Acetic acid, also known as ethanoic acid or vinegar acid, is a colourless liquid organic compound with the chemical formula CH3COOH. It is widely used as a building block chemical in the production of polyvinyl acetate, acetic anhydride, vinyl acetate monomer, and cellulose acetate. Acetic acid has important applications in the food & beverage industry as a flavouring agent and preservative. It is commonly used for pickling vegetables and fruit and as the active ingredient in household white vinegar.

 

The Global Acetic Acid Market is estimated to be valued at US$ 16.86 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period from 2024 to 2030.

Acetic acid finds major usage in the production of vinyl acetate monomer (VAM), which is used to manufacture polyvinyl alcohol and polyvinyl acetate. VAM accounts for around 75-80% of total acetic acid consumption. Growing demand from the food & beverage industry for vinegar and as a preservative is also driving the market growth.

 

Key Takeaways

Key players operating in the Acetic Acid market are Biogen, CYTOKINETICS, F. Hoffmann-La Roche Ltd, Genentech, Inc., PTC Therapeutics, Inc., Novartis AG, Ionis Pharmaceuticals, Chugai Pharmaceutical Co., Ltd., NMD PHARMA A/S, and Astellas Pharma Inc. The key players are investing in expanding their production facilities and product portfolios to capitalize on the growth opportunities.

Growing demand from end-use industries such as food & beverages, pharmaceuticals, paints & coatings, and others is propelling the acetic acid market. Acetic acid consumption is increasing in the food industry as it is widely used in sauces, dressings, pickles, snacks, and more.

Technological advancements in fermentation processes have led to lower production costs of acetic acid. New membrane separation and reactive distillation techniques enable higher yields and purity of acetic acid. Several manufacturers are developing innovative membranes for efficient acetic acid recovery.

 

Market Trends

Increasing Demand for Eco-Friendly Production: With growing environmental concerns, manufacturers are investing in bioplastics and bio-based chemicals. Sustainable and circular production using agricultural waste as raw materials will see higher demand.

Rise of Integrated Production Facilities: Major players are establishing integrated production sites for acetic acid and its downstream derivatives. This ensures secure supply for value-added chemicals and helps optimize costs.

 

Market Opportunities

Growing Application in Pharmaceutical Industry: Acetic acid finds increasing usage in the production of active pharmaceutical ingredients and intermediates. This offers significant opportunities for acetic acid producers.

Replacement of Synthetic Acids: Efforts to replace synthetic food additives with acetic acid derived from renewable resources will create new avenues over the forecast period.

 

 

Impact of COVID-19 on Acetic Acid Market Growth

 

The outbreak of COVID-19 pandemic has significantly impacted of Acetic Acid Market Growth globally. During the lockdown phases imposed by various governments across the world, the demand and supply chain of acetic acid experienced huge disruptions. This can be attributed to temporary closures of manufacturing facilities of key acetic acid producers and suppliers. Moreover, the restrictions on transportation hindered smooth movement of acetic acid from production sites to the end-use industries. This led to shortage of acetic acid supply and a sudden drop in demand from various end-use industries like plastics, textiles, food processing and pharmaceuticals.

 

However, with widespread vaccination drives and easing of lockdown restrictions in 2021, the acetic acid market started recovering gradually. Many acetic acid manufacturing companies adapted to the new normal by improving their operational efficiencies and optimizing production schedules. In addition, the rising demand from various end-use industries has boosted consumption of acetic acid. The rapid growth in food processing, plastics and pharmaceutical industries post lockdowns also supported the market regrowth. Going forward, acetic acid producers will have to focus on maintaining stable supply chains, enhancing production capacities and ensuring workforce safety to cope up with the future uncertainty brought by COVID.

 

Geographical Regions with High Acetic Acid Market Concentration

 

In terms of value, the highest revenue is concentrated in the Asia Pacific region for the acetic acid market. This can be attributed to strong presence of end-use industries like polymer synthetics, paints and coatings, food processing and textiles in countries like China, India and Japan. These countries account for more than 50% of global acetic acid demand due to abundant raw material availability and low production costs. North America and Western Europe are other lucrative geographical regions driven by well-established acetic acid consuming industries.

 

Fastest Growing Regional Market for Acetic Acid

 

The Latin America region is projected to witness the fastest market growth for acetic acid during the forecast period. This can be accredited to rapid industrialization, growing per capita income, rising health awareness and expanding food, construction and automotive industries in countries such as Brazil and Argentina. In addition, increasing R&D investments to develop new and advanced acetic acid applications will catalyze the product demand. Moreover, various trade agreements have boosted foreign investments which will augment the regional production capacities going forward

 

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