Acetic Acid Market Analysis

Acetic Acid Market Analysis

The acetic acid market for VAM was the largest segment in 2016 and is expected to exhibit similar trend throughout the given period of 2017-2024. VAM is a primary intermediate which is used in the production of several polymers & resins for paints, coatings, adhesives, films, textiles, and other end-use products. The growing demand for these applications across the globe is anticipated to positively contribute to the growth of the segment by the end of the forecast period. Moreover, rapid industrialization & urbanization mainly in Asia Pacific and the Middle Eastern regions has led to strong rise in the construction industry which in turn will have subsequent impact on the product demand during the forecast timeframe. For instance, Asia Pacific construction industry is likely to witness gains close to 7% in the coming years. Furthermore, the rising demand for automobiles in the developing economies coupled with the growing shift of manufacturing bases shall also surge the demand for vinyl acetate monomer in the coming years.

PTA was the second largest application segment in 2016 and is projected to show the same trend throughout the assessment period. The segment is projected to reach USD 2.2 billion by the end of the forecast period. The rising demand for PTA for production of PET bottles and polyester films is anticipated to drive the growth of the segment.

Asia Pacific has resulted in a greater demand for construction and textiles industries thereby substantially contributing to the growth of the market. The region held a market share of over 60% in 2016 and is projected to grow at a CAGR of 5.5%. Moreover, the rapidly growing pharmaceutical industry mainly in India and Japan among others is projected to generate substantial revenue during the forecast period. The product is widely used in the in manufacturing of disintegrant in the pharmaceutical industry, thereby growing demand for medicinal tablets shall aid in the growth of the overall market. According to the Department of Pharmaceuticals, the Indian domestic pharmaceutical market generate revenue over USD 16.5 billion in 2016 and is anticipated to exhibit a year on year growth of over 9.4%.