ketone for pharmaceutical applications. The compound helps the country’s robust, dominating, and innovative pharmaceutical industry to maintain efficacy and safety during the drug manufacturing process.
Japan’s focus on healthcare and the manufacturing of prescription as well as non-prescription drugs is another factor fueling demand for dimethyl ketone. The presence of large pharmaceutical companies and a strong healthcare infrastructure is further creating a stable acetone market in Japan.
The section provides businesses with insightful data and analysis of the two leading segments. Segmentation of these categories assists organizations to understand the dynamics and invest in the beneficial zones.
Solvent is set to lead the application segment with a value share of 36.2% in 2024. The chemicals segment is projected to dominate in terms of the end-use category with a value share of 68.4% in the same year.
| Segment | Solvent (Application) |
|---|---|
| Value Share (2024) | 36.2% |
The solvent segment is predicted to witness a decent CAGR of 7.1% during the assessment period. This growth is set to be driven by the increasing demand for reliable solvents across various industries, including paints and coatings, adhesives, and pharmaceuticals.
Expansion and modernization of industries, particularly manufacturing, construction, and healthcare, are estimated to raise the need for effective solvents like acetone. The rising emphasis on high-performance materials and the continuous development of new applications for acetone as a solvent further contribute to this robust demand.
| Segment | Chemicals (End-use) |
|---|---|
| Value Share (2024) | 68.4% |
The chemical segment is poised for significant growth over the forecast period with a projected value share of 68.4% in 2024. This dominance is attributed to the compound’s extensive use in producing various chemical intermediates, such as bisphenol A (BPA), methyl methacrylate (MMA), and methyl isobutyl ketone (MIBK). These intermediates are crucial in the manufacturing of plastics, resins, and other high-performance materials that are widely used in the automotive, construction, and electronics industries.
Growing demand for durable and lightweight materials is boosted by technological innovations and consumer preferences, further propelling the need for dimethyl ketone in chemical firms. The compound’s role as a solvent in numerous industrial processes enhances its worth in the chemical industry.
Expansion of the industry is also supported by increasing industrial activities and rising investments in research and development activities. The chemical segment, as a result, remains a critical growth driver for the expansion and evolution of the market.
The global acetone market is fragmented with the presence of several leading and small-scale companies. Key companies are focusing on investing huge sums in research and development activities to broaden their existing product offerings. They are also engaging in partnerships with mid-sized players, acquisitions and mergers, and new agreements. They need to provide cost-effective products to gain a competitive advantage worldwide.
A few manufacturers are striving to reduce operating costs by producing the chemical locally. Industry giants like LG Chem Ltd, Honeywell International Inc., Shell Chemical Co, Mitsui Chemicals Inc., BASF, and Dow Chemical Company are focusing on surging profits by funding innovations. They are also investing in the development of state-of-the-art production facilities, especially in emerging economies due to the easy access to low-cost labor and raw material.
Industry Updates
In terms of grade, the industry is divided into ≥ 99.5% and < 99.5%.
Solvent, methyl methacrylate, bisphenol A, and methyl isobutyl ketone are a few applications of dimethyl ketone.
The compound is significantly used in chemicals, pharmaceuticals, and cosmetics and personal care industries. The chemical segment is further divided into agricultural chemicals, paints and coatings, rubber processing, polymer and resin processing, adhesives, and printing ink.
The sector is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.
The global market was valued at USD 6,955.1 million in 2023
The global market is set to reach USD 7,314.2 million in 2024
The global demand is anticipated to rise at a CAGR of 6.3% through 2034
The industry is projected to reach USD 13,521.8 million by 2034
It is used as a nail polish remover, degummer for textile, and automotive lacquer
Vizag Chemical is the leading manufacturer based in Visakhapatnam, India
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Grade
6.2. Application
6.3. End-Use
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Grade
7.1. ≥ 99.5%
7.2. < 99.5%
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
8.1. Solvent
8.2. Methyl Methacrylate
8.3. Bisphenol A
8.4. Methyl Isobutyl Ketone
8.5. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-Use
9.1. Chemicals
9.1.1. Agricultural Chemicals
9.1.2. Paints & Coatings
9.1.3. Rubber Processing
9.1.4. Polymer & Resin Processing
9.1.5. Adhesives
9.1.6. Printing Ink
9.2. Pharmaceuticals
9.3. Cosmetics & Personal Care
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. Eastern Europe
10.5. East Asia
10.6. South Asia Pacific
10.7. Middle East & Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. South Asia Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Grade, Application, and End-Use for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Ineos Phenol
20.2. Royal Dutch Shell PLC
20.3. Formosa Chemical and Fibre Corporation
20.4. Mitsubishi Chemical Corporation
20.5. ExxonMobil Chemical Company
20.6. Chevron Phillips Chemical
20.7. BASF
20.8. LyondellBasell
20.9. Cepsa Quimica
20.10. Altivia chemicals
20.11. Sasol Ltd.
20.12. The Dow Chemical Company
20.13. Domo Chemicals GmbH
20.14. SABIC
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Acetone Market
