|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
1.86
million tonnes
|
|
CAGR
(2024-2029)
|
4.06%
|
|
Fastest
Growing Segment
|
Vinyl
Acetate Monomer
|
|
Largest
Market
|
West
India
|
Market OverviewIndia Acetic Acid Market has reached 1.86 million
tonnes in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 4.06% through 2029. Acetic acid (CH3COOH) is a versatile
colorless organic compound that is produced both synthetically and through
bacterial fermentation. With its chemical formula and alternate names like
ethanoic acid or methane carboxylic acid, it plays a crucial role in various
industries. Notably, acetic acid is utilized in the production of cellulose
acetate, vinyl acetates monomer (VAM), metal acetates, and volatile acetates.
Its applications span across the textile, chemical, food and beverage
(F&B), and paints and coatings industry in India, where it is extensively
employed for its unique properties and diverse functionalities.The product is considered safe for utilization in
foods if it is utilized in a manner that is consistent with excellent
manufacturing practices and meets the requirements of the food chemicals codex,
making it "food-grade". This ensures that it adheres to the highest
standards of quality and safety. With the increasing demand for food and the
growing emphasis on food safety, the product is poised to experience
significant growth over the forecast year, catering to the needs of a
discerning consumer base.In the India acetic acid market, competition is
fierce due to the presence of multiple multinational corporations. These
companies are actively engaged in extensive research and development
activities, constantly seeking opportunities for expansion, collaborations, and
joint ventures. By leveraging their expertise and resources, they aim to gain a
competitive edge in the market. As a result, the impact of competitive rivalry
is expected to remain high in the acetic acid market throughout the forecast
period, driving innovation and driving the industry forward.
Key Market Drivers
Growing Use of Acetic Acid in Food & Beverage
Industry
One of the primary drivers of the increased use of
acetic acid in the food and beverage industry is its role as a versatile and
widely appreciated flavor enhancer. Acetic acid, commonly known as vinegar,
adds a delightful tangy and acidic taste to a wide range of food and beverage
products. It imparts a distinct flavor profile that not only enhances the taste
but also contributes to the overall sensory experience of dishes, dressings,
sauces, pickles, and condiments.
Moreover, acetic acid acts as a natural
preservative, playing a crucial role in maintaining the extended shelf life of
food and beverage products. By inhibiting the growth of bacteria, fungi, and other
microorganisms that can spoil perishable items, acetic acid ensures the
longevity and safety of various food products. This remarkable property makes
acetic acid an essential ingredient in food preservation techniques such as
pickling, fermentation, and salad dressings.
Another significant application of acetic acid in
the food and beverage industry is its role as a pH regulator and acidity
adjuster. It provides a precise and effective means to achieve the desired
level of acidity in food formulations, playing a vital role in maintaining the
taste, texture, and quality of processed foods, beverages, and carbonated
drinks. Acetic acid's ability to balance and enhance flavors makes it a
valuable component in the production of carbonated beverages, snacks, and
bakery products.Moreover, the acetic acid market has witnessed
substantial growth due to the expanding food and beverage industry in India.
Driven by changing consumer preferences, increasing disposable incomes, and
urbanization, the demand for convenient foods, ready-to-eat meals, and
flavorful beverages has significantly risen. As a result, the use of acetic
acid as an essential ingredient in these products has become even more crucial,
ensuring that consumers can enjoy the convenience and taste they desire. In
conclusion, acetic acid's multifaceted role as a flavor enhancer, natural
preservative, pH regulator, and acidity adjuster has made it an indispensable
ingredient in the food and beverage industry. Its ability to enhance flavors, extend
shelf life, and maintain product quality has contributed to its growing demand
and popularity in various food and beverage.
