Bio-Based Acetic Acid Market
Bio-Based Acetic Acid Market Analysis By Source (Biomass, Corn Starch, Maize), By Function (Additive, Intermediate, Acidifying agent), By End Use and Region - Global Market Insights 2023 To 2033
Analysis of Bio-Based Acetic Acid Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Bio-based Acetic Acid Market Outlook (2023 to 2033)
The global bio-based acetic acid market is valued to be US$ 53.9 million in 2023 and it is anticipated to grow at a CAGR of 5.3% to reach US$ 90.4 million by the end of 2033.
One of the main factors propelling the industry's expansion is the rising use of bio-acetic acid in the food, beverage, and pharmaceutical sectors. The market had a shortage of raw materials as a result of the strong demand from the pharmaceutical business during the COVID-19 epidemic, which led to a rise in pricing from manufacturers. One of the factors contributing to the overall market's value growth is the significant rise in sales of bio-acetic acid made from sugar.
Bio-based Acetic Acid Market Size (2022A)
US$ 51.2 Million
Estimated Market Value (2023E)
US$ 53.9 Million
Forecasted Market Value (2033F)
US$ 90.4 Million
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
US Market Growth Rate (2023-2033)
Key Companies Profiled
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Historic and Future Pathway Analysis for the Bio-based Acetic Acid Market
According to Fact.MR, historically, from 2018 to 2022, utilization of Bio-based Acetic Acid increased at a CAGR of 3.1%.
As consumer are demanding more of bio-based products, companies from personal care, food and beverage, pharmaceutical industry are demanding more of raw materials that facilitate this feature. The use of bio-based acetic acid as a preservative and acidity regulator in the food industry has grown during the past year.
Climate change can be combated by the manufacture and use of bio-acetic acid. It ensures a clean atmosphere and replaces petrochemicals in a variety of applications. The usage of bio-based acetic acid as a substantial chemical replacement is gaining traction. It is also used to make bio-based vinyl acetate monomer, among other things.
It is projected that the price volatility of crude oil will have an effect on the price of bio-acetic acid, consequently limiting its global demand.
- Short Term (2023-2026): Growing concerns about health and rising consumption in pharma sector will drive the market for bio-based acetic acid in short run.
- Medium Term (2026-2029): Demand from various sectors like construction and automotive for coatings will drive the demand in medium term. Bio-based acetic acid is key ingredient in making coatings.
- Long Term (2029-2033): Shift from use of fossil fuel based to bio-based chemicals will drive the demand for bio-based acetic acid in long run.
According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.3% CAGR between 2023 and 2033.
“Rising consumer preference for bio-based products”
The rising consumer desire for bio-based goods and the growing industry adherence to environmental laws enforced by regulatory bodies of various countries to reduce the usage of conventional organic acids are the main factors driving the expansion of the market for bio-based acetic acids. The disadvantages and environmental issues related to conventional organic acids are promoting the use of bio-based products and expanding the market for these goods in a number of nations.
“Growing Demand for Vinyl Acetate Monomer”
The manufacturing of resins and polymers for coatings, adhesives, paints, textiles, chemicals, and other end goods uses vinyl acetate monomer (VAM) as an intermediate. It is widely utilized in many applications and has a high demand because of its adhesive qualities to diverse substrates, such as paper, wood, and metal. EVOH (Ethylene Vinyl Alcohol) is developing rapidly due to the use of VAM. Food, technical polymers, gasoline tanks, and other products use EVOH as a barrier packaging material.
“High cost of production and plant set-up is major restraint in growth”
The transition from a fossil fuel-based economy to a bio-based economy is expensive, time-consuming, and takes a significant amount of resources and capital. It is still difficult to find bio-acetic acid manufacturing methods that are affordable. Co-production of chemicals and materials can produce the required additional value to get over the financial difficulties involved in producing bio-based acetic acid.
Companies should look for ways to utilize various bio-based material usage techniques to their fullest extent in order to maximize the economic, environmental, and social benefits.
