Acetone Market

Acetone Market: APEJ Set to Register the Fastest CAGR of 5.9% During 2016-2026: Global Industry Analysis and Opportunity Assessment, 2016 - 2026

Acetone, also known as dimethyl ketone, is a colourless, clear, and a volatile liquid mainly used as a chemical intermediate in the manufacture of bisphenol-A (BPA), methyl methacrylate (MMA), and aldol chemicals. It is also used as a direct solvent in various applications including paints and coatings, printing inks, adhesives, nail polish removers, and other skin care products. Acetone is a by-product of phenol and is produced via cumene peroxidation process, which involves the reaction of propylene and benzene. The global consumption of acetone was estimated to be approximately 6.1 million tons in 2015 and is projected to register a CAGR of 5.0%, reaching a market value of US$ 7.3 Bn by the end of the forecast period (2016-2026).

Rising demand for Methyl Methacrylate (MMA) to be a major growth driver for the global acetone market

Rising demand of MMA to produce polymethyl methacrylate (PMMA) resins, used in the electronics and automotive industry is a major driving factor for growth of the global acetone market. Polycarbonate plastic and epoxy resins, derived from bisphenol-A (BPA), which are used to produce food cans, water bottles, and other consumer goods are expected to surge the demand for acetone over the forecast period. By 2016 end, 23.5% revenue share of the global acetone market is expected to come from the BPA segment and the segment is anticipated to register a value CAGR of 4.8% over the forecast period. However, development of green solvents and bio based solvents are emerging as a substantial replacement for acetone and increasing use of water based solvents in paints and coatings may hamper the growth of the global acetone market.

Market Segmentation

By Application

By End-Use Industry

By Region

  • Methyl Methacrylate (MMA)

  • Bisphenol-A

  • Solvents

  • Others (Aldol chemicals, etc.)

  • Chemical and allied products

    • Agricultural chemicals

    • Paints and coatings

    • Rubber  processing

    • Polymer and resin processing

    • Adhesives

    • Printing Ink

  • Pharmaceutical drugs

  • Cosmetics and personal care use

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • APEJ

  • Japan

  • Middle East and Africa

Solvents application segment is estimated to register a CAGR of 5.3% over the forecast period

Acetone is one of the most common industrial solvents used in various end use industries including chemical, pharmaceutical, cosmetics, etc. It is a fast evaporating solvent used in paints and coatings, adhesive manufacturing, and formulation of printing ink to dissolve the binder. The solvents segment is estimated to register a CAGR of 5.3% over the forecast period, creating a total incremental opportunity of US$ 1,169.3 Mn between 2016 and 2026.

Chemical and allied products end-use industry segment is likely to dominate the global acetone market

The Chemical and allied products segment is projected to register a growth rate of 5.1% in terms of value over the forecast period. The segment is also expected to hold disproportionately large shares in the global acetone market throughout the forecast period, accounting for 80.4% of the total incremental opportunity created between 2016 and 2026.

Consumption of acetone in APEJ is set to register the fastest CAGR of 5.9% during 2016-2026

The APEJ acetone market accounted for 39.8% share of the global acetone consumption in 2015 and is projected to increase at the fastest CAGR of 5.9% over the forecast period. The acetone market in North America and Western Europe is expected to be relatively mature as compared to that of the APEJ market over the forecast period. Demand for acetone in the MEA region is expected to be driven by the construction industry.

acetone market

Key players are rapidly expanding their acetone production capacities, mainly in the APEJ region

Major players operating in the global acetone market include INEOS Phenol, Royal Dutch Shell PLC, Sasol, The Dow Chemical Company, Mitsui Chemicals, Inc., Hindustan Organic Chemicals Limited, Domo Chemicals, Honeywell International, Inc., Formosa Chemicals and Fiber Corporation, and CEPSA Quimica. Key players are strategically increasing their capacities worldwide through plant expansion and new acetone plant installation mainly in the Asia Pacific, to address the growing regional demand for acetone.

Future Market Insights offers a 10-year forecast for the global acetone market in a new report titled “Acetone Market: Global Industry Analysis and Opportunity Assessment, 2016 – 2026. The primary objective of the report is to offer key insights on the expected growth of the global acetone market. The study demonstrates market dynamics that are expected to influence the current environment and future status of the global acetone market over the forecast period. 

Report description

The report starts with an overview of the global acetone market and provides market definition and taxonomy along with a comprehensive analysis of the key drivers, restraints, and trends influencing the global acetone market. The sections that follow include the global acetone market analysis and forecast by application, by end-use industry, and further by regional/country level analysis. All the above sections evaluate the market on the basis of various factors affecting the market, covering the present scenario and future prospects. For market data analysis, the report considers 2015 as the base year, with market numbers estimated for 2016 and the forecast made for 2017–2026.

In the final section of the report, we have included a competitive landscape to provide report audiences with a dashboard view of companies operating in the global acetone market. The report also comprises a strategic overview to capitalize on growth opportunities in the global acetone market and provides company profiles of few major players. This would enable clients to assess strategies deployed by market leaders and help them develop effective strategies accordingly.

Research methodology

To estimate the market size, we have considered various viewpoints on the basis of secondary research. Further, data inputs such as market split by application, end-use industry, regional split, and qualitative inputs from industry experts have been taken into consideration before concluding the market estimates. Each section discusses the qualitative and quantitative aspects of the global acetone market. To give a brief idea about revenue opportunities from the different segments and regions, the report also provides absolute $ opportunity and total incremental opportunity for each segment over the forecast period.

To calculate market size, the report considers weighted average price of acetone across geographies on a regional basis. The forecast assesses total revenue as well as volume (KT) of the global acetone market. Given the characteristics of the global acetone market, we have triangulated the data on the basis of various analysis using both demand side and supply side drivers and other dynamics of the global acetone market. However, computing the market size across the different segments is a matter of quantifying expectations and finding opportunities rather than rationalising them at the end of the forecast period.

Our forecasts are not only in terms of CAGR, but also factor in an in-depth analysis based on key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the global acetone market. Further, we have analysed the different segments of the global acetone market in terms of Basis Point Share to understand individual segments’ relative contribution to overall market growth. This detailed level of information is important to identify the key trends impacting the global acetone market. 

Another important feature of our report is an analysis of the global acetone market in terms of absolute dollar opportunity, critical in assessing the level of opportunity that a provider can look to achieve in the global acetone market, as well as to identify potential resources from a sales and delivery perspective. To understand key market segments in terms of their growth and performance in the global acetone market, we have developed a market attractiveness index to help providers identify existing market opportunities in the global acetone market.