The bio-acetic acid market is expected to grow at a CAGR of above 4% during the forecast period of 2019-2024, as per Research and Markets. The major factors driving the growth of market studied are the rising crude oil prices, increasing demand for Vinyl Acetate Monomer (VAM) market, and stringent government regulations. On the flipside, the scarcity & social constraints for raw materials, and environmental concerns regarding the harmful effects are some of the factors hampering the growth of the studied market.
Vinyl Acetate Monomer (VAM) segment dominated the market in 2018 and is likely to grow during the forecast period, with the growing applications like polyvinyl acetate and polyvinyl alcohol. The development of new separation technologies to increase production efficiency is likely to provide opportunities for the studied market during the forecast period.
Europe dominated the market across the globe, owing to the increasing consumption in the end-user industries, such as packaging, textile, paints & coatings, food & beverages, etc.
Major Market Trends
Vinyl Acetate Monomer (VAM) Segment to Dominate Market Demand
Bio-based VAM is produced by oxidative addition of bio-based acetic acid (AcOH) to ethylene, in a continuous packed bed reactor containing Pd-Au catalyst, supported on silica and promoted by potassium acetate.
Among all the applications, vinyl acetate monomer (VAM) holds the largest market share, owing to the extensive use of VAM in the paints and coatings, textile and adhesives, and sealants market. The applications of vinyl acetate monomer are mostly mature. Ethylene-vinyl acetate (EVA) and vinyl acetate-ethylene (VAE) copolymers are considered as the strongest growth areas of the VAM market.
The trend of globalization continues, with the addition of production capacity in China. The demand for VAM is consolidating and has shifted to China and other Asian countries, whereas the United States and Western Europe are considered as mature markets. The Asia-Pacific region is estimated to register the highest growth rate in the VAM market during forecast period, owing to the increasing demand for industrial fabrics. Thus, all such trends in the VAM market is expected to drive the demand for bio-acetic acid market during the forecast period.
Europe to Dominate the Global Market
Europe region dominated the global market share in 2018. The increasing application of bio-acetic acid as raw material in industries, such as plastics & polymers, food & beverage, inks, paints & coatings, and chemicals, have been driving the growth of the studied market.
The ever-changing fashion trends driving the growth of textile industry, healthy recovery of construction sector, and growing food & beverage industry with increasing population, are some of the trends driving the growth of bio-acetic acid market in the region.
Besides, stringent government regulations in the region with regards to environment has further fuelled the growth of bio-acetic acid market.
Construction industry stands to be the largest consumer of paints & coatings, and a major consumer of plastic & polymer products. The residential construction in countries, such as Germany, United Kingdom, and Spain have been increasing since 2018, and the trend is likely to continue due to increasing demand for residential dwellings. With this, the demand for paints & coatings, and plastic products is also expected to increase in the region in the coming years.
Similarly, environment friendly packaging is widely promoted and preferred in the region, which is further driving the usage of eco-friendly raw materials in the packaging industry. The demand for packaging materials have been increasing in the region from consumer goods, and food & beverage industries. Besides, e-retail platform has further increased demand for packaging.
Therefore, all such market trends in the end-user industries are likely to indirectly increase the demand and consumption of bio-acetic acid in the region during the forecast period.