Acrylic Acid and Acrylates Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Acrylic Acid and Acrylates

The current installed capacity will be more than sufficient to meet the global demand of acrylic acid until 2022. Acrylic acid demand will be mainly driven by construction, automobile, and SAP industries, especially in Brazil, China, and India.

SAP industry to drive the demand

• Growing demand from SAP industries in the APAC region will continue to be the key demand driver of acrylic acid
• Increasing per capita consumption, disposable income, and low penetration rate of diapers in China, India, and other Asian countries will be the key growth drivers of acrylic acid

Sufficient capacity until 2022

• The current installed capacity will be more than enough to meet the global demand until 2022. The average operating rate of the suppliers is anticipated to be approx. 65–75 percent, which is more sufficient to meet the demand levels
• More capacities are likely to be added in 2019–2020, owing to the improving demand from the CPG industry

Increasing demand from other applications

• Other downstream industries of acrylic acid, such as water treatment and detergent co-builders, are expected to grow by about 4 percent Y-o-Y until 2022. However, they have a less impact on acrylic acid prices, as their market size is only about 11 percent of the total end-use market

Acrylic Acid Regional Supply–Demand Trends and Outlook – North America

Acrylic acid supplier power is high, as the market is consolidated, and nearly, 85 percent of the production is being consumed within North America. Buyer power is medium, as they do not have much option of switching their suppliers.

Demand trends

• Acrylic acid demand is mainly driven by the demand from the construction and automobile industries. Seasonal demand from the construction sector improves during spring and summer season, driving the demand of acrylic acid
• Demand from SAP is expected to grow at a low pace of about 2.5 percent CAGR until 2022

Supply situation

• As the acrylic acid market is expected to grow at a CAGR of only about 2.2 percent until 2022, the current installed capacity is sufficient enough to meet the regional demand of acrylic acid until 2022. Acrylic acid capacities are mainly concentrated in Texas, US, with a total capacity of about 1.24 MMT

Capacity Addition

• Evonik and Dow have dissolved their StoHaas joint venture for the production of acrylic acid in December 2017. The joint venture facility in Marl, Germany, with a production capacity of 265,000 MT/year of acrylic acid, will come under Evonik, and the acrylic acid production plant in Deer Park, Texas (US), with a capacity of 165,000 MT/year, will go back to Dow DuPont

Acrylic Acid Regional Supply–Demand Trends and Outlook – Europe

Acrylic acid buyer power is medium, owing to low demand growth compared to other regions, as the European market is mature. Also, large volume buyers look to secure their supply within the region, making the supplier power high in the European market.

Demand trends

• Acrylic acid demand is mainly driven by the Eastern European regions, where the construction and automobile industries are witnessing an increase, due to increase in disposable income
• Acrylic acid demand from the paints and coatings segment is seasonal, with low demand prevailing during the winter season

Supply situation

• Acrylic acid capacities are mainly concentrated in Germany, with a total capacity of about 0.64 MMT
• With the moderate growth from downstream industries and increasing imports from the APAC region, the industry average operating rate is likely to be between 70 percent and 80 percent in the future

Capacity additions

• Evonik and Dow have dissolved their StoHaas joint venture for the production of acrylic acid. The joint venture facility in Marl, Germany, with a production capacity of 265,000 MT/year of acrylic acid, will come under Evonik, and the acrylic acid production plant in Deer Park, Texas (US), with a capacity of 165,000 MT/year will go back to Dow DuPont
• Nippon Shokubai is planning to add 100,000 MT capacity in Belgium by 2018, which would be helping them in the production of SAP, as they are forward integrated

Acrylic Acid Regional Supply–Demand Trends and Outlook – APAC

Buyer power is high, owing to a steady increase in demand from the SAP industry, which is expected to grow at a CAGR of 8 percent Y-o-Y until 2022, whereas supplier power is medium, as the market is highly fragmented with over 20 suppliers.

Demand trends

• Acrylic acid demand will be mainly driven by China and India, owing to an improvement in consumer spend and changing lifestyles
• Fast growing segments, such as personal hygiene, will also support the growth of acrylic acid in the future

Supply situation

• APAC will continue to be the net exporter until 2022, owing to the excess supply availability, coupled with the capacity additions, which are planned over the next three years
• Though suppliers have taken an effort to reduce their operating rates, the supply remains oversupplied in APAC

Capacity additions

• Capacity additions are concentrated more in APAC, where the market is witnessing a strong growth
• Acrylic acid capacity additions in India and China during 2018–2020 are expected to bring a change in trade dynamics, where India's import from Southeast Asia will decrease from 2018

Acrylic Acid and Acrylates Market Overview

• The cost of raw material constitutes a major portion of the total production cost in Europe. 

• Electricity prices are higher in APAC compared to other two regions, whereas the labor cost is lower in APAC compared to North America and the EU.

• The European electricity and labor costs are higher compared to other regions, owing to the shift toward renewable source of energy. 

• This is due to the strict regulatory environment to cater to the requirements of the Energy Efficiency Action Plan, which requires a 33 percent reduction in energy consumption by 2020.

• The European acrylic acid acrylate esters prices declined on weak supply–demand fundamentals. There is ample supply of acrylic acid in the region and the demand has been subdued, which translated into a downward pressure of acrylic acid prices.

• Recent imports and the general macroeconomic malaise have added to the competitive environment.

• Stockpiling ahead of Brexit is also expected to play a role, although there are some expectations that the majority of this will take place in October, linked to the shelf life of end products.

• The acrylic acid acrylate esters prices are expected to decrease, in line with a decrease in feedstock propylene prices. The demand for acrylic acid will continue to remain tepid, while supply continues to remain aplenty. 

Why Should You Buy This Report

• Information about acrylic acid market size, value chain analysis, demand-supply analysis, trade dynamics, global and regional market outlook, etc.
• Porter’s five force analysis of the North America, EU, APAC and LATAM markets.
• Industry drivers and constraints.
• Cost structure analysis, price analysis, acrylic acid acrylate esters prices, etc.
• Supplier analysis, capacity share, and SWOT analysis of major players like BASF SE, Nippon Shokubai, Dow Chemical, etc.
• Acrylic acid procurement intelligence, best intelligence practices, contract models, etc.