Acetic acid (CH3COOH), also known as ethanoic acid or methane carboxylic acid, is a colorless organic compound with an intense, harsh, and sour odor. It is a significant chemical reagent and industrial chemical utilized in the production of volatile organic esters like ethyl and butyl acetates, vinyl acetate, cellulose acetate, and metal acetates.

The increasing usage of acetic acid in the production of terephthalic acid is expected to drive market growth over the forecast period. Terephthalic acid is an important building component used in manufacturing polyester resins, which are extensively used in polyester films, PET resins, and polyester fibers. Terephthalic acid is also utilized to make textiles such as bed sheets, garments, curtains, and home furnishings.

The global acetic acid market was worth USD 20.6 billion in 2021 and is expected to increase at a compound annual growth rate (CAGR) of 4.9% between 2022 and 2030.

The Rising Demand for Acetic Acid

The rapid boom is associated with its use as a building block in the manufacture of different chemicals, in addition to its utility in a variety of industries like plastic, rubber, ink, and textile. Global expansion in end-use sectors such as plastics, textiles, and chemicals is likely to fuel demand for the product in the coming years. Furthermore, the replacement of PET bottles for glass bottles for alcoholic beverages is expected to stimulate demand for terephthalic acid, favorably influencing the product market throughout the projected years. Moreover, the existence of multinational companies and their ongoing activities for product extension and joint ventures are projected to enhance market growth throughout the forecasted years.

The product is recognized as safe to be used in foods when it is used with better manufacturing methods and in "food-grade" quality. It is labeled "food-grade" if it passes the criteria of the Food Chemicals Codex. The product is expected to increase significantly throughout the projection year due to rising food demand and its safety.

The global acetic acid market is extremely competitive due to the existence of numerous multinational firms engaged in considerable R&D activities and willing to take steps for market expansion, collaborations, and joint ventures to acquire a competitive edge. As a result, the competition will be high in the acetic acid market throughout the projected period.

Types of Applications

In 2021, the vinyl acetate monomer application segment held 44.5% of the market. Its large percentage is due to rising demand for paints and coatings, paper coatings, and printed goods, all of which drive demand for vinyl acetate monomer. Acetic acid is a key raw material used in the manufacturing of vinyl acetate monomer, which is then employed to make polyvinyl acetate. Polyvinyl acetate is also utilized in the production of paints and coatings. Advances in consumer lifestyles, as well as an increase in home renovations and redecorating, are boosting the demand for paints and coatings, which has a direct impact on demand for vinyl acetate monomer.

Acetic anhydride held the second biggest global share in 2021, accounting for around 19% share. This expansion can be due to its widespread use in photographic films and other coated materials. It is also utilized in the production of cigarette filters. It is regarded as an important raw material in the production of pharmaceuticals like aspirin, which is used to alleviate headaches. Acetic acid is commonly utilized for the preservation of wood.

Acetate esters are derived from acetic acid and are widely used in the production of paints, coatings, and printing inks. Consumers' growing desire to improve the beauty of their homes is impacting global demand for paint and coatings. Due to rising car sales, the automotive industry is also driving up demand for paints. This has a direct impact on global demand for acetate esters.

Purified terephthalic acid is commonly used in the production of polyester coatings for general metal applications, household appliances, cars, and coil coatings. It is  in high demand due to factors like chemical and stain resistance, high weather capability, superior glass transition balancing, and adequate temperature ranges for better flexibility.

Ethyl acetate is a diluent and solvent that is formed by the ester of ethanol and acetic acid. Since it has low toxicity and less expensive, it is a highly popular chemical. Ethyl acetate, which ethanol produces, is used in paints and perfumes that evaporate swiftly and leave a scent on the skin.

Primary Market Drivers

• The textile industry is expanding rapidly: Acetic acid, commonly called as ethanoic acid, is used to produce vinyl acetate and metal acetate, which are then processed into chemical reagents for textiles, photographic films, paints, and volatile organic esters. Acetic acid is a typical element used in the textile industry for printing and dyeing. The  US Department of Commerce states that from January to September 2021, clothing shipments soared by 28.94% to US$4.385 billion, whereas textile mill exports grew by 17.31% to US$12.365 billion. Vinyl acetate monomer is used in the textile industry to make synthetic fibers.
• The use of vinegar in the food industry has surged: Demand for food products has increased due to growing population and the adoption of a sustainable and healthy diet, which has increased global food production. Globally vegetable production surged by 65% from 2000 to 1128 million tonnes, while fruit production increased by 54% to 883 million tonnes. Acetic acid is commonly employed in the production of vinegar, which is a popular element in foods and personal care products. Vinegar is used in pickling processes, marinades, and salad dressings. It also reduces the potential of salmonella contamination in meat and poultry products. Food preservation is another application for acetic acid and sodium salts.

Regional Insights

• In 2021, Asia Pacific led the market with a revenue share of 48.8%. This increase is because of the rising demand of acetic acid in industries like construction, medicines, automotive, and textiles. The evolution of the region's pharmaceuticals industry contributes to the increase in demand for the product. Acetic acid is widely utilized in the pharmaceutical industry. Consumers' dependence on pharmaceutical tablets is projected to drive the total demand for the product in the area.
• In 2020, Asia Pacific was a major player in the global vinyl acetate monomer market. Additionally, the increasing building and construction sectors, notably in India and China, are expected to contribute significantly to the region's market throughout the projected period. The improving pharmaceutical sector and higher demand for pharmaceuticals in countries such as Saudi Arabia, Qatar, the United Arab Emirates, and Bahrain are expected to boost demand for acetic acid throughout the Middle East and Africa. The existence of a considerable number of individuals suffering from diabetes, cardiovascular disease, and aging-related illnesses. Increasing life expectancy is raising demand for acetic acid in the region's pharmaceutical sector.
• The high demand for acetic acid in the food and beverage industry drives the market in North America. Acetic acid is commonly used in the meat sector to preserve it. The use of acetic acid in the meat sector has increased dramatically and has become one of the region's most important application markets. Another factor driving up demand for acetic acid in the area is growing usage of paints and coatings.

Major Players of the Acetic Market

With the existence of several global competitors, the industry has become extremely competitive. These organizations are investing in partnership projects in order to increase their product portfolio and quality. Here are some of the major players Gujarat Narmada Valley Fertilizers & Chemicals Limited, Celanese Corporation, Dow Chemicals Company, INEOS Group, Pentoky Organy India Limited, and many more.

Author's Detail:
Surabhi Bhaiyya, LinkedIn
Senior Research Analyst at Cognitive Market Research
Surabhi Bhaiyya is an experienced market researcher focused on the Pharma & Healthcare industry. With over 7+ years of experience, She has worked with major pharmaceutical companies and healthcare providers, helping them to understand market trends, identify new business opportunities, and develop effective sales & marketing strategies. Her expertise lies in the ability to analyze complex data sets and deliver insights that drive business decisions. At Cognitive Market Research, she handles the market research related to Pharma and healthcare industry. To get in touch and access the above report book an apointment at https://calendly.com/speak-to-analyst.