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The global acetaldehyde market size was valued at USD 1.53 billion in 2021 and is projected to grow from USD 1.58 billion in 2022 to USD 1.98 billion by 2029, exhibiting a CAGR of 3.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with acetaldehyde experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global acetaldehyde market exhibited a decline of 1.3% in 2020 as compared to 2019.
Acetaldehyde, also known as ethanal or MeCHO, is a colorless gas or liquid carbonyl compound. It occurs naturally in plants or is produced in industries on a large scale for its commercial use. Naturally, it is present in coffee and ripe fruits. However, commercially, it is produced mostly by oxidation of ethylene as well as partial oxidation of ethanol by using alcohol dehydrogenase enzyme. It is mainly used as a precursor and intermediate for the synthesis of different chemicals such as acetic acid, pyridines, pentaerythritol, peracetic acid, and crotonaldehyde. In turn, it finds applications in several end-use industries, including chemical, food & beverages, pharmaceuticals & cosmetics, paints & coatings, and plastics & synthetic rubber. Since the post-pandemic period is witnessing significant growth in these industries, the demand for acetaldehyde is anticipated to rise in the near future.
Declined Production and Demand during COVID-19 Resulted into Decreased Market Growth
The outbreak of COVID-19 significantly affected trade activities across the globe. Different manufacturing industries faced challenges in terms of manpower, supply chains, and utilities. Lockdowns in major consumer economies, such as India, China, Brazil, and the U.S., reduced production. The chemical, food & beverages, and paints & coatings are the leading consumers of ethanal. The COVID-19 impact on these industries was severe, which negatively affected the market growth. However, with significant control on the spread of COVID-19 after mid-2021, different industries gradually started operations with their full capacity. This has resulted in significant increase in demand for the product, which is anticipated to continue during the forecast period.
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Growing Pharmaceutical and Chemical Industry to Present Lucrative Opportunities in the Market
Acetaldehyde is used as raw material or intermediate in the production of several chemicals and pharmaceutical products. It is widely used in the manufacturing of pyridine and its derivatives, pentaerythritol, acetic acid, peracetic acid, and ethyl acetate. These chemicals find a wide range of applications in different end-use industries especially in chemicals and pharmaceuticals.
The global pharmaceutical industry has expanded significantly in recent decades. As a result, all associated industries, including chemical, have flourished. The field of chemicals is vast in terms of options and applications, ranging from solvents, raw materials, and intermediates to coupling agents.
The emergence of the COVID-19 pandemic has emphasized the importance of a robust healthcare system. People all around the world are becoming more conscious and aware about healthcare products, including pharmaceuticals and cosmetics. The healthcare industry is anticipated to expand at a considerable rate in the coming decade, particularly in emerging economies, such as China and India, where the market has enormous growth potential. The expanding global health care industry will, in turn, benefit the rising pharmaceutical and chemical industry and drive the growth of the acetaldehyde industry.
Rising Consumption of Pyridines and Acetic Acid to Drive the Market Growth
Acetaldehyde is a primary building block used to produce pyridine in combination with formaldehyde. It is also used as starting material in the synthesis of pyridine by the process known as Hantzsch synthesis. Water miscibility and alkaline nature make it a product of choice for use in the synthesis of different important products including pharmaceuticals, vitamins, and agrochemicals. Significant growth in the demand for pharmaceuticals, vitamins, and agrochemicals will present lucrative growth opportunities for the global market.
Ethanal is widely used in the production of acetic acid. There is significant growth in the consumption of acetic acid in the recent past owing to rising industrialization in different parts of the world. Acetic acid is used for several applications in different industries which mainly includes production of metal acetate, vinyl acetates, cellulose acetates, esters, plastics, and polymeric materials. Along with this, it is also used in the manufacturing and processing of different chemicals used in several end-use industries. For instance, it is used in purification and crystallization of organic compounds. It also finds application in the manufacturing of photographic films and textiles. Increasing demand for acetic acid for these applications will boost market growth in the near future.
Ethanal is also used in the manufacturing of preservatives and flavoring agents used in the food & beverages industry. Moreover, it is used for manufacturing of products used for commercial pickling operations. It is also used in the production of condiments, mustard, ketchup, and mayonnaise. Rising demand for these products is anticipated to have a positive impact on the market growth.
Toxicity Concerns to Challenge the Market Growth
Acetaldehyde is mainly used as raw material in the synthesis or processing of different industrial and commercial products. Among these, the production of different derivatives and the processing of several end-use products account for a significant share of global consumption.
Aldehydes are reactive carbonyl compounds, generally toxic to the human body. Toxic effects associated with its exposure include irritation, carcinogenicity, and DNA cross linking. In a concentration of as low as 1000 ppm, it not only causes headache, dizziness, and lightheadedness but also causes irritation to skin, eyes, throat, mucous membrane, and respiratory tract. MeCHO has been reported as Group I carcinogen by the International Agency for Research on Cancer. It causes abnormal muscle development by binding to the protein. It also induces the crosslinking of the DNA interstrands and results in DNA damage. Along with this, it also accelerates few human ailments including diabetes, Alzheimer’s disease and cardiovascular disease.
