Global Acetone Market – Industry Trends and Forecast to 2031

Acetone Market Analysis and Size

The acetone market plays a crucial role in the textile industry as a degummer or degreaser for textile products. Acetone effectively removes oils, waxes, and other impurities from textiles during processing, improving fabric quality. With the rising demand for high-quality textiles worldwide, the acetone market has experienced steady growth. Manufacturers in the textile sector rely on acetone for its efficiency and cost-effectiveness, driving the market's expansion and sustaining its significance in textile production processes.

Global acetone market size was valued at USD 7.18 billion in 2023, is projected to reach USD 11.03 billion by 2031, with a CAGR of 5.5% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Acetone Market Scope and Segmentation

Market Definition

Acetone is a clear, colorless liquid with a strong smell. It is commonly used as a solvent, which means it can dissolve other substances easily. Consumers use it for removing nail polish, cleaning surfaces, and making products such as plastics and chemicals. This is highly flammable, so it is important to handle it carefully and store it safely.

Acetone Market Dynamics

Drivers

• Increasing Demand in Pharmaceutical and Industrial Sectors

The increasing demand for acetone in the pharmaceutical and industrial sectors is propelled by its versatile applications. In pharmaceuticals, acetone serves as a crucial solvent in drug synthesis and formulation processes. Its role extends to industrial applications such as chemical manufacturing, where it is utilized in the production of plastics, adhesives, and coatings. With its efficient solvent properties and compatibility with various substances, acetone plays a pivotal role in enhancing process efficiency and product quality across these sectors, driving its increasing demand and ensuring its status as a cornerstone chemical in pharmaceutical and industrial applications, overall driving the market growth.

For instance,

• Acetone is utilized in the production of medicines such as ibuprofen. Its solvent properties aid in extracting and purifying active pharmaceutical ingredients, contributing to drug quality

• Growing Adoption in Chemical Manufacturing Processes

The growing adoption of acetone in chemical manufacturing processes is driven by its versatility and effectiveness as a solvent and intermediate. Acetone serves as a key raw material in the production of various chemicals, including methyl methacrylate, bisphenol-A, and methyl isobutyl ketone. Its ability to dissolve a wide range of substances and facilitate reactions makes it indispensable in synthesizing numerous chemical compounds. In addition, acetone's cost-effectiveness and availability further contribute to its widespread use, fueling its adoption in chemical manufacturing processes and driving the demand for acetone globally.

Opportunities

• Growing Applications in the Agricultural Sector

The increasing applications of acetone in the agricultural sector are driven by its efficacy as a solvent and ingredient in pesticide formulations. Acetone serves as a carrier solvent for various agricultural chemicals, aiding in their dispersion and application on crops. Additionally, acetone is utilized in the production of herbicides, fungicides, and insecticides due to its ability to dissolve active ingredients effectively. As agricultural practices evolve to meet growing demands for food production, the demand for acetone in pesticide manufacturing and formulation is expected to rise, further driving its usage in the agricultural sector.

For instance,

• Acetone is utilized as a carrier solvent in herbicides and insecticides. Its ability to dissolve active ingredients effectively enhances the efficacy of agricultural chemicals
• Expansion of Electronics Manufacturing Activities

The expansion of electronics manufacturing activities drives the demand for acetone due to its crucial role in the production of electronic components. Acetone is commonly used as a solvent for cleaning and degreasing electronic parts, ensuring optimal performance and reliability. In addition, acetone is utilized in the manufacture of printed circuit boards (PCBs) and semiconductor devices. With the continuous growth of the electronics industry and the increasing complexity of electronic devices, the demand for acetone as a cleaning solvent and manufacturing aid is expected to escalate, bolstering its market growth in this sector.

 Restraints/Challenges

• Fluctuating Crude Oil Prices Impact Production Costs

Fluctuating crude oil prices significantly impact acetone production costs since acetone is primarily derived as a byproduct of phenol production, which is synthesized from benzene—a derivative of crude oil, the cost of acetone production is closely tied to crude oil prices. Any volatility in crude oil prices directly affects the cost of benzene and, consequently, the cost of acetone. This price instability can disrupt production planning, erode profit margins, and potentially hinder investment in acetone production facilities, thereby restraining market growth and stability.

