Triacetin Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The triacetin market is projected to register a CAGR of more than 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Several countries were forced to go in lockdown owing to the pandemic scenario, which led to the shutdown of manufacturing facilities of almost every industry worldwide for a specified time. Tobacco and food and beverage industries, which are the major consumers of triacetin, suffered hugely due to the pandemic. According to Molecular Diversity Preservation International (MDPI), COVID-19 has impacted all spheres of the global supply food chain, including distribution and packaging and sourcing of raw materials. Lockdowns disrupted the transportation of packaged foods, prepared foods, and non-alcoholic and alcoholic beverages. The tobacco industry was further impacted by the pandemic. According to the Ministry of Economy and Finance, in South Korea, tobacco sales faced closures due to global travel restrictions due to the pandemic. Furthermore, the use of any tobacco product also increases the risk of being infected by a coronavirus and increases the probability of its spread. This may be due to contaminated fingers or tobacco products touching the face and mouth for smoking as well as consuming smokeless tobacco. Still, according to data published by Statista, revenue generated from the tobacco products market is expected to reach USD 793,439 million by the end of 2021, which has seen a significant rise from 2020. Overall, the impact of COVID is expected to be limited in the short run, with the industry demand expected to recover through the years to come.

Key Highlights

• Over the long run, rising demand for plasticizer types and the increasing use in the food and beverage industry are expected to drive market growth.
• Unfavorable conditions arising due to the COVID-19 outbreak are expected to hinder the market growth during the forecast period.
• The Asia-Pacific region is expected to dominate the triacetin market and is further expected to register the fastest growth through the forecast period.

Key Market Trends

Increasing Demand for Plasticizer Type

• Triacetin, also known as glycerin triacetate, is used extensively as a plasticizer in industries such as tobacco, pharmaceutical, and cosmetics. Properties such as light resistance, good plasticizing effect for various plastic and cellulose-based paints, superior dissolving power for several organic substances make triacetin a proper plasticizer to be used in various industries.
• The application of triacetin as a plasticizer in the cosmetics industry for nail polishing is expected to surge the market demand. As per data published by Statista, revenue in the nails segment is expected to generate a revenue of USD 10,937.3 million in 2021.
• The plasticizer is also used in the tobacco industry to make cigarette filter rods. According to British American Tobacco (BAT), a British multinational company that manufactures and sells cigarettes, tobacco, and other nicotine products, sales for the legal global tobacco market were worth approximately USD 818 billion in 2019, which steadily rose expected through the upcoming years.
• Moreover, the impact of COVID on the tobacco industry has been limited, and the increase in consumption is expected to drive the market growth for triacetin through the forecast period.

Asia-Pacific Region to Dominate the Triacetin Market

• The Asia-Pacific region holds the largest share in the triacetin market across the world, and it is expected to grow significantly during the forecast period.
• According to the Food and Agricultural Organization (FAO), China, India, Indonesia, and Bangladesh are some of the leading tobacco producing countries, with China producing 2.61 million metric ton in 2019, and the estimates are expected to grow steadily over the forecast period.
• According to the data from the National Medical Products Administration (NMPA), which is now under the State Administration for Market Regulation (SAMR), as of 15 July 2020, there were 5,273 enterprises qualified to produce cosmetics in China. Most of these producers are concentrated in East China and South China. In 2019, 2,933 producers, or 56.4% of all qualified cosmetics producers, were based in South China, and 1,466 producers, or 27.8% of all qualified producers, were based in East China.
• As per the Indian Brand Equity Foundation (IBEF), the application of triacetin in the pharmaceutical industry as a capsule coating is expected to grow in the region. India is among the world’s largest providers of generic drugs, and the Indian pharmaceutical sector is expected to grow to USD 100 billion by 2025.
• Moreover, food and beverage are expected to be the largest consuming end-user of triacetin. The product finds its application as a food additive and is used as a solvent for flavoring.
• The consumer preference in the cosmetics market in Japan is becoming more selective and value-conscious. The needs and tastes of consumers may change with occasional patterns and fashion changes. The consumers may also be eager to try something new and different from time to time, as long as those products and value propositions are appealing.
• South Korea has one of the world’s most exceptional beauty markets. New beauty trends and innovations featuring sophisticated ingredients and aesthetically appealing packaging are constantly on display. The South Korean cosmetic products market was valued at USD 1,578.4 million in 2019, and it is expected to reach USD 1952.05 million by 2025.
• Overall, rising demand from various industries in the Asia-Pacific region is expected to drive the market studied during the forecast period.

Competitive Landscape

The triacetin market is partially consolidated. Some of the players in the market include Eastman Chemical Company, LANXESS, Polynt, BASF SE, and DAICEL CORPORATION.

Additional Benefits:

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