Acetic Anhydride Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3532
Global acetic anhydride market size is expected to grow substantially over 2021-2027. This strong growth is driven by the rising adoption of the substance as a raw material for plastics and cellulose acetate fibers as well as in chemical synthesis. Furthermore, the increasing acetic anhydride applications in fragrances, dyes, and flavors, alongside the booming beauty industry, will further add impetus to industry expansion over the estimated timeline. Acetic acid or ethanoic acid refers to a colorless liquid organic compound, which is a crucial industrial chemical and reagent. Acetic anhydride is obtained from the condensation of two acetic acid molecules, a process that utilizes over 25%-30% of the global acetic acid production.
Significant decline in raw material prices in the chemical industry, alongside the burgeoning pharmaceutical sector, are the key trends characterizing acetic anhydride market share over 2021-2027. This chemical compound is widely used as a raw material in the production of drugs like aspirin, thus augmenting its demand across the pharma industry. Furthermore, the strong focus on home renovation during the coronavirus pandemic and the subsequent surge in adoption of architectural paints and coatings will also contribute to the overall industry growth. However, adverse conditions associated with the use of the compound, such as skin allergy, lung damage, and eye, and nose irritation, due to its highly corrosive nature, may impede its demand in the years ahead.
The tobacco industry is set to emerge as a prominent end-use segment in the acetic anhydride market by 2027 due to the consistent evolution of e-cigarette and the deployment of acetic anhydride for filter tow applications in cigarettes. However, health effects and environmental impacts associated with the use of e-cigarettes may pose challenges to the adoption of acetic anhydride in tobaccos over the forecast spell.
On the regional front, the MEA acetic anhydride industry will account for a commendable share of the global market by 2027. This is considering the strong focus on expanding the chemical business, coupled with the significant increase in exports of home textiles from the UAE, as acetic acid is widely used to boost dye stability on clothes. Moreover, high emphasis on the expansion of pharmaceutical manufacturing capacity in South Africa is anticipated to further escalate the consumption of acetic anhydride for drug production in the region.
The competitive landscape of the global acetic anhydride market consists of companies such as Jubilant Life Sciences, Luna Chemical Industries Pvt. Ltd., Daicel Corporation, PetroChina Ltd. (China National Petroleum Corp.), Celanese Corporation, DuPont, Eastman Chemical Company, and BASF SE, among others. Strategic product launches and business expansions are some of the initiatives being employed by these companies to gain a competitive edge over rivals in the global market. For example, in March 2021, Celanese Corporation announced investments to expand the vinyl acetate monomer (VAM) production unit in Nanjing, China. This expansion plan was aimed at further supporting the continued growth of its acetic anhydride business and catering to the increasing demand from Asian and global customers.
Decline in Paint Demand During COVID-19 to Assert Influence on Acetic Anhydride Market Trends:
The novel coronavirus pandemic has severely impacted varied industrial sectors, including the paint industry, due to the decline in both consumer and residential demands. Industrial paints are also witnessing disruptions due to the low automotive sales and the closure of service centers in the initial months of the pandemic. Reduced sales of protective, and performance coatings from the manufacturing sectors may, in turn, impede the business environment of acetic anhydride manufacturers, as the chemical is widely used as a solvent in paints. However, escalating production of medicines and the subsequent growth of the pharmaceutical sector, driven by the COVID-19 related sales, may aid the acetic anhydride industry recovery in the upcoming years.
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