Glacial Acetic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Glacial Acetic Acid Market is projected to register more than 3% CAGR during the forecast period (2021-2026).

Glacial acetic acid is used to make other major chemicals, as a food additive and in petroleum production. The usage of glacial acetic acid as an intermediate or as a solvent in the chemical industry was badly affected due to the COVID-19 pandemic. Disruptions in supply chains, declining demand due to uncertainty in the global economy and capital markets, and restrictions on movement added unpredictable dimensions to the chemical industry in 2020. All major top chemical manufacturers in the global market registered declining revenue in 2020 compared to the previous year. Reduction in the production of chemicals impacted the glacial acetic acid demand in the short run. However, recovering state of sectors is likely to positively impact the situation through the years to come.

Key Highlights

• In the medium term, the growing demand for vinyl acetate monomer and increasing consumption of preservatives are the major factors driving the market studied.
• However, the corrosive nature of glacial acetic acid is likely to hinder the growth of the studied market.
• Asia-Pacific dominated the market across the world, with the largest consumption in countries such as China and India.

Key Market Trends

Vinyl Acetate Monomer to Dominate the Market

• Glacial acetic acid is witnessing an increase in consumption in a wide range of applications, such as preservatives in food and beverage, pharmaceuticals, paints, coatings, inks, and vinegar, and in the production of terephthalic acid, synthetic camphor, aniline, propylene terephthalate, vinyl acetate monomer, etc.
• The vinyl acetate monomer segment stands to be the dominating segment, owing to its widespread consumption in various end-user industries, such as consumer goods, packaging, automotive, and construction.
• Vinyl acetate monomer is used in adhesives and sealant industries, and it can be commercially produced using glacial acetic acid. Demand for vinyl acetate monomer has been witnessing a substantial rise, owing to the rising consumption of adhesives and sealants over the world.
• Moreover, vinyl acetate monomer as an intermediate is used to manufacture a number of industrial polymers and resins for the production of adhesives, coatings, paints, films, and textiles.
• According to American Chemistry Council, the value of adhesives and sealants shipments worldwide in 2019 was USD 71 billion and is expected to increase during the forecast period.
• In addition, glacial acetic acid is considered a major raw material for the production of purified terephthalic acid (PTA), which further finds application in the packaging industry. The growing demand for packaging all over the world is anticipated to drive the demand for the market studied.
• Therefore, all the aforementioned factors are expected to drive the glacial acetic acid market during the forecast period.

Asia-Pacific to Dominate the Market

• The Asia-Pacific region is expected to dominate the global glacial acetic acid market, with China, India, and Japan accounting for the largest consumption in this particular region.
• Glacial acetic acid is used as a buffering agent in dyeing the cloth with color, and it is used to print various designs on clothes in the textile industry. In addition, the production of acetic anhydride also seeks the use of glacial acetic acid as a condensing agent, which is further used in synthetic textiles and photographic films.
• According to the National Bureau of Statistics China, in December 2020, approximately 3.81 billion meters of clothing fabric were produced in China. Monthly textile production volume was consistently above three billion meters throughout 2019 and 2020.
• In India, the textile industry is one of the most vital sectors of the economy, contributing over 2% to the country’s GDP. India is the world’s second-largest manufacturer and exporter of textile and apparel after China. India’s textile sector is one of the oldest industries in the Indian economy, dating back to several centuries.
• Furthermore, as per Ministry of Textiles in India, the textile industry is expected to reach USD 223 billion by 2023.
• Furthermore, glacial acetic acid as a flavoring agent in the food and beverage industry and increasing demand for special foods and beverages are expected to propel the glacial acetic acid demand in the Asian region over the forecast period.
• Hence, all such market trends are expected to drive the region's glacial acetic acid market during the forecast period.

Competitive Landscape

The global glacial acetic acid market is partially fragmented in nature. Some major market players include Celanese Corporation, LyondellBasell Industries Holdings BV, INEOS, Eastman Chemical Company, and Jiangsu Thorpe (Group) Co. Ltd.

Additional Benefits:

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