Acrylic Acid is a colorless and transparent liquid characterized by a distinct acrid odor. It possesses chemical properties such as high corrosivity, flammability, and a relatively high boiling point. This organic compound finds widespread application in the synthesis and production of various types of polymers. Acrylic acid is known as the simplest unsaturated carboxylic acid, featuring a direct attachment of a vinyl group to the terminal end of a carboxylic acid structure. According to the IUPAC nomenclature, it is referred to as Propenoic Acid and has the chemical formula CH2=CHCOOH. It can also act as a conjugate acid of Acrylate, meaning that it is formed when donating a proton (H) to the base Acrylate. Acrylic Acids are widely used in the production of commodity acrylates such as Butyl Acrylates (BA), Ethyl Acrylates (EA) and in the manufacturing of Polyacrylic Acid which is further used to produce Super Absorbent Polymers (SAP), detergents, textiles and water treatment chemicals. The main end-use application of superabsorbent polymers is in baby diapers and adult incontinence products, because of its high absorption tendency.
In 2016, the global capacity of acrylic acid was estimated to be more than 8,000 kilotons, and by 2021, it reached 9,100 kilotons, with the majority of capacity expansions occurring in China. Over the period from 2016 to 2021, an average of approximately 200 kilotons of acrylic acid capacity was added on a global scale. Asia-Pacific accounted for more than 60% of the global acrylic acid capacity, with China contributing around 65% of that share. In the long-term forecast, the Asia-Pacific region is expected to maintain its position as the largest global producer of acrylic acid. The region dominates the global Acrylic Acid market backed by China, Japan, and South Korea.
China accounts for 44% of the global Acrylic Acid demand and 54% of the Asia-Pacific demand. The total installed capacity in China has increased from 3,030 kilotons in 2016 to 3,650 kilotons in 2021, and it is further projected to cross 4,500 kilotons in the coming years. The major producers of Acrylic Acid in China are Zhejiang Satellite Acrylic and Taixing Sunke Chemicals, with production capacities of 480 kilotons each. Taiwan-based Formosa Chemicals, Jiangsu Sanmu, Yantai Wanhua, Shanghai Huayi Acrylic Acid Co, and the joint venture of BASF and Sinopec, each have acrylic acid capacities over 300 kilotons. Companies like CNPC, Shenyang Wax Paraffin Chemical, Fujian Binhai, Shandong Hongxin, Shandong Kaitai have Acrylic Acid production capacity below 100 kilotons. It is estimated that about 1,000 kilotons of capacities will be added by 2025. Over the years, China has established itself as a net exporter of Acrylic Acid. The country exported around 56 kilotons of Acrylic Acid in 2021.
The major Acrylic Acid manufacturing enterprises in Asia-Pacific are BASF-SINOPEC, Formosa, Taixing Sunke Chemicals (Arkema and Jurong Chemical JV), Zhejiang Satellite Acrylic, Shanghai Huayi Acrylic Acid Co, Yantai Wanhua, Jiangsu Sanmu, Nippon Shokubai, Mitsubishi, and LG Chemicals, etc. Asia-Pacific has been estimated to be the largest market for acrylic acid, primarily due to China. China alone accounted for more than 50% of the regional acrylic acid demand in 2021. India has emerged as a key market for acrylic acid in the Asia-Pacific. The country was a net importer of acrylic acid; however, its import dependency will reduce in the short-term forecast following the start of Bharat Petroleum Corp Ltd (BPCL) in 2021 and Indian Oil Corp Ltd. s acrylic acid facility of 90 kilotons in 2024. Other key acrylic acid producing countries in the region include Japan, South Korea, Malaysia, Singapore, Indonesia, and Taiwan. Nippon Shokubai and LG Chemicals are the key producers in these countries. Japan accounted for a little over 14%, South Korea accounted for 12%, while other countries combined accounted for around 10% of the regional acrylic acid production capacity.
