Ethyl Acetate Market Size, Share & COVID-19 Impact Analysis, By Application (Paints & Coating, Printing Ink, Process Solvent, Food & beverage, and Others), and Regional Forecast, 2020-2027

The global ethyl acetate market size was USD 3,323.2 million in 2019 and is projected to reach USD 4,368.9 million by 2027, exhibiting a CAGR of 9.07% during the forecast period.

It is extensively used in paints & coatings owing to its desirable properties. The strong growth of the ethyl building and construction industry in the Asia Pacific has supported the development of the market in the region. More than three fourth of the global ethyl acetate is produced in countries such as China, Japan, Taiwan, and India. The continuous capacity additions have resulted in overcapacity leading to lower operating rates of the plants, especially in China.

Covid-19 Pandemic Is Likely to Dampen Market Growth

The outbreak of COVID-19 resulted in weak demand for ethyl acetate in the first and second quarter of 2020. However, the improving situation and ease of lockdown restrictions at the end of quarter two have led to a gradual recovery of the market particularly, in the North East and South Asia region. Most of the importers are cautious about the market situation that has led to low imports this year. Moreover, China is the largest producer, and the exporter is facing a trade war with the U.S., which has further impacted its exports. The demand from the flexible packaging sector which includes packaging films, bags, and others, remains to be healthy due to some lockdown restrictions that are continued to curb the transmission of the COVID-19 virus. However, the low demand for coatings is resulting in overall weak demand in the market. Thus, the market is expected to witness hindrance in growth during the forecast period.

LATEST TRENDS

Food Industry is Opening New Avenues for Business

Ethyl acetate is being widely adopted in the food industry as a solvent and also as an artificial flavor enhancer in ice-creams, cakes, and confectionary food. Decaffeinating tea and coffee using ethyl acetate solvent are on the rise as consumption of decaffeinated drinks is increasing at healthy rates. The food industry is experiencing high growth in developing countries around the globe as a result of rising disposable income as well as technological advancement. Increasing demand for processed food fueled with artificial flavors is becoming more popular as the cost of the product significantly reduces which impacts the consumption of these products in the emerging countries where the cost factor is more pronounced.

DRIVING FACTORS

Significant Demand for Coatings is Fostering Market Growth

The paints & coating industry is one of the largest consumers of ethyl acetate. It is an ideal solvent for many industrial lacquers and enamels. It is prominently used in the formulations of coatings such as urethanes (99.5% grade), epoxies, acrylics, vinyl, and others. These coatings are further used in a wide range of applications in different industries such as construction, agriculture, wood furniture, maintenance, marine, automotive (for refinishing), and others. Further, it is also used in photographic films. Besides, it is relatively cheaper than other rival solvents used for similar applications. This wide variety of uses and applications makes it popular amongst other solvents available in the market. Thus, the demand is fueled by end-user applications and strong demand for coatings.

Rising Use of Printing Ink to Support Market Growth

The printing ink industry is thriving particularly in emerging countries such as India, China, and Indonesia. The industry experts have predicted double-digit growth in the upcoming years in the country. Changing lifestyles, modern retail, and the exponential growth of the packaging industry have led to the development of the printing ink industry. Not just India, these positive developments in the emerging countries have boosted the consumption of ethyl acetate used for manufacturing printing ink. The domestic printing industry in the Asia-Pacific region is also expanding which is further expected to increase the consumption of printing ink. This rising demand can be fulfilled by the availability of local juggernaut production capacities of required solvents such as ethyl solvents used in the manufacturing of printing ink. The desired properties make it ideal for manufacturing both flexographic and rotogravure printing inks.

RESTRAINING FACTORS

Rise in Demand for Water-Based Paints & Coatings to Hamper the Market Growth

The rising environmental awareness has surged the necessity of environment-centric regulations all around the world. Lawmakers have started framing and implementing stringent environmental norms to reduce the impact of hazardous chemicals on the environment. As a result, solvent-based paints and coatings are gradually losing their market share to water-based solutions. The volatile nature of the solvents makes it unsafe in paint & coating applications for users. This hampered the market growth to some extent and may further weaken the demand for it owing to the implementation of stricter regulations in the coming years.

SEGMENTATION

By Application

Paints & Coating Segment is Set to Remain the Dominant One the Forecast Period

The paint & coating industry accounts for more than half of the global consumption of ethyl acetate. The industry is expanding especially in emerging countries, which is expected to drive the global market over the forecast period. Printing inks and process solvent segments account for the second and third largest share. Food and pharmaceutical applications are poised to increase at healthy rates in the market. Adhesive and other applications account for a single-digit ethyl acetate market share. Out of the three grades; 85%, 99%, and 99.5%, the 99% grade is the most widely used in a variety of applications.

REGIONAL INSIGHTS

The market size in the Asia Pacific stood at USD 2,312.3 million in 2019 on the back of countries like China, India, Indonesia, Taiwan, and others. China is the largest manufacturer and exporter of this market in the world. Manufacturing through the esterification of ethanol with acetic acid in the presence of a catalyst is the most common route of production. In India, sugarcane molasses is the largest source of ethanol which helps it to manufacture ethyl acetate in large quantities.  India exports substantial quantities to Europe. Other South Asian countries such as Indonesia, Thailand, Vietnam, and others are also witnessing healthy growth. Adhesives, printing inks, and solvents for coatings are major growth drivers in these countries. Europe accounts for the second-largest share in the market. Large paints & coating manufacturing facilities such as Akzo Nobel, BASF, Jotun, and others consume large quantities of ethyl acetate. Ineos dominates manufacturing in the European region. North America is a relatively small market and Celanese and Eastman Chemicals are the largest manufacturers in the region. Latin America and the Middle East & Africa are the markets with high growth potential. However, political & economic instability is a major growth hindrance in the region.

KEY INDUSTRY PLAYERS

Ineos and Jiangsu Sopo are the Dominant Players in the Market

The market is fairly fragmented as certain manufacturers have dominance in the global market. Chinese manufacturers such as Jiangsu Sopo, Jiangmen Handsome, Wuxi Baichuan, and others have large manufacturing capacities to ensure their dominance in the domestic markets as well as regional demand and supply. However, this has resulted in lower operating rates due to overcapacity. Whereas Ineos is the largest producer in the European region and the production capacity is fairly balanced.

LIST OF KEY COMPANIES PROFILED:

• INEOS (UK)


• Celanese (US)


• Eastman Chemical (US)


• Jiangsu Sopo (China)


• Jiangmen Handsome (China)


• Wuxi Baichuan (China)


• Jubilant (India)


• GODAVARI BIOREFINERIES LTD. (India)


• Sekab (Sweden)


• Korea Alcohol (South Korea)


• IOL Chemicals and Pharmaceuticals (India)


• Other players

KEY INDUSTRY DEVELOPMENTS:

• May 2019: IOL Chemicals and Pharmaceuticals, an India-based manufacturer of various specialty and pharmaceutical chemicals, announced its plan to expand its production facility in Punjab to increase the production capacity of several chemical products including Ethyl Acetate.


• August 2019: Celanese Corporation, a renowned player in the market, announced a price increase for its ethyl acetate product in the European market. It increased the cost by around EUR 110 per ton.

REPORT COVERAGE

The ethyl acetate market report provides detailed industry analysis and focuses on crucial aspects such as leading companies, and applications. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years. PORTER’s forces analysis has also been included in the study.

Report Scope & Segmentation