India Ethyl Acetate Market: Industry Analysis and Forecast (2024-2030)

The India Ethyl Acetate Market size was valued at USD 758.14 Million in 2023 and the total India Ethyl Acetate revenue is expected to grow at a CAGR of 8.07% from 2024 to 2030, reaching nearly USD 1305.23 Million by 2030.
India Ethyl Acetate Market Overview:
India is one of the world’s largest manufacturers of ethyl acetate all across the world, with a production volume of over 470.64 thousand metric tons in fiscal year 2023. This is expected to be driven by the rising demand for ethyl acetate in the country, which has been growing at a rapid pace over the past few years. This chemical is increasingly utilized across various industries such as automotive, construction, packaging, furniture, and pharmaceuticals. India is expected to be the major industrial hub as the country has a dense population and growing urbanization. The ethyl acetate market in India is estimated to generate revenue of approximately USD 1305.23 Million by the end of 2030, making it one of the most lucrative markets for investors, ethyl acetate manufacturers, suppliers, etc. Among the highest manufacturers such as China, Japan, and Taiwan, India is the major producer and consumer of ethyl acetate accounting for over 75% of production of ethyl acetate all over the world.

Ethyl acetate, also known as ethyl ethanoate, is an ester composed of ethanol and acetic acid, it is a colorless, volatile liquid with a sweet, fruity smell. It is used in the production of many products such as artificial flavor or fragrance additives, as a solvent in paints, lacquers, and adhesives, and as a decaffeinating agent in coffee and tea, etc. Ethyl acetate is produced either synthetically or by the natural fermentation of ethanol. Its capability to dissolve a variety of materials makes it an essential ingredient in the production of many products. Its sweet, fruity aroma makes it a popular additive in the food, beverage, and pharmaceutical industries. As a result, growing industrialization in India rapidly increases the demand for ethyl acetate across various industries, thereby supporting the India ethyl acetate market growth during the forecast period.

Despite the increasing demand, the industry faces certain challenges, such as environmental regulations, feedstock costs, and competition from alternative chemicals. Companies looking to contribute to India's ethyl acetate market have to take these factors into account before investing. In the MMR’s “India ethyl acetate market report” all of these factors are that expected to impact the market growth are covered comprehensively to give the overall brief to the industry players. Additionally, major growth factors, the industry’s upcoming trends, and further analysis to give the market potential details. Total ethyl acetate production in India, trade analysis, price fluctuations, raw materials analysis, supply chain distribution network, etc. factors further provide the detailed scenario of the India ethyl acetate market to the investors to develop innovative business strategies that will help them to increase the revenue share.

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India Ethyl Acetate Market Import-Export Analysis:
According to the Analysis, India emerged as a prominent player in the global ethyl acetate market. India has ranked 4th largest exporters of ethyl acetate all across the world in 2022. 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 (2022)



Category
Value
World Rank
Rank within India


Exports
$139M
4 / 88
488 / 4553


Imports
$2.1M
61 / 161
3256 / 4466



 

On the other hand, India stood as the 61st largest importer globally, sourcing ethyl acetate mainly from Switzerland, the United States, Germany, China, and Singapore. Among these, imports from Switzerland showed significant growth, indicating a strengthening trade relationship. This dynamic trade analysis demonstrates India's strong industrial capabilities and strategic market reach. This is reinforced by significant corporations such as John Deere, IKEA Group, and Old Navy, who have played critical roles in shipping ethyl acetate from India to the United States, underscoring the country's importance in global supply chains.
India Ethyl Acetate Market Dynamics:
Growing Pharmaceutical Industry In India

India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the United States, and 25% of all medicine in the United Kingdom. India also accounts for 60% of global vaccine demand and is a leading supplier of DPT, BCG, and Measles vaccines. 70% of WHO’s vaccines are sourced from India. Recognized as the 'pharmacy of the world' for several decades, the Indian pharmaceutical industry has garnered global acclaim, particularly for its leadership in the generic drugs sector. Beyond its global impact in improving health outcomes, the Indian pharmaceutical industry plays a pivotal role in propelling the country's economic growth and generating employment.

