The value of the acrylic acid market is expected to grow to more than $18 million USD, thanks to a compound annual growth rate of 7.6 percent between the years 2014 and 2020. In 2013, the acrylic acid market was worth more than an estimated $11 million USD. By the year 2020, the worth of this market is expected to be valued at around $18 million USD, thanks to a compound annual growth rate of 7.6 percent that is projected between 2014 and 2020.
An organic compound, acrylic acid has characteristics that provide it with what is referred to as an acrid, or tart, aroma. A large percentage of this compound is utilized as a feedstock for collecting acrylate esters, which are widely used in the treatment of a variety of products, including additives used in plastics, adhesives, paper, sealants and surface coatings.
Various industries that specialize in the production of acrylic acid are working on developing and commercializing the process of producing this organic compound from petrochemicals. The ever-increasing cost of oil on a worldwide scale has drive manufacturers to see bio-based techniques in order to create acrylic acid, as well as acrylates. Some of the renewable resources that are commonly used for the production of this product include sugar and glycerol. By using these renewable feedstocks, manufacturers are seeing a much more cost-effective outcome when compared to using petro-based chemicals.
The Growth of the Acrylic Acid Market
By the year 2020, the consumption rate of acrylic acid on a worldwide scale is projected to reach more than an estimated 8,000 kilo tons. This increase is expected to occur as a result of using this product in new applications, including personal care products, detergents and products that are used for adult incontinence.
Factors Driving the Growth of the Acrylic Acid Market
There are several factors that are driving the growth of the market for acrylic acid. A large demand for this product is found in the superabsorbent polymers market, as well as sealants and adhesives.
The government sets stringent regulations regarding the use of the organic compound because of the increased environmental concerns that are associated with it in various parts of the world, including Europe and North America. These regulations aim to protect the environment, as well as reduce the exposure in work environments. Though the growth of this product is expected to increase, it should be noted that as compared to other products, the growth of acrylic acid is limited because of the restraints that govern its production.
Makers of acrylic acid are concentrating on research and development to pinpoint bio-based alternatives that can be used in production, thereby increasing the market share and size of the product. Additionally, the commercialization of a bio-based compound and the increased demand for PMMA resins across several industries would help to break open the doors to investment opportunities. This would lead to tremendous growth in the very near future.
Acrylic Acid Market According to Region
The acrylic acid market is expected to see notable growth in North America, Asia, Europe and LAMEA. In 2013, the largest region to generate revenue in this industry was Asia. It is predicted that this region will still generate the largest revenue moving forward until 2020. In regard to the compound annual growth rate, LAMEA is the fastest growing region.
Here, the compound annual growth rate is about 9.3 percent in the same period. Additionally, it is anticipated that LAMEA will garner a lot of prospects, which will contribute to the growth of acrylic acid in this region. It should also be note that LAMEA has several worthwhile opportunities for the creating crude compounds, thanks to the high presence of petrochemical sites that are located in this part of the world.
A Competitive Analysis of the Acrylic Acid Market
The strategies that are employed by companies who are looking to expand their growth of acrylic acid include:
- New product launches
- Agreements that have been made to increase their share and their size
These three strategies have lead to the advancement in technology and the diversification of the products that acrylic acid is used in. All of these strategies were employed by the companies that manufacture this product as a way to diversify their business into different industries; the surface coatings, sealants, adhesives and plastic additives industries, for example.
There are several companies that are expected to be at the forefront of the increased market for acrylic acid. These companies including BASF, LG Chem LTD, SIBUR, Arekma SA, Dow Chemical Company, CinVic Chemical Holdings Limited and Evonik Industries Ag.
A High-Level Analysis of the Acrylic Acid Market
Because of the highly oligopolistic environment, the bargaining power of the acrylic acid market is expected to increase. However, because there tends to be a limited amount of price sensitivity leads, the bargaining power of companies that manufacture this product is relatively low.
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Increased Used of Acrylic Acid by Market
Acrylic acid is a compound that is used in a wide variety of products. Some of the most notable products, and thus industries, that make use of acrylic acid include:
- The diaper industry
- The water treatment industry
- The textiles industry
- The plastic additives industry
- The adhesives and sealants industry
- The surface coatings industry
Again, the regions where these markets are expected to see the largest rise include LAMEA, Asia, Europe and North America.
In conclusion, the acrylic acid market is expected to see a significant amount of growth between 2014 and 2020. Despite the projection, the anticipated growth is limited because of the strict regulations that the government sets forth in regard to the production of this product. Companies that manufacture acrylic acid are actively researching and developing alternatives for production. Once those alternatives are determined, companies that make use of them are expected to see a significant rise in their growth, as the market for this product will likely experience a significant boom.