Global Acetone Market Size By Grade, By Application (Solvents, Bisphenol-A, Methyl Methacrylate ), By End-User, By Geographic Scope And Forecast

Acetone Market Size And Forecast

Acetone Market size was valued at USD 4.96 Billion in 2023 and is projected to reach USD 7.55 Billion by 2031, growing at a CAGR of 5.40% from 2024 to 2031.

Acetone, also known as dimethyl ketone, is an organic compound that is derived by the oxidation of isopropyl alcohol. Acetone naturally occurs in plants, vehicle exhaust, forest fire, and others.

It is a colorless, volatile, and flammable organic solvent. It is used as a chemical intermediate in the manufacture of bisphenol-A (BPA), methyl methacrylate (MMA), and aldol chemicals.

Acetone is also used as a direct solvent in various applications including adhesives, paints and coatings, nail polish removers, printing inks, and other skincare products.

Acetone also has other applications including MIBK and MIBC, higher molecular weight glycols and alcohols, for solvent applications, as a carrier for acetylene in cylinders, and miscellaneous chemical uses.

Acetone is generally a nasal irritant and inhalation may lead to hepatotoxic effects which cause liver damage.

Global Acetone Market Dynamics

The key market dynamics that are shaping the global Acetone Market include:

Key Market Drivers

Growth in the automotive industry: The automotive sector is a significant consumer of acetone, particularly in the production of automotive paints and coatings. According to the International Organization of Motor Vehicle Manufacturers (OICA), global motor vehicle production increased from 91.8 million units in 2019 to 97.3 million units in 2023, representing a growth of about 6% over four years.

Expansion of the electronics industry: Acetone is widely used in the electronics industry for cleaning and as a solvent in the production of printed circuit boards. The Semiconductor Industry Association (SIA) reported that global semiconductor sales reached $556 billion in 2023, up from $440 billion in 2020, showing a growth of approximately 26% over three years.

Rising demand in the pharmaceutical sector: The pharmaceutical industry uses acetone in the production of various drugs and as a solvent in drug purification processes. According to the Institute for Human Data Science, global spending on medicines reached $1.5 trillion in 2023, up from $1.3 trillion in 2020, indicating a growth of about 15% over three years.

Key Challenges:

Environmental regulations and sustainability concerns: Stricter environmental regulations are putting pressure on acetone manufacturers to reduce emissions and improve sustainability. According to the U.S. Environmental Protection Agency (EPA), the chemical manufacturing sector, which includes acetone production, emitted approximately 149 million metric tons of CO2 equivalent in 2020. The industry faces challenges in meeting increasingly stringent emission reduction targets set by various countries and international agreements.

Volatility in raw material prices: Acetone production is heavily dependent on propylene, a byproduct of oil refining. Fluctuations in oil prices can significantly impact acetone production costs. The U.S. Energy Information Administration (EIA) reported that the average annual price of Brent crude oil increased from $41.69 per barrel in 2020 to $79.47 per barrel in 2023, representing a rise of about 91% over three years. This volatility in raw material prices poses a significant challenge for acetone manufacturers in maintaining stable production costs.

Competition from bio-based alternatives: The growing trend towards sustainable and bio-based chemicals is challenging the traditional Acetone Market. The global bio-based solvents market, which includes bio-based alternatives to acetone, was valued at $6.5 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030. This rapid growth in eco-friendly alternatives is putting pressure on conventional acetone producers to innovate and adapt to changing market demands.

Key Trends:

Increasing demand in the personal care and cosmetics industry: Acetone is widely used in nail polish removers and other cosmetic products. The growing beauty and personal care industry is driving increased demand for acetone. The global cosmetics market was valued at approximately $507.8 billion in 2023 and is projected to reach $613.4 billion by 2028, growing at a CAGR of 3.9%. This growth in the cosmetics industry is likely to drive demand for acetone in various beauty products.

