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

  • 2016-10-20
  • REP-GB-276
  • 184 pages
  • PDF PPT EXCEL
Acetone Market

An Incisive, In-depth Analysis on the Acetone Market

This study offers a comprehensive, 360 degree analysis on the Acetone market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Acetone market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Global acetone market to register a CAGR of 5.0% in terms of value during 2016 – 2026; APEJ and European regions estimated to dominate the global acetone market over the forecast period

Future Market Insights delivers key insights on the global acetone market in its latest report titled ‘Acetone Market: Global Industry Analysis and Opportunity Assessment, 2016 – 2026’. The long-term outlook on the demand for acetone market remains positive, with acetone market value expected to increase at a CAGR of 5.0% during the forecast period (2016 – 2026).

Acetone, also known as dimethyl ketone, is a colourless, clear, and 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. Other applications include higher molecular weight glycols and alcohols, MIBK and MIBC, for solvent applications (varnishes, lacquer, cellulose acetate fibre, cellulose nitrate), as a carrier for acetylene in cylinders, and miscellaneous chemical uses (manufacture of pharmaceuticals and chloroform). Acetone is a by-product of phenol and is produced via the cumene peroxidation process which involves the reaction of propylene and benzene. The global acetone market consumption was estimated to be approximately 6.1 million tons in 2015, reaching a market value of US$ 7.3 Bn by the end of the forecast period (2016-2026).

About 96 percent of world production of acetone is a by-product of phenol production. Therefore, many trends in the phenol industry also apply to acetone market. The global acetone market is driven by solvents, which account for 34 percent of the global demand. The global acetone market will continue to maintain a healthy growth rate till 2026. The second largest end use of acetone is methyl methacrylate (MMA). Global demand for MMA resin accounted for 25 percent of total acetone market consumption in 2017. Bisphenol A is the third largest demand sector, but Bisphenol A demand will exceed MMA demand by the end of the acetone market forecast period.

Worldwide, acetone market supply tends to be in excess for several reasons. For approximately every two phenol units produced, one acetone unit is produced. Bisphenol A is considered to be the best performing derivative. Given the capacity to meet the growing demand, some of the new capacity is based on non- acetone routes, such as units that can consume ethylene and methanol. Both can be produced at very low cost if natural gas is available at low prices previously seen in the Middle East and now in the United States.

APEJ market is expected to dominate global acetone market in terms of both, value and volume in 2017, and the trend is projected to grow throughout the forecast period. APEJ acetone market is the most attractive market, growing at a CAGR of 5.9% over the forecast period. Among the global acetone market end-use industry, the largest is chemical and allied products. 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 in the acetone market 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.

acetone market

Acetone market is suffering from overcapacity across the globe

Acetone market has experienced an increase in global production capacity while the demand for acetone has slowed across the globe over the last decade. The main acetone market derivatives are epoxy resins, bisphenol-A (BPA), polycarbonate, methyl methacrylate (MMA), and phenolic resins, all of which have seen a rise in new capacity investment in the past decade. This increased capacity trend, which was, at times, seemed to be lower than the global acetone market demand, has now increased pressure in competitive pricing and change in trade flows. Upstream price movements have been significantly impacted by the overcapacity trends, as acetone and phenol are intricately linked.

Acetone - Not just a co-product

As compared to phenol, acetone market has been less affected by the new capacity addition in Asia. Acetone markets are anticipated to be more likely to short-term tightness in the next five years as compared to phenol. This is due to the fact that actual capacity has lowered and diverse range of derivatives are now getting introduced in the market. Global acetone market demand has experienced an average of 3% growth in the last five years and is estimated to experience a slight decrease over the next 10 years. Overcapacity of phenol and increased usage of ethylene to make MMA are the key rationales behind acetone market tightness.

Changing trade flows

The capacity increase has a significant impact on the global trade and particularly on China. The lion's share of China's import volumes has been from other Asian nations, for example, Japan, Taiwan, Thailand, South Korea, and Singapore. Roughly 33% of China's acetone market imports touched base from Europe and the US. Low demand for acetone market in Asia and a decrease in higher-cost local production, both, U.S. and Europe have switched to being a net importer in 2016-17. The ongoing reduction of Chinese imports and the lack of viable alternative markets in Asia means that surplus Asian volumes are expected to increasingly find their way to India, where there are just two domestic suppliers who currently cover only around a quarter of demand.

Petro Rabigh a question mark for acetone in 2017

The question of when the acetone production capabilities of Petro Rabigh will be implemented is perhaps the biggest unknown in the European acetone market in 2017. However, with market participants considering the opening months of 2018, many expect little change compared to 2017. In 2017 the European phenol market’s supply and demand dynamics remained relatively well balanced throughout the year. A rapid rise in acetone market spot prices in the second quarter of 2017, after by a long period of limited softening prices. Spot prices for acetone market remained above acetone methyl methacrylate (MMA) contract price levels until the end of the year and above propylene contract levels. A joint venture between Saudi Aramco and Japan's Sumitomo Chemical, Petro Rabigh, is expected to bring new acetone market capacity online by mid-2017. However, some European market participants remain sceptical and expect additional delays that could mean no impact on the European market until 2018. It remains to be seen when the new capacity will be operational in the Middle East and how the European market will react. The difficulties of shipping acetone and storage capacity issues in Europe have been raised by market participants as possible barriers to increased imports.

