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India Acetic Acid Market Size (2024 - 2029)

The India acetic acid market is experiencing growth, driven by increasing demand in sectors such as paints, coatings, food and beverage, and pharmaceuticals. Despite challenges posed by environmental concerns and rising raw material costs, the market is recovering and expanding, supported by advancements in separation technologies that enhance production efficiency. The market's expansion is further fueled by the rising need for vinyl acetate monomer and ester solvents.

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Market Size of India Acetic Acid Industry

India Acetic Acid Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 7.30 %
Market Concentration Medium

Major Players

India Acetic Acid Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Acetic Acid Market Analysis

India Acetic Acid Market is estimated to reach 1.24 million tons by the end of this year and is projected to reach 1.76 million tons in the next five years, registering a CAGR of 7.3% during the forecast period.

The COVID-19 pandemic negatively impacted the market in 2020, owing to several restrictions imposed by the government of India. The shortage of labor and production halts has affected the acetic acid market in the country. However, the sector has been recovering well since restrictions were lifted. The market recovered significantly in 2021, owing to rising consumption from paints and coatings, food and beverage, and the pharmaceutical sectors. Further, the market is projected to grow significantly in the coming years.

  • The increasing demand for vinyl acetate monomer (VAM), the increasing use of ester solvents in the paints and coatings industry, and the increasing demand from the food and beverage industry have been driving the growth of the acetic acid market in the country.
  • On the contrary, environmental concerns regarding the harmful effects of acetic acid and increasing prices of raw materials are hindering the market growth.
  • The development of new separation technologies to increase the production efficiency of acetic acid is expected to create opportunities for the market during the forecast period.

India Acetic Acid Industry Segmentation

Acetic acid is a monocarboxylic acid containing two carbons. It is a clear, colorless liquid with a strong, pungent odor, like vinegar. Acetic acid can be derived from the carbonylation of methanol, the oxidation of acetaldehyde and ethylene, or a biological method like bacterial fermentation. It is used as a chemical reagent to produce several chemical compounds like acetic anhydride, ester, vinyl acetate monomer, vinegar, and many other polymeric materials.

The India acetic acid market is segmented by derivative, application, and geography. By derivative, the market is segmented into vinyl acetate monomer (VAM), purified terephthalic acid (PTA), ethyl acetate, acetic anhydride, and other derivatives. By application, the market is segmented into plastics and polymers, food and beverage, adhesives, paints and coatings, textiles, medical, and other applications. Each segment's market sizing and forecasts are based on volume (tons).

Derivative
Vinyl Acetate Monomer (VAM)
Purified Terephthalic Acid (PTA)
Ethyl Acetate
Acetic Anhydride
Other Derivatives
Application
Plastics and Polymers
Food and Beverage
Adhesives, Paints, and Coatings
Textile
Medical
Other Applications
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India Acetic Acid Market Size Summary

The acetic acid market in India is poised for significant growth, driven by increasing demand from various sectors such as paints and coatings, food and beverages, and pharmaceuticals. The market experienced a downturn during the COVID-19 pandemic due to production halts and labor shortages, but has since shown a robust recovery. The rising demand for vinyl acetate monomer (VAM) and ester solvents, particularly in the paints and coatings industry, is a key factor propelling market expansion. Additionally, the growing need for acetic acid in the production of ethyl acetate, a widely used solvent, further supports market growth. However, challenges such as environmental concerns and rising raw material costs pose potential hindrances to market development. Innovations in separation technologies are expected to offer new opportunities for enhancing production efficiency.

The demand for acetic acid is also bolstered by the booming construction and automotive industries in India. The government's focus on residential construction and the country's position as a leading automotive vehicle manufacturer contribute to the increasing need for paints, coatings, and related products. This surge in demand is reflected in the strategic investments by major companies, such as Aditya Birla Group's expansion of its paints business. The market is characterized by a partially consolidated structure, with key players like Celanese Corporation and Jubilant Ingrevia Limited actively participating in market activities. Recent developments, such as the commissioning of a new Green Ethanol-based food-grade acetic acid plant, highlight the ongoing efforts to enhance production capabilities and meet the rising demand.

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India Acetic Acid Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Increasing Demand for Vinyl Acetate Monomer (VAM)

      2. 1.1.2 Increasing Use of Ester Solvents in The Paints and Coatings Industry

      3. 1.1.3 The Increasing demand from The Food and Beverage

    2. 1.2 Restraints

      1. 1.2.1 Environmental Concerns Regarding the Harmful Effects

      2. 1.2.2 Increasing Prices of Raw Materials

    3. 1.3 Industry Value-Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 Derivative

      1. 2.1.1 Vinyl Acetate Monomer (VAM)

      2. 2.1.2 Purified Terephthalic Acid (PTA)

      3. 2.1.3 Ethyl Acetate

      4. 2.1.4 Acetic Anhydride

      5. 2.1.5 Other Derivatives

    2. 2.2 Application

      1. 2.2.1 Plastics and Polymers

      2. 2.2.2 Food and Beverage

      3. 2.2.3 Adhesives, Paints, and Coatings

      4. 2.2.4 Textile

      5. 2.2.5 Medical

      6. 2.2.6 Other Applications

India Acetic Acid Market Size FAQs

The India Acetic Acid Market is projected to register a CAGR of 7.30% during the forecast period (2024-2029)

Celanese Corporation , Gujarat Narmada Valley Fertilizers & Chemicals Limited, Jubilant Ingrevia Limited, GODAVARI BIOREFINERIES LTD. and Assam Bio Refinery Private Limited. are the major companies operating in the India Acetic Acid Market.

India Acetic Acid Market Report Snapshots

India Acetic Acid Market Size & Share Analysis - Growth Trends and Forecasts (2024 - 2029)