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Bio-Based Acetic Acid Market

Bio-Based Acetic Acid Market By Source (Biomass, Corn Starch, Maize), By Function (Additive, Intermediate, Acidifying agent), By End Use - Global Review 2021 To 2031

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

Recently released bio-based acetic acid market analysis by Fact.MR, a market research and competitive intelligence provider, showcases that the market reached US$ 44.1 Mn in 2020, and is expected to be valued over US$ 45.6 Mn by 2021-end.

The bio-based acetic acid industry had shown a decrease in growth during 2020 with worldwide revenues down 1.8% year-on-year. However, owing to gradual recovery and rising demand followed by increasing production, overall revenue is projected to grow 1.6X from 2021 to 2031.

Growth of the bio produced acetic acid market primarily depends on demand generated from food and chemical industries. Substantial increase in the sales of sugar-based bio-acetic acid is also one of the reasons behind overall market growth in terms of value.

The bio-based acetic acid market research performed by Fact.MR delves on key details such as current and speculative production capacity, capacity utilization rates of each producer, price growth and production optimization strategy across value chain and many more.

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Consumption Analysis of Bio-based Acetic Acid from 2016 to 2020 Vs. Market Outlook for 2021 to 2031

Referring to the bio-based acetic acid industry research by Fact.MR, market value increased at a CAGR of 2% from 2016 to 2020. Countries such as the U.S., Austria, Sweden, Germany, China, and India held noteworthy share in the market and witnessed over 60% of total consumption in 2020.

Rising bio-based acetic acid production across the globe along with an upsurge in the adoption of bio-based chemicals across industries, ranging from personal care to chemicals, is the reason behind market growth. The global market for bio-based acetic acid is forecast to expand at a CAGR of 5% over the forecast period of 2021-2031.

  • Historically, the market has grown at a nominal pace as demand had been stagnant till 2018. Thereafter, due to increase in requirement of bio-based acetic acid in the food industry along with other industries such as chemicals and textiles, the market has gained traction again. 
  • Fact.MR estimates the consumption of bio-based acetic acid is anticipated to exceed 47,234 MT by 2021
  • Historically, demand for bio-based acetic acid (AcOH) for vinyl acetate monomer (VAM) production showed significant rise. Considering the current market scenario and future analysis, demand will accelerate at a steady pace. 
  • Consumption of bio-based acetic acid as an acidity regulator and preservative in the food industry had increased over the years. In terms of value, both functions accounted for over 58% market share in 2020, with a historical CAGR of 1.6% and 2.1%, respectively. 
  • According to the Fact.MR forecast outlook, the overall bio-acetic acid market is dominated by acidity regulator functions which is estimated to reach US$ 25.5 Mn by 2031-end.
Bio-Based Acetic Acid Market

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How is Demand for Polymer Binders Fuelling the Market for Bio-based Acetic Acid?

Growing utilization of environmentally friendly construction materials has increased demand for bio-based polymeric binders. Polymeric binders are valuable raw materials in the construction and coating industry. By looking into the growing use of bio-based acetic acid for paints & coatings, leading manufacturers are focusing on adopting the biomass balance method to process bio-based products, which will be more suitable for the utilization as binders in plasters and paints. 

For instance, in 2019 WACKER introduced a polymer binder based on a renewable source, which includes bio-based acetic acid. Products based on bio-based acetic acid provide enhanced moisture protection in structures, and they also they stand out for their lower emission characteristics.

Demand for polymeric binders in paints & coatings application will provide an impetus to the demand for bio-based acetic acid

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

How Diversified is the Bio-based Acetic Acid Market?

In chemical production, bio-based acetic acid has huge potential as a precursor for vinyl acetate monomer (VAM) production. In 2020, over 75% of bio-based acid was utilized for the production of VAMs.

Bio-based acetic acid consumption for chemical production was over 12,607 MT in 2020, and this is expected to increase at a CAGR of 4.8% over the forecast period.

The textile industry is emerging in terms of consumption of bio-acetic acid, and it is anticipated to account for 12.3% of overall demand by 2031-end. Bio-based acetic acid in the textile industry is mostly preferred for dyeing. In 2020, over 64% of bio-based acetic acid consumed in the textile industry was for dyeing purposes.

Future demand in the global bio based acetic acid market is set to escalate in the personal care industry as well. It has been used in the formulation of bundled personal care products including shampoos, conditioners, hair rinses, etc.

Bio-based acetic acid has a strong foothold in the chemical industry, and is slightly diversified in textile, food, and personal care industries. The market is anticipated to diversify at a faster pace over the long-run forecast period.

Why Bio-based Acetic Acid Penetration is Still a Challenge and How to Tackle It?

It is a clear demonstration that the transition from a fossil fuel-based economy into a bio-based economy is expensive, which requires a huge amount of resources and capital, and most importantly, is time-consuming.

