Acetone Market

Market Overview

The global acetone market size was valued at USD 5,595 million in 2022. It is projected to reach USD 10,817 million by 2031, growing at a CAGR of 7.6% during the forecast period (2023–2031).

Acetone, also referred to as propanone, is an organic compound. It is a colorless, volatile, flammable liquid and is the simplest type of ketone. Acetone is miscible in water and is used as a solvent for cleaning in laboratories. Acetone finds applications in the production of methyl methacrylate and bisphenol. Acetone finds promising applications in several end-use industries, including polymer, electronics, metal cleaning, paints and coating, printing inks, agricultural chemicals, and automotive, among others. Methyl methacrylate, which is synthesized using acetone, is commonly used in the electronics and computer industry for technologies such as flat-screen displays, DVDs, compact discs, and laser discs. They are also used to enhance the resistance of printed circuit boards to attack by chemicals and prolong their life. Printed circuitry is being increasingly adopted in automotive sectors, with the increasing penetration of display technologies in different automotive applications.

The increasing technological advancements in the automotive industry, coupled with an increase in the use of printed circuit boards in the electronics sector, are likely to raise the demand for acetone during the forecast period. Rapid industrialization, growing demand for personal care products, rising expenditure in construction activities, and rising disposable income are expected to drive the acetone market during the assessment period. The increasing applications of acetone as a solvent in plastic manufacturing and the increasing production and consumption of medicines and pharmaceutical products are also expected to increase the consumption of acetone in different end-use sectors. However, increasing preference towards the use of water-based solvents in paints and coatings coupled with increasing advancements in bio-based solvents, including renewable acetone, may restrain the growth of the market to some extent during the forecast period.

Market Dynamics

Global Acetone Market Drivers

Growing Use in Industries

Acetone is a solvent that's employed in the production of plastics and other industrial goods. Additionally, acetone is utilized in domestic goods, including cosmetics and personal care items. Many nail polish removers have acetone as their main component. When nail polish is broken down, it is simpler to remove using a cotton swab or cloth. It is commonly utilized because it mixes with water easily and vaporizes in the air swiftly. Acetone is frequently used to degrease wool and degum silk in the textile sector. Acetone is often used as a solvent in solvent systems, sometimes known as "blends," that are used to create lacquers for furniture and automobile finishes. Acetone can also be used to make lacquer solutions with less viscosity.

Global Acetone Market Restraint

Harmful Effects of Acetone

Acetone may be absorbed via the skin and can have negative effects when breathed. Acetone may irritate the skin. Exposure for an extended period of time or repeatedly can lead to redness, skin dryness, and skin cracking. The eyes, nose, and throat may get irritated by exposure. High quantities of exposure might result in headaches, nausea, vomiting, light-headedness, and even passing out. Acetone may have an impact on the liver and kidneys. Acetone is a dangerous fire hazard and a flammable liquid.

Segmental Analysis

Based on application, the acetone market is segmented into methyl methacrylate, bisphenol-A, and solvent.

The Bisphenol A application segment is expected to witness the fastest growth during the forecast period. This is mainly attributed to its increasing applications in the plastic industry. It is used in the production of polycarbonate and epoxy resins. Hard plastic products like infant bottles, reusable water bottles, food containers, pitchers, dinnerware, and other storage containers are made of polycarbonate plastic.

Acetone is used for manufacturing methyl methacrylate, which is used in the production of PVC (Poly Vinyl Chloride). Methyl methacrylate is a crucial component of acrylic-based polymers and is used in a variety of products, such as exterior paints, vinyl impact modifiers, adhesives, lighted light displays, and safety glass. In addition to drying quickly, resins made from methyl methacrylate-modified alkyds are particularly helpful for metal decoration finishes, which call for resins with quick curing times, good flow, gloss, durability, and fabrication qualities.

Based on end-use, the market is segmented into pharmaceuticals, personal care, paints & coatings, plastics, construction, and electrical & electronics.

The pharmaceutical segment is anticipated to hold a major share during the forecast period. Acetone is a common excipient used in the formulation of most common drugs. Furthermore, it is also used as an antiseptic. Acetone is frequently employed as a solvent in fillers and active components to ensure a precise dose of medication.