Why there is high demand for Bio-based Acetic Acid in US markets?
Over the projected period, there is expected to be significant growth potential due to the rise in demand for bio-based chemicals and government initiatives supporting a bio-based economy. The US is home to some of the top producers of bio-based vinyl acetate monomer.
To accommodate domestic demand, the US also imports bio-based chemicals from rest of the world. One of the main factors boosting demand for bio-based acetic acid is the growing use of VAM in the construction and paints & coatings sectors as a result of the ongoing infrastructure development projects across the nation.
In terms of value, the U.S. bio-based acetic acid market is expected to expand at a CAGR of 5.6% over the forecast period
What factors are driving demand for bio-based acetic acid in developing countries?
Growing demand from food and beverage and pharmaceutical industry is the major driving factor for bio-based acetic demand in China and other Asia pacific countries. They are developing nations and every sector is growing rapidly to meet the demand of growing population. Also, after covid-19 pandemic, people are more concerned about their health and use of eco-friendly materials to preserve the environment for a longer term.
Pertaining to above factors, China market for Bio-based acetic acid is expected to grow at a CAGR of 5.8% during the forecast period.
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Why demand for Vinyl Acetate Monomer (VAM) is rising rapidly?
Given the increasing demand for growing applications including polyvinyl acetate and polyvinyl alcohol, the Vinyl Acetate Monomer (VAM) segment, which currently dominates the market, is expected to expand throughout the projected period. Because vinyl acetate monomer (VAM) is widely used in the paints and coatings, textile, adhesives, and sealants markets, it has the biggest market share among all applications.
During the forecast period, the developing countries like China and India will have a major share of total demand for VAM as compared to American and European nations. This is majorly due to the maturing and consolidating markets of America and Europe where demand is growing at comparatively slower rate as compared to Asia pacific countries.
Why biomass is highly used source for making of Bio-based acetic acid?
Biomass is widely used source is production of many types of chemicals like polylactic acid, succinic acid, bio-based acetic acid etc. A major share of more than 2/3rd of bio-based acetic acid produced in 2022 used biomass as a source. In comparison to the petroleum-based fuels they aim to replace, bio-based chemicals are generally determined to have lower global warming potentials.
Bio-refineries use biomass as a source for the production of bio-based fuels and chemicals, including bio-based acetic acid. Prominent manufacturers involved in the production of bio-based acetic acid prefer this biomass source over others.
Eminent Players Key Stratagems
Prominent Bio-based Acetic Acid manufacturers are Afyren, BTG Bioliquids, Godavari Biorefineries Ltd., Lenzing AG, SEKAB, Wacker Chemie AG, Zeachem etc.
The market is consolidated in nature with top 5-7 players holding more than 1/3rd share of the total production of bio-based acetic acid across the globe. Since the cost of production is a major challenge, companies are focusing and investing on developing the innovative production techniques that costs lower and enable manufacturers to offer a competitive price to their consumers / industries.
Fact.MR has provided detailed information about the price points of key manufacturers of Bio-based Acetic Acid positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Bio-based Acetic Acid Industry Research
By Source :
- Corn Starch
By Function :
- Acidifying agent
- Others (flavor enhancer, reagent etc.)
By End-Use :
- Food Products
- Chemical Production
- Terephthalic Acid (PTA)
- Vinyl Acetate Monomer (VAM)
- Textile Industry
- Pharma Products
- Personal Care Products
- Hair Care
- Breath fresheners
- Food Products
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
The global Bio-based Acetic Acid market is estimated to be valued at US$ 53.9 million in 2023.
North America in the global Bio-based Acetic Acid market is anticipated to account for 33.1% market share in 2023.
The global Bio-based Acetic Acid market is valued at US$ 51.2 million in 2022.
The market for bio-based acetic acid grown at a CAGR of 3.1%. during the period of last five years i.e. 2018-2022.