To protect human health, international organizations and governments across the globe are making an effort to regulate the use of toxic chemicals. Thus, to fulfill stringent standards implemented by health organizations, companies are opting for alternatives for some of the applications. For instance, methanol is increasingly being used for the production of acetic acid. Periodic replacement of acetaldehyde for different applications is likely to impact its demand, limiting market growth.
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Chemical Synthesis to Hold Significant Revenue Share Owing to Increasing Demand for Derivatives
Depending on application, the market is segmented into chemical synthesis, food & beverages, pharmaceuticals & cosmetics, paints & coatings, and others. Among these, the chemical synthesis segment held a considerable share of the market in 2021 and is anticipated to retain its position during the forecast period. Demand for polymer resins and basic dyes is increasing in different end-use industries. This is attributed to the increasing demand for derivatives in the near future.
Ethanal is used in the synthesis of different chemicals including pyridine and pyridine bases, acetic acid, pentaerythritol, and peracetic acid. These chemicals have a huge demand from different end-use industries for different applications. For instance, pyridine and pyridine bases are widely used for different applications such as production of medicines in the pharmaceutical industry. Again, different derivatives are widely used for production of food preservatives & flavors, paints & coatings, adhesives & sealants, dyes, herbicides, insecticides, and rubber products. Increasing demand for different MeCHO derivatives from several end-use industries has resulted in increased demand.
Asia Pacific Acetaldehyde Market Size, 2021 (USD Billion)
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Asia Pacific held the largest acetaldehyde market share in 2021. The market value of the region was USD 1.05 billion in 2021. The chemical and food & beverages industries are among the fastest growing industries in the Asia Pacific region. Production has boomed in China and India, in particular. The chemical manufacturing industry has easy accessibility to raw materials such as ethylene and ethanol. In addition, China, Japan, South Korea, and India are witnessing a significant growth in food and beverages production, especially packaged food products. The strong supply chain of these countries provides them with a competitive edge as compared to other countries. Rising demand for chemicals and food & beverages is likely to increase the demand for MeCHO derivatives used in these industries and drive market growth.
The U.S. is amongst the top chemical producers in the world, contributing approximately 25% of the country’s GDP. The country has high domestic demand as well. Ethanal derivatives are used in various applications such as food preservation, chemical synthesis, paints and coatings, pharmaceuticals & cosmetics, and water purification, among others. Growing demand for MeCHO as a basic material for polymer resins and basic dyes is aiding market growth in the region.
Rising demand in the pharmaceuticals and cosmetics industry is facilitating market proliferation in Europe. The flourishing pharmaceutical and paints & coatings industries in the region are pushing the demand for derivatives such as pyridine and pyridine bases, pentaerythritol, acetic acid, and ethyl acetate. This factor is likely to create growth opportunities for the market in Europe. Europe’s pharmaceutical sector is a leading contributor to the EU economy.
Latin American countries, such as Mexico and Brazil, are significant producers of sugarcane and corn. These crops are used as sources of bioethanol. Bioethanol is used in the production of premium quality acetaldehyde. Availability of alternative raw materials such as bioethanol obtained from natural sources is anticipated to have a significant positive impact on the market growth in the region.
The Middle East & Africa region has also shown considerable growth in the market. Rising chemical and pharmaceutical industry in the region is expected to create favorable conditions for the acetaldehyde market growth. For instance, South Africa has the world’s biggest antiretroviral program. It is also one of the largest manufacturers of radiopharmaceuticals.
Major Companies Focus on Expansion of Production Facilities to Boost Sales Revenue
Prominent players usually make strategic decisions such as partnerships, collaborations, product launches, and mergers & acquisitions to garner increased revenues and strengthen their presence in the global market. One such move is the expansion of production facilities to increase production capacity, thereby gaining huge profits.
An Infographic Representation of Acetaldehyde Market
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The research report provides qualitative and quantitative insights on the market share, growth rate, size, and regional analysis by different segments. The research report also offers an elaborative analysis of the market dynamics and competitive landscape. Key insights such as Porter’s five forces, recent industry developments, and the regulatory scenario are also covered as part of the scope of the study.
Value (USD Billion), Volume (Kilo Tons)
By Application and Geography
Fortune Business Insights says that the market was valued at USD 1.53 billion in 2021 and is expected to reach USD 1.98 billion by 2029.
Growing at a CAGR of 3.3%, the market will exhibit considerable growth over the forecast period.
The chemical synthesis application segment is expected to lead this market during the forecast period.
Increasing consumption of acetic acid and pyridine & pyridines shall drive the growth of the market.
Asia Pacific currently holds the highest market share in terms of market revenue.
The rising demand from pharmaceutical and chemical industry is the key trend in the market.
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