DESCRIPTION
Acetone Market Global Size:
Over the year 2025, the global acetone market demand is anticipated to expand at a CAGR of 1.8-2%, as mentioned in the recent procurement market research report by ELINT Market Research. Furthermore, the increasing usage of acetone in the manufacturing of personal hygiene products as well as expanding end-use sectors including paints, coatings, and pharmaceutical companies drove a substantial global capacity of 8.92 MMT and its corresponding demand of 8.39 MMT in 2022.
Moreover, this acetone procurement study exhibits leading positions of some territories, which emerged as the key consumers and producers of acetone in the international market. These major countries with their significant market shares include North America at 24%, the EU at 25%, and APAC at 44%. Therefore, the growing use of acetone in these provinces for manufacturing adhesives, disinfectants, sanitizers, thinners, drugs, plastics, etc. is anticipated to contribute to the internal market growth by the projected timeframe.
Market Definition:
Acetone, also known as dimethyl ketone, is one of the most prevalent and important organic compounds, which constitutes a sweetish fragrance and is highly combustible. It works well as a solvent for a variety of chemicals and can also mixed with water. Apart from its usage in industrial and scientific preferences, acetone also finds its application in certain consumer goods like skin care and nail paint cleaners. Moreover, acetone should be utilized carefully because of its combustibility feature, and possible health risks from exposure.
Acetone Market Drivers:
- High Demands in Pharmaceutical Industry –
Following the COVID-19 epidemic, an elevated surge in acetone demands has been seen in the healthcare industry to manufacture sanitizers, decontaminants, and other sanitization goods. Hence, the global acetone sector is projected to experience massive development due to the rising necessity for sanitization treatments in various places like homes, hospitals, offices, shops, etc.
- Production of BPA and MMA –
Acetone works as the major compound to manufacture bisphenol-A (BPA) and methyl methacrylate (MMA), which propel expansion in the international acetone sector. Further, BPA and MMA assist industrial organizations in producing consumer products, construction materials, automobile parts, optical devices, and more.
Acetone Market Challenges:
- Shifts in Feedstock Prices –
Volatility of raw materials costs, particularly crude oil, and propylene prices cause challenges for market players since they need to adhere to market shifts and make pricing layouts depending on them.
- Strict Environmental Safety Guidelines –
Environmental safety regulations released by the government also pose difficulties for acetone manufacturers. These stringent guidelines require them to invest in carbon emission control technologies, which adds to additional operational expenses.
Acetone Market Opportunities:
- Specialized Chemicals Manufacturing –
Acetone procurement intelligence market participants can encounter progressive opportunities by using acetone in the manufacturing of specialized chemical applications such as agricultural chemicals, medicinal intermediary compounds, and special-purpose solvents. Therefore, acetone producers can improve the robustness of their products, and drive profitability.
- Bio-Based Acetone Production Methods –
Businesses obtain great opportunities to reduce carbon footprints in the environment by investing in investigation and development activities, focused on bio-based acetone production strategies.
Acetone Market Segmentation:
- Various Applications of Acetone –
The foremost segmentation factor for the global acetone industry is the different applications of acetone including, Methyl Methacrylate, BPA, Solvents, MMA, Powder, and more. In this segmentation, Bisphenol- A or BPA is expected to operate as the dominant in the international market, which helps in polycarbonate production.
- Diverse End User Industries –
Textiles, plastic, construction, chemicals, pharmaceuticals, skin & personal care products, paints, farming, etc. occurred as the major end-user industries in the worldwide acetone industry. This segmentation aspect helps acetone-producing companies to make products depending on industries’ particular requirements.
Supplier and Buyer Powers in the Acetone Market:
Tracking supplier and buyer powers in the global acetone industry helps businesses comprehend stakeholders’ activities in diverse regions. In this context, North America is calculated to hold a moderate level of supplier and buyer powers. Thus, in this region, purchasers and suppliers both hold an average degree of bargaining authority. On the other hand, EU and Asian domains appeared to possess low supplier power and high buyer power. Hence, in these countries, purchasers are operating as the dominants, and negotiating their favorable terms with vendors.
Types of Engagement Models in the Acetone Market:
This procurement market analysis report presents various engagement models in different countries. North America owns approximately 80% of acetone transaction shares in the global market and employs contractual agreements for stakeholder to foster their long-term partnerships. Similarly, European territories also use contract-based agreements for buyers and vendors and hold around 80% stakes of transactions structured under legal agreements. Contrarily, Asian domains majorly employ spot-based deals, holding roughly 60% of engagements. Spot-based contracts allow flexibility in procurement methods depending on market fluctuations. Thus, this model helps recognize regional differences and adjust plans to suit the various demands of participants in the worldwide acetone market.
Price Outlook and Impactful Cost Components Shares in the Acetone Market:
The price outlook for the second quarter of 2023 in comparison to the first one reveals a 3-5% decrease in acetone product prices, particularly in the US market. This reduction can occur due to diverse factors like shifts in demand-supply conditions, raw material expenses, and economic matters. Even though, the US emerged as the leader in the international acetone market, holding powerful production capacity and demand from diverse end-use sectors.
Moreover, some of the fundamental countries appeared to maintain notable shares for impactful cost components like raw material prices in the global acetone sector. These territories comprise North America at 51%, the EU at 49%, and Asia at 55%. Thus, industry participants in these nations mainly keep track of impactful cost components to maintain their acetone production pricing layouts.
Contract Durations in the Acetone Market:
Two types of contract periods function in the global acetone industry. For large volume buyers, companies can use a 2-3 year long contract period to fulfill their acetone goods demands. Further, for small volume or CPG customers, companies can leverage contracts for 1-year duration.
Key Acetone Procurement Market Intelligence Companies:
Significant market participants that are heavily funding R&D activities to broaden their product offerings in the worldwide acetone industry, which will encourage additional market expansion, include Shell Chemical Co., Ineos Phenol, Honeywell International Inc., Advansix, Dow Chemical Co, Ineos Phenol GmbH & Co KG, Cepsa Quimica, Versalis, Sasol Solvents, Rabigh Refining and Petrochemical Company (Petro Rabigh), Formosa Chemicals and Fibre Corp. (FCFC), LG Chem Ltd, PTT Phenol Co Ltd, Mitsui Chemicals Inc., Kumho P&B Chemicals Inc. (KPB).
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