Bio-Acetic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The bio-acetic acid market is expected to grow at a CAGR of above 4% during the forecast period. The major factors driving the growth of the market studied are the rising crude oil prices, increasing demand for Vinyl Acetate Monomer (VAM) market, and stringent government regulations. On the flip side, the scarcity & social constraints for raw materials, and environmental concerns regarding the harmful effects are some of the factors hampering the growth of the studied market.

• Vinyl Acetate Monomer (VAM) segment dominated the market and is likely to grow during the forecast period, with the growing applications like polyvinyl acetate and polyvinyl alcohol.
• The development of new separation technologies to increase production efficiency is likely to provide opportunities for the studied market during the forecast period.

Key Market Trends

Vinyl Acetate Monomer (VAM) Segment to Dominate the Market Demand

• Bio-based VAM is produced by oxidative addition of bio-based acetic acid (AcOH) to ethylene, in a continuous packed bed reactor containing Pd-Au catalyst, supported on silica and promoted by potassium acetate.
• Among all the applications, vinyl acetate monomer (VAM) holds the largest market share, owing to the extensive use of VAM in the paints and coatings, textile and adhesives, and sealants market.
• The applications of vinyl acetate monomer are mostly mature. Ethylene-vinyl acetate (EVA) and vinyl acetate-ethylene (VAE) copolymers are considered as the strongest growth areas of the VAM market.
• The trend of globalization continues, with the addition of production capacity in China. The demand for VAM is consolidating and has shifted to China and other Asian countries, whereas the United States and Western Europe are considered as mature markets.
• The Asia-Pacific region is estimated to register the highest growth rate in the VAM market during the forecast period, owing to the increasing demand for industrial fabrics.
• Thus, all such trends in the VAM market is expected to drive the demand for the bio-acetic acid market during the forecast period.

United States to Dominate the North America Region

The United States segment of the market studied is expected to grow at a high pace, during the forecast period. The country’s food and meat processing industry is one of the major consumers of bio-acetic acid. The production of meat and poultry has increased, due to an increase in exports to countries, like China, South Korea, Japan, Canada, and Mexico.

Advanced Hardwood Biofuels Northwest (AHB), a consortium of university and industry partners in the country, funded by the USDA National Institute of Food and Agriculture, is developing a system to produce renewable liquid biofuels and bio-based chemicals from sustainably-grown hybrid poplar trees.

One of the most financially promising bio-based chemicals that could be produced by the AHB process is acetic acid. It is the building block of ethanol, ethylene, and jet fuel. It is not only produced with the highest yields out of all the potential bio-chemicals but also has one of the highest selling prices. Configuring bio-refinery to produce acetic acid allows market flexibility and the ability to upgrade the acid to other chemicals and fuels. A sizeable amount of acetic acid can be produced in the United States, owing to technological developments in AHB.

Moreover, there are many existing bio-refineries in the United States that process corn into sugars (such as high fructose corn syrup), oils, animal feeds, and food ingredients (such as xanthan gum). More than 200 ethanol bio-refineries have been built, which use corn's starch for biofuel, and the remaining protein and fat for animal fodder and vegetable oils.

the aforementioned factors are likely to increase the demand and consumption of bio-acetic acid during the forecast period.

Competitive Landscape

The bio-acetic acid market is a consolidated market, where few major players hold significant share of the market demand. Some of the major players in the market include Zea2, Godavari Biorefineries Ltd., Sucroal SA, Novozymes AS, and Wacker Chemie AG, amongst others.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.