India Acetic Acid Market By Application (Vinyl Acetate Monomer, Purified Terephthalic Acid, Acetate Esters, Ethanol, Others), By End User (Food & Beverage, Plastic & Polymers, Paints & Coatings, Pharmaceutical, Others), By Region, Competition, Forecast and Opportunities, 2019-2029
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Acetic Acid Market By Application (Vinyl Acetate Monomer, Purified Terephthalic Acid, Acetate Esters, Ethanol, Others), By End User (Food & Beverage, Plastic & Polymers, Paints & Coatings, Pharmaceutical, Others), By Region, Competition, Forecast and Opportunities, 2019-2029
| Forecast Period | 2025-2029 |
| Market Size (2023) | 1.86 million tonnes |
| CAGR (2024-2029) | 4.06% |
| Fastest Growing Segment | Vinyl Acetate Monomer |
| Largest Market | West India |
India Acetic Acid Market has reached 1.86 million tonnes in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.06% through 2029. Acetic acid (CH3COOH) is a versatile colorless organic compound that is produced both synthetically and through bacterial fermentation. With its chemical formula and alternate names like ethanoic acid or methane carboxylic acid, it plays a crucial role in various industries. Notably, acetic acid is utilized in the production of cellulose acetate, vinyl acetates monomer (VAM), metal acetates, and volatile acetates. Its applications span across the textile, chemical, food and beverage (F&B), and paints and coatings industry in India, where it is extensively employed for its unique properties and diverse functionalities.
Key Market Drivers
Growing Use of Acetic Acid in Food & Beverage Industry
One of the primary drivers of the increased use of acetic acid in the food and beverage industry is its role as a versatile and widely appreciated flavor enhancer. Acetic acid, commonly known as vinegar, adds a delightful tangy and acidic taste to a wide range of food and beverage products. It imparts a distinct flavor profile that not only enhances the taste but also contributes to the overall sensory experience of dishes, dressings, sauces, pickles, and condiments.
Moreover, acetic acid acts as a natural preservative, playing a crucial role in maintaining the extended shelf life of food and beverage products. By inhibiting the growth of bacteria, fungi, and other microorganisms that can spoil perishable items, acetic acid ensures the longevity and safety of various food products. This remarkable property makes acetic acid an essential ingredient in food preservation techniques such as pickling, fermentation, and salad dressings.
Another significant application of acetic acid in the food and beverage industry is its role as a pH regulator and acidity adjuster. It provides a precise and effective means to achieve the desired level of acidity in food formulations, playing a vital role in maintaining the taste, texture, and quality of processed foods, beverages, and carbonated drinks. Acetic acid's ability to balance and enhance flavors makes it a valuable component in the production of carbonated beverages, snacks, and bakery products.
Rise in Demand of Acetic Acid in Chemical Industry
One of the primary factors driving the increased demand for acetic acid in the chemical industry is its crucial role as a key raw material in the manufacturing of vinyl acetate monomer (VAM). VAM, a widely utilized compound, finds extensive application in the production of adhesives, paints, coatings, textiles, and various high-performance materials. As the demand for these products continues to grow, the need for acetic acid as a feedstock for VAM production rises in tandem.
Growing Demand of Acetic Acid in Textile Industry
One of the primary drivers of the increased demand for acetic acid in the textile industry is its crucial role in the production of cellulose acetate. Cellulose acetate, derived from natural cellulose fibers, undergoes a complex transformation process with the involvement of acetic acid. This process imparts unique chemical properties to cellulose fibers, resulting in a versatile textile material that is widely used in the manufacturing of various textile products such as yarns, threads, and fabrics.
Key Market Challenges
Volatility in Prices of Raw Materials
One of the primary raw materials used in the production of acetic acid is methanol, which is derived from various sources such as natural gas, coal, and biomass. Fluctuations in the prices of these feedstocks directly impact the cost of methanol, which, in turn, affects the production cost of acetic acid. Any changes in the availability or cost of methanol can lead to significant price variations in the acetic acid market.
The global acetic acid market has experienced fluctuations in prices of raw materials in recent years. Factors like supply-demand dynamics, geopolitical tensions, changes in energy prices, and environmental regulations have contributed to this volatility. These factors have resulted in uncertainties in the availability and cost of raw materials, making it challenging for the Indian acetic acid market to maintain stable pricing and profitability.
Furthermore, the harmful effects of acetic acid and the focus on sustainability have led to increased scrutiny and regulatory requirements surrounding the production of raw materials. This, in turn, can impact the availability, cost, and sourcing practices of these materials, adding another layer of complexity to the challenge of raw material price volatility in the Indian acetic acid market. To address these challenges, companies in the acetic acid industry need to closely monitor and adapt to market trends, establish resilient supply chains, and explore alternative raw material sources. Collaborations with suppliers and investment in research and development can also help in finding innovative solutions to mitigate the impact of raw material price fluctuations. By doing so, the Indian acetic acid market can strive for stability, profitability, and sustainability in the face of a dynamic and evolving industry landscape.
Lack of Infrastructure and Logistics
One of the key challenges faced by the Indian acetic acid industry revolves around the insufficient infrastructure for the production and storage of acetic acid. The existing manufacturing facilities require not only adequate infrastructure but also well-equipped plants, advanced storage facilities, and efficient utilities. The absence of such infrastructure can lead to numerous issues, including production bottlenecks, lower production capacities, and increased operational costs. Ultimately, these challenges negatively impact the overall competitiveness of the Indian acetic acid market, hindering its potential for growth and development.