• Trade Restrictions Impact Global Acetone Trade

Trade restrictions, such as tariffs and quotas, act as significant restraints on the global acetone trade. These restrictions hinder the smooth flow of acetone across international borders, leading to increased trade barriers and compliance costs for manufacturers and exporters. Moreover, trade disputes and geopolitical tensions can further exacerbate these restrictions, disrupting supply chains and impeding market access for acetone producers. Such constraints limit market opportunities, hamper growth prospects, and introduce uncertainties in the acetone market, affecting both producers and consumers reliant on a stable and accessible global acetone supply.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In July 2023, the International Monetary Fund (IMF) warned that the global acetone market could be facing a shortage in the near future. The IMF cited rising demand from the chemical and plastics industries, as well as supply disruptions from Russia and China, as the main reasons for the potential shortage. This supply disruptions from major producers such as  Russia and China further highlight the need for diversification and investment in acetone production, fostering market expansion and stability
• In June 2023, Eastman Chemical announced that it would be investing $100 million to expand its acetone production capacity at its plant in Kingsport, Tennessee. This expansion is also expected to meet the growing demand for acetone from the chemical and plastics industries
• In June 2023, Kumho P&B Chemicals (CEO Shin Woo-Sung) announced that it has obtained ISCC PLUS certification for its five products (Cumene, Phenol, acetone, Bisphenol-A, and Epoxy resin).This certification attracts eco-conscious consumers, fostering trust and loyalty. Consequently, increased demand for environmentally-friendly acetone drives sales growth, expands market reach, and solidifies Kumho P&B Chemicals' position in the acetone market
• In July 2022, LG Chem announced that it would export 1,200 tons of acetone and 4,000 tons of phenol. According to the company, this is South Korea's largest shipment of products with the ISCC PLUS certification. This large-scale shipment establishes LG Chem as a leading provider of eco-friendly chemicals, driving sales and expanding market share for acetone while promoting sustainability in the industry

Acetone Market Scope

The market is segmented into four notable segments which are based on application, distribution channel, grade outlook, and end use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Application

• Methyl Methacrylate (MMA)
• Bisphenol A (BPA)
• Solvents

Distribution Channel

• Manufacturer to Distributor
• Manufacturer to End-User

 Grade Outlook

• Specialty Grade
• Technical Grade

End Use

• Cosmetics and Personal Care
• Electronics
• Construction
• Automotive
• Pharmaceutical
• Agricultural Chemicals
• Paints and Coatings
• Adhesives

Acetone Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by application, distribution channel, grade outlook, and end use as referenced above.

The countries covered in the market report are U.S., Canada, and Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific is expected to dominate the market due to affordable infrastructure and labor costs, and rising industrialization. The emergence of advanced technology in industries is also a reason for the growth of the market in this region.

North America is expected to be the fastest-growing region in the market due to the increase in the establishment of petrochemical industries in this region and the usage of acetone in chemical and plastic industries.

The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Acetone Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• Cepsa (Spain)
• KUMHO P&B CHEMICALS, INC. (South Korea)
• SABIC (Saudi Arabia)
• LyondellBasell Industries Holdings B.V. (Netherlands)
• INEOS (U.K.)
• Dow (U.S.)
• Shell International B.V. (Netherlands)
• Honeywell International Inc. (U.S.)
• Mitsui Chemicals Inc. (Japan)
• EMCO Chemical Distributors, Inc. (U.S.)
• Prasol Chemicals Limited (India)
• Formosa Chemicals & Fiber Corp. (Taiwan)
• Altivia (U.S.)
• Borealis AG (Austria)
• Hindustan Organic Chemicals Limited (India)
• Domo Chemicals (Belgium)
• U.S. Chemical & Plastics (U.S.)
• The Plaza Group (U.S.)
• Versalis S.p.A. (Italy)

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