According to the MMR report, the country has over 3,000 pharmaceutical enterprises, with 10,500 production facilities and a competent workforce. India has over 500 active pharmaceutical ingredient (API) firms, which account for 8% of the global API sector. It produces 60,000 generic brands in 60 therapeutic categories, accounting for 20% of the generics supply all across the world. India's role in delivering cheap HIV therapy has been widely recognized, making Indian drugs the favored option internationally. The industry benefits from cost competitiveness, driven by factors such as lower labor costs, economies of scale, and efficient manufacturing processes. This cost advantage allows Indian pharmaceutical firms to provide competitively priced medication products both domestically and globally.



The Indian pharmaceutical market is presently experiencing a rapid transformation. India is rapidly becoming a hub for pharmaceutical advancement and production, thanks to its enormous pool of scientists and engineers and economic benefits. The business is distinguished by a robust generic pharmaceuticals sector, which contributes considerably to global pharmaceutical affordability. Moreover, recent trends indicate a boom in R&D spending, with corporations shifting their attention to creating innovative medicines and biosimilars. This growth establishes India as a major participant in the global pharmaceutical environment, meeting both domestic and international demand. As India is a global hub for pharmaceutical production, the demand for ethyl acetate has witnessed a significant increase in recent years.

Top 10 Pharma Companies In India By Market Capitalization



Rank
Company Name
Market Cap (Rs. Cr)
Headquarter


#1
Sun Pharma
3,65,178.78
Mumbai, Maharashtra


#2
Cipla
1,13,915.46
Mumbai, Maharashtra


#3
Divi’s Labs
1,05,921.96
Hyderabad, Telangana


#4
Dr Reddy’s Labs
1,04,611.73
Hyderabad, Telangana


#5
Zydus Life
96,497.84
Ahmedabad, Gujarat


#6
Mankind Pharma
95,139.75
Delhi


#7
Torrent Pharma
91,312.58
Ahmedabad, Gujarat


#8
Lupin
74,617.69
Mumbai, Maharashtra


#9
Aurobindo Pharma
67,441.53
Hyderabad, Telangana


#10
Alkem Lab
58,431.42
Mumbai, Maharashtra



Ethyl Acetate is an essential component of the pharmaceutical companies. This solvent is used in a variety of applications, including medication synthesis, drug intermediate development, and extraction operations. Ethyl acetate is heavily used in the pharmaceutical industry as an extraction solvent and intermediate in the manufacture of drugs such as sulphamethoxazole, rifampicin, etc. It is further used as a standard in the pharmaceutical industry for various applications, such as analytical testing, and quality control, and to calibrate analytical instruments or to validate analytical methods. As a result, the rapidly growing Indian Pharmaceutical industry is expected to be the major factor driving the India ethyl acetate market growth. In addition, the high demand for ethyl acetate for HPLC is further expected to increase the ethyl acetate market size in India. High-Performance Liquid Chromatography (HPLC) is the gold standard in pharmaceutical analysis. It's the method used to detect and quantify components in pharmaceutical compositions. The choice of solvent has a direct impact on the accuracy of HPLC findings.

As the mobile phase in HPLC, ethyl acetate allows for the separation, identification, and quantification of chemical components in complicated mixtures. Its low viscosity allows for a smooth and efficient flow down the HPLC column, resulting in well-defined peaks and clear chromatograms, which are required for precise component identification. Ethyl acetate's compatibility with various chromatographic detectors, such as UV or refractive index detectors, increases its usefulness in HPLC analysis. It is a precision solvent that ensures researchers and analysts get consistent and precise findings from their chromatographic tests. However, Ethyl Acetate is not just used in HPLC; it is also regarded as an extraction expert. When pharmaceutical chemists need to separate certain molecules from complicated combinations, this solvent comes to the rescue. Its selective characteristics make it invaluable in the field of medicinal research. Hence, extensive use of ethyl acetate in HPLC driving the India ethyl acetate market revenue share during the forecast period.

