Global acrylic acid market estimated to reach US$13.21 bln by 2020

The global acrylic acid market is estimated to reach US$13.21 bln by 2020, registering a CAGR of 5.2% between 2015 and 2020, as per Research and Markets. The market is driven by increasing demand for acrylic acid in emerging markets and high demand from the surface coatings and diaper application segments. The acrylic acid industry is mainly characterized by three main derivatives, namely, acrylic esters, acrylic polymers, and other derivatives, which include polycyanoacrylate and ammonium polyacrylate. Asia-Pacific is the largest market for acrylic acid, globally. The region accounts for a major share of the acrylic acid market and is the largest producer of acrylic acid, globally. China is the largest and fastest-growing market for acrylic acid in the region. The prices of acrylic acid are in sync with that of propylene. With the continuous increase in capacity of propylene, the country has an upper hand, as the manufacturing costs in the country for acrylic acid are low. India also is expected to have capacity additions by 2017 for which it shall be able to meet its domestic demand and not depend on imports from China, Japan, or Europe. The use of acrylic acid derivatives in industries, such as the construction, paints (coating), and personal care products are expected to witness higher growth rates in Asia-Pacific followed by RoW in the next five years. Stringent rules & regulations laid down for the use of volatile organic compounds (VOCs) in paints have forced the producers to shift toward water-based paints, in which, acrylic acid is a crucial component. Capacity build and oversupply are the restraining factors for the acrylic acid market. With the available capacity of acrylic acid, companies have been expanding their plants in emerging markets to expand their market shares. With further expansions, there is an increase in the supply, which is not in line with the demand, creating a demand-supply gap. The Dow Chemical Company has taken the initiative to decrease the oversupply with halting the production of acrylic acid in one of its five production facilities in Deer Park, Texas, U.S. BASF is the major and key player in the acrylic acid market. The company is conducting an extensive R&D to extend its product portfolio in the acrylic acid market. New product developments based on its applications in different industries is one of the major strategies of the company. The company is constantly focusing on developing new technologies to support the production of bio-based acrylic acid. It has also formed a joint venture with Sinopec (China) and Petronas (Malaysia) to establish its acrylic acid business footprint in Asia.