Bio-Acetic Acid Market - Forecast(2022 - 2027)

Report Code: CMR 28459 Report Format: PDF + Excel

Bio-Acetic Acid Market Overview

Bio-acetic acid market size is forecast to reach $182.5 million by 2026, after growing at a CAGR of 5.2% during 2021-2026. Acetic acid is a colorless compound with a strong pungent smell and is commonly used as a reagent to manufacture chemicals such as vinyl acetate monomer, acetate esters, purified terephthalic acid, acetic Anhydride, and more. A significant amount of research has led to increased environmental concerns regarding the use of petroleum-based feedstock and an increasing focus on sustainable development to establish greener alternatives, which acts as an opportunity for the bio-acetic acid market growth. Furthermore, the rising crude oil prices and stringent government regulations are also projected to be a major driver for the bio-acetic acid industry during the forecast period.

COVID-19 Impact

There was a decline in the amount of acetic acid available on the global market in 2020 due to the covid-19 pandemic. While manufacturers have been able to meet the requirements of contract customers, the spot market has been reasonably tight, as suppliers have prioritized their contractual obligations, in some cases with the difficulty, with one of them requiring recourse to their global network of facilities to ensure this result. Throughout the time, this became more apparent, reflected in modest price increases in November and December 2020. Sales management and price increase announcements have been seen by different manufacturers in 2020. During the prolonged coronavirus pandemic in the western countries, acetic acid supplies were seen as much tighter but steady demand, and domestic production rates persisted. With upward movement in spot methanol, overall market activity remained sluggish, a likely counter to supplies.

Report Coverage

The report: “Bio-Acetic Acid Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the bio-acetic acid Industry.
By Raw Material: Biomass, Corn, Maize, Sugar, and Others.
By End-Use Industry: Chemicals (Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Acetic Anhydride, Acetate Esters, and Others), Medical (Antiseptic, Cancer Screening, Infection Treatments, and Others), Food (Sour Agent, Food Additive, Food Preservation, and Others), Inks & Dyes, Rubber & Plastics, and Others.
By Geography: North America (U.S., Canada, and Mexico), Europe (U.K, Germany, France, Italy, The Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

  • Europe dominates the bio-acetic acid market. The growing demand growth in Europe has been driven by the use of bio-acetic acid as a raw material in industries such as plastics & polymers, food & beverages, inks, paints & coatings, and chemicals.
  • In the food, pharmaceutical, and chemical industries, bio-based acetic acid has widespread applications. Macroscopic factors lead to the growth of the chemical and food & beverage industries, such as rising population and industrialization, and the bio-based acetic acid industry flourishes in turn.
  • Furthermore, rising stringent regulations regulating the use of petroleum-based goods are also expected to stimulate the market for bio-based acetic acid.
  • In vinegar intake, an increase has been seen as it helps to reduce weight, control blood pressure, and regulate blood sugar and cholesterol levels. As acetic acid is used in the manufacture of vinegar, the overall growth of the market is propelled by it.

Bio-Acetic Acid Market Segment Analysis - By End-Use Industry

The chemical segment held the largest share in the bio-acetic acid market in 2020 and is expected to grow at a CAGR of 6.3% during 2021-2026, owing to an increase in demand for bio-acetic acids to manufacture various chemicals. Bio-acetic acid is used for the processing of substrates in many manufacturing processes and is also used as a chemical reagent for the production of a variety of chemical compounds such as acetic anhydride, ester, monomer vinyl acetate, vinegar, and many other polymer products. In general, bio-acetic acid is used in the preparation of vinyl acetate, used in the manufacture of plastics; cellulose acetate, used in the manufacture of photographic films and textiles; and volatile organic esters, commonly used as solvents for resins, paints, and lacquers (such as ethyl and butyl acetates). It is also used in the purification of organic compounds as it can be used for re-crystallization as a solvent. Thus, these extensive applications of bio-acetic acid are accelerating its demand in the chemical industry, which is fueling the bio-acetic acid market growth during the forecast period.

