Acetone Market

Acetone Market Size (2023-2028)

The size of Acetone Market Size was valued at USD 4,685.7 Million in 2022 and is expected to grow at a CAGR of 6.8% during the forecast period of 2023-2028

The demand for acetone is largely driven by the growth of end-use industries, such as personal care, textiles, electronics, cleaning, pharmaceuticals, and petroleum. In cosmetics, it is one of the most widely used solvents in nail polish removers and cleaners. Favorable physical properties, such as low boiling point and miscibility in water, boost the consumption of the product, which in turn is expected to boost the world market for years to come. The strong demand for acetone has forced manufacturers to operate production plants at higher rates. This additional production per year led to an increase in prices in 2019 and this trend is expected to continue throughout the forecast period. Another reason for rising operating costs is the stagnant profit margin. The high cost is also explained by a combination of factors, such as the rise in the price of propylene coupled with regulations on domestic supply, particularly in the Asian countries of China and India.

Acetone Market Drivers:

Bisphenol A is one of the end-uses of acetone that is used as a raw material for the production of various resins such as epoxy and polycarbonate. The escalating utilization of polycarbonate products in multiple applications, such as optical media for CDs and DVDs, and in the electrical and electronic sector for insulators, connectors, and housings, and in the automotive sectors, is driving the demand for bisphenol A, which in turn drives the growth of Acetone market. However, with the development of new technologies, the demand for optical media has grown, due to the increasing use of the Internet for streaming movies and music. This growth also contributes to the growth of the market. In addition, the construction, automotive, and IT segments are known as key growth markets. Therefore, the demand for polycarbonate is expected to increase, which will continue to drive the growth of bisphenol A (BPA) during the foreseen period. Moreover, the increasing use of epoxy resins derived from bisphenol-A (BPA) in the manufacture of water pipes, cans and thermal paper is also contributing to the growth of the BPA market which in turn is driving the growth of the global Acetone Market through the outlook period.

Acetone Market Restraints:

However, acetone-related health issues such as liver damage, vomiting, and blindness caused by exposure, and the flammability of acetone are key factors hampering the growth of the global Acetone market.

Opportunities in the Acetone Market

The increasing population, rising disposable income and growing demand from the personal care and cosmetics industry is driving the expansion in the market. The use of acetone in a wide range of industries, such as construction and petroleum, further drives the growth of the market. The pharmaceutical industry uses acetone as a solvent to deliver the right amount of medicine. It is used for dissolving chemical agents in drugs and regulating the effective density and viscosity of the solution. Growing demand from emerging economies, application in new applications, and technological advancements are factors that are foreseen to provide plenty of growth opportunities for the global acetone industry in the coming years.

Challenges in the Acetone Market

The global acetone market has seen an increase in production capacity, while the demand for acetone has slowed globally over the past decade. The main derivatives of the acetone market are epoxy resins, bisphenol-A (BPA), polycarbonate, methyl methacrylate (MMA), and phenolic resins, all of which have seen increased investment in new capacity in the world over the past decade. This trend of increasing capacity, which at times appeared to be less than global market demand for acetone, has now increased the pressure on competitive prices and changing trade flows. Upward price movements have been significantly affected by overcapacity trends, with acetone and phenol being closely related.

ACETONE MARKET REPORT COVERAGE

Acetone Market Segmentation as per the research report until 2028.

Acetone Market - By Application

• Solvent
• Bisphenol A (BPA)
• Methyl Methacrylate (MMA)
• Others

Solvent manufacturing consumed 32.9% of the total worldwide demand for acetone in 2020. Acetone products are used to clean chemical stains and there is a growing preference for manufacturing different solvents industrial. The chemical, being miscible with water and other organic compounds, is expected to experience increased demand in the production of solvents.The personal care industry is estimated to dominate the solvent demand during the forecast period as it helps maintain product consistency in nail polish remover. It is also used in perfume formulations, hair care products, and cleansers. The increasing use of acetone in skin care products for oily skin is expected to further drive demand.

The demand for bisphenol A is supposed to increase rapidly during the forecast period, due to its use in the production of polycarbonate. Polycarbonates are increasingly in demand in different end-use industries, such as electronics, automotive, and construction.

Acetone Market - By End-Use:

• Paints & Coatings
• Plastic
• Automotive
• Adhesives
• Pharmaceuticals
• Cosmetics
• Electrical & Electronics
• Others

The pharmaceutical and healthcare industries use BPA-based polycarbonate in a wide range of medical equipment due to the characteristics offered such as durability, heat resistance, biocompatibility, high strength, and clarity.

Acetone Market - By Region:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

Asia-Pacific remained the top market share of 41.8% in terms of sales in 2020. International manufacturers have relocated their manufacturing units to the region, due to infrastructure and labor costs for affordable artwork. Emerging economies, along with increasing industrialization and increasing purchasing power, are likely to continue to contribute to the demand for chemicals from regional end-use industries.

North America is the second largest regional segment, primarily due to its application in the manufacture of solvents. Canada is the fastest-growing domestic market with increasing demand for solvents. On the other hand, the growth in consumer spending on technology in the United States has led to increased demand for consumer electronics, boosting the demand for bisphenol A.

Canada is predicted to have lucrative business opportunities during the projection period as several international pharmaceutical and cosmetic manufacturers have moved their manufacturing plants to the country. In addition, Canada offers a raw material price advantage over other locations in North America. This trend is expected to direct the attention of US manufacturers to Canada or offshore locations, and as a result, the country's industrialization will flourish.

Impact of COVID-19 on the Acetone Market:

The spread of coronavirus has disrupted global supply chains and has also reduced labor availability, affecting manufacturing plants around the world. Ultimately, this will have a direct impact on the demand for acetone. The pandemic is affecting the operations of various industries including agriculture, chemicals, personal care, automotive, aerospace, and others. Thus, the impact of COVID-19 will be felt throughout the year and will also affect the growth of this market.

Recent Developments 

• In July 2019, Deepak Nitrite reached 80% plant capacity utilization of phenol and acetone. BSE-listed Deepak Nitrite, which has been commissioned and has been operating since the fourth quarter of 2019, through its wholly-owned subsidiary Deepak Phenolics (DPL), has achieved average capacity utilization of 80% and a peak of 100% in your new phenol and acetone factory.

• In June 2019, India's largest acetone plant is expected to save $ 400 million in foreign exchange annually on the import front. India's largest phenol and acetone production plant of Deepak Phenolics Ltd, located in Gujarat, which began operations almost five months ago, is reportedly slashing import figures for these chemicals by around 60 %, and in the long run that would probably save about $ 400 million. value of foreign currency each year.

• In August 2019, Altivia Ketones & Additives, a subsidiary of Altivia Petrochemicals, agreed to acquire the acetone derivatives business from Dow. This includes the manufacturing site in Institute, West Virginia (pictured), as well as related infrastructure, grounds, and utilities. Dow remains a tenant on the site. Terms were not disclosed and the transaction is expected to close by the end of 2019, subject to customary closing conditions.

Acetone Market Key Players:

The key players operating in the global acetone market are

1) Honeywell International Inc. (US)

2) Dow (US), Ineos (UK)

3) Formosa Chemicals & Fibre Corp (Taiwan)

4) BASF SE (Germany)

5) Mitsui Chemicals Inc (Japan)

6) Shell Chemical Co (US)

7) LG Chem Ltd (South Korea)

8) Reliance Chemicals Pvt Ltd (India)

9) Kumho P&B Chemicals (Korea)