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The Bio Acetic Acid Market size is forecast to increase by USD 68.8 million, at a CAGR of 5.6% between 2023 and 2028. The market is experiencing significant growth due to increasing construction activities and the expanding use of bio-based chemicals in various industries, including paints, coatings, plastics, and composites. This trend is driven by the rising demand for renewable chemicals as feedstocks, which is leading to the production of bio-acetic acid as a sustainable alternative to traditional acetic acid. However, the market growth is challenged by high production costs and the volatility of raw material prices. Despite these hurdles, the market is expected to continue expanding due to the growing importance of sustainability and the increasing adoption of bio-based materials in various industries.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The fermentation segment is estimated to witness significant growth during the forecast period. The market has gained significance due to the increasing usage of this compound in various industries. Fermentation is a key process in the production of bio acetic acid, which converts natural feedstocks into valuable products. This method utilizes fermented sugars to produce acetic acid, providing a more sustainable and healthier alternative to the traditional method of deriving acetic acid from methanol, which is known for its toxicity and carcinogenic properties. As consumer demand shifts towards safer and eco-friendly options, the need for bio acetic acid produced through fermentation is anticipated to rise. Jubilant Ingrevia Limited is a leading player in this segment, offering Bio Acetic Acid-Food Grade, which is derived from natural feedstocks using fermentation. Bio acetic acid finds extensive applications in various industries such as water-based paints, waterproofing coatings, and paperboard coatings. Acetic acid derivatives like ethyl acetate and butyl acetate are also derived from acetic acid and are widely used in the production of plastics, solvents, and perfumes. In the US market, the demand for bio acetic acid is expected to grow due to increasing environmental concerns and consumer awareness. The use of bio acetic acid in water-based paints and coatings is gaining popularity as it offers several advantages such as low VOC (volatile organic compounds) emissions, easy application, and excellent adhesion properties.
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The fermentation segment was valued at USD 122.60 million in 2018. Additionally, the growth of the construction industry in the US is expected to boost the demand for bio acetic acid in the production of waterproofing coatings and paperboard coatings. In conclusion, the bio acetic acid market is expected to grow due to the increasing demand for sustainable and eco-friendly products. Fermentation is a crucial process in the production of bio acetic acid, and its applications in various industries such as water-based paints, waterproofing coatings, and paperboard coatings are driving the market growth. Jubilant Ingrevia Limited is a key player in this market, offering Bio Acetic Acid-Food Grade, which is derived from natural feedstocks using fermentation. The US market is expected to witness significant growth in the bio acetic acid market due to increasing environmental concerns and the growth of the construction industry.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Asia-Pacific region is set to emerge as a major contributor to the global bio acetic acid market, fueled by advancements in sectors such as food processing and cosmetics. India and China are spearheading this growth, bolstered by strategic government initiatives and evolving consumer trends. In India, the Pradhan Mantri Kisan Sampada Yojana (PMKSY) is a key driver, focusing on upgrading food processing infrastructure. This initiative has significantly boosted the share of processed food exports, which grew from 13% to over 15% between 2016 and 2019. Similarly, China's growing focus on industrial upgrading and environmental sustainability is expected to create ample opportunities for bio acetic acid in various industries, including pharmaceuticals, food-grade applications, and construction. Bio acetic acid finds extensive applications in diverse sectors, such as Photographic Films, Cigarette Filters, Medicines, and Preservation. In the pharmaceutical industry, it is used as an intermediate in the production of various drugs. In the food industry, it is used for food preservation and as a flavoring agent in food-grade quality applications. In the construction sector, it is used as a building material additive to improve the durability and strength of concrete. The Asia-Pacific region, particularly India and China, is poised for significant growth in the global bio acetic acid market, driven by government initiatives and changing consumer trends. The versatile nature of bioacetic acid, with its applications in various industries, further bolsters its market potential.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airedale Group - The company offers bio acetic acid with applications across chemical production, paints production, cleaning, food production, and pharmaceuticals.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Fragmented |
YoY growth 2023-2024 |
5.1 |
Bio-acetic acid, a renewable alternative to petrochemical-based acetic acid, is gaining significant attention in the chemicals industry. Traditionally, acetic acid has been derived from non-renewable feedstocks, leading to concerns regarding sustainability and environmental impact. However, the shift towards bio-based chemicals is transforming the landscape of the industry. Bio-acetic acid is produced from renewable feedstocks, such as corn, sugarcane, and other biomass sources. This sustainable production method offers several advantages over petrochemical-based acetic acid. The use of bio-acetic acid in various applications, including polymer production, textiles, solvents, paints and coatings, adhesives, emulsions, acetic anhydride, and construction activities, is on the rise. In the polymer industry, bio-acetic acid is used in the production of polyvinyl alcohol (PVOh), a biodegradable polymer. In textiles, it serves as a crucial component in the production of ethyl acetate, a solvent used in textile processing. In the paint and coatings sector, bio-acetic acid is used as a raw material in the production of paints and coatings, plastics, composites, and terephthalic acid. Moreover, bio-acetic acid finds applications in various industries, such as food and beverages, where it is used as a preservative and flavoring agent. In the production of vinyl acetate monomer, a key ingredient in the manufacture of polyvinyl acetate (PVA) resins, bio-acetic acid is an essential feedstock.