Adoption of green production methods: There's a growing trend towards more sustainable production methods for acetone, including bio-based production and improved catalytic processes. The International Energy Agency (IEA) reported that the chemical industry's energy consumption could be reduced by 15% by 2050 through the implementation of best available technologies and energy efficiency measures. This trend towards greener production will likely shape the Acetone Market's future.

Increasing use in 3D printing applications: Acetone is being increasingly used in the 3D printing industry for post-processing and smoothing 3D-printed objects, particularly those made from ABS plastic. According to the Verified Market Research Market Report, the Global 3D Printing Market was valued at USD 29.81 billion in 2023 and is expected to reach USD 162.67 billion by 2031, with a growing CAGR of 23.63% from 2024 to 2031.

Global Acetone Market Regional Analysis

Here is a more detailed regional analysis of the global Acetone Market:

Asia Pacific

The Asia-Pacific region dominates the Global Acetone Market, owing mostly to large-scale industrial operations in China, India, and Japan. The region's supremacy stems from its large presence in the production of chemicals, plastics, and synthetic fibers, all of which are large acetone clients.

China is Asia-Pacific's largest producer and consumer of acetone, thanks to its enormous chemical manufacturing sector. The country's fast urbanization and expanding middle class have increased demand for consumer goods, resulting in a greater need for acetone in products such as paints, adhesives, and cosmetics.

India is emerging as a major competitor in the acetone industry, because of rising demand from its booming pharmaceutical and cosmetics sectors. The country's emphasis on industrialization and infrastructure development drives up acetone usage, particularly in the manufacturing of construction materials and automobile components.

Acetone production technologies are also being improved in the Asia-Pacific area, to increase efficiency and minimize environmental effects. Sustainable chemical process innovations are helping the region preserve its competitive advantage in the global market.

With endured industrialization, urbanization, and economic growth, the Asia-Pacific region is likely to maintain its dominance in the Acetone Market. In the coming years, the region's market position will be strengthened by increased infrastructural investments and rising consumer product demand.

North America

North America emerged as the fastest-growing Global Acetone Market, owing to high demand across a wide range of sectors. The region's growth is being driven by advancements in the pharmaceutical, cosmetic, and chemical industries, where acetone is an important solvent and precursor.

Acetone demand in the United States and Canada is increasing, particularly in the pharmaceutical and cosmetic industries. Acetone is commonly used in the manufacture of pharmaceuticals, nail paint removers, and other personal care items. The increasing emphasis on health and attractiveness in these countries is pushing up acetone consumption.

North America is at the forefront of technological advances in acetone manufacture. Companies in the region are investing in more efficient and sustainable production processes, which will help them satisfy expanding demand while minimizing environmental effect. This emphasis on innovation contributes to the market's quick growth.

The wide chemical manufacturing base in North America, particularly in the United States, contributes to the Acetone Market's growth. Acetone is an important ingredient in the synthesis of many compounds, including methyl methacrylate (MMA) and bisphenol A (BPA), which are used in plastics and resins.

With continuous investments in industrial growth and technical advancements, North America is likely to maintain its position as a rapidly expanding Acetone Market. The region's focus on sustainability and innovation will most likely fuel additional market expansion in the future years.

Global Acetone Market: Segmentation Analysis

The Global Acetone Market is segmented on the basis of Grade, Application, End-User, And Geography.

Acetone Market, By Grade

• Specialty Grade
• Technical Grade

Based on the Grade, the Global Acetone Market is bifurcated into Specialty Grade and Technical Grade. Technical Grade significantly dominates in the Global Acetone Market driven by as technical-grade acetone is widely utilized in a variety of industrial applications, such as the production of chemicals, polymers, and coatings. Its widespread applicability and cost-effectiveness make it the favored choice for large-scale industrial processes, driving its supremacy over specialized grades, which are often utilized for more esoteric, high-purity applications.

