Acrylic Acid Market is forecast to reach $20.2 billion by 2025, after growing at a CAGR of 5.2% during 2020-2025. The increasing demand for superabsorbent polymers is the key driver for the global acrylic acid market. Superabsorbent polymers are used in diapers and other applications where a relatively small volume of absorbent material is required to absorb large amounts of liquid.The growing global population and increasing awareness of diapers and the importance of sanitary care among urban parents are likely to drive the global market for acrylic acid over the forecast period.
- Asia-Pacific dominates the Acrylic Acid market owing to increasing demand from applications such as automotive and aviation industries.
- Manufacturers are using bio-based techniques to produce unsaturated carboxylic acid and acrylates from renewable resources such as sugar,glycerol, etc. due to the rising oil prices globally.
- Increased regulatory pressure on companies has led to bio-acrylic acid development. Major producers including BASF, Dow Chemicals, Cargill, and Novozyme have invested with their conventional counterpart in the production of bio-based products at competitive prices.
- OPX Biotechnologies, a manufacturer of bio-based chemicals, has successfully developed a low-cost bio-acrylic acid route using dextrose and sucrose as raw materials.
Derivative Types- Segment Analysis
Acrylate esters segment heldthe largest share in the Acrylic Acid market in 2019. Acrylate esters such as methyl acrylate, ethyl acrylate, butyl acrylate and others, are commonly used for coating binders, gun towers, bomber noses, aircraft canopies, cosmetics, etc. These are used in applications where aging & weathering resistance, transparency and color stability are needed.They are popular for their durability, superior technology, and chemical purity, which drive their demand.
Application – Segment Analysis
The personal care products segment holds the largest share in the acrylic acid market in 2019. Super absorbent polymers are commonly used by personal care products such as diapers and adult incontinence products. In these applications, the growing demand for superabsorbent polymers is expected to drive demand. With the recent rise in economic conditions across Asia and Central & South America’s emerging economies, demand for personal care products such as body wash, hair wash, cleaners, and more has reflected high demand. This will drive the use of acrylic acid in the manufacture of personal care products across these areas.
Geography- Segment Analysis
APAC dominated the Acrylic Acid market with a share of more than 49%,followed by North America and Europe. It is driven primarily by the region’s rising construction industry, which has increased demand for different weather resistant coating products. In developing countries like China, India, Japan, and South Korea, the construction industry has risen steadily over the past few years and is likely to remain a leading contributor to the regional economy over the forecast period.As a result, the increasing urbanization in Asia Pacific is likely to be a major driver for the region’s acrylic acid market. Asia Pacific’s increasing infant population is also likely to drive demand for superabsorbent polymers made from acrylic acid, which is likely to be a major driver in the forecast period for the global acrylic acid industry.
Drivers –Acrylic Acid Market
- Growth in construction industry
Acrylic acid is a highly versatile raw material and is used in the production of a number of products used in the construction industry. The main use of acrylic acid derivatives in the construction industry is as a weather-resistant coating. Thus, the growing construction industry has emerged as the leading driver of the global acrylic acid market over the forecast period.
Challenges – Acrylic Acid Market
- Fluctuations in the cost of propylene
Propylene is a key raw material used in the production of acrylic acid. It is derived from petroleum and reliant on the fluctuations in the oil and gas industry. The annual average oil price rose to $71.31 per barrel, from $54.19 per barrel in 2017.This will negatively affect the acrylic acid market growth.
Technology launches,acquisitions and R&D activitiesare key strategies adopted by players in the Acrylic Acid Market. In 2019, the market of Acrylic Acidhas been consolidated by the top five players accounting for xx% of the share. Major players in the Acrylic Acid Market areDow Chemical Company, BASF SE, Arkema SA, The Lubrizol Corporation, LG Chem Ltd., Evonik Industries AG, PJSC SIBUR Holding, Myriant Corporation, SunVic Chemical Holdings Limited, Hexion Inc.,among others.
- In January 2019, BASF and Adani Group has signed an agreement,to evaluate a major joint investment in the acrylics value chain in India.
- In December 2017, LG Chem Ltd announced to invest $278.32 million to increase acrylic acid and superabsorbent polymer production capacity.
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