NEWARK, Del, Aug. 19, 2024 (GLOBE NEWSWIRE) -- The industry expects the size of the acetone market to reach USD 7,314.2 million in 2024 and USD 13,521.8 million by 2034, and grow at a CAGR of 6.3%. With personal care products becoming increasingly popular, acetone sales are on the rise.
Acetone, also known as 2-propanone or dimethyl ketone, is one of the simplest and the most important aliphatic ketones. The production process of acetone involves alkylating benzene with propylene that forms cumene, which is then oxidized by air to create phenol and acetone. Acetone plants are usually integrated with phenol.
The chemical is used extensively as a solvent for fats, oils, waxes, resins, rubber, plastics, lacquers, varnishes, and rubber cements and is also used as an intermediate in formation of Bisphenol-A (BPA), Methyl Methacrylate (MMA) and Methyl Isobutyl Ketone (MIBK).
The global acetone market is on track for substantial growth, driven by its extensive applications across various industries. Acetone, also known as dimethyl ketone, is a versatile solvent widely used in the production of paints, coatings, adhesives, and plastics. Its demand is particularly strong in the construction and automotive sectors, where it plays a critical role in ensuring the proper mixing and application of paint formulations, enhancing drying times, and improving the overall finish.
In addition to its use in paints and coatings, acetone is a key raw material in the production of methyl methacrylate (MMA) and bisphenol A (BPA), both of which are essential for manufacturing products like acrylic plastics and polycarbonate resins. The increasing demand for these materials in industries such as electronics, automotive, and construction is further propelling the acetone market.
Moreover, the pharmaceutical industry’s growing need for high-purity solvents for drug formulation, extraction, and purification processes is boosting acetone sales. The compound’s importance in producing innovative pharmaceuticals and its widespread use in various industrial applications underscore its critical role in the global market.
Due to its chemical miscibility, strength, and organic makeup, acetone poses relatively low risks. Chemicals such as acetone are used in a wide variety of everyday products. Acetone plays an important role in the chemical industry. In addition to removing coffee stains and permanent marker stains, acetone can also be used to remove virtually anything else that cannot be removed with water.
Key Takeaways
- Acetone with low purity grade is projected to hold 95% of the market throughout the forecast period.
- Brazil's increasing construction activity will increase the demand for acetone.
- Increasing paint and coating production in the United States will boost acetone demand.
- Increasing electronic production base in China has fueled market growth, and it is expected to grow at a CAGR of 3%.
- As automobile industries grow, the market for acetone is expected to expand.
“The growth of the automotive industry and the demand for technological advances are expected to spur demand for acetone. Growing demand for paint and coatings is expected to drive growth in the coming years,”, says Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.)
How Does Historical and Future Outlook for Acetone Market Compare?
Acetone can be classified based on its grade as high purity grade (purity ≥99.5%) and low purity grade (purity < 99,5%). Low purity grade accounts for the maximum share in terms of consumption owing to its wide range of applications in various end user industries including, paints & coatings, adhesives, printing inks, rubber processing, plastics & polymers and others.
High purity grade acetone is projected to gain traction in upcoming future on the back of its increasing consumption in pharmaceuticals and cosmetics & personal care applicaions.
Solvent application accounts for the prominent share of acetone consumption followed by MMA and BPA. Increasing demand for solvents from end user industries such as paints & coatings adhesives, agricultural chemicals, pharmaceuticals and others is anticipated to drive the demand for acetone in upcoming future.
In terms of end user industries, chemicals segment dominate the global acetone market and same trend is followed by all regions except South Asia & Pacific, where pharmaceuticals dominate the global market.
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What is the Commercial Potential of Acetone?
Acetone is used in agriculture as fungicides and insecticides as it is a good solvent and acts as a carrier agent for the active ingredients. Also, it is used for thinning polyester resin and dissolving two-part epoxies and superglue before they harden. It also helps in cleaning of polyester resins and gelcoats.
Acetone is also a very effective means of removing casting resin from the skin. It is used in the production of gravure and flexography packaging printing inks. As Acetone is the solvent that dries the fastest, it is also used in screen printing as a solvent to strip lacquer and lacquer-adhered stencils from screen materials, as well as, as an ink thinner.
What are the Opportunities In Acetone Market?
Production of plastic resins is expected to open new growth avenues in the future for the market. As acetone is a solvent with high solubility, solvent based paints and coatings dry up faster rather than low solvent paints making it more preferable and can be a possible opportunity for the paints and coatings segment. Significant increase in the production of sanitizers and disinfectants are also expected to be key opportunities for the growth of the market.
