Global Acetone Market By Grade (Speciality Grade and Technical Grade), By Application (Bisphenol A, Solvents, and Other Applications), By End-Use Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Acetone Market size is expected to be worth around USD 8.3 Billion by 2032 from USD 5 Billion in 2022, growing at a CAGR of 5.30% during the forecast period from 2023 to 2032.

Acetone is an organic chemical that is present naturally in the environment, such as in body fat, ash in the volcano, gases, plants, and many other sources. Acetone is in high demand in the market owing to its wide range of applications, such as bisphenol A, methyl methacrylate (MMA), solvents, methyl-isobutyl ketone, and many other applications.

Various sectors use acetone in different types of applications. The industrial sector is one of the major sectors in acetone use that uses a massive amount of acetone in applications like adhesives, paints, and thinners.

With the rising demand for acetone in the global market, the acetone market is anticipated to grow significantly during the forecast period. The applications of acetone in various end-use industries like automotive, industrial, and pharmaceutical are driving the growth of the acetone market across the globe.

Key Takeaways

Market Trends: The acetone market is forecasted to experience compound annual compound growth percentage (CAGR) between 2023-2032 at approximately 5.30% compound annually.

Real Property Overview: Acetone is an important chemical compound with many industrial and consumer applications; one example being manufacturing processes. As such, its market represents both industrial and consumer needs alike.

Grade Analysis: The technical grade segment holds the majority share in the global acetone market.

Application Analysis: The global acetone market was predominantly driven by solvent applications.

End-Use Industry Analysis: The global acetone market can be divided into various end-use industries such as construction, paints and coatings, pharmaceuticals, agriculture, automotive, cosmetics & personal care, and more – with pharmaceuticals being its leading user in terms of consumption.

Drivers: Acetone plays an essential part in many industrial processes and applications across different industries; its solvent and intermediate properties help drive its market growth as do its diverse set of uses in different applications across diverse sectors.

Restrictions: However, challenges such as fluctuating demand levels, market instability, and global economic variations impose severe obstacles to the ongoing expansion of the acetone market.

Recent Trends: Recent developments in the global acetone market include advancements in production technology, rising pharmaceutical and chemical applications, and an emphasis on sustainable production methods.

Regional Analysis: Asia Pacific leads the worldwide acetone market, holding 37.4% in revenue terms globally. This dominance can be attributed to rising end-user industries across countries like China, Japan, and India that require high amounts of acetone in end-use industries for manufacturing processes.

Key Players in the Acetone Market: Key entities within the Acetone Industry include well-recognized manufacturers, chemical companies, and distributors who actively pursue collaborations, research & development, and expansion efforts designed to maintain competitiveness within an ever-evolving marketplace.

Driving Factors

Rising Demand for Methyl Methacrylate (MMA) and Bisphenol A in Massive Amounts is Driving the Market Growth of the Global Acetone Market.

‘Bisphenol A and Methyl Methacrylate’ are derived from dimethyl ketone, used heavily in the industrial sector. The increasing demand for bisphenol A and methyl methacrylate in industries like automotive and chemical & industries is driving the growth of the acetone market growth on the global level. Bisphenol A is used in the chemical and industrial sectors for polymer materials like polycarbonates, polyurethanes, epoxy, and polysulfone.

Use of bisphenol A in the manufacturing of consumer products like polycarbonate bottles, food storage containers, sports equipment, and many more items which are produced by the help of various polymers and the heavy usage of methyl methacrylate in the automotive industry for exterior vehicle coating, headlights and taillights, bullet-proof windows, sunroof, and windshield are fuelling the growth of the global acetone market size during the forecast period of 2023 to 2032.

Restraining Factors

Nature of Acetone Like Inflammable and Toxicity Can Obstruct the Growth of the Global Acetone Market.

Acetone is a highly flammable chemical and should be used under proper guidelines and precautions by consumers and manufacturers. The presence of acetone in the human body can cause symptoms like irritation and mild depression in the central nervous system.