Additionally, it is used in the production of photographic films, inks, and other specialty chemicals. Bio-acetic acid offers several advantages over its petrochemical counterpart. Its production process is more sustainable, as it utilizes renewable feedstocks, reducing the carbon footprint and greenhouse gas emissions. Furthermore, it offers comparable performance and cost competitiveness in various applications, making it an attractive alternative for manufacturers looking to reduce their environmental impact while maintaining production efficiency. In conclusion, the use of bio-acetic acid as a renewable alternative to petrochemical-based acetic acid is gaining momentum in the chemicals industry. Its versatility and sustainability make it an attractive option for various applications, including polymer production, textiles, solvents, paints and coatings, adhesives, emulsions, acetic anhydride, construction activities, food and beverages, vinyl acetate monomer, and photographic films. The shift towards bio-based chemicals is a significant trend in the industry is poised to play a crucial role in this transition.
Growing crude oil prices is notably driving market growth. The market is experiencing notable growth due to escalating crude oil prices, which serve as a significant driver for market expansion. As the cost of petrochemical-based products derived from crude oil increases, manufacturers are turning to renewable alternatives, such as bio-acetic acid, to reduce costs and mitigate the risks associated with volatile oil markets. These markets are influenced by geopolitical tensions and fluctuating demand, resulting in unpredictable pricing for conventional petrochemicals.
For instance, in September 2024, concerns over potential disruptions in U.S. oil production due to natural disasters caused crude prices to rise, with Brent crude trading at approximately USD 79 per barrel. In response, various industries, including polymer production, textiles, solvents, and paints and coatings, are increasingly adopting bio-acetic acid as a sustainable and cost-effective alternative. Thus, such factors are driving the growth of the market during the forecast period.
Expansion in production of bio-based acetic acid is the key trend in the market. The market is experiencing significant growth due to the rising demand for eco-friendly and sustainable chemicals in various industries. Sekab, a leading producer, has recently increased its bio-based acetic acid production capacity, allowing for increased deliveries and faster response times. Their flagship product, Acetic Acid Pure, is derived entirely from renewable resources, making it an attractive option for businesses seeking to minimize their carbon footprint. This product can help reduce emissions by up to 50%, with even greater savings possible through the use of second-generation feedstocks.
Acetic acid is widely used in construction activities, such as in paints and coatings, as well as in plastics and composites. The adoption of bio-based acetic acid in these industries is expected to continue growing, driven by the increasing importance of sustainability and renewable chemicals in the market. ISCC+ certification ensures the sustainability and traceability of Sekab's bio-based acetic acid, making it a preferred choice for companies prioritizing environmental responsibility. Thus, such trends will shape the growth of the market during the forecast period.
High production costs is the major challenge that affects the growth of the market. The market faces high production costs as the industry shifts from conventional petrochemical methods to biomass-based production. Although glacial acetic acid (GAA) is primarily produced through methanol carbonylation, using biomass as a feedstock presents a more sustainable alternative. However, the economic feasibility of this approach is hindered by elevated operational expenses, particularly in the separation of acetic acid from water, which necessitates considerable energy consumption. The purification process, particularly in biorefineries, significantly contributes to the total production costs.
For instance, simulations of a GAA biorefinery with an annual capacity of 120,650 tons suggest that capital expenses can range from USD 186 million to USD 245 million, depending on the production scenario. Polyvinyl alcohol (PVOH) manufacturers utilize bio acetic acid in adhesives and emulsions. Motor vehicle manufacturers incorporate cellulose acetate in their products, and the cosmetics market relies on bio acetic acid as an essential ingredient. Consumer purchasing power plays a crucial role in the market's growth, with increasing demand for eco-friendly and sustainable products. Key players in the market include Adhesives, Emulsions, Acetic anhydride, and Cellulose acetate manufacturers. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Bio-acetic acid, a renewable alternative to petrochemical-based acetic acid, is gaining significant traction in various industries due to its eco-friendly nature. This organic compound is derived from renewable feedstocks, making it a sustainable choice for polymer production, textiles, solvents, adhesives, emulsions, and other applications. In the polymer industry, it is used in the production of polyvinyl alcohol (PVOh), acetic anhydride, and cellulose acetate. Motor vehicle manufacturers, consumer purchasing power, and the cosmetics market are some key drivers for the growth of the bio-acetic acid market. The textiles industry uses bio-acetic acid in the production of acetic acid derivatives, such as ethyl acetate and butyl acetate, which are used in water-based paints, waterproofing coatings, paperboard coatings, and other applications.
Bio-acetic acid is also used in engineering, catalysts, and industrial chemicals, including plastic bottles, photographic films, vinyl acetate monomer (VAM) production plants, and various other industries. Furthermore, bio-acetic acid is used in the production of acetic acid, which is a key ingredient in various industries, including paints and coatings, plastics, composites, construction, food and beverages, and pharmaceuticals. Bio-based chemicals and renewable chemicals are becoming increasingly important in various industries as they offer sustainable alternatives to petrochemical-based products.
Market Scope |
|
Report Coverage |
Details |
Page number |
202 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.6% |
Market Growth 2024-2028 |
USD 68.8 million |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
China, US, Germany, Japan, UK, South Korea, India, Canada, France, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airedale Group, Bio-Corn Products EPZ Ltd., BTG Bioliquids B.V, Cargill Inc., Celanese Corp., Chemball HangZhou Chemicals Co. Ltd., Daicel Corp., Eastman Chemical Co., Fisher Scientific GmbH, Godavari Biorefineries Ltd., LanzaTech Global Inc., Lenzing AG, LyondellBasell Industries N.V., Novozymes AS, Sekab, Shandong Hualu-Hengsheng Chemical Co. Ltd, Sucroal SA, Vinipul Inorganics Pvt. Ltd., and Wacker Chemie AG |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Source
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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