In 2021, Commodity Acrylates derivative application accounted for 62% of the Acrylic Acid market in China, while Polyacrylic Acid accounted for the remaining 38% of the total demand. Butyl Acrylate dominates the Commodity Acrylates market, followed by Methyl Acrylate. Around 967 kilotons of Acrylic Acid were consumed in China to produce Butyl Acrylate in 2021, and this is further forecasted to reach 1,443 kilotons by 2032 due to new capacity addition in the country. Methyl Acrylates accounted for around 15% of the Commodity Acrylates demand, and it is further anticipated to grow at a CAGR of 3.0% to reach 260 kilotons by 2032. All other Acrylates, including Ethyl Acrylate, 2 EHA, and other Specialty Acrylates (hydroxypropyl acrylate, hydroxyethyl acrylate, dipropyl glycol diacrylate, neopentyl diacrylate, trihydroxymethyl-propane triacrylate, etc.), together accounted for the remaining share of the total demand in the country.
India accounted for around 2% of regional Acrylic Acid demand in 2021. Acrylic Acid demand in India is forecast to grow at a CAGR of 11% to cross 400 kilo tons by 2032 from the current demand. India is estimated to be fastest growing country in the region owing to the new capacity addition of Acrylic Acid and Acrylates in the long-term forecast. India is a net importer of Acrylic Acid with average net imports of around 42 kilo tons between 2016-2021. Acrylic Acid demand in India was estimated to be around 48 kilo tons in 2020 which was completely met through imports. State-owned Indian refiner Bharat Petroleum (BPCL) has commissioned a 160 kilo tons/year Acrylic Acid plant in Q1 2021. The plant was expected to come online in 2020 but the COVID-19 pandemic has delayed construction. This will substantially reduce Indian imports for acrylic acid and is expected to shift its status from an importer to an exporter of acrylic acid. In the forecast period India is anticipated to witness double digit growth owing to the strong growth in construction, personal care, and other end use industries.
Bharat Petroleum Corp Ltd. has recently built pilot scale plant of SAP. The company is further planning to start 50 kilo tons per year SAP plant near its petrochemical complex in Kochi which is expected to be start commercial operation by 2023. The feedstock for this plant will be provided by the newly commissioned 160 kilo tons Acrylic Acid facility next to it.
Indian Oil Corporation Ltd. (IOCL) has granted Tecnimont, an EPCC (Engineering, Procurement, Construction and Commissioning) the contract for the installation and implementation of new Acrylic Acid and butyl acrylate units. This facility is to be set up in Dumad, Gujrat by 2024. The time schedule for the mechanical completion of the plant is a little more than 2 years. And once completed, the plant will have an annual production capacity of 90 kilo tons of Acrylic Acid and 150 kilo tons of butyl acrylates.
In 2021, India consumed around 52 kilo tons of Acrylic Acid to produce Polyacrylic Acid which is further used for production of water treatment, detergents co builder and other application. Commodity acrylates consumed around 41 kilo tons which is further anticipated to dominate the market owing to new capacity addition of Acrylates in the country. Currently Butyl and 2 EHA are produced in India by BPCL with installed capacity of 80 kilo tons and 5 kilo tons respectively. A new Butyl Acrylate plant of IOCL is estimated to be operation by 2024 with capacity of 115 kilo tons to cater the growing demand and to reduce the country’s import dependency. The demand of Acrylic Acid is anticipated to witness highest growth in the forecast period, as a result of the commissioning of new Acrylic Acid, Acrylates and SAP plant in the forecast period.
The demand for acrylic acid in Asia Pacific is expected to remain robust, particularly in countries with large and growing populations. The rise in living standards and increased purchasing power resulting from economic growth will contribute to sustained regional demand for SAP (Super Absorbent Polymer) and acrylic acid. China, South Korea, and India have historically witnessed significant growth rates in the demand for Acrylic Acid. This trend is likely to continue as the region experiences further improvements in living standards and purchasing power driven by economic expansion. Asia Pacific acrylic acid demand is projected to grow at a compound annual growth rate (CAGR) of 3.3% to cross 6,100 kilo tons by 2032.
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