Key Market Overview:
Acetone Market size was valued at USD 4.9 Billion in 2022, registering a CAGR of 7.8% during the forecast period (2023-2030), and the market is projected to be worth USD 9.8 Billion by 2030.
Acetone is a colorless, volatile, and flammable liquid that has a sweet odor. It is one of the simplest and most important ketone compounds, with a chemical formula of (CH3)2CO. Acetone is an essential industrial chemical, with a wide range of applications in various industries. Additionally, the acetone market is primarily driven by its use as a solvent in various industries such as pharmaceuticals, cosmetics, paints, and coatings. In addition, acetone is also used as a raw material in the production of methyl methacrylate (MMA), bisphenol A (BPA), and aldol chemicals, which offers widespread applications in several industries. The demand for acetone is influenced by the growth in the end-user industries. For instance, in the automotive industry, acetone is used as a solvent for automotive coatings and is also used in the production of polycarbonate plastics and other composite materials.
Furthermore, Asia Pacific dominated the acetone market owing to significant growth in various end-user industries in these countries, such as automotive, construction, electronics, and healthcare. In addition, the growing population in the region increases the demand for consumer goods as a result, accelerates the demand for the acetone market.
Acetone is a versatile solvent and is widely used in various industries, such as paints and coatings, adhesives, pharmaceuticals, and cosmetics. The increasing demand for these products is driving the demand for acetone. For instance, acetone is used as a solvent in the production of automotive coatings that have high demand due to the increasing sales of vehicles worldwide. Moreover, acetone is a key raw material in the production of polycarbonate plastics, widely used in the construction, automotive, and electronics industries. The increasing demand for these industries is driving the demand for polycarbonate plastics and, in turn, acetone. Additionally, the healthcare industry is a significant end-user of acetone used in the production of various medicines, including analgesics, antiseptics, and anesthetics.
Acetone is a volatile organic compound (VOC) and contributes to air pollution. The use of acetone in various applications, such as paints and coatings, results in emissions of VOCs that is likely to harm the environment and contribute to climate change. This led to stricter regulations on the use of acetone and limit its growth in certain applications and as a result, serves as a major restraint for the market.
The increasing focus on sustainability is growing the trend towards the use of bio-based acetone made from renewable sources such as sugarcane, corn, and other biomass. This is driving the demand for bio-based acetone as an alternative to conventional acetone made from fossil fuels. In July 2022, LG Chem shipped its first bio-based phenol and acetone to a German-based renewable polymer producer. The company produced acetone and phenol from bio-based feedstock such as biomass and waste cooking oil. All these factors are expected to increase the demand for the product and will provide ample opportunity for the market over the forecast period.
Acetone Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||9.8 billion|
|CAGR (2023-2030)||7.8 %|
|By Grade Type||Specialty, Reagent/ACS, and USP|
|By Application||Methyl Methacrylate (MMA), Bisphenol A (BPA), Solvents, Methyl Isobutyl Ketone, and Others|
|By End User||Cosmetics and Personal Care, Electronics, Automotive, Pharmaceutical, Paints, Coatings, and Adhesives, Textile Industry, Agricultural Chemicals, and Others|
|By Geography||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Players||LyondellBasell Industries Holdings B.V., INEOS, Altivia, Royal Dutch Shell Co., Honeywell International Inc., Mitsui & Co., Ltd., SABIC, KUMHO P&B CHEMICALS., INC, Cepsa, and Borealis AG|
By Grade Type
Based on the grade type segment, the market is classified into specialty, reagent/ACS, and USP. The specialty grade segment holds the major share of the acetone market. This is due to the increasing usage of bisphenol A and methyl methacrylate (MMA) made from specialty-grade acetone in various industries such as electronics, and construction, which is driving the demand for specialty-grade acetone.
Moreover, the USP grade segment is expected to register the fastest CAGR over the forecast period. This is attributed to the fact USP grade acetone is the purest form of acetone, being 99.9% free of impurities. As a result, the USP grade is considered safe for medical and pharmaceutical use accelerating the acetone market in the medical and pharmaceutical industries.
