Acetone Market Size, Share & COVID-19 Impact Analysis, By Application (Solvent, Bisphenol A (BPA), Methyl Methacrylate (MMA), and Others), By End-use (Paints & Coatings, Plastic, Automotive, Adhesives, Pharmaceuticals, Cosmetics, Electrical & Electronics, and Others), and Regional Forecast, 2020-2027

The global acetone market size was USD 3,962.0 million in 2019 and is projected to reach USD 4,995.3 million by 2027, exhibiting a CAGR of 3.7% during the forecast period.

Acetone (dimethyl ketone, 2-propanone, CH3COCH3) is a clear, volatile, and colorless liquid with a sweet odor. It is the simplest aliphatic ketone and the most important solvent from the commercial point of view. Factors such as increasing usage of solvents and high demand in the pharmaceutical, cosmetic, adhesive, and automotive industries are expected to drive growth. The demand for acetone is primarily driven by the development of end-use industries such as textiles, electronics, personal care, pharmaceuticals, cleaning, and petroleum.

COVID-19 Outbreak: Governmental Restrictions on Manufacturing Activities to Hinder Growth

The chemical industry has been impacted by the outbreak of the COVID-19 pandemic. From the disruption of supply chains in prime regions to the uncertainty in the demand from all over the world, the market has been negatively affected. Additionally, the government restrictions on movement and manufacturing activities, along with the workforce facing the risk of infections would add another dimension to the catastrophe. China, one of the major producers of dimethyl ketone, experienced a rise in the prices which tripled from April.

The crude oil price war going amidst the pandemic has been plunging the petrochemical prices to unprecedented levels. Shutting of port clearances, as well as truck and train transportation between countries has negatively impacted the trade. The closure of companies due to regional regulations and the labor shortage is anticipated to decline in the trade of dimethyl ketone. However, the high demand for pharmaceutical products such as sanitizers, disinfectants, and medications to combat the spread of the coronavirus is significantly boosting the demand for solvents. This has navigated various companies towards recovery from the economic and commercial crisis.

ACETONE MARKET TRENDS

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Rising Demand for Bio-based Solvents is a Prominent Trend

The increasing demand for chemicals and petrochemicals from various end-use industries is set to promote the growth of the market. Shifting consumer preferences towards a healthy lifestyle is leading cosmetics and personal care manufacturers to switch to eco-friendly products. In order to practice green, sustainable, and eco-friendly chemistry, manufacturers have developed various pathways and processes that do not cause any harm to the environment. Renewable dimethyl ketone is one of such products that are completely renewable and natural. It also subsequently reduces the use of toxic and corrosive chemicals that can harm the environment.

There has been a significant increase in the demand for green solvents from the industrial sector attributed to their possession of numerous attractive advantages over petrochemical solvents. Some of the petrochemical solvents are expensive, carcinogenic, corrosive, ozone-depleting, toxic, and cause severe implications on the environment. Green solvents are non-toxic, non-corrosive, and non-carcinogenic. Additionally, the green processes used to synthesize these solvents do not cause any negative effects on the environment. High solvency, benign nature, negligible VOC production, and lower cost, coupled with high functionality are some of the driving factors responsible for the high demand for green solvents. It is likely to create lucrative opportunities in the market.

ACETONE MARKET GROWTH FACTORS

Increasing Demand for MMA and Bisphenol-A from Various End-use Sectors to Drive Growth

Methyl Methacrylate (MMA) and Bisphenol A are commercially important derivatives of dimethyl ketone that play a significant role in the industrial sector. The increasing demand for MMA for manufacturing acrylic plastics such as PMMA that are widely used in constructional and infrastructural activities is likely to fuel the demand for acetone. Acrylic glass and translucent sheeting are widely employed because of their rising advantages over normal fiberglass and glass.

Bisphenol A is one of the major applications of the product. The increasing production of BPA attributed to the high demand for polycarbonates is projected to impact growth positively. BPA is employed in making food-grade bottles and canned food containers. Therefore, the increasing demand for BPA from the packaging sector is anticipated to drive the acetone market growth.

High Demand for Solvents from Pharmaceuticals Industry to Aid Growth

The solvent is widely used in the industrial sector. Paints and coatings, adhesives, thinners, cleaning products, and nail polish removers are some of the daily-use applications of solvents. Owing to its non-VOC nature, it is highly employed in the paints and coating industry. In pharmaceutical applications, solvents are preferably used for synthesizing ascorbic acid and as an extractant for hormones and microorganisms.

