Acetic Acid Market Analysis: Industry Market Size, Plant Capacity, Production, Operating Efficiency, Demand & Supply, End-User Industries, Sales Channel, Regional Demand, Company Share, Foreign Trade, Manufacturing Process, Policy and Regulatory Landscape, 2015-2034

H1 2023: The major market players in terms of producing acetic acid in H1 2023 were Celanese Corporation, Yankuang Cathay Coal Chemical Co. Ltd, and Jiangsu Sopo Group Co., Ltd. In May 2023, Celanese Corporation, one of the renowned chemical producers of USA, announced successful completion of their new 1.3 million tonnes acetic acid production unit located in Clear Lake, Texas. It's anticipated that the commissioning and startup procedures will be finished in the third quarter of 2023. Regionally, Asia Pacific region was the leading consumer of acetic acid in H1 2023. However, Acetic acid prices fluctuated in the Asian market. Prices climbed dramatically after the end of the Lunar New Year holidays in China and the market reopened with the operating rates for acetic acid production fastened in China. The demand pressure on the availability of acetic acid has increased as a result of the significant improvement in consumption from downstream chemical industries like Vinyl Acetate Monomer (VAM), Acetic Anhydride, and Acetates. Although, in the beginning of March 2023, due to decline in demand from VAM and acetate sector, acetic acid prices fell in China. In the US market, prices for acetic acid declined in January 2023 as a result of weak offtakes brought on by slow downstream demand. Nevertheless, market sentiment improved in February 2023 as demand climbed by the VAM and other downstream derivatives market. In March 2023, the chemical sector's subpar performance in the US amid the banking crisis resulted in acetic acid market's sluggishness.

H1 2022: During H1 2022, the total production had reached nearly 7.3 million tonnes. The key market players in terms of production were Celanese Corporation, Jiangsu Sopo Group Co., Ltd, Yankuang Cathay Coal Chemical Co. Ltd, and Eastman Chemical Company. In H1 2022, Celanese Corporation held more than 15% of the market share in H1 2022. However, Celanese Corporation declared a force majeure in western part of the globe on acetic acid and other acetic acid-based products. The major cause behind the force majeure was supply chain issues to procure raw materials. The list of products under the hault included acetic acid, vinyl acetate monomer, Acetic anhydride, Ethyl acetate, and others. Asia Pacific was leading in terms of consuming acetic acid among all the other regions. Imports from China and other Asian nations increased, which led to oversupply on the local market of Asia Pacific region. Additionally, due to sluggish downstream derivative demand in the Asian region and a weak market, acetic acid prices continued to fall.  Increased product accessibility also had an impact on the market for its derivatives, such as ethyl and butyl acetate. However, after May 2022, the prices began to rise across Asia Pacific region. The demand and supply differences were frequently altering due to fluctuations across Asia Pacific region during H1 2022.

H2 2022: In H2 2022, the production rate was about 7.7 million tonnes, which was slightly higher than H1 2022. The end-user industries led to substantial market growth in H2 2022. However, in October 2022, Celanese Corporation confirmed upliftment of the force majeure, which was declared in H1 2022. Furthermore, in Asia Pacific, the prices for acetic acid dramatically decreased as cost pressure subsided and demand from value chains and Vinyl Acetate Monomer (VAM) downstream remained stable. The market in China experienced halts that interfered with trading activities and supply chain dynamics across the globe. However, during autumn 2022, Asia Pacific market witnessed sluggishness due to weak downstream demand and feedstock methanol's low-cost support as upstream crude oil and naphtha prices fell substantially. Based on consumption North America also held considerable market share. Although, North America also witnessed a bullish Acetic Acid market. Due to low feedstock prices and constant demand dynamics, acetic acid prices in the USA market moved downward, especially in the month of September. As the price of feedstock methanol decreased, it resulted in lessened pricing pressure on acetic acid. Meanwhile, significant demand for acetic acid came from downstream Vinyl Acetate Monomer (VAM) and other acetic acid chains. Along with sustained volume intakes from downstream Automotive and other end-use industries, demand for acetates were still moderate despite high inventory levels.

The global Acetic Acid market has swelled to reach demand of approximately 18.5 million tonnes in 2023 and is expected to grow at a CAGR of 4.14% during the forecast period until 2034. 

