The global demand of acetone is estimated to grow at a CAGR of 3.4 percent to reach 7.74 MMT in 2022 APAC has the largest installed capacity and it is the fastest growing region with demand from downstream construction and automobile industries.
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Acetone market frequently asked questions
The demand for the global acetone market is projected to grow at a CAGR of 3.4 percent to reach 7.74 MMT in 2022. With the largest installed capacity, the APAC is the fastest-growing region with demand from downstream construction and automobile industries.
As per Beroe's acetone market report, the major supply share of the acetone market comes from North America (21 percent), EU (26.4 percent), and APAC (46.1 percent).
The major factors driving the acetone production cost in the global market are the fluctuating prices of benzene and propylene. The contract prices of benzene are finalized in the first week of the month, while for propylene, it is done in the last week of the month. Based on this, the market players arrive at the market price of acetone.
The top global suppliers for the acetone market are Ineos Phenol GmbH & Co KG, Sinopec Group, Cepsa Quimica, Mitsul Chemicals Inc., Formosa Chemicals and Fibre Corp ' (FCFC).
The major demand driver for the acetone market is the increasing downstream demand from BPA, MMA, and pharmaceutical segments in Asia and other developing economies.
Acetone market report transcript
Acetone Market Analysis and Global Outlook
The global demand is estimated to grow at a CAGR of 4.00 percent in 2022 and is to reach 8.97 MMT by 2025
APAC has the largest installed capacity, and it is the fastest growing region with demand from the downstream construction and automobile industries
Acetone Demand Market Outlook
Currently, the acetone market is oversupplied, and the capacity–demand gap is expected to increase marginally after 2022, as nearly 0.440 MMT of acetone is expected to come online by the end of 2022
The market is, however, far from being tight-supplied, and hence, giving more negotiation power to buyers (particularly, from the BPA segment)
Stronger demand for acetone than for phenol would continue to pressure acetone supply, mainly from the growing investment in economies, such as LATAM and India
Acetone Industry Best Practices
In North America and Europe, benzene and propylene contract prices are used as a base to arrive at acetone prices
About 85–90 percent correlation between benzene and acetone, and the same between propylene and acetone implies greater dependency over the feedstock price movements
The top manufacturers in Asia publish their individual quotes and the average, of which is reported as Asian Contract Price (ACP) by the price reporting organizations. Other market suppliers tend to use this as a base in arriving at their contract prices
Global Market Size: Acetone
- Major demand drivers are the increasing downstream demand from BPA, MMA, and pharmaceutical segments in Asia and other developing economies
Global Capacity–Demand Analysis : Acetone
About 45 percent of the global acetone capacity is concentrated in Asia. Moreover, 0.440 MMT is expected to come online between 2021 and 2023, making Asia, especially China, to become the major exporter
The production of acetone is interdependent on the demand for phenol, as acetone is a by-product during phenol production
When there is an excess supply of phenol and high demand for acetone, phenol is converted to acetone to cater the demand
Current capacity–demand scenario: On a global level, there is an excess capacity, however, this excess capacity is mainly concentrated in Asia
Demand for acetone saw an incline as a feedstock in IPA, as demand for the same saw an unprecedented increase from hand sanitizers, disinfectants, and wipes
Future capacity–demand scenario: About 0.440 MMT of acetone is expected to be added to the overall production capacity by the end of 2023
Due to matured demand growth rates in North America and Europe, future capacity additions are mostly planned in Asia, specifically China, where the demand is growing at a faster pace
These additions are further anticipated to reduce Asia’s dependency on imports from Europe and North America
Low volume buyers in North America, Asia, and Europe are recommended to have long-term contracts with acetone manufacturers for supply security
As there is a heavy price volatility, due to high dependency on phenol and feedstock, contract models are much favored compared to spot
Acetone Global Demand by Application
Acetone demand is expected to be driven by the developing economies like Asia and LATAM, as the major downstream applications of acetone are directly linked to the construction and automobile sectors
BPA and MMA segments are likely to grow at 4.5 percent and 4.3 percent, respectively. This increasing demand is majorly from the automobile and pharmaceutical industries and it is anticipated to drive the demand for acetone
Industry Drivers and Constraints : Acetone
Feedstock: Abundant availability of feedstock propylene and benzene supply in the market, coupled with cheaper feedstock prices, have a positive impact on the acetone market
Downstream Demand: Automobile, construction, and housing sector is having a promising outlook, which is likely to drive the demand for MMA and BPA. These segments are expected to grow at a CAGR of 4–5 percent globally for the next five years, that is likely to increase the acetone consumption by ~3.5 percent Y-o-Y, until 2022
Overcapacity: The acetone market is already suffering from excess capacity with an average operating rates hitting 80 percent levels. By 2022, close to 0.44 MMT of new capacities are coming online in Asia, which are likely to reduce the export demand from North America
Regulations on Transportation: Permitted packaging and clearance for transportation are necessary for marketing acetone, as the UN Committee and the International Maritime Organization have classified acetone (solid, molten and solutions) as a flammable substance
Permission Required for Acetone Effluents: In North America, effluent from acetone industry has to follow pre-treatment standards that are to be adhered strictly, which is a restraint in the industry
Why You Should Buy This Report
- Key profiles and SWOT analysis of acetone manufacturers such as Ineos Phenol, Sinopec group, CEPSA Quimica, etc.
- Detailed market cost structure and price trend analysis.
- The report gives information about the drivers and constraints of the global acetone market.
- Best sourcing models and industry practices.
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