Rise in Demand of Acetic Acid in Chemical Industry
One of the primary factors driving the increased
demand for acetic acid in the chemical industry is its crucial role as a key
raw material in the manufacturing of vinyl acetate monomer (VAM). VAM, a widely
utilized compound, finds extensive application in the production of adhesives,
paints, coatings, textiles, and various high-performance materials. As the
demand for these products continues to grow, the need for acetic acid as a
feedstock for VAM production rises in tandem.Moreover, acetic acid plays a vital role in the
production of a wide range of solvents, esters, and derivatives that find
application in the pharmaceutical, plastics, and textile industries. It serves
as a crucial building block in the synthesis of numerous chemicals, including
acetic anhydride, butyl acetate, ethyl acetate, and many others. The
versatility of acetic acid in chemical reactions and its ability to form
derivatives with different functional groups make it a highly sought-after
compound in the chemical industry.Another significant driver of the rise in demand
for acetic acid in the chemical sector is its invaluable use as a catalyst in
various chemical processes. Acetic acid acts as a catalyst in reactions such as
esterification, aldol condensation, and oxidation, facilitating the production
of a wide range of chemicals and intermediates. Its exceptional catalytic
properties make it indispensable in industrial processes, enabling
cost-effective and efficient production of desired chemical products. The
ability of acetic acid to accelerate these reactions and enhance the yield
further enhances its value in the chemical industry.
Growing Demand of Acetic Acid in Textile Industry
One of the primary drivers of the increased demand
for acetic acid in the textile industry is its crucial role in the production
of cellulose acetate. Cellulose acetate, derived from natural cellulose fibers,
undergoes a complex transformation process with the involvement of acetic acid.
This process imparts unique chemical properties to cellulose fibers, resulting
in a versatile textile material that is widely used in the manufacturing of
various textile products such as yarns, threads, and fabrics. Moreover, acetic acid's significance in the textile
industry extends beyond the production of cellulose acetate. It plays a pivotal
role in various textile processes, including dyeing, printing, and finishing.
As a solvent and pH regulator, acetic acid aids in the fixation of dyes during
the dyeing and printing processes, thereby enhancing color fastness.
Additionally, it contributes to achieving the desired texture, softness, and wrinkle
resistance during fabric finishing treatments. The ability of acetic acid to
modify fabric properties makes it an indispensable component in textile
manufacturing.Furthermore, acetic acid finds application in the
production of synthetic fibers, particularly acetate and triacetate fibers.
These fibers are widely utilized in an array of textile products, ranging from
clothing and home textiles to industrial textiles. Acetic acid acts as a
catalyst and solvent in the synthesis of these fibers, imparting them with
remarkable strength, durability, and other desirable characteristics. In
conclusion, acetic acid holds a vital position in the textile industry, serving
multiple purposes from the production of cellulose acetate to its involvement
in various textile processes and the synthesis of synthetic fibers. Its
versatility and contribution to enhancing textile properties make it an
indispensable component in the realm of textile manufacturing.
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Key Market Challenges
Volatility in Prices of Raw Materials
One of the primary raw materials used in the
production of acetic acid is methanol, which is derived from various sources
such as natural gas, coal, and biomass. Fluctuations in the prices of these
feedstocks directly impact the cost of methanol, which, in turn, affects the
production cost of acetic acid. Any changes in the availability or cost of
methanol can lead to significant price variations in the acetic acid market.
The global acetic acid market has experienced fluctuations
in prices of raw materials in recent years. Factors like supply-demand
dynamics, geopolitical tensions, changes in energy prices, and environmental
regulations have contributed to this volatility. These factors have resulted in
uncertainties in the availability and cost of raw materials, making it
challenging for the Indian acetic acid market to maintain stable pricing and
profitability.
Furthermore, the harmful effects of acetic acid and
the focus on sustainability have led to increased scrutiny and regulatory
requirements surrounding the production of raw materials. This, in turn, can
impact the availability, cost, and sourcing practices of these materials,
adding another layer of complexity to the challenge of raw material price
volatility in the Indian acetic acid market. To address these challenges,
companies in the acetic acid industry need to closely monitor and adapt to
market trends, establish resilient supply chains, and explore alternative raw
material sources. Collaborations with suppliers and investment in research and
development can also help in finding innovative solutions to mitigate the
impact of raw material price fluctuations. By doing so, the Indian acetic acid
market can strive for stability, profitability, and sustainability in the face
of a dynamic and evolving industry landscape.
