Acrylic Acid Market Overview
In 2023, the global Acrylic Acid Market reached a valuation of USD 13.4 billion, with a growth projected at a CAGR of 6% to cross USD 23 billion by 2032. In the long-term forecast period, increasing demand for paints & coating, and superabsorbent polymer application will further drive the acrylic acid market.
Introduction
Acrylic acid is one of the most versatile monomers primarily used as building blocks for several polymer formulations. Acrylic acid has two major markets - acrylic esters and glacial acrylic acid. Glacial acrylic acid is primarily used in the manufacturing of Super Absorbent Polymers (SAP) which is mostly used in baby diapers and personal care products. Acrylic polymers are also used in water treatment and textile applications. Acrylic Esters are predominantly used in surface coatings applications while paper treatment, detergents, plastic additives, textiles, sealants, and adhesives account for over 1/4th of the acrylic esters demand.
The Acrylic Acid market study covers the demand-supply analysis for Acrylic Acid in key industries of major economies. Most of the plants consume Acrylic Acid captively to produce Commodity Acrylates and Polyacrylic Acid. In terms of Acrylic Acid demand historically, Asia-Pacific, Western Europe, and North America have been the regions from where the maximum demand was seen. Acrylic Acid Capacity
The global acrylic acid capacity was estimated to be more than 8500 Kiloton in 2019, which has crossed 9500 Kiloton in 2023, with the majority of capacity additions in China. Between 2019 and 2023, an average of around 200 Kiloton of acrylic acid capacity was added globally. The acrylic acid capacity is further anticipated to cross 10,000 Kiloton by 2032 driven by growth in consumption of commodity acrylates and polyacrylic acid in the long-term forecast.
In the areas with mature economies, Acrylic Acid demand growth is expected to be less than global averages primarily due to the geographic shift of many manufacturing industries to areas of lower labor costs such as China and India. The growth opportunities for Acrylic Acid are primarily linked with the industry’s drive for the production of Acrylates and Superabsorbent polymers (SAP). In terms of capacity additions, Asia-Pacific, mostly China and India is expected to lead during the forecast period. At a global level, the SAP demand has grown higher than the world GDP growth.
Global Acrylic Acid Capacity, By Company (Kilotons)
Source: Secondary & Primary Research and Prismane Consulting estimates
BASF holds a dominant position as the major producer of acrylic acid, commanding a market share of 17% and operating manufacturing facilities in the United States, Brazil, Germany, Belgium, Malaysia, and China. Nippon Shokubai follows as the second-largest producer, trailed by LG Chemicals (8%) and Dow Chemicals (8%). A significant proportion of companies consume acrylic acid internally to produce Commodity Acrylates and Polyacrylic Acid. Asia-Pacific alone contributes over 60% of global acrylic acid capacity, with China accounting for approximately 65%.
The region is poised to remain the largest global acrylic acid producer in the long-term forecast. Key manufacturing entities in Asia-Pacific include BASF-SINOPEC, Formosa, Taixing Sunke Chemicals (a joint venture between Arkema and Jurong Chemical), Zheijiang Satellite Acrylic, Shanghai Huayi Acrylic Acid Co, Yantai Wanhua, Jiangsu Sanmu, Nippon Shokubai, Mitsubishi, LG Chemicals, among others.
Global Acrylic Acid Demand Supply Analysis Till 2032 (Kiloton)
Source: Secondary & Primary Research and Prismane Consulting estimates
Acrylic Acid Demand Supply Analysis
The global Acrylic Acid market is driven in large part by the development of Acrylates, SAP, and other applications. The global Acrylic Acid market is dominated by Commodity Acrylates accounting for more than 50%. It is expected to remain the largest Acrylic Acid derivative globally, with a growth rate of around 3.1% in the long-term forecast till 2032.
Currently, Asia Pacific is the world’s largest acrylic acid manufacturer and consumer, followed by North America and Europe. Over 50% of the global acrylic acid is produced in Asia-Pacific. China alone accounts for the major share followed by Japan, India, South Korea, and Thailand. The region will continue its dominance with strong demand from end-use industries. In mature economies, the demand growth for Acrylic Acid is expected to be lower than the global average due to the migration of many manufacturing industries to areas with lower labor costs, such as China and India. The Acrylic Acid demand in Asia-Pacific has been estimated to grow at an Annual Average Rate of 3.3% during the forecast period.
