The global Acetone market accounted for US$4,524 Mn in 2020 and is expected to reach US $ 6,962 Mn by 2028 with a considerable CAGR of 6% during the forecast period of 2021 to 2028.
Acetone also known as propanone or dimethyl ketone is a colorless liquid having the chemical formula CH3COCH3. Acetone is also an organic solvent commonly used in pharma applications. Acetone supply is generally abundant around the world. One unit of acetone is created for every two units of phenol produced. The solvents chain, the methyl methacrylate (MMA) sector, and bisphenol A (BPA) derivatives are the key drivers of the global acetone industry. Acetone is found in paint removers, nail polish removers, and varnish removers, among other things. Moreover, acetone is also used to make polymers, lacquers, and fabrics.
Market Growth Drivers:
Covid-19 Impact on the Global Acetone Industry
The acetone industry and its derivatives have seen a crash in demand as a result of economic disturbances, logistic and supply chain disruptions post the of the COVID-19 outbreak.The government's limits on mobility and manufacturing activities, as well as the workforces at danger of infection, would add a new dimension to the disaster. China, one of the world's prime manufacturers of dimethyl ketone, saw a threefold augment in prices since April.
|Market Size 2020||US$4,524 Mn|
|Market Forecast 2028||US $6,962 Mn|
|CAGR||6 % During 2021 - 2028|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Grade, By Application, By End-User, and By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||
ALTIVIA, CepsaQuimica, S.A., Honeywell Chemicals, INEOS Phenol GmbH, Kumho P&B Chemicals, LyondellBasell Industries, Mitsui Chemicals Inc., Royal Dutch Shell Co, SABIC, and The Dow Chemical Company among others.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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The global acetone market growth is primarily driven by factors such as robust demand in pharma, paints & adhesives, and cosmetics industries. For instance, in the pharmaceutical industry, acetone is used in manufacturing pills and liquid medicines to have appropriate density. It is also utilized as an antiseptic in the pharma industry. In the cosmetics industry, acetone is one of the chief ingredients of nail paint remover. Further, in the paints & adhesives industry, it is to be used to prepare metal for painting. This colorless liquid is perfect for cleaning old brushes or dried paint pans.
Acetone is commonly used as an industrial solvent and thus has widespread application across numerous end-use industries. For instance, growing demand in the textile industry to degrease wool & degum silk and in the formation of lacquers is also expected to boost the acetone market growth. However, health risks associated with the exposure of acetone is hindering the market growth. Direct exposure to acetone can cause liver damage, blindness, and vomiting. Also, acetone is a highly flammable liquid, so the product is handled with care. Furthermore, rising regulations by the EU Commission for the ban of BPA in plastic bottles have also negatively impacted the market growth. On the other hand, the rise in the demand for medications, numerous drugs, and hygiene products amid the pandemic further creates numerous growth opportunities for the market in the coming years.
The global acetone market is segmented based on grade, application, end-user, and region. Based on the grading segment, the market classifies as specialty grade and technical grade. The application segment is further categorized into solvents, methyl methacrylate (MMA), bisphenol-A, and others. Furthermore, the end-user segment is split into automotive, paints, coatings, and adhesives, electronics, cosmetics and personal care, pharmaceutical, and others.
Market by Grade
Among grades, the technical grade segment acquired the highest shares in 2020. The high growth in the segment is attributed to its major use in the production of BPA and MMA. This grade is available at a lower price and is gaining high preference in the construction industry owing to its binding properties. However, the specialty grade segment is expected to register the fastest CAGR throughout the forecast period 2021 – 2028.
Market by Application
Based on application, the solvents segment covered a major part of the market share in 2020. The high demand for solvents from several end-use industries such as chemical, petrochemicals, pharmaceutical, cosmetics, personal care, paint & coatings is boosting the growth of the segment. Furthermore, bisphenol-A is likely to attain the fastest growth during the predicted period due to its increased usage in polycarbonate production.
Market by End-User
In 2020, acetone has shown significant application in the cosmetics & personal care industry for maintaining product consistency in polish removers. Acetone denatures certain alcohol and is used as an additive in makeup and skin creams. One of the primary ingredients of nail paint remover is acetone. Then again, rising skin care problems and demand for anti-aging products fuel the growth of the acetone market.
Acetone Market Regional Overview
Middle East & Africa
Acetone Market Regional Overview
Affordable infrastructure and labor costs propels the Asia-Pacific acetone market
The APAC region leads the global acetone industry with a leading market share in 2020 owing to the easy availability of raw materials and lower labor costs in countries such as China and India. Rapid industrialization and growth in manufacturing facilities are also factors supporting the growth of the APAC market. North America stood for the second-largest position in the global scenario as the region has significant manufacturing and a huge consumer base for dimethyl ketone. Furthermore, increased consumer expenditure on technology has resulted in increased demand for consumer electronics, boosting Bisphenol A consumption in the U.S.
Acetone Market Competitive Landscape
This section of the report pinpoints several prominent companies of the market. Some of the prominent vendors offered in the report include ALTIVIA, CepsaQuimica, S.A., Honeywell Chemicals, INEOS Phenol GmbH, Kumho P&B Chemicals, LyondellBasell Industries, Mitsui Chemicals Inc., Royal Dutch Shell Co, SABIC, and The Dow Chemical Company among others.
Companies in the industry are engaging in a range of strategic operations in order to get a major foothold in the competitive landscape. For instance, on March 22, 2021 – Honeywell and Lotte GS Chemical Corp announced a partnership in which Lotte will use Phenol 3G, Honeywell UOP Q-MaxTM, and Evonik MSHP technologies at its petrochemicals facility in Yeosu, Korea, to produce more than 565,000 metric tonnes of acetone and phenol per year.
November 04, 2019, – ALTIVIA announced that it acquired Dow's Acetone Derivatives Business and associated chemical manufacturing assets at Institute, West Virginia, in addition to the Institute Industrial Park.
The estimated value of global Acetone market in 2020 was accounted to be US$4,524 Mn.
The projected CAGR of Acetone during the analysis period of 2021 to 2028 is 6%.
The prominent players of the global Acetone marketinvolve ALTIVIA, CepsaQuimica, S.A., Honeywell Chemicals, INEOS Phenol GmbH, Kumho P&B Chemicals, Lyondell Basell Industries, Mitsui Chemicals Inc., Royal Dutch Shell Co, SABIC, The Dow Chemical Company and others
Asia-Pacific held the dominating share for Acetone during the analysis period of 2021 to 2028
North America region exhibited fastest growing CAGR for Acetone during the analysis period of 2021 to 2028
Growing application of acetone as a solvent, robust demand from electronics industry in APAC region, and surging use of polycarbonates are the prominent factors that fuel the growth of global Acetone market
Based on grade, technical grade segment held the maximum share for Acetone market in 2020?