Global Acetone Market by Grade (Technical, Specialty), by Application (BPA, Solvents, MMA) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global acetone market was valued at USD 4.04 trillion in 2018. It is expected to grow by 5.4% in terms of revenue during the forecast period. Growth is expected to be driven by factors such as the increasing use of acetone in solvents and high demand from pharmaceutical, cosmetic, paints, adhesives, and other industries.

Acetone is an inflammable, colorless and volatile liquid that is commonly used as an industrial solvent. Acetone is often made as a byproduct of phenol manufacturing. Other well-known manufacturing techniques include dry distillation, Wacker process and cumene. The most popular method to produce acetone or phenol is the cumene process. To make Bisphenol A (BPA), Methyl Methacrylate MMA (MMA), or solvents, Acetone must be further oxidized.

American acetone is driven by the demand for it in paints and coatings as well as construction and automotive industries. These industries are expected to grow rapidly due to rising disposable income and employment. Acetone will be a major driver of this market. Due to the increasing demand from different demographics and large corporations, the cosmetics and pharmaceutical industries have shown growth potential. The future holds new opportunities for growth by increasing investments in downstream facilities such as Norco Ethylene Plant (Louisiana, U.S.A), the Next Generation Business Mission of Mitsui Chemicals. This trend is expected to lead to a significant increase in industrialization and positively impact the regional chemical industry.

The growth in end-use industries such as pharmaceutical, electronic, personal care and petroleum is driving Acetone demand. It is a common solvent in cosmetics. Its physical properties such as low boiling points and water miscibility, drive product consumption. This will in turn drive the global market over the next few years.

Acetone is in high demand, which has led to higher production rates by manufacturers. The increased production resulted in a price increase for 2017 and will likely continue over the forecast period. Another reason for rising operational costs is the stagnant profit margin. A combination of factors contributed to the high cost, including the rising propylene price and regulations governing domestic supply in Asia, particularly China and India.

Acetone is considered a dangerous chemical that can significantly impact groundwater and human safety. Solvent manufacturers are now looking for biodegradable alternatives. Bio-based solvents are expected to grow in popularity as acetone disposal can be harmful for the environment. Surfasolve and bio-solv are some of the most common solvent substitutes. Acetone will be replaced in the paints and coatings sector by Methyl Ethyl Ketone (MEK), Trichloroethylene(TCE), and tetrachlorethylene.

Application Insights

In 2018, 32.9% of global acetone demand was used in solvent manufacturing. Solvent manufacturing accounted for 32.9% of the total acetone demand worldwide in 2018. Due to its ability to dissolve in water and other organic compounds, the chemical is expected to see an increase in demand for solvents.

As it helps to maintain product consistency in polish removers, personal care will lead the demand for solvents during the forecast period. It's also used in perfume formulations, hair care products and cleansers. The demand for acetone is expected to rise due to increased use of it in products for oily skin. The personal care market is expected to see a positive impact on acetone demand due to rising concerns about skincare and anti-aging.

Due to its use in polycarbonate production, Bisphenol A will see a rapid increase in demand. There is a growing demand for polycarbonates in many industries such as electronics and automotive. Favorable properties such as ductility and amorphousness, ultraviolet light transparency, glare-reduction, and high resistance against extreme temperatures are driving the demand.

Grade Insights

Majorly, technical grade acetone is used in the manufacture of MMA or BPA. Due to its lower cost, the product grade enjoyed a higher penetration and a greater market share in 2018. Because of its binding properties, MMA made from specialty grade acetone has been gaining popularity in the construction industry. It is used in concrete adhesive cement, floor polishes, concrete admixtures and concrete cement. The demand for MMA resins will rise in the near future due to the recent recovery in construction in major countries, particularly in emerging economies.

The segment of specialty grade acetone is expected to show a substantial CAGR of 5.9% between 2019 and 2025. This is due to the unique properties of this product such as low benzene levels and high water content. Acetone is increasingly being used in the manufacture of OTC (Over-the-Counter) pharmaceuticals. Market demand is expected to rise due to rising R&D investment and increased demand for generic formulations.

Distribution Channel Insights

Major acetone sales are made through the company's distribution channel, direct supply agreement with industrial users and third-party channels. Because it provides companies with uninterrupted supply and cost savings, the manufacturer-to-end-user channel is becoming more prominent. This segment will therefore be more attractive over the forecast period, and should register a 5.4% CAGR from 2019 to 2025.

