Acrylic Acid and Acrylates Market Trends
Category Intelligence on Acrylic Acid and Acrylates covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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.
- 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
- 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
- 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.
- 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
- 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
- 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.
- 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
- 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 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.