Acetic Acid Market is estimated to be valued at USD 17.61 Bn in 2025 and is expected to reach USD 33.67 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of9.7% from 2025 to 2032.
The acetic acid market is witnessing steady expansion, driven by its wide range of end-use industries such as paints and coatings, plastics, textiles, pharmaceuticals, and food processing. Acetic acid serves as a vital intermediate in the production of vinyl acetate monomer (VAM), purified terephthalic acid (PTA), acetic anhydride, and ester solvents. Among these, VAM leads the market in consumption, especially due to its applications in adhesives, sealants, and flexible packaging.
The rising global population and urbanization are fueling the acetic acid market growth, particularly in emerging economies where construction, automotive, and packaging industries are expanding rapidly. Additionally, the increasing use of PTA in polyester manufacturing for textiles and PET bottles continues to drive consumption.
Additionally, the ongoing innovation in bio-based acetic acid production and the growing shift towards sustainable chemistry are expected to create future opportunities, supporting the long-term acetic acid market demand.
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Capacity Expansions and Overcapacity Concerns in China |
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Regulatory Shifts and Environmental Pressures |
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Technological and Sustainable Production Advancements |
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In 2023, global trade data for acetic acid reveals that India was the world’s largest importer, with total imports valued at approximately USD 479.8 million. This substantial demand reflects the country’s large-scale consumption across end-use industries such as textiles, packaging, adhesives, and food preservation. India primarily sources acetic acid from countries like China, Malaysia, and Singapore, which together dominate the regional export landscape. The European Union also accounted for a significant portion of global demand, importing acetic acid worth USD 355.3 million, with individual countries such as Germany (USD 229.3 million) and Belgium (USD 211.5 million) contributing notably to the total. In Southeast Asia, Indonesia imported around USD 30.5 million worth of acetic acid in 2023, with key suppliers including Singapore (USD 16.4 million), Malaysia (USD 11.9 million), and China (USD 1.24 million). These figures highlight how Asia-Pacific acts as both a major production hub and demand center for acetic acid, with strong intra-regional trade flows. Overall, global acetic acid imports are being fueled by robust demand from industrial sectors and food processing applications, especially in fast-growing and manufacturing-intensive economies like India and across the European region.
In terms of application, the vinyl acetate monomers segment is expected to hold 30.0% share of the market in 2025, due to its extensive use in manufacturing a wide range of industrial and consumer products. VAM is produced by reacting acetic acid with ethylene and oxygen, making it one of the largest end-use applications of acetic acid globally. It serves as a crucial raw material in the production of polyvinyl acetate (PVA) and ethylene vinyl acetate (EVA), which are widely used in adhesives, sealants, paints, coatings, textiles, and packaging. In the adhesives and construction industries, VAM-based emulsions offer strong bonding and flexibility. In the paints and coatings sector, they provide durability and water resistance, especially for water-based formulations. The packaging industry also relies heavily on EVA copolymers for flexible films and barrier layers. With growing demand from these sectors, especially in fast-industrializing regions like Asia Pacific, the consumption of VAM is rising steadily, thereby directly accelerating the growth of the acetic acid market.
In November 2024, Kuraray achieved ISCC PLUS certification for six vinyl acetate‑related products across four manufacturing sites in the U.S. and Europe, marking a significant step in establishing a sustainable, certified supply chain. The newly certified products include vinyl acetate monomer (VAM), PVOH resin (ELVANOL™ / KURARAY POVAL™), water‑soluble PVOH film, PVB resin, and EVOH resin (EVAL™), all allocated via the mass‑balance approach, further proliferating the acetic acid market share.
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The Asia Pacific region is projected to lead the market with a 62% share in 2025, fueled by several interlinked industrial and economic factors. Countries like China, India, South Korea, and Japan are witnessing rapid growth in sectors such as textiles, packaging, automotive, and construction, all of which rely heavily on downstream derivatives of acetic acid like vinyl acetate monomer (VAM) and purified terephthalic acid (PTA). These derivatives are crucial for producing paints, adhesives, polyester fibers, and PET bottles.
For instance, in November 2024, INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) signed a non‑binding Memorandum of Understanding to form a 50:50 joint venture to build a 600,000‑ton‑per‑year acetic acid facility at GNFC’s Bharuch site in Gujarat. Leveraging nearly 30 years of technology partnership, the joint venture aims to support India’s Make in India goals by reducing reliance on imports, which currently account for about 85% of domestic need.
Additionally, Asia Pacific is a global hub for chemical manufacturing, with China alone accounting for a significant share of global acetic acid production and consumption. The region benefits from low-cost labor, abundant raw materials, and expanding domestic demand, making it attractive for both producers and downstream users.
North America is expected to exhibit the fastest growth, holding a significant market share in 2025, driven by the strong presence of end-use industries such as paints and coatings, automotive, packaging, and pharmaceuticals. Acetic acid is a key precursor in the production of vinyl acetate monomer (VAM), which is extensively used in adhesives, paints, and sealants, products that are in high demand across construction and automotive sectors in the U.S. and Canada.
For instance, in December 2023, INEOS has confirmed the completion of its acquisition of Eastman Chemical’s Texas City site in Texas which is a home to a 600,000‑ton‑per‑year acetic acid plant and related third‑party operations from Eastman Chemical Company. The transaction, valued at approximately $490–$500 million, includes continued operation of the site’s plasticizer unit by INEOS, although ownership remains with Eastman.
Moreover, growing demand for purified terephthalic acid (PTA) for polyester production, especially for packaging materials like PET bottles, is further boosting acetic acid market revenue.
