Acrylic Acid – Procurement Best Practices & Sourcing Strategies

DESCRIPTION

Acrylic Acid Market Global Size:

ELINT Markt Research’s procurement market research report states that following the COVID-19 pandemic, the global acrylic acid market experienced massive growth from 2021 to 2023. Thus, the global capacity is calculated at 8.95 MMT, and the demand is calculated at 6.94 MMT values in 2023. The reason behind this expansion after COVID was rising awareness for personal hygiene and clean surroundings among people, for which they started employing effective cleaning and laundry care products. As acrylic acid plays a crucial role as a superabsorbent polymer and helps manufacture powerful cleaning goods, which stimulated the demand for the acrylic acid market; therefore, the report predicted growth at a CAGR of 4.0 percent in acrylic acid demand from 2023 to 2026.

Market Definition:

Acrylic acid works as a transparent and acidic liquid that effortlessly creates polymers, and also helps build colorants, plastics, foam rubbers, and fabrics. Furthermore, the by-products of acrylic acid are employed in a variety of fields, usually helping to formulate various polymers, such as acrylic polymers and ester compounds. Consequently, acrylic compounds and polymers are highly utilized in a wide range of applications due to their flexible qualities, including baby diapers, workout clothes, textiles, adhesives, water treatment, sealing agents, and protective surface coatings for surfaces.

Acrylic Acid Market Drivers:

1. Demands in Paints and Coatings Industry –

The foremost factor in driving development in the global acrylic acid market is the rise of the paints and coatings industry, which holds a substantial share in the acrylic acid demand segment. This organic compound works as the main component in the manufacturing of paints, adhesives, finishes, etc. in diverse sectors like interior, automobile, industrial, marine, and more.

2. Expansion in Superabsorbent Polymer (SAP) Sector –

Another major role that acrylic acid plays is helping in the production of superabsorbent polymer’ thus, the SAP industry vastly demands this organic compound to build diapers, sanitary pads, and adult absorbent clothing products. Hence, the key reason for this adoption is SAP has an extreme level of water-absorbing capacity, which made them the convenient choice for the hygiene products sector.

Acrylic Acid Market Challenges:

1. Downstream Paints & Coatings Markets in the Developed Economies-

Acrylic acid is the fundamental ingredient in the paints and coatings industry due to its versatile characteristics. Some of the developed economies like North America and Western Europe underwent a high level of maturity for these products, which caused moderate or slower pace expansion of the acrylic acid domain in these regions compared to other emerging nations.

2. Health Hazards Linked with Acrylic Acid –

Acrylic acid can cause health hazards in case of direct contact like skin itching, burns, and throat-related disturbances. Hence, acrylic acid procurement intelligence & manufacturing companies need to prevent prolonged or repeated exposure to acrylic acid for their workers’ safety.

Acrylic Acid Market Opportunities:

1. Expansion in Glacial Acrylic Acid (GAA) Capacity –

As acrylic acid requirements increase in the SAP industry, suppliers are encouraged to extend their glacial acrylic acid products capability; thus this factor drives vast opportunities for suppliers.

2. Demand for Bio-Based Polymers –

Utilization of bio-based polymers is an emerging trend among businesses due to environmental safety awareness concerns. Acrylic acid manufacturers experience great opportunities since this organic compound can be derived from renewable feedstocks like biomass.

Acrylic Acid Market Segmentation:

1. Product Types –

The major segmentation factor for acrylic acid is its different products including acrylate esters, glacial acrylic acid, and some other acrylic acid goods. With this segmentation, manufacturers can determine the particular needs of their consumers and build the exact acrylic acid product type.

2. Various End-User Industries –

Another primary segmentation aspect of the acrylic acid industry is its fundamental end-user sectors including detergent, cleaning goods, organic compounds, glues, cement, materials, water cures, consumer hygiene products, etc.

Regional Outlook for Acrylic Acid Market:

The geographical outlook of the global acrylic acid market showcases diverse degrees of authority for suppliers and buyers. In this context, a few of the significant regions emerged as dominants in the supplier segment, holding substantial shares in the international acrylic acid sector. These nations include North America at 15.6%, EU at 15.4%, APAC at 58.8%, China at 33.6%, LATAM at 2.3%, MEA at 4.3%, and others at 3.6%.

Hence, these optimistic numbers exhibit a high level of power for suppliers in these areas, except Asia which is operating at a moderate level of supplier power. Thus, vendors can efficiently negotiate their preferred contract terms with buyers. On the other hand, statistics for buyer power in the global acrylic acid industry present mixed levels. For instance, North America and the EU possess a medium degree of authority for buyers. While Asia and China own high levels and lastly, LATAM comprises a low level of authority for purchasers.

Types of Engagements in the Acrylic Acid Market:

Businesses operating in the global procurement intelligence market utilize two major types of engagement models to streamline supply chain management and fulfill consumers’ demands. In this context, the dual-sourcing method helps manufacturing companies and their clients build procurement partnerships at the regional level. Another fundamental engagement strategy is multiple sourcing, which allows purchasers to procure required acrylic acid goods from multiple suppliers on a global level.

2023 Price Outlook and Impactful Cost Components in the Acrylic Acid Market:

Europe occurred as one of the significant regions that experienced a 0–1 percent increase in acrylic acid product expenses in the second quarter of 2023 compared to the first quarter. This expansion in prices happened due to healthy competition among suppliers that adopted innovative and quality advancements to ensure the continuity of the acrylic acid supply.

Moreover, prominent countries that hold substantial stakes concerning impactful cost components in the global acrylic acid sector include North America at 72 percent, the EU at 60 percent, and Asia at 64 percent.

Contract Period in the Acrylic Acid Market:

The international acrylic acid industry includes contracts for two primary segments such as acrylate esters segment which stays for 1–3 years, and the CPG segment which remains for 3–5 years.

Key Suppliers in the Acrylic Acid Market:

Renowned and emerging procurement market intelligence companies in the global acrylic acid market include Nippon Shokubai​, LG Chem​, Jiangsu Jurong​, BASF​, Arkema​, Evonik Industries​, BASF-Petronas​, Tasnee-Evonik​, Formosa Plastic Corp​, Dow Chemicals.