The global glacial acetic acid market size is expected to reach USD 8801.6 million in 2024. The sector is estimated to grow at a CAGR of 6.5% during the forecast period. The sector is projected to attain a value of USD 16521.8 million by 2034.
Demand for glacial acetic acid is expected to be fueled by the consistent growth of the chemical sector, specifically in Asia Pacific. Acetic acid is set to be essential for the manufacturing of purified terephthalic acid (PTA) in textiles and packaging.
The acid’s potential as a sustainable solvent presents novel opportunities for growth in the market. Companies are continuously investing in research and development activities to optimize production procedures, potentially reduce costs, and make domestic production competitive.
| Attributes | Description |
|---|---|
| Estimated Global Glacial Acetic Acid Market Size (2024E) | USD 8801.6 million |
| Projected Global Glacial Acetic Acid Market Value (2034F) | USD 16521.8 million |
| Value-based CAGR (2024 to 2034) | 6.5% |
Manufacturers are exploring novel and environmentally friendly feedstock to decrease the reliability of conventional procedures, thereby reducing the environmental footprint. The electronics and pharmaceutical sectors are expected to witness an increased demand for high-purity glacial acetic acids.
Governments worldwide are constantly implementing stringent environmental laws. They are also offering incentives to manufacturers for bio-based acetic production.
Growing awareness of environmental issues is highly influencing consumers' purchase decisions. Organizations that can demonstrate the sustainability credentials of glacial acetic acid are likely to attract eco-conscious consumers.
It is crucial for companies to adapt products and marketing strategies to cater to particular requirements and adhere to the regulations of the regional market in emerging economies. Businesses with a regionalized approach are likely to be better positioned to capture a high market share.
The price of glacial acetic acid is set to be influenced by factors, such as energy costs and feedstock prices, resulting in potential market volatility. Stringent environmental regulations can also surge production costs. These are likely to push companies to adopt environmentally friendly practices throughout their production processes, impacting the short-term profitability of the sector.
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Bioplastics Gain Impetus in the Glacial Acetic Acid Industry
Bioplastics provide a sustainable substitute for conventional petroleum-based plastics. These are made from renewable biomass sources such as cellulose, sugarcane, and corn starch.
Glacial acetic acid is an essential solvent involved in the synthesis of cellulose acetate (CA). Its benefits, including biodegradability, adaptability, and good strength facilitate the use of CA in several industries, such as stationery, packaging, and textiles.
Compared to conventional plastics, the production costs of bioplastics can be higher. Widespread biodegradation requires the right industrial composting infrastructure.
The future of cellulose acetate bioplastics relies on research and development, improving sustainability and potentially decreasing costs. Environmental concerns and growing customer demand for sustainable products are likely to drive significant expansion in the bioplastic market, including CA.
Adoption of Circular Economy to Reduce Waste
The glacial acetic acid sector is utilizing a circular economy strategy in hopes of reducing waste and environmental footprint. This entails using few virgin resources, recycling waste acetic acid or byproducts into useful materials, and reusing acetic acid after use.
The benefits of this strategy include decreased environmental impact, low costs, improved sustainability, and new opportunities. The sector, however, has certain obstacles to overcome, such as creating reliable infrastructure and logistics for collecting and transporting used acetic acid. This also includes creating effective and affordable technologies for acetic acid collection, purification, and chemical recycling.
Repurposing byproducts such as methanol, creating methods for solvent recovery, and combining the manufacturing of bio-based acetic acid with waste streams from the conventional sector are a few examples of circular economy techniques. Governments, academic institutions, and business leaders must work together to produce and execute successful circular economy plans.
Price Fluctuations are a Prominent Drawback for Industry Participants
A number of variables, including supply and demand dynamics, manufacturing problems, inventory levels, feedstock costs, and geopolitical considerations, can affect the price of glacial acetic acid. Asia Pacific’s growing demand puts strain on the supply of acetic acid, which is set to result in price hikes. Unexpected plant shutdowns and other production problems can disrupt the supply chain and surge prices.