By the application segment, the market is divided into methyl methacrylate (MMA), bisphenol A (BPA), solvents, methyl isobutyl ketone, and others. The solvents segment is dominated the acetone market in terms of revenue in 2022. Acetone is a widely used solvent in various industries, including paints and coatings, adhesives, and pharmaceuticals. In addition, they are also used as a solvent for resins, oils, waxes, and other organic compounds. Thus, the segment generated the largest revenue in 2022.
Moreover, bisphenol A (BPA) is likely to witness significant growth in the acetone market over the forecast period. This is attributed to the fact BPA is a key ingredient in the production of polycarbonate and epoxy resins, which finds a wide range of applications in various industries, including automotive, construction, and electronics. In addition, the high demand for polycarbonate and epoxy resins is driving the demand for acetone in the BPA segment. For instance, Mitsui Chemicals offers acetone that is used to produce bisphenol A, MMA, MIBK, IPA, solvents, and other agrochemicals.
By End User
Based on end user industries, the market is segmented into cosmetics and personal care, electronics, automotive, pharmaceutical, paints, coatings, and adhesives, the textile industry, agricultural chemicals, and others. The paints & coating segments dominated the market in terms of value due to the expansion of the construction and infrastructure industries, driving the growth of this segment. Acetone is a key ingredient in the production of paints, coatings, and adhesives. Additionally, acetone is used in the production of adhesives to improve the viscosity and bonding strength of the adhesive.
Moreover, the cosmetics & personal care segment is expected to witness a significant growth rate over the forecast period. Acetone finds a wide range of applications as a solvent in various personal care products such as nail polish removers, hair sprays, and skin creams driving the demand for acetone in the cosmetics and personal care industry. Therefore, the segment will grow at the fastest CAGR over the forecast period.
According to region, the acetone market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia Pacific held the largest share of the acetone market in 2022 owing to the presence of key manufacturers of acetone, including China National Petroleum Corporation, LG Chem, and Kumho P&B Chemicals. The presence of these manufacturers in the region has driven the demand for acetone. Additionally, several governments in the region have initiated policies and regulations to support the growth of various end-use industries, including automotive and construction. For instance, the Indian government launched initiatives such as Make in India and Smart Cities Mission, which drive the demand for acetone in the construction industry.
Moreover, Europe is expected to witness significant growth over the forecast period. This is attributed to the increasing trend towards the use of bio-based acetone in the region, which is made from renewable sources such as sugarcane and other biomass. This is driven by the region’s focus on sustainability and reducing carbon emissions. Furthermore, Europe witnessed significant investments in various end-use industries, particularly in the automotive and construction sectors. For instance, Volkswagen planned to invest in electric vehicles by 2025, expected to drive the demand for acetone in the production of polycarbonate plastics used in these vehicles.
Acetone Market Competitive Landscape:
The acetone market is highly competitive comprising numerous players operating in the industry. The players are focusing on strategic initiatives, such as mergers and acquisitions, partnerships, collaborations, new product launches, and capacity expansions to strengthen their market position and expand their global presence. The following are the major key players operating in the acetone market:
- LyondellBasell Industries Holdings B.V.
- Royal Dutch Shell Co.
- Honeywell International Inc.
- Mitsui & Co., Ltd.
- KUMHO P&B CHEMICALS., INC
- Borealis AG
- In April 2021, Borealis AG acquired 50.0% stake in Novealis Holdings LLC. This acquisition will enable Borealis to strengthen its presence in North America and Europe by acquiring NOVA Chemicals’ share in Novealis. This, in turn, will allow Borealis to offer better service to its clients in the region by utilizing its value-added Borstar technology and related products.
- In December 2020, Trinseo, a global materials company that specializes in producing plastics, synthetic rubber, and latex binders, announced that it has entered into a binding agreement to acquire Arkema’s polymethyl methacrylates (PMMA) and activated methyl methacrylates (MMA) businesses. Trinseo’s current product portfolio covers multiple sectors, such as automotive, construction, medical, and consumer electronics.
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