Projected to hit a staggering USD 13.79 billion by 2027, the global acetic acid market is on a trajectory of robust growth, with an estimated CAGR of 8.4% during the forecast period. This surge, as per a report titled "Acetic Acid Market Size, Share & Industry Analysis, By Application (Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Ester Solvents, Acetic Anhydride, Others)," by Fortune Business Insights, is fueled by escalating solvent usage in various chemical applications such as paints & coatings, adhesives & sealants.

Market Momentum:

The upward trajectory of the market is propelled by notable advancements in polymer technologies. Particularly, the utilization of VAM in crafting ethylene vinyl alcohol (EVOH), a pivotal barrier resin deployed in food packaging, fuel tanks, and diverse engineering polymers, is a significant contributor. Moreover, derivatives of VAM, including vinyl chloride-vinyl acetate copolymers, find extensive application in adhesives & sealants, further augmenting market dynamics. Notably, VAM's adhesive properties across multiple substrates like wood, paper, metals, and plastic films bolster its market significance.

Pandemic Impacts:

However, the market has witnessed setbacks amidst the COVID-19 pandemic, primarily due to diminished chemical production. Factory closures stemming from labor shortages and disrupted raw material supplies have impeded market growth. Nevertheless, the surge in ethanoic acid demand, coupled with heightened sanitizer consumption, is anticipated to catalyze market recovery. Additionally, heightened health and safety concerns, particularly within healthcare settings, are poised to drive market resurgence in the foreseeable future.

Regional Outlook:

The Asia Pacific region is poised to dominate the global market landscape, fueled by substantial investments in polymer formulations. With Japan, China, and India emerging as key players in polymer industries, the demand for acetic acid as a primary raw material is on an upswing. China's significant capacity in polymer production, alongside its robust ethanoic acid output, underscores its pivotal role in the regional market. Meanwhile, Europe is slated to maintain a significant market share, buoyed by burgeoning demand from various end-use sectors and escalating import activities. Noteworthy developments such as methanol carbonylation, spearheaded by major players like Wacker in Germany, are expected to unlock new opportunities for market expansion in the region.

Key Industry Developments:

A significant industry milestone was marked in October 2019 when BP and Zhejiang Petroleum and Chemical Corporation (ZPCC) of China inked a memorandum of understanding (MOU). The MOU outlines plans for a joint venture, equally owned by both entities, aimed at constructing and operating a cutting-edge acetic acid plant with an annual capacity of 1 million tons in eastern China.

Information source:

https://www.fortunebusinessinsights.com/acetic-acid-market-103386