China is the largest producer and consumer in the acetic acid market, driven by strong demand for downstream products like vinyl acetate monomer (VAM), acetic anhydride, and purified terephthalic acid (PTA). These are widely used in textiles, packaging, paints, adhesives, and pharmaceuticals. Rapid industrialization, a booming polyester industry, and expanding pharmaceutical manufacturing continue to fuel China's high consumption of acetic acid.
In May 2025, a large acetic acid plant in China, with a capacity of 600,000 tons, officially started operating after its products passed quality tests, marking the beginning of full commercial production.
India is a key growth market for the acetic acid market due to its expanding manufacturing and pharmaceutical sectors. Rising demand for vinyl acetate monomer (VAM) in packaging, adhesives, and textiles is a major driver. The country’s large pharmaceutical industry uses acetic acid in the synthesis of APIs and other formulations. Additionally, growing consumption of processed foods is boosting the use of food-grade acetic acid as a preservative. These factors collectively contribute to strong acetic acid market demand in India.
In November 2024, INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) signed a Memorandum of Understanding (MoU) to assess the feasibility of constructing a new world-scale acetic acid plant with a capacity of 600,000 tonnes per year at GNFC's site in Bharuch, Gujarat, India.
The United States is a key consumer in the acetic acid market due to its strong chemical manufacturing base and rising demand for sustainable materials. Acetic acid is widely used in producing adhesives, coatings, solvents, and PTA for PET packaging. The growing focus on low-VOC formulations and increasing use in industrial and consumer applications, including construction and packaging, continue to drive demand. Additionally, the country’s shift toward environmentally friendly solvents and expanding use in pharmaceuticals and electronics support acetic acid market growth.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 17.61 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 9.7% | 2032 Value Projection: | USD 33.67 Bn |
| Geographies covered: |
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| Companies covered: |
Celanese Corporation, British Petroleum, Eastman Chemical Company, Jiangsu Sopo (Group) Co., Ltd., China Petroleum & Chemical Corporation (Sinopec), Lyondell Basell Industries, Saudi Basic Industries Corporation (SABIC), Mitsubishi Chemical Company, PetroChina Co. Ltd., PetroChina Co. Ltd., BASF SE. |
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Rapid population expansion and the adoption of a healthy, sustainable diet have increased food production globally, which has led to an increase in demand for acetic acid. Acetic acid is mostly used to create vinegar, a prominent ingredient in cuisines and personal care products. Vinegar is a component in marinades, salad dressings, and pickling solutions. It also reduces the risk of Salmonella contamination in meat and poultry products. Food preservation is another use for acetic acid and its sodium salts. For instance, in 2023, U.S. - and Italy-based olive oil, vinegar, and pasta company Colavita acquired the O Olive Oil & Vinegar business from Curation Foods. Such instances are accelerating the acetic acid market demand.
Rapid industrialization and urbanization around the globe are projected to offer lucrative market opportunities over the forecast period. Rise in construction industries coupled with the growing demand for high-performance plastic from the end-user industry due to their durability is again expected to foster the acetic acid market share. Moreover, increasing automobile production across the developing region is further projected to raise demand for plastic and rubber products. These trends are anticipated to significantly support acetic acid market forecast, as acetic acid remains a critical feedstock in manufacturing essential intermediates used in construction, automotive, and consumer goods industries.
One of the prominent trends in the acetic acid market is the growing focus of key manufacturers on expanding production capacities to meet rising global demand. This shift is supported by increasing acetic acid consumption in the food & beverage industry, where it is widely used as a preservative, acidity regulator, and flavor enhancer in sauces, pickles, and ready-to-eat meals. The rising consumer expenditure on health-conscious and packaged food products is further driving this demand. As a result, the acetic acid market price has seen upward pressure due to supply-demand imbalances in key regions.
The acetic acid market value stands at a strategically vital intersection of feedstock economics, regional consumption dynamics, and downstream integration. In my opinion, the trajectory of this market is no longer just a derivative of conventional demand cycles in vinyl acetate monomer (VAM) or purified terephthalic acid (PTA) but increasingly influenced by China's consolidation strategy, regional trade realignments, and environmental regulations that are tightening across Asia and Europe.
The most telling structural dynamic today is China's continued dominance, not just in production but in influencing pricing and capacity additions globally. According to ICIS data, over 60% of global acetic acid capacity is based in China, giving Chinese producers significant influence over regional spot markets, particularly in Asia and the Middle East. This concentration, while beneficial for domestic downstream players, has introduced considerable volatility for import-dependent nations such as India and Brazil, where landed cost fluctuations frequently impair pricing power for local acetate and PTA producers.
From a feedstock standpoint, methanol economics are pivotal. Given that over 90% of global acetic acid is produced via the methanol carbonylation route, any sharp movement in natural gas prices (especially in North America or the Middle East) ripples through to acetic acid margins. U.S.-based producers like Eastman and Celanese benefit from relatively stable and low-cost natural gas inputs, offering them margin resilience, especially when Asian FOB prices are under pressure from oversupply.
Another trend often overlooked is the geopolitical alignment influencing trade flows. For example, anti-dumping duties imposed by the European Union on Chinese acetic acid imports have structurally altered intra-regional supply chains, benefiting players in Turkey, Saudi Arabia, and Russia, who now act as intermediaries or alternative suppliers to the EU. The integration of acetic acid capacities into petrochemical parks in countries like Saudi Arabia also presents a long-term advantage in terms of feedstock security and backward integration.
*Definition: Acetic acid is a liquid chemical compound that is colorless in nature. Acetic acid is also referred to as ethanoic acid. It is produced by the methanol carbonylation process. Acetic acid is widely used as a key intermediate in the production of chemical products such as Purified Terephthalic Acid (PTA), Vinyl acetate monomer (VAM), and others. Pharmaceutical, rubber, plastics, construction, and paints &coatings are some of the key end-users of acetic acid.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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