Bio-Acetic Acid Market Segment Analysis - By Geography

Europe region held the largest share in the bio-acetic acid market in 2020 up to 32% and is growing at a CAGR of 5.8% during 2021-2026, owing to spiraling demand for bio-based products to ascertain European sustainability. Bio-based products will improve the productivity of the economy and reduce its reliance on fossil fuels. The bio-based share of all chemical sales grew from 12.3% in 2015 to 22% in 2020, according to EU estimates, with a compound annual growth rate of close to 20 percent. For this reason, the EU has identified a high-potential focus area for the bio-based products sector for future growth, reindustrialization, and addressing societal challenges. Therefore, owing to this the demand for bio-based products such as bio-acetic acid is anticipated to increase, which will then drive the market growth in the European region during the forecast period.

Figure: Europe Bio-Acetic Acid Market Revenue, 2020-2026 (US$ Million)


Bio-Acetic Acid Market Drivers

Volatility in Crude Oil Prices and Health Hazards Related to Acetic Acids

Acetic acid is manufactured by aerobic fermentation of ethanol. Ethanol is dehydrogenated catalytically or oxidized into acetaldehyde, which, in turn, is oxidized into acetic acid. Ethanol is a derivative of crude oil and thus the domestic price of acetic acid is highly susceptible to the prices of its crude oil. So, the price fluctuation of crude oils also hinders the price of acetic acid raw material. In the last year, the price volatility of crude oil, such as the price of crude oil, has increased from $43.73/bbl in 2016 to $71.31/bbl in 2018 and then decreased to $64.21/bbl in 2019, according to the BP Statistical Review of World Energy. And because of this uncertainty in crude oil prices, the price of acetic acid also increases. Owing to which companies are shifting their focus on bio-based acetic acids. Furthermore, acetic acid can be a hazardous chemical if not used safely and appropriately. This substance is extremely corrosive to the skin and eyes and must be treated with great caution. On being swallowed or in the event of vapor inhalation acetic acid may be toxic to the internal organs. By harmonized classification and marking by the European Chemicals Agency (ECHA), the product is classified as hazardous to human health as it causes serious eye damage, skin burns, and more. Thus, these disadvantages related to acetic acid are unlatching door for its bio-based counterpart.

Flourishing Construction Industry Accelerating the Demand for Paints & Coatings

The biggest consumer of paints & coatings and a large consumer of plastic & polymer products is the building industry. The main intermediate vinyl acetate monomer (VAM) is used in the manufacture of various polymers and resins for paints, coatings, adhesives, films, textiles, and other end-use items. And bio-acetic acid is generally used to manufacture vinyl acetate monomer (VAM), acetate esters, purified terephthalic acid, and acetic anhydride. Governments are heavily investing in expanding the construction sector. For instance, in 2019, the Thailand government allocated THB4 billion (US$125.6 million) to finance five low-cost housing projects in the country. In February 2020, the Department of Human Settlements allocated R95.9-billion, which will support the delivery of 22,696 housing subsidies in South Africa during 2020-2021. The residential construction in countries, such as Germany, India, and United States has been increasing, and the trend is likely to continue due to the increasing demand for residential dwellings. With this, the demand for paints & coatings, and plastic products are also expected to increase, which will then drive the market growth.

Bio-Acetic Acid Market Challenges

High Cost when Compared with Conventional Acetic Acid

In addition to the growing worldwide trend towards the use of bio-based products, the use of natural and/or biodegradable acetic acid with low toxicity and good compatibility with many plastics, resins, rubber, and elastomers as replacements for traditional acetic acid has attracted the industry. Bio-acetic acid is produced from raw materials made from vegetables and is used as an alternative to acetic acid based on petroleum. Corn, maize, and sugar are the raw materials used for making bio-acetic acid. The increasing use of natural sources is eventually increasing the prices of natural raw materials, owing to which the cost of bio-acetic acid is also on an upsurge. Thus it is anticipated that the higher cost of bio-acetic acid raw materials may restrain the bio-acetic acid market growth during the forecast period.

