Acetone Market

• The pharmaceutical industry's high need for solvents will aid the growth

In the industrial sector, the solvent is frequently utilized. Solvents are used in a variety of everyday applications, including paints & coatings, adhesives, thinners, cleaning solutions, and nail polish removers. It is widely used in the paint and coating industries because of its low VOC content. Solvents are commonly employed in pharmaceutical applications to synthesize ascorbic acid and as an extractant for hormones and microorganisms. Due to the COVID-19 outbreak, there has recently been a huge surge in the manufacturing of sanitizers, disinfectants, and other sanitization products.

Isopropanol is a major chemical generated from dimethyl ketone and employed in the manufacture of such sanitization treatments. The acetone sector is also predicted to benefit from increased demand for personal care goods and cosmetics. Dimethyl ketone-related compounds are used to clean chemical stains and are becoming more popular in the production of different industrial solvents. The chemical, which is miscible with water and other organic molecules, is predicted to see growing demand in the manufacturing of solvents.

The International Monetary Fund (IMF) in July 2023 warned that there could be a shortage of acetone worldwide in the future. The rising demand from chemical and plastic industries, as well as disturbances in supply from Russia and China, were cited by the IMF as the main reasons for the possible shortage. This further emphasizes how market expansion, stability, diversification and investments in acetone manufacturing become necessary amidst supply disruptions from key players like Russia and China.

The Global Acetone Market Industry is projected to experience substantial growth over the next decade. With a market valuation expected to reach 14.0 USD Billion by 2035, the industry is on a promising trajectory. The compound annual growth rate of 6.96% from 2025 to 2035 indicates a robust expansion fueled by diverse applications across various sectors. This growth is likely to be driven by increasing demand in chemicals, pharmaceuticals, and coatings, positioning acetone as a key player in the global market landscape.

The Global Acetone Market Industry is experiencing a surge in demand primarily driven by its extensive application in the chemical sector. Acetone serves as a vital solvent in the production of various chemicals, including methyl methacrylate and bisphenol A. As industries expand and innovate, the need for acetone is projected to increase, contributing to a market valuation of 6.66 USD Billion in 2024. This growth is indicative of the broader trends within the chemical manufacturing landscape, where acetone's versatility as a solvent and intermediate is increasingly recognized.

The Global Acetone Market Industry is benefiting from the increasing utilization of acetone in paints and coatings. Acetone acts as an effective solvent that enhances the application properties of various coatings, including those used in automotive and industrial applications. As the construction and automotive industries continue to grow, the demand for high-quality paints and coatings is likely to rise. This trend suggests a robust growth trajectory for acetone, with a projected compound annual growth rate of 6.96% from 2025 to 2035, reflecting its essential role in enhancing product performance.

The Global Acetone Market Industry is poised for growth due to ongoing technological advancements in acetone production processes. Innovations such as the development of more efficient catalytic processes and the utilization of renewable feedstocks are enhancing production efficiency and sustainability. These advancements not only reduce production costs but also align with global sustainability goals, making acetone a more attractive option for manufacturers. As these technologies become more widely adopted, the market is likely to see increased capacity and reduced environmental impact, further driving demand.

The Global Acetone Market Industry is significantly influenced by the pharmaceutical and personal care sectors, where acetone is utilized as a solvent and an extraction agent. The rising consumer awareness regarding health and hygiene is propelling the demand for personal care products, which often contain acetone in their formulations. This trend is expected to bolster market growth, with projections indicating a market size of 14.0 USD Billion by 2035. The pharmaceutical industry's expansion, particularly in drug formulation and delivery systems, further underscores acetone's critical role in these applications.

The Global Acetone Market Industry is increasingly influenced by regulatory frameworks that promote sustainable practices within chemical manufacturing. Governments worldwide are implementing policies aimed at reducing environmental impact and encouraging the use of eco-friendly solvents. This regulatory support is likely to enhance the market for acetone, particularly as manufacturers seek to comply with stringent environmental standards. The emphasis on sustainability may lead to innovations in acetone production and application, potentially expanding its market share in various industries.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region leads the highest market share due to the leading position of consumers and producers of methyl methacrylate in China. In addition, the rising demand for plastic products leads to drive the demand for methyl methacrylate.

Figure 3:  ACETONE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North America has high growth potential for the market due to the flourishing petrochemical industry in the US and hence drives the acetone application in chemical and plastic industries. Europe holds tremendous potential growth of market volume in the next five years to recover the chemical industry. Latin America is expected to influence acetone consumption during the fastest-growing cosmetics & personal care products industry during the forecast period. Moreover, Mexico is the eighth-largest oil producer across the globe. This is one of the fastest-growing countries for the largest exports of electrical products, automotive vehicles, and machinery.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Acetone industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Acetone industry to benefit customers and expand the market sector. Major market players, including Honeywell International Inc, Dow, BASF, Mitsui Chemicals Inc, Shell Chemical Co, LG Chem Ltd, and others, are attempting to increase market demand by funding R&D initiatives.

Dow is a leading American multinational chemical company that operates in various industries, including packaging, infrastructure, consumer care, and electronics. Dow is organized into three business segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. The Packaging & Specialty Plastics segment produces packaging materials and films, while the Industrial Intermediates & Infrastructure segment produces chemicals used in manufacturing, including solvents, plastics, and adhesives. The Performance Materials & Coatings segment produces materials used in industrial and consumer applications, including coatings and adhesives.

Mitsui Chemicals Inc. is a Japanese multinational chemical company that operates in a wide range of industries, including petrochemicals, basic chemicals, and performance materials. Mitsui Chemicals is organized into five business segments: Mobility, Health Care, Food & Packaging, Basic Materials, and Others. The Mobility segment produces materials used in the automotive industry, including engineering plastics and films. The Health Care segment produces materials for medical devices and pharmaceuticals. The Food & Packaging segment produces materials used in food packaging, including films and containers.

The Basic Materials segment produces basic chemicals, such as phenol and acetone, as well as performance materials such as elastomers, synthetic resins, and films. The Others segment includes businesses related to energy and the environment.

LG Chem Ltd started exporting their first batch of bio-balanced phenol/acetone from July 2022 onwards. The use of renewable bio-feedstocks such as biomass or waste cooking oil obtained from renewable sources makes this an ISCC PLUS-certified product. South Korea has exported biggest volume of ISCC PLUS certified product so far: 4000 tons ​​of phenol plus 1,200 tons ​​of acetone alone.