The global acetic acid market sizeis expected to reach USD 13.79 billion by 2027, exhibiting a CAGR of 8.4%during the forecast period. The rising consumption of solvents such as VAM inthe chemical industry for paints & coatings, adhesives & sealants willbolster the healthy growth of the market, states Fortune Business Insights, ina report, titled “Acetic Acid Market Size, Share & COVID-19Impact Analysis, By Application (Vinyl Acetate Monomer (VAM), PurifiedTerephthalic Acid (PTA), Ester Solvents, Acetic Anhydride, Others), andRegional Forecast, 2020-2027.” The market size stood at USD 8.34billion in 2019.
Market Driver:
Advancements in Polymer Development to Bolster Growth
The growing technological advancements in polymers and productsmade out of VAM will significantly aid the expansion of the market. The growingdemand for VAM in the production of ethylene vinyl alcohol (EVOH), a barrierresin in food packaging, gasoline tanks, and other engineering polymers willhave an excellent effect on the market. Some other VAM derivatives such asvinyl chloride-vinyl acetate copolymers have applications in adhesives &sealants, which, in turn, will bolster the health of the market for aceticacid. Moreover, It also has applications in adhesive due to adhesion propertiesto different substrates that include wood, paper, metals, and plastic films.
Decreased Production to Hamper Market in COVID-19 Pandemic
The reduced production of chemicals has negatively impacted on themarket growth. The shutdown of factories due to a shortage of laborers and diminishedsupply of raw materials can dwindle the sales, in turn, affecting the growth ofthe market. However, the demand for acetic acid alongside the high consumptionof sanitizers will subsequently aid in the recovery of the business amidcoronavirus. Besides, health and safety concerns in healthcare facilities willfurther improve the prospects of the market in the near future.
Regional Analysis:
Heavy Investments in Polymers to Promote Growth in Asia Pacific
The market for acetic acid in Asia Pacific is expected to hold thelargest share in the global market owing to the rising polymer formulations inthe region. The chemical is a key raw material used for the production ofpolymers in industries across Japan, China, and India. China is a major leaderin polymers and chemicals. China's capacity further helps in the highproduction of ethanoic acid. According, to Chemical Market Associates, Inc.(CMAI) 400,000 tons per year demand is in China, from the global averagedemand. The improving construction industry in India is expected to furtherboost growth in the region. Europe is expected to hold a significant shareduring the forecast period owing to the rising demand from end-use sectors. Thegrowing import activities will aid expansion in Europe. Moreover, the highproduction of methanol carbonylation, which has accounted for up to 65% of theworld capacity, and other process oxidation of acetaldehyde by German producerWacker will significantly create opportunities for the market in the region.
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/acetic-acid-market-103386