Strong Competition From Alternative Solvents

The key factor that has been limiting the growth rate of the Indian ethyl acetate market is the prominence of substitute products available in the market. These substitutes enhance competition in the solvent market with other solvents including butyl acetate, MEK, and bio-based solvents. Butyl acetate’s reduced evaporation rate compared to ethyl acetate makes them ideal for applications where slowness in evaporation is preferred such as in automotive paints and specific types of lacquer. It is used widely in paint, coating, and adhesive industries due to its good dissolving properties. Its use in these applications is expected to outdo ethyl acetate particularly where there is a need for special performance features.

Methyl Ethyl Ketone (MEK) has been recognized for its high solvency. It dissolves a wider range of materials with greater efficiency than ethyl acetate. This makes it extremely useful in industrial procedures that demand powerful solvents. It also has a rapid evaporation rate, which is useful in applications that need quick drying, such as some adhesives and coatings. MEK is extensively used in the manufacture of polymers, textiles, and varnishing. Its strong solvent characteristics make it preferred to ethyl acetate in many industrial applications.
Ethyl lactate, on the other hand, is a safer and more environmentally friendly alternative to ethyl acetate and acetone. It is an ester of naturally occurring L-lactic acid formed by sugar fermentation. Due to its low toxicity, ethyl lactate is widely utilized in the pharmaceutical, food and beverage, and fragrance sectors. Ethyl lactate also serves as a solvent for nitrocellulose, cellulose acetate, and cellulose ethers. As a result, the increased availability of substitutes with particular benefits over ethyl acetates raises demand from end-use industries, limiting the growth of the Indian ethyl acetate market.
India Ethyl Acetate Market Segment Analysis:
Expansion Of The Paints And Coatings Sector In India Drives The Segment Growth

Based on the Application, the Paints & Coatings segment dominated the India ethyl acetate market with the highest revenue share in 2023 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 coating, it is widely used, likewise, 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.



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 thanks 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 major 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 lakh. 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 Scope :Inquire before buying



India Ethyl Acetate Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 758.14 Mn.


Forecast Period 2024 to 2030 CAGR:
8.07%
Market Size in 2030:
US $ 1305.28 Mn.


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



India Ethyl Acetate Market, by Region
North India
South India
West India
East India
Leading India Ethyl Acetate Market Key Players:
1. IOL Chemicals and Pharmaceuticals Limited
2. Dhan Laxmi Organics & Chemicals
3. FENTON CHEMICALS
4. Kamani Chemicals
5. VIJAY CHEMSOL FACTORY
6. R.N. Chemical
7. Sudarshan Chem
8. A. B. ENTERPRISES
9. ALPHA CHEMIKA
10. Antares Chem Private Limited
11. Gayatri Industries
12. Prakash Chemicals International Private Limited
13. Aarham Chemicals
14. Nutan Chemicals
15. Shivam Petrochem
16. Anand Chemicals
17. Aquila Organics Pvt Ltd.
18. Ashish Impex
19. Devi Chemicals
20. Mitansh Chemicals International Private Limited
21. Godavari Biorefineries Ltd.
22. Chemi-Zone(India)
23. Jigs Chemical Limited
24. M/s Ekdant Chem
25. Laxmi Organic Industries Ltd.
26. DHALOP CHEMICALS
27. Laxmi Chemical Industries
28. Kakdiya Chemicals
29. PCIPL

FAQs:
1. What are the growth drivers for the India Ethyl Acetate market?
Ans. The increasing prevalence of chronic and infectious diseases, alongside rising awareness of the advantages of vial adaptors in ensuring medication safety and accuracy are expected to be the major drivers for the India Ethyl Acetate market.

2. Which region is expected to lead the India Ethyl Acetate market during the forecast period?
Ans. North America is expected to lead the India Ethyl Acetate market during the forecast period.

3. What is the projected market size and growth rate of the India Ethyl Acetate Market?
Ans. The India Ethyl Acetate Market size was valued at USD 963.21 Million in 2023 and the total India Ethyl Acetate revenue is expected to grow at a CAGR of 8.07% from 2024 to 2030, reaching nearly USD 1305.23 Million by 2030.

4. What segments are covered in the India Ethyl Acetate Market report?
Ans. The segments covered in the India Ethyl Acetate market report are Application and Region.