Acetic acid is a colourless organic compound with a distinctive odor, sour taste, and smell. Acetic acid is produced industrially via two routes which are methanol carbonylation, and ethylene oxidation. Methanol carbonylation is the preferred route for oven ethylene oxidation. Major technology licensors for acetic acid production technologies include British Petroleum, Celanese, Eastman's acetyls technology, and LyondellBasell. Like ethanol, acetic acid is a hydrophilic solvent. It easily mixes with water, chloroform, and hexane and dissolves substances like oils, sulphur, and iodine. Acetic acid is employed as a chemical reagent to produce numerous chemical compounds like acetic anhydride, ester, vinyl acetate monomer (VAM), and several other polymeric materials. Acetic acid is also used to make vinegar which contains 5 percent acetic acid and 95 percent water which finds application in the food & beverage sector in marinades, pickling solutions, and other salad dressings. In order to reduce contamination in meat and poultry products, vinegar can also be added during food preparation.

The primary market driver for the global Acetic Acid market is its usage for the synthesis of Vinyl Acetate Monomer (VAM). VAM is used for the production of vinyl acetate homopolymers, vinyl acetate/ethylene (VAE), ethylene/vinyl acetate (EVA) copolymers, polyvinyl alcohol (PVOH), and ethylene vinyl alcohol (EVOH). These chemicals are further used in various sectors like paints, textiles, wire and cable polyethylene (PE) compounds, layered safety glass, and packaging materials. Growing demand for these chemicals by numerous industries such as plastic and polymer, and food and beverage packaging is expected to drive the demand for acetic acid during the forecast period. Due to its use in the production of pharmaceutical chemicals, such as acetylsalicylic acid (aspirin), and other pharmaceuticals, the pharmaceutical industry is a significant user of acetic anhydride, which further augments the market expansion. The global Acetic Acid market is expected to expand significantly and touch nearly 28.5 million tonnes by 2034.

Based on demand by region, Asia Pacific dominates the global Acetic Acid market. In 2023, Asia Pacific consumed approximately 69% of total Acetic Acid globally produced. This region is anticipated to foresee a market expansion that is linked to the rising demand for acetic acid by polymer and chemical manufacturing which are used in a number of sectors, including textiles, medicines, construction, and automobiles. Asia Pacific also holds the majority production capacity of Acetic Acid with China being the key player. Furthermore, China is the hub of polymers and plastics, and many companies have set up manufacturing plants. However, North America is the second largest consumer of acetic acid followed by Europe. 

Based on the end-user industry, the global Acetic Acid market is segmented into Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Ethyl Acetate, Acetic anhydride, and Others. Although, Vinyl Acetate Monomer (VAM) is the biggest end-user industry in the market. This industry consumed approximately 36% of the market in 2023 and is anticipated to domain the market in the forecast period as well. Vinyl acetate is employed to make polyvinyl acetate, a polymer frequently used in paints, adhesives, plasticizers, and textile finishes. Acetic anhydride is used to manufacture cellulose acetate fibers and other plastics used for photographic film, clothing, and paints & coatings. Purified Terephthalic Acid (PTA), is used to manufacture PET plastic resin, further used in food containers, synthetic fibers, bottles, and plastic films for packaging purposes. 

Major players in the production of Global Acetic Acid are Celanese Corporation, Eastman Chemical Company, LyondellBasell Industries N.V., The Saudi International Petrochemical Company (Sipchem), Yangtze River Acetyls Co. Ltd (YARACO), INEOS PCG ACETYLS SDN BHD (IPASB), Lotte BP Chemical, Gujarat Narmada Valley Fertilizer and Chemicals, Formosa BP Chemicals Corporation, British Petroleum, Formosa BP Chemicals Corporation, Formosa INEOS Chemicals Corporation (FBPCC), EuroChem Group AG, and Others. 

Years considered for this report:

Historical Period: 2015- 2022

Base Year: 2023

Estimated Year: 2024

Forecast Period: 2025-2034

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Objective of the Study: 

• To assess the demand-supply scenario of Acetic Acid which covers production, demand and supply of Acetic Acid market in the globe.

• To analyse and forecast the market size of Acetic Acid 

• To classify and forecast Global Acetic Acid market based on end-use and regional distribution.

• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Acetic Acid market in the globe.

To extract data for Global Acetic Acid market, primary research surveys were conducted with Acetic Acid manufacturers, suppliers, distributors, wholesalers, and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Acetic Acid market over the coming years. 

ChemAnalyst calculated Acetic Acid demand in the globe by analyzing the historical data and demand forecast which was carried out considering the historical extraction and supply and demand of Acetic Acid across the globe. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst. 

Key Target Audience:

• Acetic Acid manufacturers and other stakeholders

• Organizations, forums and alliances related to Acetic Acid distribution

• Government bodies such as regulating authorities and policy makers

• Market research organizations and consulting companies

The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Acetic Acid manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.

Report Scope:

In this report, Global Acetic Acid market has been segmented into following categories, in addition to the industry trends which have also been detailed below: 

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