Furthermore, the lack of robust logistics networks poses additional hurdles for the transportation and distribution of acetic acid. It is crucial to ensure the smooth and efficient transportation of both raw materials, such as methanol, and the finished product in order to maintain a steady supply chain and meet market demand. However, the inadequate transportation infrastructure, encompassing road networks, ports, and railways, can result in significant delays, heightened transportation costs, and disruptions within the supply chain. Addressing these infrastructure-related issues is vital for the Indian acetic acid industry to thrive and maintain its competitive edge in the global market.
Key Market Trends
Growing Focus Towards Sustainability and Green Initiatives
One significant aspect of this trend is the rising demand for bio-acetic acid, which is produced from renewable feedstocks through bio-based processes. This sustainable alternative to conventional acetic acid offers numerous advantages, including reduced carbon emissions, lower environmental impact, and a decreased reliance on fossil fuels. Due to the growing awareness and recognition of these benefits, the adoption of bio-acetic acid has been increasing across various sectors, ranging from pharmaceuticals and textiles to food processing.
Moreover, in line with the shift towards sustainable practices in the food industry, bio-acetic acid is being utilized in food processing and preservation. Acting as a natural preservative, it replaces synthetic additives and contributes to the development of more sustainable and organic food products. Notably, the focus on sustainability and green initiatives extends beyond the demand side of the Indian acetic acid market.
Manufacturers are actively embracing more sustainable production methods and exploring innovative approaches to reduce their environmental footprint. This includes the development of sustainable routes for acetic acid production, leveraging renewable energy sources and bio-based feedstocks. By incorporating these sustainable practices and embracing the potential of bio-acetic acid, the Indian market is poised to foster a more environmentally friendly and socially responsible approach to acetic acid production and consumption.
Segmental Insights
Application Insights
Based on the category of application, the vinyl acetate monomer segment emerged as the dominant player in the Indian market for Acetic Acid in 2022. The high share of vinyl acetate monomer in the market can be attributed to the increasing demand for various applications, such as paints and coatings, paper coatings, and printed products. These industries rely on vinyl acetate monomer as a key component for their production processes. The production of vinyl acetate monomer requires acetic acid, which serves as a major raw material. This versatile compound is then further used in the manufacturing of Polyvinyl acetate, a key ingredient in paints and coatings. Furthermore, the demand for vinyl acetate monomer is also influenced by improvements in consumer lifestyles, as well as the growing number of house renovations and redecoration projects. These trends contribute to the overall demand for paints and coatings, consequently driving the need for vinyl acetate monomer in the market.
In India, the demand for paints and coatings has witnessed a significant surge in the construction and automotive sectors since 2021. This growth has prompted several companies to strategize and enhance their production capacities to meet the escalating demand. For instance, Aditya Birla Group, a renowned conglomerate, has recently announced its ambitious plans to invest a staggering amount of INR 100 billion (equivalent to approximately USD 1.21 billion) towards expanding its paints business in India. This substantial investment signifies the group's commitment to capturing a larger market share and establishing a stronger presence in the country's thriving paints and coatings industry.
End User Insights
The Paints & Coatings segment is projected to experience rapid growth during the forecast period. Acetic acid, a versatile compound, finds numerous applications in the production of ethyl acetate, a widely used solvent in coatings. Ethyl acetate, known for its effectiveness, serves as a suitable solvent for various resins, including cellulose acetate, nitrocellulose, and polyester. Moreover, acetic acid contributes to stabilizing the pH of coatings, ensuring the prevention of bubbles or blisters. Notably, acetic acid plays an essential role in paint and coating formulations as an emulsifier. Its ability to disperse pigments and other solids within the formulation enhances application ease and improves the overall quality of the finish.
In the context of India, the demand for paints and coatings is witnessing a significant surge, primarily driven by the automotive and construction industries. The Indian government's proactive measures to promote residential construction aim to address the housing needs of approximately 1.3 billion people. Consequently, the country is anticipated to witness a remarkable investment of around USD 1.3 trillion in housing over the next six to seven years, leading to the construction of approximately 60 million new homes.
Furthermore, the availability of affordable housing is expected to rise by approximately 70% by 2024, meeting the growing demands. By 2030, it is projected that more than 40% of the population will reside in Urban India, compared to 34% in 2022, creating a substantial demand for an additional 25 million mid-end and affordable homes. As a result, the booming construction activities are poised to drive the paint and coatings market in India.
Regional Insights
West India emerged as the dominant player in the India Acetic Acid Market in 2022, holding the largest market share in terms of both value and volume. The western region of India, known for its strategic location near major ports like Mumbai, plays a key role as a transportation and logistics hub. This advantageous proximity to ports enables seamless import and export activities, facilitating a smooth flow of raw materials as well as finished acetic acid products.
Recent Developments
- In April 2022, Jubilant Ingrevia Limited announcedthe successful commissioning of its new food-grade Acetic Acid plant, based onGreen Ethanol, at its manufacturing facility in Gajraula, Uttar Pradesh. Theplant boasts a production capacity of 25,000 tons of food-grade acetic acid perannum.In March 2022, Anupam Rasayan India Ltd, a leadingmanufacturer of specialty chemicals, completed the acquisition of 24.96% of thestock shareholding of Tanfac Industries Ltd (TIL). Tanfac Industries Ltd isrenowned for its production of Acetophenone, Acetic Acid, Peracetic Acid, andPoly Aluminium Chloride. This strategic move will further bolster AnupamRasayan India Ltd's market position in the country.
Key Market Players
- Indian Oil Corporation
- PentokyOrgany India Limited
- GujaratNarmada Valley Fertilizers & Chemicals Limited
- Jubilant IngreviaLimited
- TanfacIndustries Ltd.
- Godavari Biorefineries Ltd.
| By Application | By End User | By Region |
|
|
|
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy