Acetone Market Size, Share and Industry Analysis Report, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3981
The global acetone market is slated to record commendable gains in the coming years led by increasing product application as a solvent in various industries. The substance is experiencing robust demand in cosmetics, pharmaceutical, paints, adhesives, and other formulations.
Acetone is a key feedstock chemical used in the production of bisphenol A (BPA), methyl methacrylate (MMA), and others. Increasing production of MMA and BPA due to demand in various key industry verticals should bolster acetone industry outlook.
In March 2020, for example, Mitsubishi Chemical had announced plans to set up a 350,000 metric ton per year MMA facility in the U.S. The new plant, according to the company, will be based on acetone and hydrogen cyanide, serving as an alternative to the more traditional acetone cyanohydrin process. Acetone is a colorless liquid commonly found in numerous household products such as personal care items, cosmetics, cleaners, and many more. It also finds use in the commercial production of several plastics and other industrial products.
Acetone is recognized to have low acute as well as chronic toxicity by regulatory bodies. According to the U.S. FDA, it is considered safe for use as an indirect food additive in food contact coatings and adhesives. Acetone is also recognized as a Generally Recognized as Safe (GRAS) substance by the FDA.
In terms of the end-user, the cosmetics and personal care industry could account for a substantial consumption of acetone in the next few years. The substance denatures certain alcohols and is extensively used in skin creams, makeup and other beauty products. It is one of the key ingredients of nail paint removers. The demand for premium cosmetics and personal care products worldwide is increasing owing to rising household income levels of consumers, which should positively impact acetone industry share in the near future.
Globally, INEOS, Dow Chemical Company, Royal Dutch Shell plc, Mitsui Chemicals, Inc., Cepsa, LCY GROUP, ALTIVIA, Prasol Chemicals Pvt. Ltd., Formosa Chemicals & Fiber Corporation, and EMCO Limited are among the notable names in the acetone industry.
Many of these companies are looking to set up new production facilities or ramp up existing production capacity in anticipation of a strong market demand. These companies are also adopting numerous other growth and expansion strategies to strengthen their foothold in the global market. Some of these include partnerships, mergers, and acquisitions.
Back in August 2019, for example, ALTIVIA Ketones & Additives, a subsidiary of ALTIVIA Petrochemicals had reached an agreement to acquire Dow Chemical Company’s acetone derivatives business and associated chemical production assets based in Institute, West Virginia, as well as Dow’s Institute Industrial Park.
Impact of COVID-19 pandemic on acetone market demand
Acetone and its derivatives continuously witnessed a weakened demand in 2020 due to large-scale supply chain, logistics, and economic disruptions created because of the global COVID-19 pandemic. Lockdown measures enforced by respective governments had forced chemical manufacturing plants to suspend operations temporarily, negatively impacting the acetone market share. Furthermore, halt in automotive production and construction activities led to a decline in the demand for various plastics and polymers. Industrial use chemicals such as BPA and MMA also witnessed lower demand during a major part of 2020.
However, the pharmaceutical sector, which is a major consumer of acetone, continued to provide manufacturers with new opportunities. The rise in the demand for numerous drugs, medications and hygiene products amid the pandemic further augmented the acetone market share.
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