Acetone Market -Global analysis and forecast for the period 2024-2030

The Global Acetone Market size was valued at USD 6.66 billion in 2023 and is expected to grow at a CAGR of 6.95% from 2024 to 2030, reaching a market size of approximately US$ 10.66 billion by 2030.

Acetone is a colorless and volatile liquid that plays a significant role across various industries and households. Chemically, it is composed of a carbonyl group bonded to two methyl groups. Making it a ketone with the formula CH3COCh3. Acetone is known for its distinct sweetish Odor; it is highly soluble in water and miscible with many organic solvents.

The acetone market is a dynamic sector within the chemical industry, driven by its versatile applications and significant demand across various segments. The demand for acetone is largely driven by the growth of end-user industries, such as chemicals, pharmaceuticals, cosmetics, electronics, and others. In cosmetics, notably, acetone is the key ingredient in nail polish removers due to its efficient nail polish dissolving properties. In chemical industries, acetone serves as a precursor in the synthesis of important chemicals such as methyl methacrylate (MMA) and Bisphenol A (BPA), essential for manufacturing plastics and resins. Market dynamics are influenced by fluctuating raw material costs, regulatory developments aiming for sustainability, and technological advancement in production methods.

Geographically, major markets in North -America, Europe, Asia-Pacific, and South America drive both production and consumption, supported by established industrial infrastructure and consumer demand. Asia-Pacific region held the largest market share in 2023. The increasing industrialization in developing nations positively impacts the market and this robust the demand for acetone in the chemical industry. Royal Dutch Shell PLC, The Dow Chemical Company, and Mitsui Chemicals, Inc. are the major players in the acetone production industry and hold the largest share of the market.

The report provides a comprehensive analysis of the Global Acetone Market, which includes the current market size, overall segmentation analysis, market trends, drivers, restraints, opportunities, scope, and key players.

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Global Acetone Market Dynamics:
Potential drivers for the growth of the Acetone Market

The growth of the Acetone Market is driven by several key factors that collectively lead to its dynamic growth trajectory. The rising demand for bio-based solvents from various end-use industries is set to promote the growth of the market. In the chemical sector, acetone serves as a crucial solvent in the production of derivatives like BPA and MMA, which are integral to manufacturing plastics, resins, and coatings. BPA is one of the applications of the product, increasing production of BPA attributed to the high demand for acetone is projected to the growth of the market. This sector’s expansion, driven by increasing industrialization and demand for consumer goods, directly boosts acetone consumption. Acetone is also used in the production of electronic components aligning with advancements in technology. The expanding construction and automotive sectors, coupled with increasing demand for electronics and consumer goods propel the demand for acetone for electronics applications.



In pharmaceutical industry relies on acetone for its application as an intermediate in drug production, reflecting the sector's steady growth and innovation. Acetone is used for synthesizing ascorbic acid and as an extractant for hormones and microorganisms. For instance, acetone is utilized in the production of medicines such as ibuprofen. Its solvent properties aid in extracting and purifying active pharmaceutical ingredients, contributing to drug quality. With its efficient properties and compatibility with various substances, acetone plays a pivotal role in enhancing process efficiency and product quality across the sector. The significant increase in the production of sanitizers and disinfectant products is attributed to an increase in the demand for acetone, as it is a key ingredient for the synthesis. Besides this, cosmetic industry, acetone is predominantly used as a nail polish removal. With rising disposable incomes and heightened beauty consciousness globally, the demand for acetone in this segment continues to grow.

Increasing regulatory pressure on industries to adopt more sustainable and eco-friendly solvents drives the demand for acetone which is considered a relatively safe and easy-to-handle solvent compared to alternatives such as Chlorinated solvents, aromatic hydrocarbons, etc. Innovation in production processes such as bio-based acetone production from renewable sources like biomass, are opening up new avenues for market growth and sustainability. The key factors that contribute to the market growth include technological advancement, strategic alliances, collaborations, mergers, acquisitions, and investments in capacity expansions by industrial players in the acetone market.

Impact of restraints on the global Acetone Market:

The growth of the Acetone Market is restrained by several key factors that collectively affect the dynamic growth of the market. Fluctuating prices of raw materials are the primary restrain of the global acetone market, affecting production costs and profitability. This also adversely affects the supply chain as well as the pricing stability in the acetone market. Events such as natural disasters, pandemics, geopolitical conflicts, or trade disruptions also affect supply chains, raw material availability, transportation logistics, and production capacities.

Ongoing advancements in green chemistry and novel solvents offer alternatives to acetone that are more sustainable, safer, or more cost-effective in specific applications. Competition from alternative solvents offering some specific advantages in certain industries or applications affects the demand and overall growth of the acetone market. For example, Bio-based solvents and newer chemical formulations offer lower toxicity or better environmental profiles, posing a competitive challenge to traditional acetone applications. Environmental regulations aimed at reducing volatile organic compound (VOC) emissions and promoting sustainability pose challenges. Compliance with this regulation often requires large investments in cleaner production technologies, which affects the demand for acetone in the market. Health and safety concerns are also accounted as a restraint for the growth of the acetone market. Despite being widely used as a volatile and flammable liquid, safety concerns are upstanding with the handling, storage, and transportation. To avoid any incident stringent safety protocols and investments in infrastructure are required to ensure worker safety and regulatory compliance.

Potential growth opportunities for the Acetone Market:

The acetone market presents several promising growth opportunities driven by industrialization especially chemical and pharmaceutical, rising disposable income, and growing demand for personal care and the cosmetic industry. The use of acetone in a wide range of industries such as construction and petroleum, drives the growth of the market. Sustainability initiatives and customized solutions drive the demand and growth of the acetone market. With the increasing focus on sustainable practices, the market is driven by promoting the use of acetone as an eco-friendly solvent. The demand for customized acetone solutions is on the rise owing to the specific needs required by the customers, cosmetics, pharmaceuticals, or chemical manufacturing. Customization ensures that the solvent meets the precise requirements, such as purity levels and application suitability.