Opportunities existing in the APAC acetone market, especially in India, are set to fuel the demand for acetone due to lower labour and production costs. Some of the leading players are therefore moving their manufacturing facilities to India, which is propelling the acetone industry.
As a result of government initiatives such as Make in India, which encourages domestic production, the manufacturing and demand for acetone might rise with the increasing production in sectors such as automobiles, electronics, and paints.
How is Rising Demand from Diverse Sectors Affecting Growth?
Increasing demand for light weight vehicles/automobiles are anticipated to witness high demand from the automobile industry, pertaining to further use of polycarbonates derived from acetone that are lighter in weight and can help increase the fuel efficiency of the vehicle. Increasing concerns about skincare, rising young population, anti-ageing and increased demand for personal care products, especially in emerging economies due to urbanization can serve as an opportunity for the market of acetone.
Increased use of cleansing agents for household during the current pandemic situation can owe to the increased growth of the market of acetone. Acetone manufacturers mostly have integrated plants with phenol and currently the acetone market is oversupplied; however increasing demand from end user industries is anticipated to offset the surplus production during the forecast period.
What are the Key Restraints to Acetone Market?
Acetone is highly flammable and has low acute toxicity. These factors could be hindrance to the global acetone market as exposure to this liquid causes serious eye irritation and may cause drowsiness or dizziness. High price of acetone is another major factor expected to hamper growth of the global acetone market over the forecast period.
The high solubility of the organic compound in water may result to groundwater contamination leading to environmental degrade which can impact human health. Increasing regulations by European commission on BPA is likely to hinder the market growth of acetone as it is the key ingredient for the production of polycarbonates and epoxy resins. Furthermore, the availability of substitutes and the growing use of green solvents can hamper the growth of acetone market.
Competitive Landscape
Acetone players around the world are facing stiff competition. A cost-effective and broader product line will enable them to maintain their leading position in the highly competitive market.
Leading Acetone Brands
- Ineos Phenol
- Royal Dutch Shell PLC
- Formosa Chemical and Fibre Corporation
- Mitsubishi Chemical Corporation
- ExxonMobil Chemical Company
- Chevron Phillips Chemical
- BASF
- LyondellBasell
- Cepsa Quimica
- Altivia chemicals
- Sasol Ltd.
- The Dow Chemical Company
- Domo Chemicals GmbH
- SABIC
Industry Updates
- In January 2024, Haldia Petrochemicals Ltd, based in Kolkata, opened India’s enormous phenol plant. The project is anticipated to be complete by the first quarter of 2026. Once operational, it will be capable of producing 185 KTPA of acetone and 300 kilotons of phenol per annum.
- In December 2023, Thailand-based PTT Global Chemical (PTTGC) announced its plan to resume its acetone and phenol production capacity at 90% through the same month. The initiative would enable PTTGC to enhance resource allocation and improve operational efficiency. The company’s manufacturing facility has a total annual capacity of 150 thousand tons of acetone and 250 thousand tons of phenol.
- In April 2023, KBR, Inc., headquartered in the United States, and China-based Wanhua Chemical Group Co., Ltd. penned an agreement to offer new technology to develop a 650 KTA acetone/phenol plant in Shandong Province. The plant achieved a new record for rapid start-up as it manufactured high-quality products in only eight days.
Key Segments of Market Report
By Grade:
In terms of grade, the industry is divided into ≥ 99.5% and < 99.5%.
By Application:
Solvent, methyl methacrylate, bisphenol A, and methyl isobutyl ketone are a few applications of dimethyl ketone.
By End-use:
The compound is significantly used in chemicals, pharmaceuticals, and cosmetics and personal care industries. The chemical segment is further divided into agricultural chemicals, paints and coatings, rubber processing, polymer and resin processing, adhesives, and printing ink.
By Region:
The sector is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.
About the Chemical & Material Division at Future Market Insights
The chemical & material team at Future Market Insights offers expert analysis, time-efficient research, and strategic recommendations with the objective to provide authentic insights and accurate results to help clients worldwide. With a repertoire of over 100+ reports and 1 billion+ data points, the team has been analyzing the industry lucidly in 50+ countries for over a decade. The team provides a brief analysis of key trends including competitive landscape, profit margin, and research development efforts.
Authored by:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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