Bio-acetic Acid Market (By Application: Vinyl Acetate Monomer, Acetic Anhydride, Acetate Esters, Ethanol) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global bio-acetic acid market was estimated at USD 0.26 billion in 2022 and it is expected to surpass around USD 0.44 billion by 2032, poised to grow at a CAGR of 5.35% from 2023 to 2032. The bio-acetic acid market in the United States was accounted for USD 32.4 million in 2022.

Key Pointers

• Asia Pacific emerged as the dominating region with a revenue share of 47% in 2022. 
• Vinyl Acetate Monomer (VAM) in the application segment dominated the market with a revenue share of 43% in 2022.

Report Scope of the Bio-acetic Acid Market

The growth is attributed to the increasing demand for eco-friendly and sustainable alternatives to traditional petrochemical-based products. Bio-acetic acid is a renewable alternative to petroleum-based acetic acid, which is used in a wide range of applications such as polymer production, textiles, and solvents. The growing awareness and focus on reducing the carbon footprint and environmental impact of various industries has led to a shift towards sustainable and eco-friendly production processes, driving the demand for bio-based products like bio-acetic acid.

The COVID-19 pandemic negatively impacted the product market in 2020. This was largely due to the temporary suspension of automotive and construction manufacturing activities that led to a reduction in demand for vinyl acetate monomer, a primary ingredient in many end-user products such as paints, adhesives, coatings, composites, and plastics, consequently affecting the demand for bio-acetic acid. However, the market appears to have rebounded in 2022 as production processes across all industries have resumed normalcy.

The U.S. is the largest consumer of the product in North America with a revenue share of 73.2% in 2022. This is attributed to the growing demand for vinyl acetate monomer (VAM) in paints & coatings and automobile industries in the country. VAM is a key ingredient in the production of copolymers used in different types of coatings, such as automotive and industrial coatings, due to its excellent adhesion properties.

Additionally, is it used to create polyvinyl alcohol (PVOH), which is used in coatings and adhesives due to its film-forming properties Thus, the rising demand for automobiles and construction in the U.S. is likely to propel the demand for paints & coatings in the country over the forecast period which in turn will drive the demand for bio-acetic acid used in the production of Vinyl Acetate Monomers (VAM).

Application Insight

Vinyl Acetate Monomer (VAM) in the application segment dominated the market with a revenue share of 43% in 2022. This growth is attributed to its wide use in the production of adhesives, films, textiles, paints, coatings, and other end-use products. VAM is utilized as a key raw material in the manufacturing of several prominent polymers and resins. It is also used to develop high-performance emulsions and adhesives, which find applications in the automotive, construction, and packaged food industries. Increasing demand for VAM and its derivatives is expected to positively impact the growth of the bio-acetic acid market in the coming years.

Acetic anhydride is another segment expected to witness significant growth over the forecast period. It is a chemical intermediate used in the production of pharmaceutical products, tetraacetylethylenediamine (TAED), and cellulose acetate, among others. The wide use of acetic anhydride in producing drugs, such as aspirin, paracetamol, acetyl-p-aminophenol, acetylcholine hydrochloride, sulfa drugs, cortisone, and acetanilide, among others, coupled with the growing demand for cellulose acetate from the packaging industry, is expected to be a major driver contributing to the growth of the segment.

Additionally, the growing demand for clear masks, face shields, food, and e-commerce packaging has resulted in an increased demand for purified terephthalic acid, dimethyl terephthalate, and polyethylene terephthalate. This has led to the growth of the segment and advancements in production technologies are expected to offer lucrative opportunities for the segment in the future.

Regional Insights

Asia Pacific emerged as the dominating region with a revenue share of 47% in 2022. This is attributed to the presence of multinational companies in the region and the high demand from automobile, paints & coatings, and plastics industries in the region. The presence of leading motor vehicle manufacturers such as Toyota, Kia, Nissan, and Hyundai across the region is anticipated to drive the automotive industry in the coming years.

In 2021, the Asia Pacific region produced 3,538,396 units of motor vehicles and 3,144,243 units of motorcycles and scooters, selling over 2,791,307 and 3,550,848 units of motor vehicles and two-wheelers, respectively. The spike in production and sales of vehicles has been fueled by rising consumer purchasing power and a growing population in Asia Pacific. These factors are expected to contribute to the demand for plastics, paints & coatings, and, ultimately, the growth of the regional market.

Further, North America is also witnessing significant growth owing to the increasing demand for vinyl acetate monomers from the packaging and food & beverage industries. Moreover, bio-acetic acid is an essential raw material consumed in the production of personal care products such as shampoos, creams, conditioners, and more as a pH regulator and a preservative. According to the International Trade Administration, the cosmetics & personal care market in Canada accounted for USD 1.24 billion in 2021, which is anticipated to grow at a rate of 1.45% annually, reaching USD 1.8 billion by 2024. Thus, Canada’s thriving cosmetics & personal care industry is likely to propel the demand over the forecast period.

Bio-acetic Acid Market Segmentations:

By Application 

• Vinyl Acetate Monomer
• Acetic Anhydride
• Acetate Esters
• Purified Terephthalic Acid
• Ethanol
• Other Applications

By Regional 

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Central & South America
  • Brazil
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • Qatar
  • Egypt
  • South Africa