Market Trends of North America Acetic Acid Industry
Adhesives, Paints, and Coatings Industry to Dominate the Market
- The derivatives of acetic acid are used as raw materials in adhesives, paints, and coatings formulations. Ethyl acetate, butyl acetate, and vinyl acetate are major acetic acid derivatives used in the coatings industry. The acidic nature of acetic acid and its ability to dissolve polar and nonpolar compounds make it a useful ingredient in adhesives, paints, and coatings.
- In the North American region United States, Canada, and Mexico are the largest markets for adhesives, paints, and coatings. According to American Coatings Association, the paints and coatings industry has reached USD 28.06 billion in 2022 as compared to USD 25.21 billion in 2020.
- In the United States, the demand for paints and coatings is increasing in the automotive industry. The United States is the second largest automotive manufacturing country in the globe falling only behind China. According to OICA, automotive production in 2022 accounted for 10.06 million units, an increase of 10% from 9.16 million units reported in 2021. Thus the increase in automotive vehicle production is likely to hold a positive influence on the demand for acetic acid.
- Similalry in Mexico the market for paints and coatings registered significant growth rate, with various companies expanding their production capacities in the country. For instance, in August 2022, PPG Industries invested USD 11 million in order to double its production capacity of powder coatings in San Juan del Rio, Mexico.
- In Canada the market for adhesives, paints and coatings registered growth in 2022. According to the Chemistry Industry Association of Canada, the adhesives, paint and coatings exports in Canada accounted for USD 1,092 million in 2022, compared to USD 903 million in 2021.
- Therefore, the increasing market demand for adhesives, paints, and coatings is excepted to drive the demand for acetic acid market in the region.
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United States to Dominate the Market
- The United States is the largest market for acetic acid in the region. Acetic acid is widely used in adhesives, coatings, and polyesters, which have extensive applications in numerous industries, such as construction, chemical industry, textiles, and packaging. The extensive growth in these industries is likely to contribute to driving the demand for acetic acid market in the country.
- The construction industry in the United States is the largest in North America. According to the US Census Bureau, the annual construction output in place in the United States accounted for USD 1,792 billion in 2022, as compared to USD 1,626.4 billion in 2021, at a growth rate of 10.2%. Therefore, the growth in the construction industry will likely drive the demand for paints and coatings in the country.
- Moreover, the annual value of residential construction output in the United States was valued at USD 902 billion in 2022, compared to USD 802 billion in 2021. The annual value of non-residential construction in the country was valued at USD 884 billion in 2022, compared to USD 823 billion in 2021. Such growth in residential and non-residential construction activities is likely to drive the market for paints and coatings in the country.
- The United States textile industry is the third-largest exporter of textile-related products in the world. According to National Council of Textile Organizations (NCTO), the exports of fibres, textiles and apparel from the country was recorded to be worth USD 34 billion in 2022, as compared to USD 28.4 billion worth exports in 2021, indicating a growth rate of 19.7%. Thus, increase in the exports of textiles indicating rise in textile production, is also likely to positively influence the demand for acetic acid in the country.
- United States is one of the largest chemical markets in the region. According to American Chemistry Council (ACC), in 2022, the United States chemical output increased by 3.9% due to the rising demand from the pharmaceuticals and cosmetics sectors. Therefore, the growth in chemical sector is also likely to drive the market for acetic acid in the country.
- Overall, the growth of the industries such as paints and coatings, chemicals, textiles is likely to positively influence the demand for acetic acid in the country.
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