Acetaldehyde Market Size, Share & Industry Analysis, By Application (Chemical Synthesis, Food & Beverages, Pharmaceuticals & Cosmetics, Paints & Coatings, and Others), and Regional Forecast, 2024-2032

The global acetaldehyde market size was valued at USD 1.63 billion in 2023 and is projected to grow from USD 1.68 billion in 2024 to USD 2.18 billion by 2032, exhibiting a CAGR of 3.3% during the forecast period.

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 a significant growth in these industries, the demand for acetaldehyde is anticipated to rise in the near future.

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. Lockdown in major consumer economies, such as India, China, Brazil, and the U.S., reduced production. Chemicals, 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 their operations at full capacity. This resulted in a significant increase in product demand, which is anticipated to continue during the forecast period.      

Acetaldehyde Market Trends

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 healthcare industry will, in turn, benefit the rising pharmaceutical and chemical industry and drive the growth of the acetaldehyde industry.

Acetaldehyde Market Growth Factors

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.

Rising Paints and Coatings Industry to Propel Market Growth

Acetaldehyde finds multiple direct and indirect applications in the manufacturing of paints and coatings. It is mainly used in the synthesis of resins, dyes and pigments, which are one of the fundamental components of the formulations of different kinds of paints and coatings. For instance, it is an important raw material used in the synthesis of resins that are used as binders in paints and coatings formulation for modification of gloss and rheology. It is also used in the synthesis of pentaerythritol, which is used in the manufacturing of fatty acid resins, alky resins, intumescents, and tall oil esters used in the manufacturing of flame-retardant paints. Moreover, it is also used in the production of different solvents used in the manufacturing of paints and coating. Therefore, with these wide-ranging applications, the product is witnessing higher demand from the rapidly growing paints and coatings industry.

RESTRAINING FACTORS

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.

Acetaldehyde Market Segmentation Analysis

By Application Analysis

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 the largest share of the market in 2023 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.

REGIONAL INSIGHTS

Asia Pacific held the largest acetaldehyde market share in 2023. The regional market value stood at USD 1.12 billion in 2023. 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.   

List of Key Companies in Acetaldehyde Market

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.

LIST OF KEY COMPANIES PROFILED:

• Solvay SA (Belgium)


• Eastman Chemical Company (U.S.)


• Jubilant Life Sciences (India)


• Sumitomo Chemical Co. Ltd. (Japan)


• Arkema (France)


• Honeywell International (U.S.)


• Laxmi Organic Industries Ltd. (India)


• SHOWA DENKO K.K. (Japan)


• Wacker Chemie AG (Germany)


• Celanese Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS

• July 2022: Sumitomo Chemical Co., Ltd. announced that it will complete the acquisition of Nativa by the end of 2022 through its subsidiary Agro Amazonia Produtos Agropecuários S.A. The move is anticipated to expand its geographical footprint in Brazil and help in achieving growth in net sales.


• March 2021: Laxmi Organic Industries Ltd was in the process of expansion of its production capacity by acquiring AHPL. AHPL is engaged in the manufacturing of ethanal and ethyl acetate through its subsidiary, YCPL.


• March 2021: Laxmi Organic Industries Ltd increased its installed production capacity at SI manufacturing facility to 82,525 MTPA from 78,045 MTPA. The move is anticipated to support the future incremental growth of the company.


• June 2019: Eastman Chemical Company announced that it is investing USD 70 million for the expansion of its facility at Louisiana. The expansion plan also includes the upgrade of its control and reliability capabilities within three years following the announcement.

REPORT COVERAGE

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.

REPORT SCOPE & SEGMENTATION