That’s why acetone needs to be handled with proper care, or else it can be dangerous for the person in contact with the chemical. It is also highly flammable, which is why it can’t be used at higher temperatures than the regulated levels. At high temperatures, acetone can catch fire and act as a dangerous explosive, which is likely to affect the acetone market by hindering the market growth of the global acetone market.

Growth Opportunities

High Demand for Acetone in Paints and Coatings Industry is Anticipated to Create Many Opportunities in the Global Acetone Market.

Acetone is used as a solvent because of its highly soluble nature. It is used in the production of solvent-based paints and coatings, which dry faster as compared to other paints. That makes them more desirable and has the potential to create opportunities in the paints and coatings segment. A significant increase in the production of sanitizers is also expected to create many opportunities for global acetone market growth.

Rising Opportunities for key players in the Asia-Pacific acetone market especially in India will propel the demand for acetone due to lower labor and production costs. Owing to this, some major companies are moving their manufacturing facilities to India, which is uplifting the acetone industry. Also, government initiatives such as Make in India are encouraging the domestic production of acetone

Trending Factors

High Demand for Petrochemicals and Chemicals is Anticipated to Propel the Global Acetone Market Growth.

The rising demand for petrochemicals and chemicals in different end-use industries is anticipated to boost the market growth of the global acetone market. Changing preferences of consumers for a healthier lifestyle is driving personal care and cosmetics companies to shift to environmentally friendly products. For manufacturing eco-friendly and sustainable products, companies have come up with various methods and processes that do not harm the environment. For example, renewable dimethyl ketone is a perfectly renewable and natural product. Which also reduces the toxicity of harmful chemicals that negatively affect the environment.

In Petrochemical solvents some petrochemical solvents are expensive and toxic. That has many serious environmental impacts. To counter this, many major companies are offering green solvent that is non-toxic. Also, the process used to extract these solvents has no negative impact on the environment. High solubility, good properties, low VOC production, and low cost combined with high performance are some of the factors driving the high demand for environmentally friendly solvents. The demand for eco-friendly solvents from various industries has increased significantly and is expected to grow during the forecast period from 2023 to 2032.

Grade Analysis

Technical Grade Segment Holds Major Share in Global Acetone Market.

The acetone market is divided into two parts based on grade, which are technical grade and specialty grade. The technical grade segment in the acetone market dominates the global market with a major revenue share. The reason for the domination of technical-grade acetone is the rising usage of technical products in the production of ‘Methyl Methacrylate, and Bisphenol A.

Technical-grade acetone is used in many applications in various end-use industries. Some of them are paints and coatings, adhesives, lacquer, and other applications. The increasing number of buildings and infrastructure activities around the world are using the technical grade acetone in concrete mixtures and dements. This is fuelling the growth of the technical grade segment in the acetone market.

Also, a significant growing CAGR is anticipated in the specialty grade segment in the acetone market during the forecast period of 2023 to 2032. Factors like lower benzene and water content are driving the growth of the specialty grade segment in the acetone market Share. Governments across the world are funding and investing in the construction and infrastructure sector, which uses specialty-grade acetone in many applications. This is anticipated to drive the growth of the specialty grade segment in the global acetone market.

Application Analysis

The Solvents Application Segment Dominated the Market in the Global Acetone Market.

Based on application, acetone is classified into many applications such as ‘Methyl Methacrylate, Bisphenol A, Solvents, Methyl Isobutyl Ketone, and Other Applications.’ From all the applications of acetone, solvents application dominated the global acetone market by accounting for a major share in the market. The reason for the growth of the solvents segment is owing to the rising usage of acetone in the production of hand sanitizers, active fillers, and excipients in drugs.

Acetone is used as a solvent in active fillers for giving the precise amount of medication in every dose. Acetone is used as raw material in the production of isopropyl alcohol which is used in the production of hand sanitizers. This is anticipated to propel the growth of the solvents segment in the applications of acetone during the forecast period in the global acetone market.

