India Ethyl Acetate Market: Global Industry Analysis and Forecast (2025-2032)

The India Ethyl Acetate Market was valued at USD 812.67 Mn in 2024, and the total revenue of the Global India Ethyl Acetate Market is expected to grow at a CAGR of 8.07% from 2025 to 2032, reaching nearly USD 1512.01 Mn by 2032.
India Ethyl Acetate Market Overview:
Ethyl acetate, also known as ethyl ethanoate, is a clear, volatile liquid ester with a sweet, fruity odor, produced from ethanol and acetic acid. It is widely used as a solvent in paints, coatings, adhesives, packaging, pharmaceuticals, and as a flavoring agent in food and beverages. India has emerged as one of the world’s leading producers of ethyl acetate, with a production volume exceeding 470.64 thousand metric tons in FY 2023, increasing to 482.71 thousand metric tons in 2024.

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The India ethyl acetate market is set to expand further, driven by rising demand across diverse end-use industries such as automotive, construction, packaging, furniture, and pharmaceuticals. With rapid urbanization, a dense population base, and strengthening industrial infrastructure, India is positioning itself as a major hub for ethyl acetate manufacturing and consumption. The India ethyl acetate market forecast predicts revenue of approximately USD 1512.01 million by 2032, making it one of the most lucrative investment destinations among key Asian producers like China, Japan, and Taiwan. Notably, India accounts for more than 75% of global ethyl acetate production and consumption, reinforcing its leadership in the sector.

Ethyl acetate’s high solvency, volatility, and pleasant fruity aroma make it integral in applications such as paints, coatings, adhesives, packaging, pharmaceuticals, flavor and fragrance formulations. Its role as a decaffeinating agent in beverages and a critical industrial solvent underscores its wide-ranging utility. The ongoing industrialization and expansion of chemical manufacturing clusters in India continue to create strong demand momentum, ensuring sustained market growth over the forecast period.

Challenges include stringent environmental regulations, volatile feedstock prices, and rising competition from alternative solvents. Companies aiming to strengthen their market presence must align strategies with evolving regulatory norms, ensure cost-efficient production, and adopt sustainable manufacturing practices. A comprehensive assessment of production trends, trade flows, raw material dynamics, and pricing fluctuations is essential for stakeholders to identify growth opportunities. Industry leaders and new entrants are expected to focus on supply chain optimization, product innovation, and strategic investments to maximize revenue in India’s ethyl acetate market.

India Ethyl Acetate Market Import-Export Analysis:

According to the Analysis, India emerged as a prominent player in the global ethyl acetate market. India ranked 4th largest exporter of ethyl acetate all across the world in 2023. Indian exports of ethyl acetate reached a substantial value, with Italy, Belgium, Nigeria, Bangladesh, and the United Arab Emirates being the primary destinations. Notably, Bangladesh, Turkey, and Italy were the fastest-growing markets, reflecting India's expanding influence and competitive edge in this sector.

India Ethyl Acetate Market Import-Export Analysis (2023)



Category
Value
World Rank
India Rank


Exports
$ 77.08 million
4 th
488th


Imports
$ 3.06 million
61st
3,256th





India mainly imported ethyl acetate from Switzerland, the USA, Germany, China, and Singapore, with imports from Switzerland showing significant growth. Major corporations like John Deere, IKEA Group, and Old Navy highlight India’s strong global supply chain presence in ethyl acetate import-export.
India Ethyl Acetate Market Dynamics
Robust Growth of the Indian Pharmaceutical Sector to Drive India Ethyl Acetate Market Demand

The rapid growth of the Indian pharmaceutical industry has emerged as a key driver for the India ethyl acetate market. India’s status as a leading global supplier of generics, vaccines, and active pharmaceutical ingredients (APIs) has significantly bolstered the demand for high-purity solvents, particularly ethyl acetate. The country supplies over 50% of Africa’s generic drug requirements, 40% of the United States’ generic demand, and 25% of all medicines in the United Kingdom. Additionally, India accounts for 60% of the global vaccine supply, including DPT, BCG, and measles vaccines, with 70% of WHO vaccines sourced from the country.

The sector comprises over 3,000 pharmaceutical enterprises and 10,500 production facilities, supported by a skilled workforce and more than 500 API manufacturers, which collectively contribute 8% of the global API market. The widespread use of ethyl acetate in drug synthesis, intermediate production, extraction processes, and analytical applications such as High-Performance Liquid Chromatography (HPLC) further reinforces its market demand. HPLC, the gold standard in pharmaceutical analysis, relies heavily on ethyl acetate for precise separation, identification, and quantification of chemical components in complex formulations. Its low viscosity, compatibility with UV and refractive index detectors, and role in quality control ensure accurate and reproducible results.

