Global Acetone Capacity, Production, Demand-Supply, Pricing and Market Forecast Analysis, 2036

Executive Summary: -

Acetone is a co-product of phenol production from cumene and hence acetone supply demand trends also follow the trends observed in the global phenol market. Small volumes of acetone are produced during acetic acid production and also from molasses fermentation while On-purpose capacity and production of acetone from isopropyl alcohol (IPA) accounts for a very small share in the global acetone production.

Acetone Demand

Acetone is commercially important ketone and is used in applications such as bisphenol-A (BPA), methyl methacrylate (MMA), solvent, aldol chemicals and others. Acetone is used in solvents for coating applications or they are also used as an intermediate for Methyl isobutyl ketone (MIBK) and methyl isobutyl carbinol (MIBC). Pharmaceuticals though only account for a small market. The acetone demand for solvent application is likely to drive the acetone market growing at an average of 3.5% in the long-term forecast till 2025. Bisphenol-A demand is growing at a faster pace as it serves as a raw material for one of the most important engineering plastic, polycarbonates. This will positively reflect on acetone demand growth. On account of moderate to high growth in different regions, the global acetone market is estimated to grow at a CAGR of around 3.0% during the forecast period till 2025.

The pricing and trade of the acetone depend on the mixed interactions amongst the phenol value chain and propylene, the product of interest here include propylene, benzene, acetone, phenol, bisphenol-A and MMA. It is a point to consider that the cash cost of phenol as acetone production is by-product of the complete process. Developments in the MMA economical production and new technologies impacted the demand for acetone.

The demand for acetone, as most of the petrochemicals is led by Asia pacific followed by North America and Western Europe. Asia Pacific and North America leads the production capacity of polycarbonates as well as methyl methacrylate (MMA) which in turn leads to growth in acetone demand. The dominance of China in terms of Acetone consumption will be more prominent during the forecast period owing to its increase in demand from most of the major end-use applications. China already has a higher per capita base in comparison to other Asian countries and Rest of the world. Chinese huge population and high growth rate consistently outstrips the rest of Asia and it is well set for becoming a global premiere economy between 2020 and 2025.