Lack of Infrastructure and Logistics
One of the key challenges faced by the Indian
acetic acid industry revolves around the insufficient infrastructure for the
production and storage of acetic acid. The existing manufacturing facilities
require not only adequate infrastructure but also well-equipped plants,
advanced storage facilities, and efficient utilities. The absence of such
infrastructure can lead to numerous issues, including production bottlenecks,
lower production capacities, and increased operational costs. Ultimately, these
challenges negatively impact the overall competitiveness of the Indian acetic
acid market, hindering its potential for growth and development.
Furthermore, the lack of robust logistics networks
poses additional hurdles for the transportation and distribution of acetic
acid. It is crucial to ensure the smooth and efficient transportation of both
raw materials, such as methanol, and the finished product in order to maintain
a steady supply chain and meet market demand. However, the inadequate
transportation infrastructure, encompassing road networks, ports, and railways,
can result in significant delays, heightened transportation costs, and
disruptions within the supply chain. Addressing these infrastructure-related
issues is vital for the Indian acetic acid industry to thrive and maintain its
competitive edge in the global market.
Key Market Trends
Growing Focus Towards Sustainability and Green
Initiatives
One significant aspect of this trend is the rising
demand for bio-acetic acid, which is produced from renewable feedstocks through
bio-based processes. This sustainable alternative to conventional acetic acid
offers numerous advantages, including reduced carbon emissions, lower
environmental impact, and a decreased reliance on fossil fuels. Due to the
growing awareness and recognition of these benefits, the adoption of bio-acetic
acid has been increasing across various sectors, ranging from pharmaceuticals
and textiles to food processing.
Moreover, in line with the shift towards
sustainable practices in the food industry, bio-acetic acid is being utilized
in food processing and preservation. Acting as a natural preservative, it
replaces synthetic additives and contributes to the development of more
sustainable and organic food products. Notably, the focus on sustainability and
green initiatives extends beyond the demand side of the Indian acetic acid
market.
Manufacturers are actively embracing more
sustainable production methods and exploring innovative approaches to reduce
their environmental footprint. This includes the development of sustainable
routes for acetic acid production, leveraging renewable energy sources and
bio-based feedstocks. By incorporating these sustainable practices and
embracing the potential of bio-acetic acid, the Indian market is poised to
foster a more environmentally friendly and socially responsible approach to
acetic acid production and consumption.
Segmental Insights
Application Insights
Based on the category of application, the vinyl
acetate monomer segment emerged as the dominant player in the Indian market for
Acetic Acid in 2022. The high share of vinyl acetate monomer in the market can
be attributed to the increasing demand for various applications, such as paints
and coatings, paper coatings, and printed products. These industries rely on
vinyl acetate monomer as a key component for their production processes. The
production of vinyl acetate monomer requires acetic acid, which serves as a
major raw material. This versatile compound is then further used in the
manufacturing of Polyvinyl acetate, a key ingredient in paints and coatings.
Furthermore, the demand for vinyl acetate monomer is also influenced by
improvements in consumer lifestyles, as well as the growing number of house
renovations and redecoration projects. These trends contribute to the overall
demand for paints and coatings, consequently driving the need for vinyl acetate
monomer in the market.
In India, the demand for paints and coatings has
witnessed a significant surge in the construction and automotive sectors since
2021. This growth has prompted several companies to strategize and enhance
their production capacities to meet the escalating demand. For instance, Aditya
Birla Group, a renowned conglomerate, has recently announced its ambitious
plans to invest a staggering amount of INR 100 billion (equivalent to
approximately USD 1.21 billion) towards expanding its paints business in India.
This substantial investment signifies the group's commitment to capturing a
larger market share and establishing a stronger presence in the country's
thriving paints and coatings industry.
