By TradeIndia Team in Business Tips — 08 Jun 2022

Acetone Market Revenue, Future Growth & Trends

This is a colorless chemical liquid that is used for many industrial purposes. This chemical is also called propanone and is a very common solvent that is used for manufacturing plastics and many industrial products. It also finds applications in daily products to a limited extent like in some cosmetics and personal body and hair care products. This chemical is also known to naturally occur in the human body and comes out as a metabolism by-product.

Acetone is used for many applications. It has found so many applications due to its miscible nature in water, which means that it can be mixed easily with water. It can also evaporate quickly in the air. It is one of the main ingredients in nail polish removers. The use of it in nail polish remover is that it can easily break down the nail polish which can be removed easily by a cotton swab or a cloth. It is also used in many textile industries needed for the degreasing and degumming of wool and silk respectively.

It can also be added easily in many blends or solvent systems which is responsible for making lacquers needed for furniture and automotive finishes. Acetone as a solvent can also be used for purposes like reducing the thickness or viscosity of lacquer solutions. So, let us have a deep look at it in the best way.

Acetone Market Revenue

Like any other area, the global acetone market is also segmented based on Application, End-User, and Geography. With the increase or expansion of the textile industry, there is a great demand for acetone which is needed for the degreasing and degumming of wool and silk respectively as has been mentioned in the previous section. Also, acetone is required for the formation of lacquers. These two areas are the driving forces to expand the global acetone market shortly. Moreover, over the predicted years with the growth of the cosmetics industry, the use of acetone in nail polish removers has drastically increased as the demand for it by end-users increases at a fast pace. On top of this, the use of acetone in cleansing products, fragrances and perfumes, and skin and hair care products, is predicted to be the highest contributor to the acetone market in the coming years. Due to the unique properties and nature of acetone, it can be used as a very good solvent where there is no difficulty in mixing it with other solvents for solution making. Some solvents that can be easily mixed with acetone are:

Printing inks
Paints
Adhesives coatings

These are only some of the solvents that are used frequently with acetone for various purposes. Hence, in the near, there is no doubt that the demand for acetone will increase over the years.

Acetone market revenue based on applications

Some of the applications of acetone that support the global market are as follows:

Acetone as solvents
Bisphenol-A
Methyl Methacrylate (MMA) and many others.

In the market, most of the acetone is used or sold in the form of Solvents, Methyl Methacrylate (MMA), Bisphenol-A, and many others that are not mentioned in this category. This segment is expected or observed to be the largest market contributor compared to the others. The share by this sector is maximum where most acetone is used in cleaning products which are important for cleaning stains chemically. The manufacturing of acetone-based fluids or solvents has grown over the years and is the most preferred sector nowadays due to the increasing demand for manufactured industrial solvents containing acetone.

Liquid Acetone Boiling Point: 56.05 Degree C (132.89 Degree F; 329.20 K)

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Acetone market revenue based on end-users

Automotive: Acetone in an automobile is one of the areas under end-users that is observed to be contributing to the global market. Most automobile manufacturing units have used acetone for various purposes. With the growth of the automobile industry, demand for acetone will also increase.

Paints, Coatings, and Adhesives: This is one of the major ingredients used in paints, adhesives, and coatings. Acetone is important and is required in all of the three above products. Since paints, adhesives, and coatings are always in demand worldwide, acetone is always needed.

Electronics: Acetone is even needed in the electronic sector. This is also one of the areas that will contribute to the acetone global market.

Cosmetics and Personal Care: As mentioned earlier, the cosmetics industry is growing at a faster rate compared to others. Hence, the need for acetone keeps on increasing day by day. This is one of the major contributors to the global acetone market.

Pharmaceutical: Acetone is highly required in the pharmaceutical sector as well. There is no doubt that this department requires a large quantity of acetone for many purposes. Hence, this is another area of the end-user segment, which can be a major contributor to the global market.

Apart from these, many others shortly will be a part of the global acetone market, however, are still at the R&D level as of now. However, among the above that are mentioned automotive is observed to be the largest contributor to the market share. Acetone, in this section, is needed for auto-glazing and it is also needed when it comes to the coating of the car exterior. They use acetone as it can withstand any weather, or one can say that it is weather-resistant and also it can easily protect the car from scratches.

Acetone Market revenue based on geography

North America
Europe
Asia Pacific
Rest of the world

Among the regions that are given above, the major contributor to the global acetone market is observed to be the Asia Pacific. This is by far the largest share in the acetone market and many manufacturing companies from across the globe have shifted their units to the countries of Asia Pacific as they can see that these are the regions where their businesses will grow at a faster rate. The shifting makes the cost of transportation lesser and clients can easily deal due to the affordable prices compared to when it has to be imported elsewhere. The acetone global market is and will still be dominated by the Asia Pacific in the next few years as per the data collected in many reports. Due to this, the international manufacturers made up their minds to shift to the regions here.

Acetone market size, Future Growth & Trends

The size of the global acetone market from various reports that were published was estimated to be around 4.60 billion USD back in the year 2019 and was then projected to increase with time and the estimated increase will be around 6.31 billion USD over the forecast period (till 2025). The main factors for this increase are the increasing use of acetone for various applications such as a solvent and also a very high demand for it in cosmetics, paints, adhesives, and pharmaceutical industries. These areas will be the driving forces for the manifold growth in the acetone global market. The growth rate of the acetone global market is 5.4% CAGR from 2020 to 2025.

However, many other challenges can hinder the growth of the acetone global market. One of which is the healthcare sector. This sector has put up a lot of restrictions on the use of acetone as acetone chemical if misused can lead to various health concerns that become dangerous in the later run. Some of the health issues are highlighted below:

Liver damage
Vomiting
Blindness in the eyes that might be caused when exposed directly

The flammability of acetone is another factor that hinders its use in health care units

FAQs: Acetone

Q. What is acetone used for?

Ans. Acetone is a solvent that can be used for various purposes. As mentioned above it is a solvent that can break down different substances as well as dissolve them. Many companies require acetone e.g., industries or companies that use acetone in their products like nail polish remover companies, paint remover industries, detergents, and varnish remover manufacturers. Some companies use it for manufacturing their products like in plastic manufacturing, lacquers, and textiles industries.

Q. What is the estimated size of the global acetone market?

Ans. The size of the global acetone market is estimated to be around USD 4.60 billion in the year 2019 and there is an increase to about USD 4.95 billion in the year 2020 and it is projected to reach USD 6.31 billion by the year 2050.

Q. Why was there a sudden shortage of acetone?

Ans. During the pandemic, there was a sudden increase in the demand for acetone in the chemical marketplace, Due to this unexpected demand many industries face a shortage of acetone as many companies could not meet the increase in demand either because the production was low or there was a manifold increase in the use of acetone, especially in the health sector. From reports, it was observed that the shortage of acetone is mainly due to the increased demand for this solvent during the pandemic in 2019.

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