Global acetaldehyde market is slated to witness increased consumption throughout the forecast period 2021-2027. The product consumption is primarily driven by widespread application as an intermediate in the synthesis of commodity chemical compounds for food & beverage, paper & pulp, cosmetics, chemicals, and other sectors. The expansion of these industries led by continuous development will create a promising demand outlook.
An organic compound by nature, acetaldehyde is one of the most important aldehydes manufactured and consumed across the globe. Apart from its application as an intermediate across different end-use sectors, it finds application in the production of polymer resins, dyes, paints & coatings, and cosmetics. Acetaldehyde is also commonly used for denaturing alcohol, hardening gelatin, preserving fish and fruit, as a flavoring agent, and as a catalyst in numerous industries.
Among the various end-users mentioned above, the cosmetics sector is expected to capture a notable share of the acetaldehyde industry by 2027. It is used in a variety of cosmetics and personal care items as a fragrance and flavor ingredient. The demand for high-quality beauty and cosmetic products worldwide owing to the rising disposable income levels of consumers will certainly boost acetaldehyde consumption across the cosmetics sector.
Taking the regional landscape into consideration, North America is expected to be a highly lucrative acetaldehyde market between 2021 and 2027. The regional growth is attributable to the strong presence of major bulk and specialty chemicals manufacturers. Ongoing developments across food & beverage, cosmetics, chemicals, pharmaceutical, paper & pulp and other industry verticals will positive opportunities for regional suppliers.
Globally, Celanese, Eastman Chemical, Sinopec (China Petrochemical Corporation), Jubilant Life Sciences, China National Petroleum Corporation, Merck KGaA, Wacker Chemie AG, Eurochem Group AG, Ashok Alco-chem, Sumitomo, LCY Chemical, Lonza, and Showa Denko are some of the leading manufacturers and suppliers of acetaldehyde and its derivatives. The companies are adopting different strategies such as mergers, acquisitions, and partnerships in a bid to expand their business operations and market reach. Some of these companies are also focusing on setting up new production facilities or expanding the production capacity at existing ones in order to meet the increasing product demand.
Opportunities and challenges for acetaldehyde industry during COVID-19
The COVID-19 pandemic has impacted acetaldehyde demand, production, and consumption in numerous ways. The chemicals and materials industries are among most impacted verticals globally due to government enforced lockdowns, company shutdowns, and travel bans. Furthermore, disruptions across key end-use verticals and the subsequent decline in manufacturing and industrial activity has led to a weakened acetaldehyde demand.
The closure of major manufacturing plants and facilities across North America, Europe, Asia Pacific, and other regions has impacted production. All of these factors have caused significantly disrupted supply chains, product delivery schedules, and ultimately the product sales. In addition, travel restrictions in key markets are hampering corporate partnerships and collaborations. But on the other hand, the demand for essential goods has remained constant throughout the pandemic, which has had a positive impact on the acetaldehyde market forecast.