Acetone Market Trend, Share, Growth, Size, Analysis and Forecast 2030

Acetone Industry Prospective:

The global Acetone market size was worth around USD 5.5 billion in 2022 and is predicted to grow to around USD 9.8 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.5% between 2023 and 2030.

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Acetone Market: Overview

Acetone is a man-made chemical that may also be found in nature. It is a colorless liquid with a distinct odor and flavor. It quickly evaporates, is combustible, and dissolves in water. It is also known as dimethyl ketone, 2-propanone, and beta-ketopropane. Acetone is used to create plastic, textiles, medicines, and other compounds. It is also used to dissolve other compounds. It occurs naturally in plants, trees, volcanic gasses, forest fires, and as a byproduct of human fat decomposition. It can be found in car exhaust, tobacco smoke, and garbage areas. Industrial operations emit more acetone into the environment than natural processes.

Key Insights

• As per the analysis shared by our research analyst, the global Acetone market is estimated to grow annually at a CAGR of around 7.5% over the forecast period (2023-2030).
• In terms of revenue, the global Acetone market size was valued at around USD 5.5 billion in 2022 and is projected to reach USD 9.8 billion, by 2030.
• The growing demand from end-use industries such as automotive, pharmaceutical and others drives the acetone revenue growth.
• Based on the grade, the technical grade is expected to hold the largest market share over the forecast period.
• Based on the application, the solvents are expected to hold a substantial revenue share over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

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Acetone Market: Growth Drivers

Growing consumer demand for skincare and cosmetics drives market growth

Acetone's outstanding solvent characteristics make it an essential component of skincare and cosmetic products. It is commonly found in hair care, skin care, and nail paint removal products. The acetone industry is accelerating owing to the growing trend of personal grooming. Furthermore, the rise of the skincare and cosmetics industries, driven by the growing disposable income, rising awareness of personal grooming, and others, may positively impact the market growth.

Manufacturers may require Acetone for developing things in response to clients' continuing demand for cutting-edge cosmetic and skincare products. For instance, according to Euromonitor data, the sales of personal care and cosmetics in China reached $88 billion in 2021, an increase of 10% over the previous year.

Acetone Market: Restraints

Government laws prohibiting the use of BPA in excessive amounts hamper market growth

The usage of acetone has reporting requirements set by many federal authorities, including the Safety and Health Administration (OSHA) and the National Fire Protection Association (NFPA). Because of the regulations around acetone, this might discourage businesses from employing it. Moreover, it has been determined that BPA affects brain development and is especially harmful to developing fetuses, infants, and young children. The United States, Europe, Australia, Brazil, Canada, China, Costa Rica, Ecuador, Japan, Malaysia, South Africa, South Korea, Taiwan, and Turkey are among the nations with laws that either limit or completely prohibit the use of BPA.

Acetone Market: Opportunities

Innovations in the resin and polymer sectors offer a lucrative opportunity for market expansion

Acetone is essential to the synthesis of polymers and resins, including epoxy resins and polycarbonates. Automotive parts, electrical components, and packaging materials are just a few of the many consumer and commercial items that are made using these materials. Acetone demand is being driven by the expansion of these sectors and the rising need for strong, lightweight materials. Additionally, advances in polymer and resin recycling technology have occurred as sustainability has become more and more of a concern. In some recycling procedures, acetone can be used as a solvent to assist in dissolving and separating polymers and resins from other materials.

Acetone Market: Challenges

Adverse effects of acetone pose a major challenge to market growth

Acetone irritates the throat and nose, among other negative effects. High doses of it have the potential to damage the neurological system as well. Headache, disorientation, nausea, and dizziness are possible symptoms. Additionally, acetone exposure can damage or irritate eyes, resulting in mild to severe discomfort. As a result, during the projection period, acetone's different negative effects may hinder acetone market growth.

Acetone Market: Segmentation

The global Acetone industry is segmented based on grade, application, and region.

Based on the grade, the global Acetone market is bifurcated into Specialty Grade and Technical Grade. The technical grade is expected to hold the largest market share over the forecast period. This is associated with an increase in the use of technological items in the production of BPA and MMA. Technical-grade items are more readily available and have a lower cost, which is why their market share is larger. Technical grade is mostly utilized in floor polishing, adhesives, and lacquers, among other applications. Because it is used in adhesive cement and concrete admixtures, it is expected that growing construction activity would increase demand for the product. Over the projection period, it is projected that the construction industry's need for technical-grade acetone will be fueled by an increase in post-lockdown building operations worldwide.

Based on the application, the global Acetone industry is categorized into Methyl Methacrylate, Solvents, Bisphenol A and Others. The Solvents is expected to hold a substantial revenue share over the forecast period. The segment of the market is growing due to the rising demand for acetone in the pharmaceutical sector, which is utilized as an excipient in pharmaceuticals and as a key element in the manufacturing of hand sanitizers.

Acetone Market: Report Scope

Regional Analysis

The Asia Pacific is expected to dominate the market during the forecast period

The Asia Pacific is expected to dominate the Acetone market over the projected timeframe. The regional growth is attributed to the increasing demand for acetone from pharmaceuticals, personal care & cosmetics, and automobiles, particularly in China, India, and Japan. According to Invest India, the pharmaceutical industry in India is expected to reach $65 Bn by 2024 and $130 Bn by 2030. The pharmaceutical industry in India is currently valued at $50 Bn. India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. In addition, the growing personal care and cosmetics industry in the region also propelled the market expansion during the forecast period.

Besides, North America is expected to capture a substantial market share during the forecast period. The primary factor driving demand for the product in the North American market is its application in solvent manufacture. Large automakers have their headquarters in the United States. In 2022, the nation produced 9.2 million automobiles, a 4.0% increase over 2021. This is anticipated to increase the nation's automotive industry's need for acetone. Furthermore, it is anticipated that growing consumer demand for skin care, cosmetics, and personal hygiene products will propel product sales in nations like the United States and Canada.

Acetone Market: Competitive Analysis

The global Acetone market is dominated by players like:

• Formosa Chemicals and Fibre Corporation
• Altivia
• Honeywell International Inc.
• Borealis AG
• Cepsa
• INEOS
• Kumho P&B Chemicals Inc.
• BASF SE
• LCY GROUP
• PTT Phenol Company Limited
• Prasol Chemicals Pvt. Ltd
• Mitsui Chemicals Inc.
• Reliance Industries Limited
• Shell PLC

The global Acetone market is segmented as follows:

By Grade

• Specialty Grade
• Technical Grade

By Application

• Methyl Methacrylate
• Solvents
• Bisphenol A
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa