Growth in demand for acetic acid is in line with growth in GDP for most developed economies, as they are the harbingers of fiscal/monetary/economic policies and consumer confidence. The global demand for acetic acid declined slightly during recent times mainly due to the slump in the macro economy. The market, however, is expected to grow robustly in the near future, leveraging on strong growth emanating from Asia-Pacific, particularly from China. Rapid growth of acetic acid market in China has encouraged investors to pour million of dollars in establishing acetic acid units. Influx of advanced technology and investments from multinational companies are expected to provide the required impetus for fast paced growth.
Taking cue from the burgeoning demand from the developing countries, acetic acid manufacturers worldwide are investing in capacity expansions and new plant installations. Previously, backward integration reigned in the industry, with companies increasingly making investments through acquisitions and strategic sourcing deals to keep the tabs on the soaring raw material prices and slow demand. This had largely limited capacity expansions in the recent years. But now, with a robust recovery upstaged in the down stream and upstream markets, acetic acid is set to grow steadily. Keeping in view the brightening prospects, acetic acid manufacturers are reviving investments in capacity expansions and facility revamps. However, much of the new cap is charted for the burgeoning economies of Asia, especially China, where the growing demand justifies the capacity investments.
Asia-Pacific dominates the global acetic acid market in terms of market size and growth, as stated by the new market research report on Acetic Acid. Presently, a large percentage of the demand for acetic acid in the region is met by imports. However, on-going massive capacity expansions and establishment of newer factories in China is expected to boost production in the region and reduce its dependence on imports. India also constitutes a lucrative market for manufacturers of acetic acid. The region is expected to pose strong demand for VAM in the near future. The United States trails Asia-Pacific in terms of acetic acid consumption. Affected by the recent turmoil in the global economy, the US market for acetic acid recorded a slight decrease in the demand in 2009. The market in recent times was characterized by supply crunch and soaring prices of raw materials such as methanol and natural gas among others. Exports also declined drastically from the last quarter of 2008, due to the weak business scenario in Europe and Latin America. The on-going capacity expansions and establishment of newer facilities in China are likely to further negatively impact the region?s acetic acid exports in the near future.
In terms of end-use segments, Vinyl Acetate Monomer (VAM) represents the largest end-use market for acetic acid. On the other hand, Purified Terephthalic Acid (PTA) is the fastest growing end-use application, registering a CAGR of more than 4.0% over the analysis period. Other leading end-use segments include Acetic Anhydride and Ethyl Acetate.
On the technological front, emerging technologies for producing chemicals and derivatives are painting greener avenues for growth within the industry. Adoption of innovative and path breaking technologies are providing competitive edge to the companies to enhance their profit margins vis- ?-vis competitors. Accordingly, manufacturers of acetic acid are increasingly adopting these technologies over age-old technologies such as low-water technology.
Saturation in western economies and mushrooming growth in Eastern economies have spurred globalization of industries. Together with the opportunities to expand presence, globalization brought with it a host of problems that are region-specific and hence, the regional governments? foreign trade and investment policies and formation of free trade areas are of critical importance. Environmental concerns represent one of the major factors influencing the market for acetic acid. Demand is expected to rise as the chemical replaces solvents in printing inks, coatings and adhesives.
Major players in the industry are striving to grow in the highly competitive environment by investing in international markets, and thus going global. Key players profiled in the report include British Petroleum PLC, BP PETRONAS Acetyls Sdn Bhd, China Petrochemical Development Corporation, Celanese Corporation, China Petroleum & Chemical Corporation, Daicel Chemical Industries Limited, Kyodo Sakusan Co. Ltd., DuPont, Eastman Chemicals Company, Kuraray Co. Ltd., LyondellBasell Industries, Millennium Chemicals Inc., Showa Denko K.K., Sterling Chemicals Inc., Wacker Chemie AG, among others.
The research report titled ?Acetic Acid: A Global Strategic Business Report? announced by Global Industry Analysts Inc., provides a comprehensive review of the Acetic Acid markets, impact of recession on the markets, current market trends, key growth drivers, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for acetic acid market for the years 2007 through 2015 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Key end-use segments analyzed include VAM, Acetic Anhydride, Ethyl Acetate, Butyl Acetate, Other Acetates, PTA, and Others. Also, a seven-year (2000-2006) historic analysis is provided for additional perspective.
For more details about this comprehensive market research report, please visit ? http://www.strategyr.com/Acetic_Acid_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world?s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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