Price reductions may result from manufacturers competing for buyers due to high inventory levels. The cost of manufacturing can be greatly impacted by changes in natural gas prices. New cost dynamics are projected to be introduced by using alternative feedstock such as bio-based acetic acid.
Trade conflicts and tariffs are anticipated to affect import/export costs and disrupt global supply networks. Businesses in the glacial acetic acid sector are likely to reduce pricing risks by obtaining long-term supply agreements, diversifying regional operations, and utilizing financial instruments like contracts.
The global glacial acetic acid market size was valued at USD 6917 million in 2019. The sector grew at a CAGR of 3.6% from 2019 to 2023. The industry size was USD 8264.4 million in 2023. Continuous expansion of the chemical sector, particularly in Asia Pacific was a key factor driving demand in the glacial acetic acid sector during the historical period.
The period also witnessed a rising demand for packaged and processed food products, which in turn increased the use of vinegar (dilute acetic acid) as a preservative and condiment. The use of acetic acid for several drugs and procedures also steadily increased, owing to the global expansion of the pharmaceutical sector, especially during the COVID-19 pandemic.
The pandemic caused temporary disruptions in the supply chains because of factory closures. It also reduced the demand for glacial acetic acid in several industries due to lockdowns. The demand, however, rebounded after the restrictions eased. It, in fact, exceeded the pre-pandemic demand levels owing to the pent-up requirements and economic recovery.
The glacial acetic acid market forecast anticipates the sector to reach a value of USD 8801.6 million in 2024. It is expected to grow at a CAGR of 6.5% throughout the forecast period to reach a size of USD 16521.8 million by 2034. The post-pandemic period witnessed the continuous expansion of key end-use industries, such as chemicals, pharmaceuticals, and food and beverages.
Continuous research and development activities resulted in emerging applications of glacial acetic acid. Bioplastics utilizing acetic acid as a feedstock are likely to experience significant demand, specifically for bio-based acid. Acetic acid’s potential as a bio-based and biodegradable solvent is likely to create novel markets across several sectors as environmental regulations become stringent.
Principal Consultant
Brand awareness and stability are the two essential traits of Tier 1 organizations. These businesses account for a significant portion of the sector. Tier 1 companies employ modern technologies in their production processes to boost output.
The industry giants have an extensive product portfolio and vast manufacturing facilities spread across several locations. Renowned companies in Tier 1 include Celanese Corporation, BP Chemicals, LyondellBasell Industries, Wacker Chemie AG, and Dow Chemicals.
A large portion of Tier 2 consists of businesses functioning in specific locations. These organizations are renowned in the international market and have a substantial influence on the regional economy.
The players boast an abundance of industrial experience. Prominent businesses in Tier 2 include Eastman Chemical Company, Daicel Corporation, HELM AG, Shandong Hualu-Hengsheng Chemical, and Mitsubishi Chemical Corporation.
A large share of Tier 3 is composed of regionally based medium-to-small-sized firms. These enterprises often lack formalization and are less structured compared to Tier 1 and Tier 2 industry giants.
The limited reach of these companies translates to less competition. Prominent Tier 3 firms include GNFC (Gujarat Narmada Valley Fertilizers & Chemicals), Jiangsu Sopo (Group) Co., Ltd., Kingboard Chemical Holdings, China Petrochemical Development Corporation, and Yankuang Group.
The section below gives businesses an overview of the glacial acetic acid industry. It comprises a detailed analysis of the emerging trends and opportunities in the sector on a country-by-country basis. These country-specific insights into the dynamics of the sector assist organizations with an understanding of the complex nature of the industry.
The examination comprises key factors, potential challenges, and industry forecasts influencing the demand, production, and consumption within each country. This section aims to assist businesses to make informed decisions and develop effective strategies tailored to individual countries.
