Global acrylic acid market is expected to reach US$18.8 bln by 2020

The global acrylic acid market is forecast to reach US$18.8 bln by 2020 from US$11 bln in 2013, registering a CAGR of 7.6% during the forecast period of 2014 - 2020. The global consumption of acrylic acid would reach 8,169 kilo tons by 2020, as per Allied Market Research. Acrylic acid as precursor for various chemicals processes and as an intermediary for industrial processes such as surface coating, paper treatment, plastic additives, and textiles; has witnessed a surge in demand over past few years. The factors fueling the demand of acrylic acid market are growth in demand for superabsorbent polymers, growing usage of acrylic-based products in emerging economies and further development in the industries such as adhesives and sealants. Stringent government regulations pertaining to the environmental safety & human health and volatile prices of the raw materials are restricting the growth of the market globally. Production of acrylic acid largely depends on fossil fuel resources; therefore, due to the rising price of crude oil globally, manufacturers are now focusing on developing and commercializing renewable acrylic acid. Recently, BASF, Novozymes, and Cargill jointly developed 3-hydroxypropionic acid (3-HP), a raw material for bio-based acrylic acid, in pilot scale. On the other hand, OPX Biotechnologies is aiming to commercialize bio acrylic acid by 2017 with its partner Dow Chemicals. Metabolix has successfully developed bio-based acrylic acid using FAST (fast-acting, selective thermolysis) technique in laboratory setting. Such and other developments will provide a platform for the future growth of acrylic acid globally due to its cost advantage, efficiency and its eco-friendly product outcomes. Among acrylic esters, acrylic polymers and other derivatives; acrylic esters segment leads the global market both in terms of volume as it is widely used as raw materials for producing adhesives, water-based paints, synthetic rubbers and synthetic resins. Acrylic polymers is the fastest growing segment in the derivative types market due to its broad spectrum of applications in industries such as surface coatings, surfactants, diapers and cosmetics. Diapers segment is the largest consumer of acrylic acid in form of superabsorbent polymers and accounts for over 1/4th of the market revenue. Surface coating, adhesives & sealants and plastic additive are other top three major consumers of acrylic acid. Water treatment, textiles, and surfactants are among other end use segments. Surfactants would be fastest growing end use segment during the forecast period. Geographically, Asia Pacific holds the largest share of revenue and would continue to dominate the global acrylic acid market through 2020. LAMEA is projected to hold fastest growth potential, growing at a CAGR of 9.3% during the forecast period. North America and Europe will have steady growth during the forecast period due to saturation in end use segments.