The anticipated trajectory of the global acetic acid market suggests a lucrative expansion, with projections pointing towards reaching a valuation of USD 13.79 billion by 2027, showcasing a robust Compound Annual Growth Rate (CAGR) of 8.4% during the forecast period. This growth momentum is primarily attributed to the escalating utilization of solvents such as Vinyl Acetate Monomer (VAM) within the chemical sector, particularly in applications like paints & coatings, adhesives & sealants. Fortune Business Insights underscores this optimistic outlook in their report titled “Acetic Acid Market Size, Share & Industry Analysis, By Application (Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Ester Solvents, Acetic Anhydride, Others), and Geography Forecast, 2020-2027.” Notably, the market size marked USD 8.34 billion in 2019.
Market Momentum:
Enhanced Polymer Innovations Drive Market Growth
The continual advancements in polymer technology, particularly those derived from VAM, are poised to propel market expansion significantly. The burgeoning demand for VAM in crafting ethylene vinyl alcohol (EVOH), a pivotal barrier resin utilized in food packaging, gasoline tanks, and various engineering polymers, promises favorable market outcomes. Moreover, VAM derivatives like vinyl chloride-vinyl acetate copolymers find extensive applications in adhesives & sealants, further fortifying market dynamics. Additionally, the adhesive properties of VAM on diverse substrates such as wood, paper, metals, and plastic films accentuate its utility across various industries.
Pandemic Impacts:
Market Dampened by Production Constraints Amidst COVID-19
The onset of the COVID-19 pandemic has cast a shadow over market dynamics, primarily due to disrupted chemical production activities. Factory closures stemming from labor shortages and disrupted raw material supply chains have exerted downward pressure on market growth. However, the upsurge in demand for ethanoic acid alongside heightened consumption of sanitizers offers a ray of hope for market recovery amidst the pandemic. Furthermore, increased emphasis on health and safety protocols within healthcare settings is expected to bolster market prospects in the foreseeable future.
Regional Insights:
Asia Pacific Emerges as Key Market Hub with Focus on Polymer Investments
Asia Pacific emerges as a pivotal market stronghold, attributed to escalating investments in polymer formulations across the region. Countries like Japan, China, and India serve as key epicenters for polymer production, with China spearheading the charge owing to its robust manufacturing capacity. Notably, China's substantial capacity contributes significantly to global ethanoic acid production. The burgeoning construction sector in India further augments market growth prospects in the region. Meanwhile, Europe is poised to maintain a significant market share, buoyed by escalating demand from various end-use sectors. Importantly, robust production capabilities in methanol carbonylation, predominantly led by German producer Wacker, promise ample growth opportunities within the region.
Source:
https://www.fortunebusinessinsights.com/acetic-acid-market-103386