India is anticipated to emerge as a dominating country in the sector during the forecast period with an anticipated CAGR of 9.7%. China, Spain, and France are expected to follow closely behind India to become the leading countries with projected CAGRs of 7.3%, 4.9%, and 4.6%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 9.7% |
| China | 7.3% |
| Spain | 4.9% |
| France | 4.6% |
| Italy | 4.2% |
India’s thriving economy creates a rising demand for several products that utilize acetic acid. Polyester fibers used in textiles are produced by PTA, a derivative of glacial acetic acid. The food and beverage industry uses vinegar, diluted acetic acid, along with a preservative in food products.
The country’s government actively promotes domestic production with initiatives such as 'Make in India'. Initiatives like these provide a favorable environment for the production of acetic acid, attract investments, and potentially decrease import dependence.
The country offers relatively lower labor costs compared to developed countries. Increasing domestic production capacity leads to potentially lower prices for acetic acid. India is experiencing a rise in the middle class with growing disposable income that fuels demand for consumer goods such as pharmaceuticals, packaged food, and textiles.
All of these are dependent on acetic acid in their manufacturing procedures. The country’s geographic location allows for seamless access to the Southeast Asian industry, another region that has a significant demand for acetic acid.
China has a well-established chemical industry with an extensive history of the production of acetic acid. The country has been a long-serving producer of acetic acid and caters to both domestic and international demand.
The country’s skilled workforce is experienced in the manufacturing processes of glacial acetic acid. Large-scale production enables manufacturers in China to potentially offer competitive pricing on acetic acid compared to other nations.
The country has a developed infrastructure network for transportation and logistics that enables efficient movement of the acid within China and for export. Government subsidies are set to assist in decreasing production costs, thereby positioning the country as a competitive industry for acetic acid across the globe. Navigating the existing regulations is easier for domestic players compared to foreign competitors entering the market.
Stringent environmental regulations in the United States are pushing manufacturers to adopt bio-based acetic acid that lowers the environmental footprint. This shift is likely to create a surging demand for these substitutes.
The widespread availability of shale gas in the country has resulted in the decreasing prices of natural gas. Natural gas being a key feedstock in the production of acetic acid incentivized the increased domestic production in the country, potentially making the United States a competitive market worldwide.
Investments in the infrastructure of the chemical, logistics, and transportation sectors are likely to decrease costs and enhance efficiency linked to the manufacturing and production of acetic acid. This can stimulate the domestic demand for the acid and potentially make the United States export competitive.
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The section below provides businesses with insightful data and analysis of the two leading segments of the target sector. Segmentation of these categories enables investors to understand the dynamics of the sector and to invest in the beneficial zones.
By examining the growth of the acetic acid sector, organizations can obtain a thorough understanding of the trends, opportunities, and challenges present in the field. This analytical data will likely help businesses to navigate the complex business environment and make informed decisions.
In terms of grade, industrial grade is likely to dominate the sector with a value share of 62.7% in 2024. Solvent sector is emerging as the leading end-use with a value share of 28.4% in the same year.
| Segment | Industrial Grade (Grade) |
|---|---|
| Value Share (2024) | 62.7% |
Industrial grade products are typically low priced compared to pharmaceutical or food grade products. This makes industrial grade goods appealing to manufacturers, particularly in large-scale applications with less stringent purity requirements.
Glacial acetic acids of industrial grade have applications in several industries. Various products from the chemical sector rely on the production of VAM and PTA. Industrial grade acetic acids assist in the dyeing and finishing processes of textiles. The acts as a solvent in paints and coatings and assists in regulating pH levels.
Industrial grade glacial acetic acid may not be as pure as pharmaceutical or food grade acid, but it meets the purity requirements of several industries, enabling companies to achieve their desired results without having to pay additional amounts for refined grade products.