‘Bisphenol A’ is majorly used in the chemical and industrial sector for polymer materials like polycarbonates, polyurethanes, epoxy, and polysulfone. The use of bisphenol A in the manufacturing of consumer products like polycarbonate bottles, food storage containers, sports equipment, and many more items that are produced with the help of various polymers is expected to raise the demand for bisphenol A during the forecast period.

‘Methyl Methacrylate’ is mainly used in the automotive industry for the production of various parts of vehicles. Owing to this, methyl methacrylate is anticipated to grow at a significant CAGR during the forecast period from 2023 to 2032. The heavy usage of methyl methacrylate in the automotive industry for exterior vehicle coating, headlights and taillights, bullet-proof windows, sunroof, and windshields are fuelling the growth of methyl methacrylate in the applications segment.

End-Use Industry Analysis

Pharmaceutical Industry Covers Major Share in the Global Acetone Market.

The global acetone market is classified into many end-use industries. They are construction, paints and coatings, pharmaceuticals, agriculture, automotive, cosmetics and personal care, and other end-use industries. Among all the end-use industries, the pharmaceutical industry uses the most acetone in the market.

The pharmaceutical industry segment is anticipated to account for a major revenue share in the global acetone market during the forecast period of 2023 to 2032. The growth of the pharmaceutical industry owes to the use of acetone as an excipient in the formulation of many drugs.

Paints and coatings also use acetone as a solvent in many applications. The increasing construction and infrastructure developments across the world are expected to propel the growth of the paints and coating industry in the end-use industry segment of the global acetone market.

Rising demand for acetone as a polish remover is driving the growth of the cosmetics and personal care segment in the end-use industry segment of the acetone market. Acetone is used in many cosmetic and personal care products, such as haircare products, fragrances, skincare products, and many more. These products are driving the growth of the cosmetics and personal care industry in the global acetone market.

Key Market Segments

Grade

• Specialty Grade
• Technical Grade

Application

• Bisphenol A
• Methyl Methacrylate (MMA)
• Solvents
• Methyl Isobutyl Ketone
• Other Applications

End-Use Industry

• Construction
• Automotive
• Cosmetics and Personal Care
• Paints and Coatings
• Pharmaceutical
• Agriculture
• Other End-Use Industries

Regional Analysis

Asia Pacific Dominated the Market with a Major Share in the Global Acetone Market.

Asia Pacific leads the market by accounting for a major revenue share of 37.4% in the global acetone market. This domination of the Asia Pacific region in the market is owing to a rise in demand for acetone in the end-use industries of developing countries like China, Japan, and India.

China uses most of the acetone in this region due to increasing developments in various sectors like electronics, construction, and pharmaceuticals across the country. Easy availability of raw materials and low-cost labor are the major factors driving the growth of the market in this region.

North America is also experiencing significant growth due to rising research and development activities in various sectors in the region. The electronics industry in the region is anticipated to propel the demand for bisphenol A, which also helps to drive the growth of the acetone market in the region.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Player Analysis

Major players in the global acetone market are using various strategies such as mergers, acquisitions, business expansion, collaboration, and many more strategies to increase their share in the market and strengthen the position of the company in the market.

Many companies are increasing their production capacities and expanding their business in various regions across the globe. Several acetone companies in the market are concentrating on research and development facilities in the company to expand their share in the acetone market.

Market Key Players

• Mitsui Chemicals Inc.
• Honeywell Research Chemicals
• Kumho P&B Chemicals
• INEOS Phenol GmbH
• Prasol Chemicals Pvt. Ltd.
• The Dow Chemical Company
• Thermo Fisher Scientific Inc.
• Lynodell Basell Industries Inc.
• Formosa Chemicals & Fiber Corporation
• SABIC
• Domo Chemicals
• Other Key Players

Recent Developments

• In August 2021, Brenntag acquired Matrix Chemical. LLC and it’s business assets. The company accounted for a major revenue share in 2021. The closing deal of the company and acquisition was signed at a similar time.
• In July 2022, LG Chem declared that they were exporting acetone and phenol in the biggest shipment in South Korea with ISCC PLUS certification.

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