H2 2023: During H2 2023, in the Asia Pacific region, Acetone prices faced a mixed scenario. In the third quarter of 2023, the Acetone market in the APAC region witnessed a significant price surge driven by strong demand from downstream derivatives. South Korea experienced a notable uptick in upstream Benzene prices influenced by the rising crude oil prices, leading to heightened cost pressure on aromatics. Concurrently, robust demand from downstream sectors, particularly for Bisphenol A, coupled with active procurement, contributed to increased production levels and ample inventory both domestically and at ports. While demand from the end-user solvent industry remained stable, there was a substantial surge in demand for Bisphenol A, exerting upward pressure on Acetone prices. The steady rise in upstream Benzene prices reflected the intricate balance between supply and demand dynamics in the Acetone market during the third quarter of 2023. Moving into the fourth quarter of 2023, the APAC Acetone market experienced a bearish trend characterized by reduced demand from downstream industries. The conclusion of the quarter saw decreased production rates and a pessimistic demand outlook, contributing to a decline in Acetone prices. In Japan, the demand forecast for downstream sectors, including bisphenol, remained hazy during Q4 2023.
H1 2023: In the beginning of April 2023, acetone prices experienced an upward movement. This was influenced by factors such as supply chain constraints, increased quotation rates from importing countries, and healthy demand for acetone from the downstream MMA and Bisphenol industries. However, from mid-April onwards, the acetone market entered a bearish trend throughout the second quarter, marking a significant decline, particularly in May. The decline was attributed to increased supply chain activities during the Labor Day holidays, resulting in elevated domestic inventory levels. This was further compounded by resumed plant operations in Northeast China, leading to sluggish product orders from downstream industries. Additionally, the contraction of feedstock propylene and benzene prices, along with reduced production cost contributed to the easing up of the acetone prices. The overall sentiment in the Asia-Pacific region remained largely bearish in Q2 2023.
The Asia Pacific (APAC) Acetone market demand stood at 4950 thousand tonnes in 2023 and is expected to grow at a CAGR of 4.45% during the forecast period until 2034.
Acetone, known for volatile properties with the chemical formula C3H6O, is a versatile compound widely used in various sectors. Acetone is derived as a by-product of Phenol. The manufacturing process involves the alkylation of benzene with propylene to generate cumene, which, through an air oxidation reaction, produces both phenol and acetone. Possessing notable miscibility with water, acetone serves as a significant organic solvent in industrial environments. Its diverse applications encompass industries such as cosmetics, personal care, paints, coatings, and the automotive sector. Acetone's efficacy as a solvent extends to acting as a cross-linking agent playing a role in polyester resin cleaning. Additionally, the polymer industry utilizes acetone in the production of polycarbonates, Bisphenol-A, and epoxy resins. Its primary use is as a precursor to other chemicals, especially in the production of methyl methacrylate, serving the continually expanding plastics and PVC industries.
The growth of the Asia Pacific Acetone market is driven by robust demand for Acetone as a solvent in chemical manufacturing across diverse industries, including paint and coatings, plastics, construction, and automotive. Acetone's versatility as a solvent makes it a preferred choice in these manufacturing processes, where it plays a crucial role in dissolving and processing various substances. As a solvent, Acetone plays a crucial role in dissolving and processing different substances, contributing to the production of high-quality finished products. Moreover, Acetone serves as a vital raw material in the production of bisphenol A, a fundamental component in the manufacturing of epoxy resins. Epoxy resins, widely used in the construction, automotive, and electronics industries, rely on Acetone as a foundational building block, highlighting its pivotal role in these sectors. Additionally, Acetone plays a crucial role in the production of methyl methacrylate, further expanding its utility in the chemical manufacturing landscape. Methyl methacrylate is a key ingredient in the synthesis of various materials, including polymers and plastics, contributing to the growth and innovation within the regional chemical industry. Additionally, the region is experiencing a surge in investments for establishing new plant capacities by key market players, aimed at meeting the growing demand for Acetone. This strategic move is expected to significantly contribute to the expansion of the Asia Pacific Acetone market throughout the forecast period.
Based on the end-user industry, the Asia Pacific Acetone market is segmented into Solvent, MMA (Methyl Methacrylate ), Bisphenol A, and Others. The largest market share of Acetone goes towards its application as a solvent. In 2023, this industry consumed about 44% of the net Asia Pacific Acetone market.
Major players in the Asia Pacific Acetone market are SI Group India Ltd., Hindustan Organic Chemicals Ltd., Deepak Phenolics Ltd., Shanghai Sinopec Mitsui Chemicals Co.Ltd., INEOS Group Limited, Cepsa Corporation, Zhejiang Rongsheng, CNOOC Huizhou, Mitsubishi Chemical, Mitsui Chemicals, Formosa Chemicals and Fibre Corporation, Taiwan Prosperity Chemical Corp (TPCC), Chang Chun Plastics Co. Ltd, and Huntsman Chemicals. 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 Acetone which covers production, demand and supply of Acetone market in the globe.
• To analyse and forecast the market size of Acetone
• To classify and forecast Asia Pacific Acetone market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Acetone market in the globe.
To extract data for Asia Pacific Acetone market, primary research surveys were conducted with Acetone 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 Asia Pacific Acetone market over the coming years.
ChemAnalyst calculated Acetone demand across the Asia Pacific region by analysing the volume of Acetone consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Acetone manufacturers and other stakeholders
• Organizations, forums and alliances related to Acetone 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 Acetone manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Asia Pacific Acetone market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
4950 thousand tonnes
Market size Volume by 2034
8000 thousand tonnes
Growth Rate
CAGR of 4.45% from 2024 to 2034
Base year
2023
Estimated Year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2034
Quantitative units
Demand in thousand tonnes and CAGR from 2024 to 2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Country, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Foreign Trade.
Segments covered
By End-Use: (Solvent, MMA (Methyl Methacrylate ), Bisphenol A, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
China, Japan, India, South Korea, and the Rest of APAC
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Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What was the size of Asia Pacific Acetone market in terms of volume in 2023?
Ans:
The size of Asia Pacific Acetone market has grown significantly in the historical period of 2015-2022 and reached approximately 4950 thousand tonnes in 2023.
Q2.
Which industry is leading as the leading consumer of Acetone?
Ans:
Solvent industry is the leading consumer of Acetone.
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