Top 10 Pharma Companies in India by Market Capitalization



Rank
Company Name
Market Cap (Rs. Cr)
Headquarter


1
Sun Pharmaceutical
4,05,000
Mumbai, Maharashtra


2
Divi’s Laboratories
1,49,000
Hyderabad, Telangana


3
Cipla
1,16,000
Mumbai, Maharashtra


4
Torrent Pharmaceuticals
1,08,000
Ahmedabad, Gujarat


5
Mankind Pharma
1,02,000
Delhi


6
Dr. Reddy’s Laboratories
1,00,000
Hyderabad, Telangana


7
Zydus Lifesciences
98,000
Ahmedabad, Gujarat


8
Lupin
93,000
Mumbai, Maharashtra


9
Aurobindo Pharma
66,000
Hyderabad, Telangana


10
Alkem Laboratories
60,000
Mumbai, Maharashtra



Competition From Alternative Solvents to Limit India's Ethyl Acetate Market Growth

The growth of the India ethyl acetate market is constrained by the increasing prominence of alternative solvents that offer specific performance benefits across pharmaceutical and industrial applications. Alternatives such as butyl acetate, methyl ethyl ketone (MEK), and bio-based ethyl lactate are increasingly preferred in certain industrial and pharmaceutical applications due to their specific performance advantages. Butyl acetate’s slower evaporation rate suits coatings and adhesives, while MEK offers higher solvency for polymers and textiles. Ethyl lactate’s low toxicity and environmentally friendly profile make it an attractive choice in pharmaceuticals and food applications. The presence of these substitutes with distinct benefits creates competitive pressure, limits ethyl acetate’s penetration in some end-use industries, and may temper overall market growth despite rising pharmaceutical sector consumption.
India Ethyl Acetate Market Segment Analysis

Based on the Application, the Paints & Coatings segment dominated the India ethyl acetate market with the highest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The rapidly expanding paint and coating industry in India increases the demand for ethyl acetate, thereby supporting the segment growth. Ethyl acetate is heavily used in the paint and coating industry as a solvent or as a hardener. For some plastic product coatings, it is widely used, and it is further extensively used as a solvent in wood paint and coating varnish. According to the MMR analysis, the paint and coating industry in India is expected to grow at a rapid CAGR of 9-10% during the forecast period. Several factors have contributed to the growth of the industry, including rapid urbanization, growing disposable incomes, and a high need for eco-friendly paints.


Based on Purity Grade, the Coatings Grade purity segment emerged as a significant contributor to the ethyl acetate market in 2024. This grade is predominantly utilized in the formulation of paints and coatings, owing to its high purity level, which ensures optimal performance and finish quality. The increasing demand for premium coatings in automotive and architectural applications has bolstered the consumption of coatings-grade ethyl acetate. Additionally, the segment's growth is supported by the industry's shift towards sustainable and low-VOC (volatile organic compound) formulations, aligning with environmental regulations and consumer preferences.



Additionally, India is expected to be a lucrative region for its high paint consumption. India has a low per capita paint consumption (1/3rd) of the global level, with the untapped market in Tier II & III cities where paint companies are diversifying. As a result, increasing consumption would increase the demand for ethyl acetate, thereby supporting the India ethyl acetate market size. Moreover, the Construction market in India is expected to grow at a 9% growth rate due to affordable housing schemes that support heavy construction activities. Several affordable housing strategies in India have been established in recent years via the joint efforts of the Central and State governments. These programs seek to meet the objective of "Housing for All by 2022". Such housing laws are primarily meant to make the home-buying process easier and more affordable for persons with lower and moderate incomes. These programs give eligible residents interest discounts on home loans when they buy or build a house with essential amenities like water, electricity, and so on.

For instance,

1. The Indian government launched the Pradhan Mantri Awas Yojana (Urban)-PMAY (U) plan in India. PMAY (U) is India's most significant urban housing policy, providing discounts on house loan interest for the purchase or building of a home. Under this project, the government intends to build 2 crore affordable residences by the end of 2022.

2. In addition, PMAY has implemented rural housing initiatives in India. The PMGAY welfare initiative offers a 3% reduction in interest rates for housing loans up to Rs. 2 lakhs. This reward is available for renovating an existing house or building a new one in rural regions.