Emerging economies experiencing rapid urbanization and industrialization are set to push demand for industrial grade glacial acetic acids, strengthening the segment’s position in terms of grade type.
| Segment | Solvent (End-use) |
|---|---|
| Value Share (2024) | 28.4% |
Glacial acetic acid is an effective solvent for various materials. It is used to dissolve resins and pigments in the paint and coating sector to ensure adequate adhesion and film formation.
It assists in creating sturdy bonds by dissolving components and facilitating sufficient bonding. Solvents are set to be used as a method to purify materials and extract valuable compounds in pharmaceutical manufacturing. Conventional solvents have several environmental risks.
Glacial acetic acid is a sustainable substitute in various applications, owing to its biodegradability and low vapor pressure. It is a cost-effective option in various solvent applications, considering its high versatility and potential for waste reduction.
Steadily expanding industries are driving demand for glacial acetic acid as a solvent. Innovation in technology for glacial acetic acid, including novel formulations and application methods is expected to bolster its use in solvent applications.
Key industry players in the glacial acetic acid market include BASF SE, Eastman Chemical Company, Celanese Corporation, Hawkins, Inc., Sinopec, and Reliance Industries Ltd. Innovations of new applications and production methods are key aspects of staying competitive in the sector.
Manufacturers are researching substitute feedstocks and efficient manufacturing procedures to decrease costs and the environmental impact of acid production. They are focusing on end-use industries that have an increasing demand for glacial acetic acid. This enables them to meet specialized client requirements and establish a strong foothold in these sectors.
Stringent environmental regulations and consumer demand are pushing the adoption of greener practices in the sector. Industry giants are investing in eco-friendly production and bio-based acetic acid to decrease their environmental impact.
Large companies are heavily investing in novel technologies to manufacture high-purity glacial acetic acid for applications in electronics and pharmaceuticals to cater to the expanding demand for premium quality products in these sectors.
They are also creating and marketing branded glacial acetic acid products having particular functionalities and environmental benefits to create brand loyalty and command premium pricing. They are offering customized solutions, technical support, and dependable supply chains to build robust consumer relationships.
Leading companies are acquiring smaller enterprises to expand their production capacity and reach. They are focusing on high-growth areas including Southeast Asia and Asia Pacific owing to their rapidly expanding economies. Nations in these countries have a rising demand for acetic acid in several industries.
A Few Key Players in the Industry
Based on grade, the sector is divided into food grade, industrial grade, and pharmaceutical grade.
Glacial acetic acids have applications in food additives, solvents, photographic chemicals, paints and coatings, textiles, cosmetics, and pharmaceutical intermediates.
The sector is spread across North America, Latin America, Western Europe, South Asia, East Asia, Eastern Europe, and the Middle East and Africa.
The sector is estimated to reach USD 8801.6 million in 2024.
The sector is set to reach USD 16521.8 million by 2034.
BASF SE, Eastman Chemical Company, and Celanese Corporation.
India is projected to lead with a CAGR of 9.7% through 2034.
The sector is projected to grow at a CAGR of 6.5%.
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. End Use Application
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Grade
7.1. Food Grade
7.2. Industrial Grade
7.3. Pharmaceutical Grade
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
8.1. Food Additive
8.2. Solvent
8.3. Photographic Chemical
8.4. Paints and Coating
8.5. Textile
8.6. Cosmetics
8.7. Pharmaceutical Intermediate
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. South Asia
9.5. East Asia
9.6. Eastern Europe
9.7. Middle East and Africa
10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Sales Forecast 2024 to 2034 by Grade and End Use for 30 Countries
18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. BASF SE
19.2. Eastman Chemical Company
19.3. Celanese Corporation
19.4. Hawkins, Inc.
19.5. Sinopec
19.6. Reliance Industries Ltd.
19.7. Spectrum Chemical Mfg. Corp.
19.8. MP Biomedicals
19.9. Jubilant Life Sciences
19.10. KH Chemicals
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Glacial Acetic Acid Market