Recently, there has been a significant increase in the production of sanitizers, disinfectants, and other sanitization products due to the COVID-19 pandemic. Isopropanol is one of the key ingredients which is derived from dimethyl ketone and used for the production of such sanitization products. Considerable growth in the demand for personal care products and cosmetics is also expected to drive the acetone industry. Dimethyl ketone-related materials are used for washing chemical stains and are increasingly preferred for the manufacturing of various industrial solvents. The chemical, which is miscible with water and other organic compounds, is expected to experience an increased demand for solvent production.

RESTRAINING FACTORS

High Flammability and Low Acute Toxicity of Acetone May Hinder Growth

Acetone is safe to use when the respective guidelines are followed by consumers or manufacturers. However, the inhalation or consumption of it can cause mild irritation and may depress the central nervous system. Also, the product is a highly flammable liquid. At higher temperatures than the flashpoint of the product, it may behave as an explosive liquid and cause flash fires. This is likely to hinder the market growth. However, the product has a high ignition initiation energy point and therefore cannot auto-ignite. Industrial dimethyl ketone contains a small amount of water which inhibits the ignition.

ACETONE MARKET SEGMENTATION ANALYSIS

By Application Analysis

Solvent Segment to Hold the Largest Share Fueled by High Demand from Personal Care User Industry

On the basis of application, the global acetone market segments include solvent, bisphenol A (BPA), methyl methacrylate (MMA), and others. The solvent segment held the major share of the market. The increasing demand for solvents from various end-use industries such as petrochemicals, chemical manufacturing, pharmaceuticals, paints & coatings, personal care, and cosmetics is likely to fuel the growth of this segment.

Bisphenol-A (BPA) is majorly employed in the industrial and chemical sectors. It is an important building block for many polymer materials such as polycarbonates, epoxy resins, polysulfone, and polyurethanes. The increasing demand for various polymers to make consumer goods such as polycarbonate bottles, food storage containers, sports equipment, and other such goods is projected to boost the demand for bisphenol-A.

Methyl Methacrylate is one of the organic compounds used in the manufacturing of resins, plastics, and as an enteric packaging for tablets and medications. The monomer of methyl methacrylate is also used in cosmetics attributed to its lower acute toxicity. Increasing use in the pharmaceutical & medical application areas such as orthopedic surgery and dentistry is anticipated to accelerate the demand for methyl methacrylate.

By End-use Analysis

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Paints and Coatings Segment to Hold Maximum Share Backed by Rising Constructional Activities

In terms of end-use, the market is fragmented into paints & coatings, plastic, automotive, adhesives, pharmaceuticals, cosmetics, electrical & electronics, and others. The paints & coatings segment held the key volume share of the market in 2019. Solvents are widely used in the paints and coatings sector due to their ability to dissolve polar, as well as non-polar substances. Solvent-based paints & coatings dry 10 times faster than low-solvent paints. Increasing constructional activities across the world are also anticipated to boost the growth of the segment.

Dimethyl ketone is one of the significant chemical intermediates that are used in the manufacturing of acrylic plastics, epoxy resins, and polycarbonates. Most of the total dimethyl ketone produced worldwide is employed as feedstock for acrylic plastics. Dimethyl ketone is an organic solvent that is used in the manufacturing of pills and liquid medicines. It helps in maintaining the density of medications. Density plays a major role in upholding the efficacy of medicines. Additionally, dimethyl ketone is also used in antiseptic products due to its high volatility. Personal care & cosmetic formulations make use of dimethyl ketone as solvents to dissolve various pigments and compounds. One of the major cosmetic applications of dimethyl ketone is nail polish remover.

REGIONAL ACETONE MARKET ANALYSIS

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The market size in the Asia Pacific stood at USD 1,739.2 million in 2019. The region held a key share of the global market in 2019 attributed to factors such as easy availability of raw materials and lower labor cost in countries, namely, China and India. Dimethyl ketone is predominantly used as an industrial solvent in various manufacturing processes. The increasing consumption and production in pharmaceuticals, personal care, cosmetics, and chemical in Southeast Asia and other Asian countries will substantially increase the demand for dimethyl ketone.

