The Asia Pacific region records the largest share of the global acetone market because of extensive demand from the downstream construction and sophisticated automobile industry. Right now, the acetone market is mature and the gap between the supply and demand in the global market is expected to reduce in a few years.
The announcement of new innovations helped industrialists generate unconventional market trends and end-user consumer base for acetone. Acetone is observing a surge in demand worldwide especially in regions such as India, Bangladesh, and Latin America. These areas are catering to a robust supply chain that is sourcing from companies in the western countries.
Major Market Focus Of The Acetone Providers
- Asian regions are maintaining a supply-demand equilibrium in the acetone industry by catering to demands from the BPA, MMA and pharmaceutical industries. Due to an increase in urbanization and technological penetration in the developing countries, European manufacturing industries are identifying APAC (mainly China) as their buyer of acetone. The trade dynamics between North Americ, Europe and APAC are intensifying with improving automobile trade and industrial trade between the three regions. This resulted in the production of over 26 metric tonnes of Acetone in 2017.
- The North American acetone market is expected to witness tremendous growth due to an increase in global consumption, evolved producing technologies and a rampant rise in the global economy. Apart from this, Canada is emerging as a significant competitor to the American market. In Europe, countries such as Italy, Germany, France, UK, Spain are developing their technological innovation to widen the scope of acetone application and production.
- In the Latin American region, Argentina, Brazil, and Colombia are predicted to witness a dramatic growth of acetone production which would lead to increased consumer demand. The market in this region is expected to use acetone in passenger cars, in the invention and manufacturing of isoprene and in the innovation of new technologies.
Factors Affecting The Global Acetone Market
- Acetone as a chemical is used in the commercial, residential, non-residential construction and remodeling industry. Construction, automotive and computer divisions are the upcoming sectors that use acetone as a significant raw material. Any change in these industries directly impacts the demand and production of acetone. Some of the significant factors that affect the end-usage of acetone include rapid urbanization and a rise in the demand for lifestyle products such as lipsticks, nail polish and hair serums. Increase in construction and infrastructure development activities also have an impact on the acetone market. The plastic industry has with time grown in size and has compelled manufacturers to increase their acetone demands at cheaper rates, thus increasing the acetone market size.
- Acetone is derived from treating crude oil and petroleum. A predicted rise in the global crude oil is an important catalyst for driving acetone production. With abundant production, global acetone prices are expected to drop and influence the petroleum industry and its related supply chain managers.
- Acetone market is also increasingly finding applications in the production of pharmaceutical medicines. With the rise of the industries in the developing nations, acetone demands are also shooting.
Acetone industries function in a highly competitive market space. Global industry giants include BASF, The Dow Company (America), CEPSA (Spain), Royal Dutch Shell and INEOS. These companies have a fairly large market influence with production and manufacturing outlets worldwide.