Small-scale buyers prefer third-party distribution channels because they are more likely to be able to purchase variable quantities in smaller numbers. Third-party distribution channels are less popular than the direct to end users channel because they do not involve large-scale buyers. However, third-party channel penetration is still low. Due to the popularity of ecommerce selling platforms, third-party distribution channels will gain significant market penetration.

It is a lengthy process from manufacturer to distributor. Third-party involvement is required for product supply. This distribution method is often used by small-scale acetone producers. Third-party distribution channels can be more expensive because they involve multiple intermediaries and offer no bulk discounts.

Regional Insights

Asia Pacific held the largest market share, 39.7%, in terms of revenue, in 2018, thanks to its affordable infrastructure and low labor costs. The demand for chemicals from local end-use industries will continue to grow in the future because of rising industrialization and rising purchasing power.

North America is the second-largest region, primarily due to its use in solvent manufacturing. Canada is the country with the highest demand for solvents and fastest growing market. However, the U.S. is seeing a rise in consumer technology spending, which has led to a rising demand for Bisphenol A.

Canada will have many lucrative opportunities in the future, since several multinational pharmaceutical and cosmetic companies have moved their manufacturing facilities to Canada. Canada also offers a lower feedstock cost than other North American countries. This trend will likely drive manufacturers to Canada or other offshore locations, thereby promoting industrialization in Canada.

Market Share Insights & Key Companies

Market participants are primarily focused on the development of new technologies for bio-based Acetone production. Market competition is influenced by pricing, feedstock supply and manufacturing technology. The market's key players are expected to focus their growth strategies on entering into supply agreements with suppliers and end-users.

Among the major industry players are LyondellBasell Industries, INEOS Phenol GmbH, The Dow Chemical Company, Royal Dutch Shell Co; Honeywell Chemicals and Mitsui Chemicals Inc. Other manufacturers include SABIC, Kumho P&B Chemicals and Cepsa Quimica S.A.

Acetone Market Report Scope

The Report Covers Certain Segments

This report forecasts revenue growth at the global, regional and country levels and offers an analysis of industry trends in each sub-segment from 2014 to 2025. Grand View Research divided the global acetone market report by application, distribution channel and grade.

• Application Outlook (Volume of Kilotons; Revenues, USD Millions, 2014-2025)

  • Methyl Methacrylate

  • Bisphenol A (BPA)

  • Solvents

  • Other

• Distribution Channel Outlook (Volume of Kilotons; Revenues, USD Millions, 2014-2025)

  • Distributor to Manufacturer

  • Manufacturer to End-User

• Grade Outlook (Volume of Kilotons; Revenues, USD Million, 2014-2025)

  • Specialty Grade

  • Technical Grade

• Regional Outlook (Volume of Kilotons; Revenue USD Millions, 2014-2025)

  • North America

    • The U.S

    • Canada

  • Europe

    • Germany

    • France

    • Belgium

    • CIS

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

  • Central & South America

    • Brazil

    • Mexico

  • Middle East

  • Africa

These are the most frequently asked questions about this report

b. The market for acetone worldwide was valued at USD 4.60 Billion in 2019, and is projected to grow to USD 4.95 Billion by 2020.

b. Global acetone markets are expected to expand at a compound annual rate of 5.4% between 2019 and 2025, reaching USD 6.31 billion in 2025.

b. Asia Pacific was the dominant region in the acetone market, with a 47.2% share in 2019. This can be attributed to increasing industrialization and the shifting of manufacturing units into the region due to low labor costs.

b. LyondellBasell Industries, INEOS Phenol GmbH, The Dow Chemical Company, Royal Dutch Shell Co; Honeywell Chemicals and Mitsui Chemicals Inc. are some of the key players in the acetone marketplace.

b. Market growth is driven by rising use of polycarbonates, and growing demand for acetones.

Up Market Research published a new report titled “Acetone Market research report which is segmented by Grade (Technical, Specialty), by Application (BPA, Solvents, MMA), By Players/Companies LyondellBasell Industries; INEOS Phenol GmbH; The Dow Chemical Company; Royal Dutch Shell Co; Honeywell Chemicals; and Mitsui Chemicals Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Acetone Market Report Segments:

The market is segmented by Grade (Technical, Specialty), by Application (BPA, Solvents, MMA).

Acetone Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Acetone Market

Overview of the regional outlook of the Acetone Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Acetone Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Acetone Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Technical

                2. Specialty

                1. BPA

                2. Solvents

                3. MMA

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Acetone Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
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Reasons to Purchase the Acetone Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.