As a result, such schemes have increased the sales of houses and construction activities in India. Increasing such activities increases the demand for ethyl acetate as it is a vital ingredient in the industry. This factor supports the India ethyl acetate market revenue growth during the forecast period. The Personal Care & Cosmetics segment is expected to grow at a CAGR of 7.76% during the forecast period and offer growth potential for the ethyl acetate manufacturers in India. Ethyl acetate is commonly used in perfume production and it is the raw material that leaves the scent of perfume on the skin and evaporates quickly. The Indian perfume industry has been growing at a substantial rate in recent years. According to the Government of India’s Ministry of Micro, Small & Medium Enterprises (MSMEs), India contributes approximately USD 500 million to the global fragrance and flavor industry. The expanding middle-class population, increased disposable income, the influence of Western culture, shifting consumer lifestyle choices, and inexpensive scents in the form of mass perfumes and deodorants are some of the major factors driving the industry's growth. As a result, the expanding fragrance industry increased the demand for ethyl acetate, thereby supporting India ethyl acetate market growth.
India Ethyl Acetate Market Competitive Landscape
India's ethyl acetate market has emerged as a significant player in the global arena, driven by its diverse industrial applications and robust production capabilities. In 2023, India exported approximately 74.5 million kilograms of ethyl acetate, valued at $77 million, to countries including Nigeria, Italy, and Bangladesh. This export volume underscores India's competitive edge in the global market. The domestic market is projected to grow at a compound annual growth rate (CAGR) of 8.07% from 2025 to 2032. Additionally, Government initiatives like "Make in India" and incentives for chemical manufacturing have further bolstered domestic production capabilities, enhancing India's position in the global supply chain.

Jubilant Ingrevia Ltd (India) has strengthened its market position by expanding its production capacity and enhancing product quality. The company's focus on sustainable manufacturing practices and timely delivery has bolstered its reputation both domestically and internationally. Strategic partnerships and investments in research and development have further solidified its leadership in the Indian ethyl acetate market.

IOL Chemicals and Pharmaceuticals Ltd (India) has adopted a strategy of vertical integration, optimizing its supply chain to ensure consistent quality and cost efficiency. The company's commitment to innovation is evident in its investment in advanced manufacturing technologies and adherence to international quality standards. These initiatives have enabled IOL Chemicals to cater to diverse industrial applications, enhancing its competitive edge in the market.
India Ethyl Acetate Market Recent Developments
• On May 15, 2025, Laxmi Organic Industries Ltd (India) raised domestic ethyl acetate prices by INR 2/kg to INR 72/kg, citing improved market conditions and cost pressures.
• On August 24, 2024, Accord Organics Pvt Ltd (India) increased ethyl acetate prices by INR 1/kg, reaching INR 70.50/kg due to escalating raw material costs, reflecting market dynamics.
• On June 29, 2022, Prakash Chemical International Pvt. Ltd (India) enhanced ethyl acetate production efficiency through controlled bioreactor processes to meet growing market demand.
India Ethyl Acetate Market Key Trends
1. Major players are expanding domestic acetic acid capacity to reduce import dependence and strengthen the upstream supply chain.
2. Volatility in ethyl acetate pricing is driven by ethanol blending mandates and fluctuations in acetic acid and methanol costs.
3. There is growing interest in bio-based ethyl acetate production, supported by demand for eco-friendly and low-VOC solvent systems.
4. SMEs and MSMEs in the chemical sector are adopting digital tools for procurement, inventory, and demand forecasting to optimize supply chains.
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India Ethyl Acetate Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 812.67 Mn.


Forecast Period 2025 to 2032 CAGR:
8.07%
Market Size in 2032:
USD 1512.01 Mn.


 Segments Covered:
by Application
Food & Beverage
Pharmaceuticals
Artificial Leather
Printing inks
Paints & Coatings
Personal Care & Cosmetics
Others


by Purity Grade
Coatings Grade
GMP Grade



India Ethyl Acetate Market, by Region
North India
South India
West India
East India
India Ethyl Acetate Market: Key Players are
1. Jubilant Ingrevia Ltd (India)
2. IOL Chemicals and Pharmaceuticals Ltd (India)
3. Accord Organics Pvt Ltd (India)
4. Prakash Chemical International Pvt. Ltd (India)
5. DhanLaxmi Organics & Chemicals (India)
6. Laxmi Organic Industries Ltd (India)
7. Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) (India)
8. Atul Ltd (India)
9. Camlin Fine Sciences Ltd (India)
10. SKS Finechem Pvt. Ltd (India)
11. Kakdiya Chemicals (India)
12. Akshar International (India)
Frequently Asked Questions:
1. What is the current size of the India Ethyl Acetate market?
Ans: The India Ethyl Acetate market was valued at USD 812.67 Million in 2024 and is projected to reach USD 1512.01 Million by 2032.

2. What is the expected CAGR of the India Ethyl Acetate market?
Ans: The India Ethyl Acetate market is expected to grow at a CAGR of 8.07% from 2025 to 2032.

3. How is ethyl acetate used in pharmaceuticals?
Ans: It is used as a solvent for drug synthesis, intermediates, extraction operations, and as a mobile phase in HPLC analysis.

4. Which industries are the main consumers of ethyl acetate in India?
Ans: Key industries include pharmaceuticals, paints & coatings, automotive, construction, packaging, furniture, personal care & cosmetics.

5. What are the key drivers of market growth?
Ans: Growth in the pharmaceutical, paints & coatings, and construction sectors, along with urbanization and government housing schemes, drives demand.