The total global Acetic acid capacity has been estimated to be over 20,000 kilo tons in 2022. Asia Pacific accounts for more than 75% of the total installed capacity, followed by North America and Middle East & Africa together accounting for remaining share of the global acetic acid capacity. In the forecast years, the major capacity additions will be in China as the country plans to be self-sufficient and decrease its imports. In last decade, global acetic acid market has experienced strong growth in terms of capacity addition with several manufacturers expanding their production facilities, the overall capacity of acetic acid has increased from 14,500 kilo tons in 2010 to the current level. This expansion can be attributed to the rising demand and the need to cater to various industries. Eastman Chemical Company, Celanese Corporation, LyondellBasell, Celanese Corporation, SIPCHEM, Daicel Corporation, Chang Chun Petrochemicals, Formosa and INEOS, are some of the leading acetic acid manufacturers in the world. Celanese Corporation is one of the largest producer of Acetic acid accounting for more than 15% of the global capacity which translates to around 3,400 kilo tons.

Global demand of Acetic acid was estimated to be around 16,700 kilo tons in 2022. Asia Pacific and North America together dominates the global Acetic acid market on the back of strong Vinyl Acetate Monomer and Purified Terephthalic Acid industry in the regions. The demand for Acetic acid in the Asia Pacific region was estimated to be around 12,300 kilo tons, which is expected to grow between 5% to 6% on account of fast growth in China and India. The Asia-Pacific region is expected to continue to be a hot bed for new 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. The other key regions in Acetic Acid market are 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 acetic acid prices are closely tied to the availability of raw materials, particularly methanol. More than 70% of Acetic acid is produced by the carbonylation of methanol. Methanol is crucial raw material for production of acetic acid production. Fluctuations in prices and supply of methanol can significantly impact the production costs of acetic acid. China is the largest exporter of Acetic Acid in Asia Pacific with average exports of over 650 kilo tons in 2022. The average export price of acetic acid in China in 2022 was $0.6 per kg.

Vinyl acetate monomer is the largest application of acetic acid. It is commonly used in paints and coatings. Acetic acid is the key raw material used in the production of vinyl acetate monomer, which is further used to produce polyvinyl acetate. Polyvinyl acetate is also used in the manufacturing of paints and coatings. In the paints industry, VAM is polymerized to obtain polyvinyl acetate and other polymers that serve as important ingredients in the industry. The increasing number of house makeovers and improvements in consumer lifestyles are driving the demand for paints and coatings, thus directly boosting the demand for vinyl acetate monomer.