Cost-effective production routes to bio-acetic acid is still a challenge. Co-production of chemicals & materials can generate the necessary added value to overcome the economic hardship behind the production of bio-based acetic acid. Co-production of corn oil and distiller dried grains with solubles (DDGS) in a dry mill ethanol plant is an example of the same.

Burgeoning bio-based economy, where traditional sources of feedstock can be replaced by biomass, will incrementally grow in complexity and size. Analysing every aspect of sustainability the opportunities are not always clear. Therefore it is recommended that a true valuation be placed on biomass for future use. 

Hemicellulose and lignin, cellulose, as well as other plant materials, are valuable assets and companies should explore the potential opportunities to maximize the economic, environmental and social benefits of different methods for their use.

Which Region Offers Huge Opportunity for Bio-based Acetic Acid Sales Growth?

Europe is expected to account for over 34% of bio-based acetic acid demand throughout the analysis period. Owing to the COVID-19 pandemic in 2020, most European nations with high demand for bio based acetic acid experienced a decline, and the overall European market shrank by nearly 1.5% year-on-year. Despite the downfall across Europe, total demand for bio-based acetic acid reached over 14,737 MT in 2020. 

The North American market has the second-largest number of consumers of bio-based acetic acid after Europe. Especially, the U.S. bio-based acetic acid market is anticipated to portray growth over the forecast period. Upsurge in the requirement for bio-based chemicals along with supportive initiatives towards a bio-based economy is anticipated to show great growth potential over the forecast period.

South Asia and Oceania, led by India, is anticipated to rise at a CAGR of 4.8% during the forecast period. South Asia Oceania’s market has growth potential in terms of production growth, but in terms of consumption, the region has a nominal growth prospective compared to Europe and North America.

East Asia is one of the potential markets for bio-based acetic acid. The region witnessed over 7,551 MT consumption in 2020, and is anticipated to rise at a CAGR of 4.9% over the forecast period.

Bio based acetic acid market region by Fact.MR

Country-wise Analysis

Why is the U.S. a Global Heavyweight for Bio-based Acetic Acid Demand?

Top producers of bio based vinyl acetate monomer are based in the US and the country also had witnessed 1.5 million metric tons of VAM production in 2020. By considering the demand for bio based vinyl acetate monomer, the US is regarded as one of the highest markets for bio-based acetic acid during the forecast period.

Additionally, the country is welcoming several manufacturers of bio-based chemicals from across the globe and is also importing bio-based chemicals from others countries to meet domestic demand. In terms of volume, the U.S. bio-based acetic acid market is expected to expand at a CAGR of 5.5% over the forecast period and reach 14,995 MT consumption by 2031-end.

How Has Bio-based Acetic Acid Demand Been Shaping across Established & Evolving Markets?

China: China is one of the most prominent markets for bio-based acetic acid both in terms of production and consumption. Although, considering the past 4 years statistics the country had grown at a moderate pace with a CAGR of 1.4%.

But owing to the fact such as overall acetic acid market growth, an increase in the consumption of acetic acid in bio-based VAM production, the country is expected to grow at a CAGR 5.2% during the forecast period. China bio-based VAM demand had increased at a CAGR of 5.2%, and is expected that the demand will increase at 6.7% CAGR over the forecast period.

Germany: Consumption of bio-based acetic acid in Germany had gained traction since 2019 after WACKER introduced its new product lineups, manufactured from bio-based material, which also included bio-based acetic acid. In 2020, the country witnessed over 15.8% of total consumption of bio-based acetic acid across Europe.

Austria: Austria is a prominent market for bio-based acetic acid in Europe. Lenzing AG is a manufacturer responsible for large production of bio-based chemicals in the country, which includes acetic acid as well. The country holds over 20% of the overall market share in Europe. 

Sweden: Sweden is home to the world’s largest producer of bio-based acetic acid - SEKAB. The country is not only rich in terms of production but also in terms of consumption. Over 17% of European consumption of bio-based acetic acid is from Sweden.

Category-wise Insights

How Does Growing Consumption of Vinegar Increase Requirement for Bio-based Acetic Acid?

Upsurge in demand for vinegar for cooking, baking, cleaning, and weed control applications has increased the utilization rate of bio-based acetic acid. Vinegar typically consists of 4-7% of acetic acid and is considered as the main ingredient after water.

It has been observed that vinegar intake reduces blood sugar level and insulin level after a meal. Also, it helps to reduce cholesterol in certain cases, in weight management, and in treating several physical ailments including nail fungus, warts and ear infections which can be treated by vinegar.

These benefits of vinegar coupled with rising consumer consciousness regarding bio-based content in food products such as vinegar will bolster demand for bio-based acetic acid.

Which is the Most Convenient Source Adopted by Manufacturers to Produce Bio-based Acetic Acid?

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.

Over 76% of bio-based acetic acid produced in 2020 was from biomass. Other sources such as corn starch and maize were used for producing over 550 MT of bio-based acetic acid in 2020. Biomass acetic acid generated over 75% of total market revenue of bio-based acetic acid across the globe.