North America has significant manufacturing, as well as a consumer base for dimethyl ketone. Increasing R&D in the electronics sector in this region is expected to fuel the demand for Bisphenol A which, in turn, is anticipated to drive the regional market growth. The feedstock price advantage provided by Canada, as compared to the other North American countries, would attract manufacturers to set up their production facilities in Canada.

Increasing disposable income has led consumers to spend considerably on skincare, cosmetics, and lifestyle products. The high demand for make-up, skincare, and other cosmetic products has surged the demand for dimethyl ketone in the region. Moreover, the presence of large chemical industries in Germany, Italy, and the U.K. has a significant impact on the total consumption of base chemicals such as dimethyl ketone in Europe. The Europe acetone industry is at its peak in recent times. The surging demand for paints & coatings due to the growing constructional activities is also likely to create lucrative opportunities in the region. Apart from that, the rising demand for pharmaceutical products and medication is anticipated to significantly boost the demand for pharmaceutical-grade dimethyl ketone.

The Middle East is one of the prominent producers of olefins and petrochemicals. Dimethyl ketone is one of the common by-products that are obtained during the manufacturing of various aromatic and petrochemical compounds. The considerably high reserves of fossil fuels and an ample number of petrochemical manufacturing companies in the U.A.E., Kuwait, Iran, Iraq, and other countries are anticipated to drive the market in this region.

KEY INDUSTRY PLAYERS

Key Players Focus on Entering into Sourcing Agreements to Strengthen their Positions

Key participants are primarily concentrating on the advancement of new technology for the processing of bio-based acetone. Prices, manufacturing technology, and feedstock supply are some of the main factors that have had an influence on market competitiveness. The primary growth strategy of key players operating in the industry is projected to be entering into sourcing agreements with raw material suppliers and end-users. LyondellBasell Industries Holdings B.V., INEOS, Royal Dutch Shell Co, Honeywell International Inc., Mitsui & Co., Ltd., and others are some of the major players in the market.

LIST OF KEY COMPANIES PROFILED IN ACETONE MARKET:

• LyondellBasell Industries Holdings B.V. (Rotterdam, Netherlands)


• INEOS (London, UK)


• Altivia (Texas, United States)


• Royal Dutch Shell Co. (The Hague, Netherlands)


• Honeywell International Inc (North Carolina, United States)


• Mitsui & Co., Ltd. (Tokyo, Japan)


• SABIC (Riyadh, Saudi Arabia)


• KUMHO P&B CHEMICALS., INC. (Seoul, Korea)


• Cepsa (Madrid, Spain)


• Formosa Chemicals & Fibre Corp. (Changhua, Taiwan)


• Borealis AG (Vienna, Austria)


• PTT Phenol Company Limited. (Bangkok, Thailand)


• Prasol Chemicals Pvt. Ltd. (Navi Mumbai, India)


• Chang Chun Group (Taipei, Taiwan)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• In March 2020, Honeywell announced that Lotte GS Chemical Corp. will employ Honeywell UOP Q-Max, Phenol 3G, and Evonik MSHP technologies to manufacture over 565,000 metric tons of phenol and acetone per year at its petrochemicals facility in Yeosu, Korea. In addition to basic engineering design services, essential equipment, catalysts and adsorbents, and technical services, UOP is offering a license for the technology.


• In April 2021, Borealis AG and NOVA Chemicals Corporation announced today that Borealis has acquired NOVA Chemicals' 50 percent ownership interest in Novealis Holdings LLC. The company will be able to expand their footprint in North America Europe by acquiring NOVA Chemicals' part in Novealis, allowing us to better service our clients in this region with our value-added Borstar technology and associated goods.  


• In December 2020, Trinseo, a worldwide materials company that makes plastics, latex binders, and synthetic rubber, said today that it has signed a binding deal to purchase Arkema's polymethyl methacrylates (“PMMA”) and activated methyl methacrylates (“MMA”) businesses. Trinseo's current offerings span a variety of industries, including automotive, construction, medical, and consumer electronics.

REPORT COVERAGE

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The acetone market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, end-use, and leading applications of the product. Also, it offers insights into market trends and highlights vital industry developments. Research methodologies such as bottom-up and top-down approaches were used in the study. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation