ChemicalsJuly 13, 2023

Global Acetone Market

As stated in our extensive report; the Global Acetone Market accounted for 5.3 Billion in 2022 and is projected to reach a value of USD 9 Billion by 2030.

Acetone, also known as propanone, is a colorless, volatile liquid that is widely used as a solvent in various industries. It is primarily produced as a byproduct in the manufacturing of phenol, with approximately 80% of global Acetone production derived from this process. However, it can also be synthesized via other methods such as the cumene process or direct oxidation of propylene. Acetone is a versatile chemical that finds applications in numerous sectors, including paints and coatings, adhesives, pharmaceuticals, personal care products, and various industrial processes.

One of the crucial growth factors for the Acetone industry is the demand from paints and coatings industry as it heavily relies on Acetone as a solvent. Acetone’s excellent solvency power and quick drying ability make it an ideal ingredient in many paint formulations. As the global construction industry grows, the demand for paints and coatings is also expected to rise, subsequently augmenting the demand for Acetone. Moreover, advancements in technology have led to the development of eco-friendly paints and coatings, which often require Acetone as a primary solvent. Thus, the increasing popularity of sustainable, low-VOC (volatile organic compounds) paints also contributes to the growth of the Acetone industry.

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Factors Influencing Global Acetone Market Growth

The growth of the Acetone global market can be attributable to the following:

  1. Acetone is widely used across various end-use industries such as chemicals, paints and coatings, plastics, pharmaceuticals, and cosmetics. It is used as a solvent, a building block for other chemicals, and as a raw material in the production of various products. The increasing demand for these end-use products is driving the growth of the Acetone market.
  2. Acetone is an essential component in the production of paints and coatings as it acts as a strong solvent, helping in the dissolution of resins and pigments. With the growing construction and automotive industries worldwide, the demand for paints and coatings is increasing, thereby driving the growth of the Acetone market.
  3. Acetone is widely used in the pharmaceutical industry for various applications such as extraction and purification of drugs, as a solvent in the manufacturing of pharmaceutical products, and as a cleaning agent. With the growing pharmaceutical industry globally, the demand for Acetone is expected to rise significantly.
  4. Acetone is a key raw material in the production of polycarbonate and epoxy resins, which are widely used in the manufacturing of various plastic products. The increasing demand for plastic products in industries such as automotive, electronics, and packaging is fueling the growth of the Acetone market.
  5. Technological advancements have led to the development of innovative manufacturing processes for Acetone, such as the cumene-based process and the hydrogen peroxide route. These processes have improved the production efficiency and reduced the environmental impact of Acetone production, thereby driving its market growth.

Asia Pacific Region to Take Over the Market 

Asia Pacific is the largest region in the world market for Acetone. This is mainly because of the growth of industrialization and the building of infrastructure in nations like China, India, and Japan. Acetone is in greater demand in these areas as a result of growing demand in the building and automobile sectors. In addition, various expansions in the paints and coatings industry are expected to augment the Acetone markets in the coming years. For reference, in May 2021, PPG Industries Inc. invested USD 13 million in the expansion of the paints and coatings unit in China, which includes eight new powder coating production lines and an expanded powder coatings technology center. This expansion will increase the capacity by more than 8,000 metric tons per year. ​

Conclusion

The growth of the Acetone industry can be attributed to various factors, such as the increasing demand from end-use sectors like paints and coatings, pharmaceuticals, personal care, and adhesives. The growth of related industries, such as construction, automotive, and packaging, also contributes to the expansion of the Acetone market. Additionally, regional market dynamics, economic factors, and sustainability concerns play important roles in shaping the growth of the Acetone industry. Overall, the Acetone industry is expected to continue growing in the coming years, driven by the increasing demand from diverse sectors and the development of more sustainable alternatives.

The well-known players of the Global Acetone Market include Altivia, BASF SE, Borealis AG, Cepsa, Formosa Chemicals & Fibre Corporation, Honeywell International Inc., INEOS Kumho P&B Chemicals Inc., LCY GROUP and others.