In term of value, bio acetic acid produced from corn accounted for over 11.4% market share in 2020, and anticipated to register a CAGR of 2.5% during the forecast period. Moreover, sales of corn-based bio-acetic acid is anticipated to hold strong potential over the long-run forecast period.

How is Availability of Substitutes Hampering Sales of Bio-based Acetic Acid in the Textile Industry? 

Rise in consumption of formic acid in the textile industry contracted global bio-acetic acid market sales. Utilisation of formic acid for alkali neutralization including cotton pre-treatment, mercerizing, bleaching, dyeing, and cleaning is mostly preferred over acetic acid. This is because up to one-third lesser quantity of formic acid is required for neutralizing alkalis when compared to acetic acid. 

Moreover, depending on pH, formic acid has proven more efficient than acetic acid, especially for the use of printing recipes, additives, thickening agents, etc. Additionally, BIOCID-NV is an organic acid that acts as a replacement for acetic acid in the textile industry. The iconic property of the organic acid not only has the function of pH adjustment but also can be used in neutralization, finishing, etc.

Bio based acetic acid market function by Fact.MR

Competitive Landscape

Majority of companies discussed in the report have focused on developing a method for processing cost-effective bio-based chemicals and are expanding their supply chain in developing regions.

Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.

Some of the key developments are:

  • On 25th August 2016, "Technip" signed a cooperation agreement with BTG BioLIquids to provide EPC services for its modular pyrolysis plants. The agreement added value to Technip's global strength in technology, procurement, engineering and construction with BTL's experience.
  • Godavari in collaboration with Praj Industries is planning to expand its manufacturing capacity of ethanol from 400 KLPD to 600 KLPD, using sugarcane syrup. This will also support the manufacturing of bio-based acetic acid and add value to the business plan of bio-based acetic acid. 
  • On 23rd March 2021, AFRYN secured a long term procurement contract of sugar beet co-products, a major feedstock for industrial-scale production of sustainable chemicals from “Sudzucker”, a European leading sugar producer. The partnership between AFRYN & Sudzucker will guarantee supply for the feedstock to the AFRYN NEOXY plant which is anticipated to produce bio-based acetic acid by end of 2021.

Similarly, other recent developments related to companies manufacturing bio-based acetic acid have been tracked by the team at Fact.MR, which are available in the full report.

Fact.MR has provided details about the production capacity of all manufacturers coupled with crucial information regarding product supply, such as a list of distributors, distributor level pricing, and key consumers.

Bio-based Acetic Acid Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 44.1 Million

Market forecast value in 2021

USD 45.6 Million

Growth Rate

CAGR of 5% from 2021 to 2031

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

MT for Volume and US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania 
  • Middle East & Africa

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand

Key Market Segments Covered

  • Source
  • Function
  • End Use
  • Region

Key Companies Profiled

  • Afyren
  • BTG Bioliquids
  • Godavari Biorefineries Ltd.
  • Lenzing AG
  • SEKAB
  • Wacker Chemie AG
  • Zeachem

Pricing

Available upon Request

Market Segments Covered in Bio-based Acetic Acid Industry Analysis

  • By Source

    • Biomass
    • Corn Starch
    • Maize
    • Others
  • By Function

    • Additive
    • Intermediate
    • Acidifying agent
    • Others (flavor enhancer, reagent etc.)
  • By End Use

    • Food Products
      • Vinegar
      • Seasonings
      • Pickles
      • Sauces
      • Mayonnaise
      • Others
    • Chemical Production
      • Terephthalic Acid (PTA)
      • Vinyl Acetate Monomer (VAM)
    • Textile Industry
      • Processing
      • Printing
    • Pharma Products
    • Personal Care Products
      • Hair Care
      • Mouthwashes
      • Breath fresheners
      • Others
    • Others

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Sales of bio-based acetic acid are projected to increase at a CAGR of over 5% during 2021 – 2031.

Value sales of bio-based acetic acid increased at a CAGR of 2.1% during 2016 – 2020.

Bio-based acetic acid as acidity regulators is the major area of usage, and this trend is anticipate to drive sales during the forecast period.

Growing production of vinyl acetate monomers (VAM) stands as the core driver for the market.

Top 5 manufacturers of bio-based acetic acid account for around 85% share in the market, as per ratings on the basis of market share, market reach, clientele, etc.

Top 5 countries driving demand for bio-based acetic acid are the U.S., China, Austria, Sweden, and India.

North America accounted for over 24% of global bio-based acetic acid demand in 2020.

The European market for bio-based acetic acid is projected to expand at a CAGR of 5.8% during 2021 – 2031.

Austria, Sweden, India, China and the U.S. are key producers of bio-based acetic acid.

The market in Latin America will expand at 3.3% CAGR, where Brazil accounted for the largest market share in 2020.

Biomass Is Dominating The Offerings In The Bio-Based Acetic Acid Industry

Major Key Players Are Afyren, BTG Bioliquids, Lenzing AG, SEKAB, Zeachem

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