Acetone Market, By Application

• Solvents
• Bisphenol-A
• Methyl Methacrylate (MMA)

Based on the Application, the Global Acetone Market is bifurcated into Solvents, Bisphenol-A, and Methyl Methacrylate (MMA). The Solvents segment dominates in the Global Acetone Market. Acetone's versatility as a solvent makes it invaluable in a variety of industries, including paints, coatings, adhesives, and cosmetics. Its considerable use in cleaning, thinning, and dissolving organic compounds causes the highest percentage of acetone consumption globally.

Acetone Market, By End User

• Automotive
• Electronics
• Cosmetics & Personal Care
• Pharmaceuticals

Based on the Application, the Global Acetone Market is bifurcated into Automotive, Electronics, Cosmetic & Personal Care, and Pharmaceuticals. Cosmetics and Personal Care significantly dominate in the Global Acetone Market. Acetone's importance in goods such as nail paint removers, skincare, and beauty formulas creates strong demand in this industry. The expanding emphasis on beauty and personal care, combined with rising consumer demand for high-quality products, assures that the cosmetics and personal care industry remains the greatest consumer of acetone, outperforming other industries such as automotive, electronics, and pharmaceuticals.

Acetone Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Acetone Market is bifurcated into North America, Europe, Asia Pacific, and the Rest of the World. The Asia-Pacific region dominates the Global Acetone Market, owing mostly to large-scale industrial operations in China, India, and Japan. The region's supremacy stems from its large presence in the production of chemicals, plastics, and synthetic fibers, all of which are large acetone clients. China is Asia-Pacific's largest producer and consumer of acetone, thanks to its enormous chemical manufacturing sector. The country's fast urbanization and expanding middle class have increased demand for consumer goods, resulting in a greater need for acetone in products such as paints, adhesives, and cosmetics.

Key Players

The "Global Acetone Market" study report will provide valuable insight with an emphasis on the global market including some of the major players of the industry are Royal Dutch Shell Co, The Dow Chemical Company, INEOS Phenol GmbH, Mitsui Chemicals Inc., LyondellBasell Industries, SABIC, Honeywell Chemicals, Kumho P&B Chemicals, Cepsa Quimica, S.A., and ALTIVIA.

• This section offers in-depth analysis through a company overview, position analysis, the regional and industrial footprint of the company, and the ACE matrix for insightful competitive analysis. The section also provides an exhaustive analysis of the financial performances of mentioned players in the given market.

Our market analysis offers detailed information on major players wherein our analysts provide insight into the financial statements of all the major players, product portfolio, product benchmarking, and SWOT analysis. The competitive landscape section also includes market share analysis, key development strategies, recent developments, and market ranking analysis of the above-mentioned players globally.

• Global Acetone Market Recent Developments
• In March 2024, INEOS Phenol announces expansion of acetone production capacity INEOS Phenol, a leading global producer of phenol and acetone, revealed plans to increase its acetone production capacity by 15% at its facility in Antwerp, Belgium. The expansion, set to be completed by Q2 2025, aims to meet growing demand in the European market. This move is expected to strengthen INEOS's position as a key player in the acetone industry.
• In February 2024, Mitsui Chemicals announced a partnership with bio-based acetone startup Mitsui Chemicals announced a strategic partnership with GreenSolv, a startup specializing in bio-based acetone production. The collaboration aims to develop and commercialize a novel fermentation process for producing acetone from renewable feedstocks. This initiative aligns with Mitsui's commitment to sustainability and could potentially disrupt traditional acetone production methods.
• In January 2024, LyondellBasell announced the launch of a new acetone-based polymer for 3D printing LyondellBasell launched a new high-performance polymer blend, ACE-Print X200, specifically designed for use in 3D printing applications. The material, which incorporates acetone in its production process, offers improved strength and surface finish compared to traditional 3D printing materials. This development showcases the expanding applications of acetone in advanced manufacturing.