The global acetone market size was valued at nearly USD 5.69 Billion in 2022 and is anticipated to reach USD 11 Billion by 2031, expanding at a CAGR of 7.6% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing demand for acetone-derived polycarbonate from the automobile industry.
Acetone is a colorless, odorless, and volatile liquid with a sweet smell. It occurs naturally in the environment. Acetone is also found in the body but in small quantities. The human body produces acetone when it burns fat for energy instead of glucose. Exposure to acetone leads to nose, skin, or eye irritation and swallowing can lead to severe poisoning.
Acetone is part of the aliphatic ketones class. The development of acetone includes the reaction of benzene alkylate with propylene that produces cumene, which is then oxidized with the help of air to create acetone and phenol as a by-product. Generally, phenol plants are integrated with acetone. It is used as a solvent for oils, fats, waxes, rubber, resins, plastics, varnishes, lacquers, and rubber cement. Moreover, it is also used as an intermediate in the production of methyl methacrylate, bisphenol A, and methyl isobutyl ketone.
The market report finds that the COVID-19 pandemic fuels the acetone market, owing to the increasing demand for hand sanitizers, face shields, and protective barriers. Acetone is majorly used in hand sanitizer. These sanitizers are manufactured from isopropyl alcohol or ethyl alcohol as the active ingredient, however, acetone is also included in the mixture.
In addition, the decline in sales of automotive, personal care, and paints & coatings industries negatively affected the market, due to the strict regulations imposed by the governments during the pandemic.
- According to the Department of Food and Public Distribution (DFPD), till May 31, 2021, around 3.9 crores liters of hand sanitizer were produced in India. As per DFPD, the export of sanitizers has also been earning a tremendous amount of goodwill in India.
Acetone Market Dynamics
Rising demand for methyl methacrylate (MMA) and bisphenol-A (BPA) is expected to drive acetone market growth. MMA is usually used in the construction industry, due to its wide usage in manufacturing facades and doors & windows. Acrylic glass fiber is used in the construction industry to protect the walls of concrete, wooden walls, and steel.
Increasing production of bisphenol-A (BPA), due to the high demand for polycarbonate plastics is another factor expected to boost the market. This polycarbonate plastic is used to make some types of compact disks, automobile parts, beverage containers, plastic dinnerware, toys, and impact-resistant safety equipment. High demand for bisphenol A in the packaging industry is expected to boost the market.
Increasing demand for acetone in personal care products is expected to boost the market. Acetone and alcohol combination is used to clean oily and greasy skin associated with acne or other skin conditions.
Acetone can be found in some cosmetic and personal care products such as skin cleansers and astringents, due to its ability to dissolve oils and remove dirt from the skin. Acetone is commonly found in nail polish remover and acetone is also found in bath products, fragrance products, cleansing products, hair care products, and skincare products.
Inhalation and consumption of acetone can lead to skin irritation, which can inhibit market growth. Acetone can cause lung and throat irritation and tightening of the chest. Consumption and inhalation of acetone cause headaches, nausea, movement problems, vomiting, and tiredness. It may cause skin irritation, redness, inflamed, and dryness. Eye contact with acetone liquid can lead to eye damage and it causes permanent damage.
Growing demand for acetone in the pharmaceutical industry can create lucrative opportunities for the market players. In the pharmaceutical industry, active ingredients and fillers use acetone as a solvent to deliver accurate dosages of medicine. Acetone is used in pills and liquid medicines to have a proper density. It is required for the usefulness of the medicine and is also used as an antiseptic.
Scope of Acetone Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Acetone Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Application (Bisphenol A, Methyl Methacrylate, Solvents, Methyl Isobutyl Ketone, and Others), Grade (Technical Grade, Reagent Grade, and U.S. Pharmacopeia Grade), and End-user (Electronics, Cosmetics, Automotive, Paints & coatings, Pharmaceutical, Adhesives, Textile Industry, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Borealis AG; Formosa Chemicals & Fibre Corporation; Mitsui Chemicals, Inc.; INEOS; Honeywell International Inc.; Cepsa; SABIC; Domo Chemicals; KUMHO P&B CHEMICALS., INC.; Kleanstrip.; and PTT Global Chemical Public Company Limited
Acetone Market Segment Insights
Application Segment Analysis
Based on application, the acetone market is divided into bisphenol A, methyl methacrylate, solvents, methyl isobutyl ketone, and other applications. The solvent segment is expected to grow at a rapid pace during the forecast period. Increasing demand for solvents from various industries such as pharmaceuticals, refining, petrochemicals, construction, glass, paints & coating, personal care, and cosmetics is anticipated to drive the market segment’s growth.
