Global Carboxylic Acid Market Demand & Forecast Analysis, 2016-2032

Executive Summary:

Carboxylic acids are the organic compounds made up of two functional groups, carbonyl and hydroxyl. The major carboxylic acids include Acetic Acid, Valeric Acid, Formic Acid, Propionic Acid, Butyric Acid, Citric Acid amongst others. The major end-uses of the carboxylic acid include Animal feed, Food & Beverages, Consumer Goods, Personal Care & Cosmetics, Pharmaceuticals, Lubricants and Others. Acetic acid accounts for the largest and the most important of all industrial carboxylic acids.

Acetic acid is a colourless organic liquid manufactured using methanol. VAM is the largest consumer of acetic acid followed by PTA, which is used as a co-monomer for the production of PET (Polyethylene Terephthalate) -one of the biggest and fastest growing thermoplastics market. Acetate Esters and Acetic Anhydride are the third and fourth largest consumers respectively. There are a large number of smaller end-uses including monochloroacetic acid and other very small applications directly in textiles and in acetate salt production. The acetic acid industry is fragmented with the top 10 producers accounting for more than 60% of the total global production capacity. There are atleast more than 100 companies also producing Acetic Acid.

The Asia-Pacific region is expected to continue to be a hot bed for new carboxylic acids including acetic acid investments in the long-term forecast. The region will increase its share of the global capacity to more than 80% by 2025. The major capacity additions will be in China as the country strives to be self-sufficient and decrease its imports. In 2017, Asia, mainly led by China, accounted for the largest share for carboxylic acids. The demand in the region is expected to grow between 5% to 6% on account of fast growth in China and India. The other key regions of demand were North America followed by Western Europe. These regions are expected to witness sluggish growth in comparison to other region due to geographical shift of end use industries to low cost manufacturing locations such as Asia.

The demand for carboxylic acids has grown on account of mainly backed by the burgeoning demand for acetic acid. Demand is further expected to rise as carboxylic acids like acetic acid replaces solvents in printing inks, coatings and adhesives. In the long-term forecast, overall Carboxylic acid market is also likely to be driven by increasing demand for cosmetics and personal care