Acetic acid is an organic compound found in various household products and with wide industrial applications. Acetic acid is used as a preservative in foods, in the production of vinyl acetate monomer which is used to make resins for paints & coatings, as a solvent for inks, dyes, pharmaceuticals & other chemical processes. The global acetic acid market is estimated to be valued at US$ 14.63 Bn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the acetic acid market is the rising demand from end-use industries like paints & coatings, food & beverage, pharmaceutical among others. Acetic acid finds wide application as a solvent and raw material in these industries. With the growing population and urbanization globally, the demand for paints & coatings from construction activities is surging which in turn is propelling the demand for acetic acid. Also, the increasing health awareness has led to rising consumption of packaged & processed food which depends on acetic acid as a preservative. Moreover, the growing pharmaceutical industry worldwide is augmenting the market growth. However, acetic acid is corrosive in nature and exposure can cause skin & eye irritation which is a challenge for the market. Nevertheless, ongoing R&D for developing safer production processes and alternatives will aid in overcoming this challenge.
SWOT Analysis
Strength: Acetic acid has wide industrial applications in products such as pharmaceuticals, food and beverages, textiles, etc. It is used as a chemical intermediate and is known for its antimicrobial properties. The large industrial demand provides stable growth opportunities. The growing processed food industry fuels the demand for acetic acid as a preservative and flavoring agent.
Weakness: Environmental regulations have become stringent on the usage and disposal of acetic acid due to its hazardous nature. Being highly corrosive, acetic acid requires special packaging and handling during transportation and storage. Fluctuating raw material prices impact the overall production cost.
Opportunity: Emerging economies offer significant growth potential due to rising industrialization and increasing demand from end-use industries. Countries in Asia Pacific and Latin America represent lucrative markets. New product development extends the application scope into various other industries.
Threats: Substitute products that serve similar industrial functions pose competitive threats. Volatility in crude oil and natural gas prices affects the acetic acid supply chain. Strict environmental norms in European and North American countries impose challenges.
Key Takeaways
The global Acetic Acid Market Share is expected to witness high growth over the forecast period of 2023 to 2030. It is projected to reach a market size of US$ 14.63 billion by 2024, growing at a CAGR of 13%.
Regional analysis: Asia Pacific dominates the global market with a share of over 35% in 2024. China, India, Japan and Southeast Asian countries offer strong growth potential attributable to rapid industrialization and expansion of end-use industries. North America and Europe are also major regional markets led by well-established food processing and chemical industries.
Key players: 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 market remains moderately consolidated in nature.
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For more details on the report, Read- https://cmiinfopiece.blogspot.com/2024/01/the-global-luxury-travel-market-growth.html