Bio-Acetic Acid Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the bio-acetic acid market. Major players in the bio-acetic acid market are Zea2, Godavari Biorefineries Ltd., Sucroal SA, Novozymes AS, and Wacker Chemie AG.

Acquisitions/Technology Launches

  • In July 2019, Godavari Biorefineries Ltd obtained a Certified Biobased Product label from the U.S. Department of Agriculture (USDA). NaturoBG (1,3-Butylene Glycol), Acetic Acid Glacial, Crotonaldehyde products are now able to display a special USDA mark highlighting the biobased content percentage.

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1. Bio-Acetic Acid Market- Market Overview
    1.1 Definitions and Scope
2. Bio-Acetic Acid Market - Executive Summary
    2.1 Key Trends by Raw Material
    2.2 Key Trends by End-Use Industry
    2.3 Key Trends by Geography
3. Bio-Acetic Acid Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Bio-Acetic Acid Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Bio-Acetic Acid Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Bio-Acetic Acid Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Bio-Acetic Acid Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Bio-Acetic Acid Market – By Raw Material (Market Size -$Million/Billion)
    8.1 Biomass
    8.2 Corn
    8.3 Maize
    8.4 Sugar
    8.5 Others
9. Bio-Acetic Acid Market– By End-Use Industry (Market Size -$Million/Billion)
    9.1 Chemicals
    9.1.1 Vinyl Acetate Monomer (VAM)
    9.1.2 Purified Terephthalic Acid (PTA)
    9.1.3 Acetic Anhydride
    9.1.4 Acetate Esters
    9.1.5 Others
    9.2 Medical
        9.2.1 Antiseptic
        9.2.2 Cancer Screening
        9.2.3 Infection Treatments
        9.2.4 Others
    9.3 Food
        9.3.1 Sour Agent
        9.3.2 Food Additive
        9.3.3 Food Preservation
        9.3.4 Others
    9.4 Inks & Dyes
    9.5 Rubber & Plastics
    9.6 Others
10. Bio-Acetic Acid Market - By Geography (Market Size -$Million/Billion)
    10.1 North America
        10.1.1 U.S
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1UK
        10.2.2 Germany
        10.2.3 France
        10.2.4 Italy
        10.2.5 Netherland
        10.2.6 Spain
        10.2.7 Russia
        10.2.8 Belgium
        10.2.9 Rest of Europe
    10.3 Asia-Pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 India
        10.3.4 South Korea
        10.3.5 Australia and New Zeeland
        10.3.6 Indonesia
        10.3.7 Taiwan
        10.3.8 Malaysia
        10.3.9 Rest of APAC
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Colombia
        10.4.4 Chile
        10.4.5 Rest of South America
    10.5 Rest of the World
        10.5.1 Middle East
            10.5.1.1Saudi Arabia
            10.5.1.2 U.A.E
            10.5.1.3 Israel
            10.5.1.4 Rest of the Middle East
        10.5.2 Africa
            10.5.2.1 South Africa
            10.5.2.2 Nigeria
            10.5.2.3 Rest of Africa
11. Bio-Acetic Acid Market – Entropy
    11.1 New Product Launches
    11.2 M&As, Collaborations, JVs, and Partnerships
12. Bio-Acetic Acid Market – Market Share Analysis Premium
    12.1 Market Share at Global Level - Major companies
    12.2 Market Share by Key Region - Major companies
    12.3 Market Share by Key Country - Major companies
    12.4 Market Share by Key Application - Major companies
    12.5 Market Share by Key Product Type/Product category - Major companies
13. Bio-Acetic Acid Market – Key Company List by Country Premium Premium
14. Bio-Acetic Acid Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"