Saudi Arabia, a viable option for Indian acetone procurers

Acetone market demand in the Indian market is likely to see a rapid rise in demand from the downstream building and automobile sectors. Providing cheaper acetone in India would be a top priority with the vision of smart cities in motion. India having a lot of options to procure acetone from, Saudi Arabia is a favourable option for India to import, due to the fact that KSA has a lower cost of production and less transit time as compared to other countries such as South Korea, Singapore, Thailand, and Taiwan. Saudi Arabia is expected to have an increase in the supply of acetone as there is expected to be a new capacity addition of approximately 160 thousand MT acetone plant in 2017-18, hence representing a potential acetone sourcing market, particularly for India buyers.

European players eye on global shifts

European acetone market players continue to quote different expectations for the years ahead, behind global changes in production and expected trade flows. In general, acetone market demand is expected to be largely stable in Europe, but players are still debating the future of production and supply for Europe. Some players argue that increased acetone market demand could remove imports from the European acetone market and exacerbate regional conditions. Other players have meanwhile commented that this shift in phenol production could encourage European producers to increase operating rates. If it happens, the acetone market in Europe could be extended.

Leading players in the global acetone market

In the acetone market, manufacturers are focused on production and supply of acetone for the consumer base to retain the market share. Key players are increasing penetration in the market by increasing their global presence. New entrants need to comprehensively study the acetone market in order to penetrate and sustain in a price sensitive market. Companies profiled in the acetone market report include Domo Chemicals, The Dow Chemical Company, INEOS Phenol, Honeywell International, Inc., Mitsui Chemicals, Inc., Hindustan Organic Chemicals Limited, Formosa Chemicals, Royal Dutch Shell plc, 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 acetone market.

Additional Questions Answered

  • key concerns related to regulatory standards for Acetone market

  • What trends are impacting the demand of Acetone and how can Acetone producers leverage them?

  • Which is the most lucrative regional acetone market with respect to the Acetone market adoption and demand?

  • Why are the Acetone market demand highest in APEJ?

  • Why is APEJ attracting most of the leading Acetone market producers?

  • How logistics and supply chain management is critical element (as it requires compliance from source to customer) in Acetone value chain?

  • Which end-user base to target in Acetone market?

Future Market Insights in its report titled “Acetone Market: Global Industry Analysis and Opportunity Assessment, 2016 – 2026” offers detailed insights and in-depth research on the global acetone market over a 10-year forecast period 2016 – 2026. The acetone market report covers the important factors driving the growth of the global acetone market, untapped opportunities for producers, trends, and developments shaping the dynamics of the global acetone market along with some other insights across various key segments.

The report identifies the drivers and restraints affecting the growth of the global acetone market. Changing trends are also analysed and incorporated in the acetone market report to equip the client with exhaustive information about the market, resulting in better decision making. Macroeconomic factors that directly and indirectly affect the growth of the global acetone market are also incorporated in the report.

The report provides detailed share analysis of the global acetone market on the basis of key manufacturers. A section of the report highlights the country-wise global acetone market. It provides a market outlook for 2016–2026 and sets the forecast within the context of the report. The report sheds light on key developments and activities executed by the prominent service providers operating in the global acetone market.

Key segments covered in global acetone market report

To understand and assess opportunities in the global acetone market, the report has been divided into three sections based on market segmentation as:

Region

End Use industry

Application

North America

Chemical and allied products

Methyl Methacrylate (MMA)

Latin America

Agricultural chemicals

Bisphenol-A

Eastern Europe

Paints and coatings

Solvents

Western Europe

Rubber processing

Others (Aldol chemicals, etc.)

Japan

Polymer and resin processing

 

APEJ

Adhesives

 

MEA

Printing Ink

 

 

Pharmaceutical drugs

 

 

Cosmetics and personal care use

 

The acetone market value and volume for all segments is taken in US$ Mn and Tonnes.

On the basis of acetone end-use industry type, chemicals, and allied products acetone market segment is anticipated to witness robust growth in terms of volume over the forecast period. The chemical and allied products acetone market 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.

The acetone market report starts with the market overview and provides the market definition. The analysis of drivers, restraints, opportunities, supply chain analysis, and key trends in the global acetone market is indicated in this section. The next section includes global market analysis, analysis by application, end use, and regional/country level analysis. All the above sections evaluate the acetone market on the basis of various factors affecting the market and cover present scenario and future prospects.

A section of the report highlights country-wise acetone market demand. It provides a market outlook for 2016–2026 and sets the forecast within the context of the global acetone market, including the new technological developments as well as product offerings for niche applications in the global acetone market.

In the final section of the report, a competitive landscape has been included to provide audiences with a dashboard view. The report provides detailed market share analysis of the acetone market on the basis of key manufacturers. Comprehensive profiles of manufacturers are also included within the scope of the report to evaluate strategies, key offerings, and recent developments in the global acetone market

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR but also analyse the same on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand the predictability of the acetone market and to identify the right opportunities for market players.

Another key feature of this global acetone market report is the analysis of all key segments in terms of the absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as in identifying potential resources from a sales and delivery perspective in the global acetone market.

Our research methodology for acetone market

To estimate the acetone 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 in acetone market 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 the market size, the report considers the 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.

Leading market players dominating the global acetone market

This report offers an all-inclusive assessment of the global acetone market. In acetone market report, the reader will come across information pertaining to leading market players along with their financials, market shares, and key developments. Such information will allow stakeholders to slate important growth strategies with a view of staying ahead of the curve and overcoming difficulties arising in the market. Companies profiled in the acetone market report 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.

Acetone Market Reports - Table of Contents

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