Acrylic Acid Market Intelligence

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Are you looking for answers on Acrylic Acid category?

  • What are the key trends in Acrylic Acid category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Acrylic Acid industry?
  • How is Acrylic Acid industry performing?

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Report Coverage

  • Global Capacity–Demand Analysis
  • Global Trade Dynamics
  • Cost Structure Analysis
  • Regional Capacity Share by Suppliers

Table of contents

  1. Acrylic Acid Executive Summary
  2. Global Acrylic Acid Market Snapshot
  3. Supply Market Outlook
  4. Demand Market Outlook
  5. Industry Best Practices
  1. Acrylic Acid Market Analysis
  2. Value Chain Analysis
  3. Global Market Outlook
  4. - Current Market Size
  5. - Demand - Supply Trends and Forecast
  6. - Demand by Application
  7. - Market Outlook
  8. - Global Trade Dynamics
  9. Regional Market Outlook (North America, EU, China, Rest of Asia, LATAM)
  10. - Regional Market Snapshot
  11. - Demand - Supply Trends and Forecast
  1. Acrylic Acid Industry Analysis
  2. Industry Outlook (North America, EU, and APAC, LATAM)
  3. - Porter's Five Forces Analysis
  4. - Drivers and Constraints for the Industry
  5. - Industry Events

 

  1. Cost Analysis (North America, EU, and APAC)
  2. - Cost Structure Analysis
  3. - Pricing Analysis
  1. Acrylic Acid Supplier Analysis
  2. Global Capacity Share by Suppliers
  3. Regional Capacity Share by Suppliers
  4. Global Acrylic Acid Capacity Addition by Suppliers
  5. Acrylic Acid Exhaustive Supplier List
  6. Supplier Profiles
  7. - Detailed Supplier Profiling of the Top Five Global Suppliers
  8. - SWOT Analysis for the Top Five Global Suppliers
  9. - Financial Risk for the Top Five Global Suppliers
  1. Acrylic Acid Industry Best Practices
  2. Acrylic Acid Sourcing Practice among the Top CPG Players
  3. Pros and Cons of Single and Multiple Sourcing and Contract vs. Spot
  4. Contract Models Adopted in the Industry
  5. Typical Length of the Contract Adopted in Acrylic Acid Industry and Pricing Structure

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Global Acrylic Acid Market Outlook

The global demand for acrylic acid is expected to grow at a CAGR of 4.7 percent Y-o-Y until 2022, mainly driven by the APAC and MENA regions.

Rising disposable income, increasing demand for SAP from the CPG industry, and a steady growth in the automobile industry are expected to drive the growth of acrylic acid in the emerging markets, such as Brazil, China, India, etc.

acrylic-acid-global-market-size

Demand Market Outlook

  • The global acrylic acid market is oversupplied with all three regions being self-sufficient to meet their demand. However, even after capacity addition by BASF in Brazil, LATAM depends on imports to meet the demand
  • China, rest of Asia, and MEA are the key regions for the suppliers to focus on, as the demand growth is high in these regions until 2021

Industry Best Practices

Contract Models

  • Key contract models followed in the industry:

 –  Index-based pricing
 –  Fixed price with renegotiation option
 –  Volume-based pricing (mostly followed)
 –  Per-order contract (spot purchases) 
 –  Cost plus pricing
 –  Mixed pricing


 Contract Length

  •  Typical length of the contract varies from acrylate esters and CPG industry. The length of the contract is between 1 and 3 years for the paints and coatings industry, as the industry is well supplied, and it is easy to switch suppliers, whereas GAA suppliers are lesser compared to CAA, due to which the suppliers have their negotiation power and the length of the contract is 3–5 years

Global Capacity – Demand Analysis

  • 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

Market Outlook

SAP industry to drive the demand

  • Growing demand from the 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

Global Trade Dynamics

  • Acrylic acid suppliers in APAC hold majority of the capacity share
  • Most of the trade occurs from eastern to western parts of the globe to meet the acrylic acid demand at the least cost
  • The current scenario of the acrylic acid market is that majority of the excess supply in APAC is exported to regions, such as MEA, CEE, and LATAM, to meet its growing acrylic acid demand from acrylate esters and CPG industries

Industry Drivers and Constraints

Drivers

  • Rising demand for SAP in APAC: Acrylic acid procurement intelligence indicates a steady increase in demand from the personal hygiene industry, due to the low penetration rate of diapers, is expected to drive the demand of acrylic acid in the future
  • Improving demand from the automobile industry: A steady improvement in demand from the automobile industry in the U.S., the EU, and APAC is driving the demand of acrylic acid
  • Increasing demand for contract manufacturing: Increasing demand from personal hygiene, paints and coatings from the emerging countries, like Brazil, China, and India, are inviting contract acrylic acid manufacturers to meet their demand

Constraints

  • Environmental concerns: Since acrylic acid is derived from petroleum-based feedstock, there are certain environmental concerns that are associated with the product, which is a key constraint for the growth of SAP. To counter such issues, few companies, like Cargill, Novozymes, Arkema, and Nippon Shokubai, have invested on the research of bio-acrylic acid
  • Volatile feedstock prices: Feedstock propylene prices are highly volatile, driven by crude prices, which fluctuate M-o-M. Feedstock price pressure hampers the profit margins of acrylic acid, as they are highly dependent on propylene prices
  • Oversupplied market: The global acrylic acid market is oversupplied, which has caused some suppliers to reduce their operating rate or permanently shut down plants. There are more capacity additions following despite these market conditions, which is a big restraint in the industry.

 

 

 

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