It is also used in household products, cosmetics, and personal care products such as nail polish, bath products, cleansing products, hair care products, and skincare products, among others. The personal care sector is also expecting healthy growth over the next few years.

Acetone is also used in the production of polycarbonate, which behaves as a raw material in the manufacturing of insulation for electrical applications. Electrical components need to be extremely clean for the best performance, and acetone helps in removing all contaminants.

Regional Analysis

Geographically, the global acetone market is segmented into five major regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is expected to dominate the market growth during the forecast period. The flourishing plastic industry in the region may raise the demand for acetone in the years to come. For instance, in China, the capacity of polycarbonate (PC) is increasing as a result of the new 70,000 metric tons/year polycarbonate (PC) plant installed in Yantai, Shandong Province. The plant is expected to require up to 5,000 metric tons of BPA, thereby increasing the demand for acetone. Furthermore, the increasing number of medium and large players in the region, coupled with an increase in demand for acetone from the construction sector, is likely to encourage the use of acetone throughout the assessment period. Growing demand for intermediate acetone products, such as Methyl methacrylate, would be caused by a range of end-use applications, including the modification of PVC and medical treatments, including dentistry and joint replacement. During the predicted period, these elements, along with increasing per capita income, changing lifestyles, and expanding consumer desire for personal care goods, will fuel acetone demand in the region.

Europe may witness significant growth during the forecast period. This is ascribed to the increasing expenditure on innovation in health care and cosmetic products coupled with the high purchasing power of consumers in a few countries of Europe, including Germany, the U.K., Italy, Spain, Russia, and France. The increasing prevalence of chronic health disorders in the region is likely to raise the demand for acetone from the pharmaceutical sector in the years to come. The demand for acetone in Europe is expected to rise significantly throughout the projected period due to increased investments made by important stakeholders for the capacity expansion of its highly desired derivatives, such as bisphenol A and methyl methacrylate.

North America is expecting considerable growth in the acetone market during the forecast period, owing to its increasing applications in the automotive industry. The increasing efforts undertaken by major acetone manufacturers such as The Dow Chemical Company and Altivia to increase their penetration in the market are likely to further boost the growth of the acetone market in the near future. The North American acetone market has benefited from the expanding use of acetone in the production of pharmaceutical items and smartphone components. Additionally, as a result of growing health consciousness, people are becoming more careful about maintaining good hygiene and cleanliness, which has increased demand for its major derivative, isopropyl alcohol.

Latin America is likely to witness healthy growth in the acetone market owing to the steady growth of the plastic and automotive industries coupled with the gradually improving political situation in the region. This is justified by the fact that major automakers such as Volkswagen are shifting their focus towards Brazil for setting up production plants in the region. The Middle East and Africa are expecting steady growth in the acetone market owing to the increasing demand for acetone from the construction sector. Additionally, the increasing tourism in a few countries of the Middle East, such as GCC and UAE, coupled with the organization of different sports events, may encourage the growth of the construction sector, which may, in turn, raise the demand for acetone in the region in the next few years.

Recent Developments

• June 2022- INEOS Phenol launched its first bio-attributed product line for phenol, acetone alpha-methyl styrene. These items will be marketed under the INVIRIDISTM brand and produced without the use of fossil fuels as feedstock. They offer a more environmentally responsible and sustainable alternative.
• August 2022- INEOS Phenol has reached an agreement to pay $330 million to Mitsui Chemicals, a major Japanese chemical producer, to buy the entire asset base of Mitsui Phenols Singapore Ltd. The company has a $750 million annual revenue and produces more than 1 million tonnes of product annually, including alpha-methyl styrene (20 ktpa), acetone (185 ktpa), cumene (410 ktpa), and phenol (310 ktpa) (150 ktpa).

Acetone Market Segmentation

By Application

• Methyl Methacrylate
• Bisphenol A
• Solvent
• Others

By End-Use

• Pharmaceuticals
• Personal Care
• Paints & Coatings
• Plastic
• Construction
• Electrical & Electronics
• Others

By Regions

• Asia-Pacific
• Europe
• North America
• LAMEA