The bisphenol A (BPA) segment is anticipated to hold a key share of the market in the coming years. BPA is mostly consumed during the production of epoxy resins and polycarbonates which are used in the automotive and construction industry. Polycarbonate is used to make hard plastic items such as reusable water bottles, baby bottles, pitchers, containers, and other storage items.
The methyl methacrylate segment is projected to account for a major market share in the coming years, as it is used in the manufacture of resins and plastics. Increasing use of methyl methacrylate in the pharmaceutical and medical application areas such as dentistry and orthopedic surgery is expected to boost the segment in the market. Methyl methacrylate is also used in the automotive industry, as it is weather resistant and protects from scratches and also used in nail products, adhesives, and coatings.
Grade Segment Analysis
In terms of grade, the market is segmented into technical grade, reagent grade, and U.S. pharmacopeia grade. The technical grade segment is expected to register a robust growth rate during the forecast period, due to the increasing consumption of technical products in the manufacturing of methyl methacrylate and bisphenol A.
Rising demand for technical grade acetone in the construction sector, due to its usage in concrete admixtures and adhesive cement is expected to boost the segment in the market. The U.S. pharmacopeia grade segment is projected to hold a large market share in the coming years. U.S. pharmacopeia grade is the purest grade of acetone, a 99.5% pure formulation used to clean the outside of handpieces, plastic, and degreaser. USP grade is safe for medical and pharmaceutical use.
End-user Segment Analysis
On the basis of end-user, the market is segregated into electronics, cosmetics, automotive, paints & coatings, pharmaceutical, adhesives, textile industry, and others. The paints & coatings segment is projected to expand at a considerable CAGR during the forecast period. Acetone-based paints dry ten times faster than normal paints. Thus, growing awareness about its benefits is expected to foster the growth of the segment.
Moreover, the paints & coatings industry dropped by 6% in 2020, to approximately USD 145 billion during the pandemic. In 2021, the industry reached roughly USD 160 billion.The pharmaceutical segment is anticipated to hold a key share of the market in the coming years, as it is used in liquid medicines and producing pills to have proper density.
In the medical field, acetone is used to sterilize and clean medical tools and equipment. Acetone is often used in the pharmaceutical industry as a solvent in active ingredients and fillers to deliver an accurate dosage of medicine.
In terms of region, the global acetone market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period. The growth of the market in the region is attributed to the easy availability of raw materials and cheap labor in countries such as India and China.
Increasing disposable income leads customers to spend more on cosmetic and skin care products, propelling the growth of the market in Asia Pacific. Increasing demand for the construction industry, due to the demand for methyl methacrylate is expected to boost the acetone market revenue in the region.According to research, China’s construction is rising steadily to around 27.6 trillion yuan in 2021.
Benefiting from the rapid urbanization in the construction industry generated an output of exceeded around 31 trillion yuan in that year.The market in North America is anticipated to expand at a rapid pace in the coming years, due to the increasing demand for the automotive industry.
Increasing demand for personal care, beauty products, and skin treatments is anticipated to fuel the market in the region. Companies such as Altivia and Dow Chemical company are likely to increase their penetration to manufacture acetone in the region. Increasing research & development in the electronic industry, due to the high demand for Bisphenol A, which is increasing the demand for acetone market revenue in the region.
The acetone market has been segmented on the basis of
- Bisphenol A
- Methyl Methacrylate
- Methyl Isobutyl Ketone
- Technical Grade
- Reagent Grade
- U.S. Pharmacopeia Grade
- Paints & Coatings
- Textile Industry
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Borealis AG
- Formosa Chemicals & Fibre Corporation
- Mitsui Chemicals, Inc.
- Honeywell International Inc.
- Domo Chemicals
- KUMHO P&B CHEMICALS., INC.
- PTT Global Chemical Public Company Limited
Key players competing in the global acetone market are Borealis AG; Formosa Chemicals & Fibre Corporation; Mitsui Chemicals, Inc.; INEOS; Honeywell International Inc.; Cepsa; SABIC; Domo Chemicals; KUMHO P&B CHEMICALS., INC.; Kleanstrip.; and PTT Global Chemical Public Company Limited.
These key players adopt various strategies including mergers, acquisitions, collaboration, partnerships, product launches, and production expansion to expand their consumer base globally.
- On June 14, 2022, INEOS launched a new lower carbon bio product line called INVIRIDIS, for its phenol, alphamethylstyrene (AMS), and acetone. These products are made without using fossil fuels as feedstock. These products are sold under the INVIRIDIS brand.