Japan is one of the major net exporters of Acrylic Acid. With the increasing population and rise of awareness in people along with a general rise in the standard of living, the use of diapers and adult incontinence products has surged. The demand for diapers is witnessing high growth in developing countries of the Asia-Pacific region where growing purchasing power economies is seen as a key driver of demand for disposable diapers. The baby diapers market is expected to grow at a fast pace owing to rising disposable incomes and a rise in standard of living. SAP demand is expected to grow on account of increasing personal hygiene awareness and growing purchasing power in developing economies. New advancement technologies like thinner napkins and new super absorbent concepts are expected to push the SAP demand in the forecast period.
Global Acrylic Acid Demand Analysis, By Region Until 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Acrylic Acid Demand Analysis
Asia-Pacific has been estimated to be the largest market for acrylic acid on the back of China. China alone accounted for more than 50% of the regional acrylic acid demand in 2023. India has emerged as a key market for acrylic acid. The country has been a net importer of acrylic acid since 2016, however, its import dependency is expected to 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 Kiloton in 2024.
Japan, South Korea, Malaysia, Singapore, Indonesia, and Taiwan are among the other significant acrylic acid-producing countries in the region. 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 together accounted for around 10% of the regional acrylic acid production capacity.
India accounted for around 2% of the Asia Pacific Acrylic Acid market. The Acrylic Acid demand in India is forecast to grow at a CAGR of 10.9% to reach 408 Kiloton by 2032 from the current demand of 98 Kiloton in 2023. India is estimated to be the fastest 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 53 Kiloton between 2016-2023. 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 of 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. BASF has signed an MOU with Adani Group for an evaluation of setting up an acrylics value chain facility in Gujarat in February 2019.
Furthermore, in December 2019, the Indian Oil Corporation (IOC) announced building a 90 kilotons/year Acrylic Acid plant near its refinery in Gujarat. 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 schedule for the mechanical completion of the plant is a little more than 2 years. Once completed, the plant will have an annual production capacity of 90 Kiloton of Acrylic Acid and 150 Kiloton of butyl acrylates.
Global Acrylic Acid Demand Analysis, By Derivative (KT)
Source: Secondary & Primary Research and Prismane Consulting estimates
Acrylic Acid Demand By Derivative
Acrylic Acid is used to produce Butyl Acrylate, Methyl acrylate, Ethyl Acrylate, 2-ethylhexyl Acrylate, and other specialty acrylates that are further used in the production of paints and coatings, adhesives, textiles, and other products. The trend towards water-based paints instead of solvent-based paints to reduce VOC emissions will drive the growth of Acrylic Acid in Acrylates.
In terms of the Acrylic Acid market by derivatives, commodity acrylates accounted for more than 50% of end-use applications, and this will continue to be the largest end-use application during the forecast period till 2032. The second largest application is in superabsorbent polymers (SAP), followed by water treatment. Globally, the demand for SAP has grown faster than the world GDP growth. The growth of SAP is not as closely tied to GDP growth as other commodity polymers, which are directly correlated to economic growth. The main derivatives of acrylic acid have been covered above and constitute 80% of the market, the remaining 20% is constituted by these other derivatives such as methacrylate, methyl methacrylate, hydroxyethyl-methacrylate, Trimethylolpropane Triacrylate, and more. They are being used in the medical, dental, and adhesives industries.
Recent Developments in Acrylic Acid Market
In May 2023, Nippon Shokubai inaugurated its new acrylic acid plant in Cilegon, Banten province, Indonesia with installed capacity of 100 Kiloton. The new plant will raise the Nippon Shokubai's acrylic acid capacity in Indonesia to 240 Kiloton. According to the Prismane Consulting Capacity Database, Nippon Shokubai is a leading producer of acrylic acid with installed capacity of around 980 Kiloton as of 2023 with production facilities in Japan, Indonesia, Singapore, Belgium, and the United States.
The acrylic acid industry is moving towards sustainability, with several industry collaborations in place for the commercialization of bio-based versions. In September 2019, U.S.-based Archer Daniels Midland (ADM) Company and Korea-based LG Chem. Ltd. announced their collaboration to produce bio-based acrylic acid to develop sustainable superabsorbent polymers for use in hygiene products. Cargill, Inc. has re-entered the bio-based acrylic acid development with Procter & Gamble (P&G) in 2020.
The companies have collaborated to produce acrylic acid from corn dextrose. Cargill’s initial attempt to commercialize and scale up the fermentation process to produce the acrylic acid precursor from renewable feedstocks took a setback and BASF exited the joint development back in 2015.
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