End User Insights
The Paints & Coatings segment is projected to
experience rapid growth during the forecast period. Acetic acid, a versatile
compound, finds numerous applications in the production of ethyl acetate, a
widely used solvent in coatings. Ethyl acetate, known for its effectiveness,
serves as a suitable solvent for various resins, including cellulose acetate,
nitrocellulose, and polyester. Moreover, acetic acid contributes to stabilizing
the pH of coatings, ensuring the prevention of bubbles or blisters. Notably,
acetic acid plays an essential role in paint and coating formulations as an
emulsifier. Its ability to disperse pigments and other solids within the
formulation enhances application ease and improves the overall quality of the
finish.
In the context of India, the demand for paints and
coatings is witnessing a significant surge, primarily driven by the automotive
and construction industries. The Indian government's proactive measures to
promote residential construction aim to address the housing needs of
approximately 1.3 billion people. Consequently, the country is anticipated to
witness a remarkable investment of around USD 1.3 trillion in housing over the
next six to seven years, leading to the construction of approximately 60
million new homes.
Furthermore, the availability of affordable housing
is expected to rise by approximately 70% by 2024, meeting the growing demands.
By 2030, it is projected that more than 40% of the population will reside in
Urban India, compared to 34% in 2022, creating a substantial demand for an
additional 25 million mid-end and affordable homes. As a result, the booming
construction activities are poised to drive the paint and coatings market in
India.
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Regional Insights
West India emerged as the dominant player in the India
Acetic Acid Market in 2022, holding the largest market share in terms of both
value and volume. The western region of India, known for its strategic location
near major ports like Mumbai, plays a key role as a transportation and
logistics hub. This advantageous proximity to ports enables seamless import and
export activities, facilitating a smooth flow of raw materials as well as
finished acetic acid products.Moreover, the western region boasts a highly
skilled and educated workforce, equipped with the technical knowledge and
expertise necessary for operating chemical and manufacturing facilities. This
abundant availability of skilled labor greatly contributes to the efficient and
successful operation of acetic acid production plants, ensuring a steady supply
of this essential chemical compound to meet various industrial demands.
Recent Developments
- In April 2022, Jubilant Ingrevia Limited announced
the successful commissioning of its new food-grade Acetic Acid plant, based on
Green Ethanol, at its manufacturing facility in Gajraula, Uttar Pradesh. The
plant boasts a production capacity of 25,000 tons of food-grade acetic acid per
annum.In March 2022, Anupam Rasayan India Ltd, a leading
manufacturer of specialty chemicals, completed the acquisition of 24.96% of the
stock shareholding of Tanfac Industries Ltd (TIL). Tanfac Industries Ltd is
renowned for its production of Acetophenone, Acetic Acid, Peracetic Acid, and
Poly Aluminium Chloride. This strategic move will further bolster Anupam
Rasayan India Ltd's market position in the country.
Key Market Players
- Indian Oil Corporation
- Pentoky
Organy India Limited
- Gujarat
Narmada Valley Fertilizers & Chemicals Limited
- Jubilant Ingrevia
Limited
- Tanfac
Industries Ltd.
- Godavari Biorefineries Ltd.
|
By
Application
|
By End User
|
By Region
|
- Vinyl
Acetate Monomer
- Purified
Terephthalic Acid
- Acetate
Esters
- Ethanol
- Others
|
- Food &
Beverage
- Plastic
& Polymers
- Paints &
Coatings
- Pharmaceutical
- Others
|
- North India
- East India
- West India
- South India
|
Report Scope:
In this report, the India Acetic Acid Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Acetic Acid Market, By Application:
o Vinyl Acetate Monomer
o Purified Terephthalic Acid
o Acetate Esters
o Ethanol
o Others
- India Acetic Acid Market, By End User:
o Food & Beverage
o Plastic & Polymers
o Paints & Coatings
o Pharmaceutical
o Others
- India Acetic Acid Market, By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India
Acetic Acid Market.
Available Customizations:
India Acetic Acid Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Acetic Acid Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]