Acetone Market Overview
The global Acetone market is estimated to reach a total market value of US$ 10,248.6 Mn by the end of 2031, growing at a rate of 4.9% during the forecast period 2021-2031
Acetone, also known as 2-propanone or dimethyl ketone, is one of the simplest and the most important aliphatic ketones. The production process of acetone involves alkylating benzene with propylene that forms cumene, which is then oxidized by air to create phenol and acetone. Acetone plants are usually integrated with phenol.
The chemical is used extensively as a solvent for fats, oils, waxes, resins, rubber, plastics, lacquers, varnishes, and rubber cements and is also used as an intermediate in formation of Bisphenol-A (BPA), Methyl Methacrylate (MMA) and Methyl Isobutyl Ketone (MIBK).
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for Acetone. The report tracks the global sales of Acetone in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the global economy, water treatment industry in general, and Acetone market in particular.
How Does Historical and Future Outlook for Acetone Market Compare?
Acetone can be classified based on its grade as high purity grade (purity ≥99.5%) and low purity grade (purity < 99,5%). Low purity grade accounts for the maximum share in terms of consumption owing to its wide range of applications in various end user industries including, paints & coatings, adhesives, printing inks, rubber processing, plastics & polymers and others.
High purity grade acetone is projected to gain traction in upcoming future on the back of its increasing consumption in pharmaceuticals and cosmetics & personal care applicaions.
Solvent application accounts for the prominent share of acetone consumption followed by MMA and BPA. Increasing demand for solvents from end user industries such as paints & coatings adhesives, agricultural chemicals, pharmaceuticals and others is anticipated to drive the demand for acetone in upcoming future.
In terms of end user industries, chemicals segment dominate the global acetone market and same trend is followed by all regions except South Asia & Pacific, where pharmaceuticals dominate the global market.
Furthermore, increasing demand for plastics from end user industries such as automotive and constructions is further anticipated to bolster the demand for acetone in upcoming future. Increasing demand for light weight vehicles is anticipated to increase the consumption of plastic per capita and therby push the demand for acetone during the forecast period. According to FMI’s analysis, Acetone marekt sales have grown at a 4.9% CAGR between 2021 and 2031.
Due to the increasing production of acrylic plastics, glass, and translucent sheets from methyl methacrylate, which is used primarily used in the construction industry the demand of acetone is likely to rise in the future. PMMA or otherwise known as Polymethyl Methacrylate, which is derived from methyl methacrylate is used in electrical industry in the production of flat screen computers and liquid crystal displays thereby increasing the usage rate of acetone.
Expansion of end-use industries such as automotive might boost the demand of acetone that will help in the production of polycarbonates. As polycarbonate is used extensively in various automotive parts of a car like windows, headlamps, sunroofs, taillights etc. it is likely to boost the demand of acetone. Methyl methacrylate is also used in auto-glazing and for exterior car coating, as it is weather resistant and protects from scratches.
Furthermore, the heavy demand for polycarbonates in the developed and developing economies is projected to positively impact the growth of acetone market during the forecast period.
What is the Commercial Potential of Acetone?
Acetone is used in agriculture as fungicides and insecticides as it is a good solvent and acts as a carrier agent for the active ingredients. Also, it is used for thinning polyester resin and dissolving two-part epoxies and superglue before they harden. It also helps in cleaning of polyester resins and gelcoats.
Acetone is also a very effective means of removing casting resin from the skin. It is used in the production of gravure and flexography packaging printing inks. As Acetone is the solvent that dries the fastest, it is also used in screen printing as a solvent to strip lacquer and lacquer-adhered stencils from screen materials, as well as, as an ink thinner.
What are the Opportunities In Acetone Market?
Production of plastic resins is expected to open new growth avenues in the future for the market. As acetone is a solvent with high solubility, solvent based paints and coatings dry up faster rather than low solvent paints making it more preferable and can be a possible opportunity for the paints and coatings segment. Significant increase in the production of sanitizers and disinfectants are also expected to be key opportunities for the growth of the market.
Opportunities existing in the APAC acetone market, especially in India, are set to fuel the demand for acetone due to lower labour and production costs. Some of the leading players are therefore moving their manufacturing facilities to India, which is propelling the acetone industry.
As a result of government initiatives such as Make in India, which encourages domestic production, the manufacturing and demand for acetone might rise with the increasing production in sectors such as automobiles, electronics, and paints.
How is Rising Demand from Diverse Sectors Affecting Growth?
Increasing demand for light weight vehicles/automobiles are anticipated to witness high demand from the automobile industry, pertaining to further use of polycarbonates derived from acetone that are lighter in weight and can help increase the fuel efficiency of the vehicle. Increasing concerns about skincare, rising young population, anti-ageing and increased demand for personal care products, especially in emerging economies due to urbanization can serve as an opportunity for the market of acetone.
Increased use of cleansing agents for household during the current pandemic situation can owe to the increased growth of the market of acetone. Acetone manufacturers mostly have integrated plants with phenol and currently the acetone market is oversupplied; however increasing demand from end user industries is anticipated to offset the surplus production during the forecast period.
What are the Key Restraints to Acetone Market?
Acetone is highly flammable and has low acute toxicity. These factors could be hindrance to the global acetone market as exposure to this liquid causes serious eye irritation and may cause drowsiness or dizziness. High price of acetone is another major factor expected to hamper growth of the global acetone market over the forecast period.
The high solubility of the organic compound in water may result to groundwater contamination leading to environmental degrade which can impact human health. Increasing regulations by European commission on BPA is likely to hinder the market growth of acetone as it is the key ingredient for the production of polycarbonates and epoxy resins. Furthermore, the availability of substitutes and the growing use of green solvents can hamper the growth of acetone market.