The worldwide rise in environmental concerns has shown significant growth in the timber industry. The mainstream construction industry alone is responsible for around 15% of the global greenhouse gas emissions, to reduce the carbon impact of construction, it is essential to increase the use of timber in the buildings due to its renewability. Polyvinyl acetate is a vinyl acetate monomer that is primarily used as a construction adhesive in timber construction. In recent years regulatory authorities in the majority of the advanced countries are pushing the construction of timber buildings for sustainable development by providing funding and subsidies.
According to BlueQuark, the market for acetic acid is expected to grow at a significant CAGR during the market forecast period (2021-2026). More than 40% of acetic acid produced is converted into vinyl acetate. Vinyl acetate is primarily used as an intermediate monomer in the production of polyvinyl acetate and polyvinyl alcohol. Vinyl acetate is also used as a raw material in the production of adhesives, water-based paints, acrylic fibers, textile sizing and finishes, paper coatings, inks, films, and lacquers. Vinyl acetate adhesives are used in wooden construction which is a renewable option of development. At present global warming and greenhouse gas emission are the most significant environmental concerns that require immediate attention and the mainstream construction industry alone is responsible for around 15% of these global emissions. The worldwide rise in environmental concerns has shown significant growth in the timber industry as cement and steel production leaves a high carbon footprint than timber and is non-renewable. To reduce the carbon impact of construction, it is essential to increase the use of timber in the buildings. Many organizations such as World Wildlife Fund are keeping a check on commercial timber harvesting to keep it 100% renewable and planting the required amount of trees to make net deforestation to zero. Polyvinyl acetate is a vinyl acetate monomer and is primarily used as a construction adhesive. Approximately 47% of vinyl acetate produced, is polymerized into polyvinyl acetate. It is the best timber adhesive available due to its cost-effectiveness and easy application. It also dries clear and has super strong holding strength on wood. In recent years regulatory authorities in the US, UK, Canada, Germany, Italy, Switzerland, Poland, Finland, and Australia are pushing the construction of timber buildings for sustainable development and other countries such as Singapore are offering to fund of up to 70% of the cost of adopting mass timber under the Productivity Innovation Project (PIP) scheme.
The global acetic acid market is segmented on the basis of application and end-use. The end-user segment is further segmented as Food & Beverage, Pharmaceuticals & Healthcare, Plastics & Polymers, Paints & Coatings, Adhesives, and Textiles among others. Polyvinyl alcohol is formed by the polymerization of vinyl acetate and is approved by the US Food and Drug Administration (FDA) to be made as to packaging films for food protection. Polyvinyl alcohol is proven safe in close contact with food products and the films made of polyvinyl alcohol exhibit excellent air and water barrier properties for food packaging systems.Vinyl acetate monomer is a key intermediate used in the making of several polymers and resins with a wide variety of end uses.Polyvinyl alcohol is formed by the polymerization of vinyl acetate and is approved by the US Food and Drug Administration (FDA) to be made as to packaging films for food protection.Polyvinyl alcohol is proven safe in close contact with food products, and the films made of polyvinyl alcohol exhibit excellent air and water barrier properties for food packaging systems.Conventional plastic food packaging is generally disposed of and makes up about one-third of the municipal waste. And approximately 60 to 90% of all marine debris takes centuries to degrade, choking marine animals and harming the entire ecosystem. The situation of plastic waste dumping is worse in Asian countries.Polyvinyl alcohol is an environmentally friendly material as it dissolves in water and causes no water pollution, which makes it a superior alternative to petrochemical plastic. Growing conscious of clean water bodies and increasing landfills worldwide is going to boost the market for polyvinyl alcohol in food packaging significantly.Companies in the packaging sector are gradually shifting towards greener packaging options with new innovations. For instance, Kuraray’s MonoSol is a Japanese company that has made a food-grade film of polyvinyl alcohol that is colorless, non-toxic, and in its dissolved state passes straight through the body.
On the basis of geography, the global acetic acid market is segmented into North America, Europe, Asia Pacific (APAC), South America, and the Middle East & Africa. Asia-Pacific is expected to be the most prominent market region due to the continuous increase in pollution and environmental degradation in the region and increased usage of e-vehicles. China is the biggest user of electric vehicles in the world and is continuously making innovations such as solar electric vehicles. Solar electric vehicles use solar panels on the roof of the car to make them auto chargeable. Expanding efforts in the research and development of solar e-vehicles are rapidly increasing the market for ethylene-vinyl acetate in China.Increasing efforts in the research and development of solar e-vehicles are rapidly increasing the market for ethylene-vinyl acetate. More than 70% of the solar car patent applications have originated in China. Recently, in 2019, the Chinese e-mobility company Hanergy Glory Solar Technology concluded a one-month test drive of the world’s first commercial solar power vehicle solution at the China Automotive Technology and Research Centre, which can run without pole charging for consecutive 30 days and 20 kilometers under regular sunlight.Although the recent coronavirus outbreak in the country has hit the automobile sector hardest and it threatens to prolong a slump in vehicle sales, derail production in the country and snarl global auto supply chains.In January 2020, BYD sold only 7,133 electric cars a drop of 75% compared to January 2019 and a decline of 46% compared to the previous month of December 2019.China is the largest exporter of acetic acid in the world and the coronavirus pandemic has also negatively affected the domestic acetic acid exports and may continue to increase in the short term.Plastic pollution is one of the significant environmental concerns in the country. China is the most populous country in the world and thus the largest generator of plastic wastes. China is one of the largest consumers of packaged food in the world and has seen steady growth in the segment over the last years. The country also has the largest food delivery market with more than 20 million food delivery orders every day. China’s food delivery market alone consumes nearly 100 million take-out plastic boxes per day. Packaging for online goods and food produces a staggering amount of waste with more than 1.5 billion plastic bags and around 330 million rolls of plastic tape. According to a global study, about 90% of single-use plastic that pollutes the oceans comes from 10 rivers out of which six are in China.
Some of the key players in the market are BP Plc, Celanese Corporation, PetroChina Company Limited, Daicel Corporation, and Mitsubishi Chemical Corporation.
In October 2019, BP announced an increase in its Asian presence with an initial agreement, or memorandum of understanding, with China's Zhejiang Petroleum and Chemical Corporation (ZPCC) to build a one million ton a year acetic acid plant. The planned production site for acetic acid, which is used in chemical products such as paints and adhesives would be part of ZPCC's refining and petrochemical plant in Zhoushan in eastern China.
In March 2019, BP and Lotte agreed on a major expansion of production capacity at their joint venture Lotte BP Chemical Company Limited facility in Ulsan, South Korea. The expansion added 100,000 tonnes a year of acetic acid capacity by May 2019 through debottlenecking.
Our Global Acetic Acid Market report provides deep insight into the current and future state of the acetic acid market across various regions. The report examines the market drivers and restraints that are influencing the growth in detail. The study also covers emerging market trends, developments, opportunities, and challenges in the industry. The study comprehensively analyzes the acetic acid market by segments based on application (Vinyl Acetate Monomer, Acetic Anhydride, Acetate Esters, Purified Terephthalic Acid, Others), End-user (Food & Beverage,Pharmaceuticals & Healthcare,Plastic & Polymers,Paints & Coatings,Adhesives,Textiles and Others,and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market trend, market analysis, market dynamics, market opportunity, acetic acid prices along with the impact of Covid-19 on the market growth in detail. The research report covers & includes emerging market trends, developments, opportunities, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of major companies, including their market share and projects.