Acetone Market Segment Analysis
The Acetone market can be segmented into several distinct categories based on various factors such as Application, Grade, End users, and Geographical location.

By Application, the acetone market is segmented into Methyl methacrylate, bisphenol-A, Solvent, and others. The solvent segment held the largest market share in 2023, as acetone is a widely used solvent in the market. The ability to dissolve various substances makes acetone an essential component in paint and coating production. In the cosmetic industry, acetone is predominantly used as a solvent to maintain the consistency in nail polish remover. The Methyl methacrylate segment is anticipated to grow significantly during the forecast period. Acetone is a crucial component for the production of MMA, a versatile chemical used in the production of acrylic resins, paints, and coatings. The demand for Bisphenol-A significantly increasing owing to increasing use in the production of polycarbonate.



By End Users, the acetone market is segmented into the chemical industry, pharmaceutical industry, cosmetic industry, and electronics industry. The chemical industry is the major end-use industry of the acetone market including paint and coating, plastic, and adhesives. With the wide use of acetone in the production of chemicals especially paints and coatings, acetone serves as a key solvent owing to its ability to dissolve a wide range of substances. The pharmaceutical industry segment is anticipated to grow during the forecast period. Acetone is a common excipient used in the formulation of most common drugs. It is employed as a solvent in fillers and active components to ensure a precise dose of medication. It is also used as an antiseptic.
Global Acetone Market Regional Analysis
Asia-Pacific region held the key share of the global acetone market in 2023 and is anticipated to grow exponentially during the forecast period owing to the expansion of urbanization and industrialization as well as easy availability of raw materials, and lower labor costs in countries such as India and China. The predominant use of Dimethyl ketone as a solvent in various manufacturing processes. The rising consumption and production of pharmaceuticals, personal care cosmetics, and chemicals in China, India, South Korea, Japan, and other Southeast Asian Countries coupled with the increased demand for acetone for manufacturing processes. The stringent regulatory practices regarding environmental standards affect the production and market dynamics.

In the North American region countries like U.s and Canada are significant consumers of acetone, driven by robust demand from industries such as chemicals, automotive, construction, and electronics. The presence of well-established key players and technological advancements support the growth of the acetone market. Regulatory emphasis on environmental sustainability and stringent safety standards also shapes the market dynamics in acetone production.



Competitive Landscape

The competitive landscape of the global Acetone Market is fiercely contested among well-established giant players like Royal Dutch Shell PLC, The Dow Chemical Company, and Mitsui Chemicals, Inc. The key factors shaping the competitive landscape include technological advancement, price competitiveness, market dynamics, strategic alliances, collaborations, mergers, and acquisitions.

For instance,

1. In December 2023, Mitsui Chemicals, Inc. announced that it had received certification for two more phenol-chain products under the International Sustainability and Carbon Certification (ISCC) PLUS system for certifying sustainable products.

2. In September 2023, INEOS Group Ltd acquired the production site and assets of Mitsui Phenols Singapore Pte. Ltd. on Jurong Island, Singapore. The acquisition cost USD 330 million and increased INEOS’s total production capacity of acetone to 185 thousand tonnes per year.

3. In Jan 2023, Olythe an expert in the analysis of exhaled air, released its new miniatured and ultra-precise sensor which measures the concentration of acetone in exhaled air. This enables effective detection and treatment of certain diseases and metabolic disorders in medical diagnostics.
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Acetone Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 6.66 Bn.


Forecast Period 2024 to 2030 CAGR:
6.95%
Market Size in 2030:
US $ 10.66 Bn.


 Segments Covered:
by Application
Methyl methacrylate
Bisphenol-A
Solvent
Others


by Grade
Technical Grade
Specialty Grade


by End User
Chemicals
Pharmaceuticals
Cosmetics
Electric & Electronics



Acetone Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
The Acetone Market's key Players are
1. Royal Dutch Shell PLC
2. The Dow Chemical Company
3. Mitsui Chemicals, Inc.
4. Sasol
5. Hindustan Organic Chemicals Limited
6. Domo Chemicals
7. Honeywell International, Inc.
8. Prasol Chemicals Pvt. Ltd.
9. EMCO Limited
10. KUMHO P&B Chemicals., Inc.
11. SABIC
12. LyondellBasell Industries Holdings B.V.
13. Arkema
14. CEPSA Quimica, S.A
15. Solvay
16. INEOS Phenol
17. Formosa Chemical and Fiber Corporation
18. Gepsa Quimica
19. Spectrum chemical Mfg. Corp.
20. Altivia Chemicals

Frequently Asked Questions:
1. Which region has the largest share in the Global Acetone Market?
Ans: The Asia-Pacific region held the largest share in 2023.

2. What is the growth rate of the Global Acetone Market?
Ans: The Global Market is expected to grow at a CAGR of 6.35 % during the forecast period 2024-2030.

3. What are the different segments of the Global Acetone Market?
Ans. The Global Acetone Market is divided into Application, Grade, and End Users.

4. Who are the key players in the Global Acetone Market?
Ans: The important key players in the Global Acetone Market are Royal Dutch Shell PLC, Dow Chemical Company, Mitsui Chemicals, Inc., Sasol, Hindustan Organic Chemicals Limited, Domo Chemicals, Honeywell International, Inc., etc.

5. What is the scope of the Global Acetone Market report?
Ans: The Global Acetone Market report helps with the PESTLE, PORTER, Recommendations for Investors & Leaders, and market estimation of the forecast period.