CEH Report

Table of Contents

Abstract

Acetic acid is a global product. China, the United States, the rest of Asia and Western Europe account for the majority of the acetic acid market. Of total global acetic acid capacity (virgin acid), 44% is in China, followed by 21% for the rest of Asia, 19% in the United States and 6% in Western Europe. These regions make up 90% of total world capacity.

China accounts for the largest share of acetic acid consumption with 30% of total demand. The rest of Asia accounted for 27% of global demand, followed by 20% in the United States and 14% in Western Europe. These regions totaled over 90% of global acetic acid consumption.

Vinyl acetate monomer (VAM) is the largest end use for acetic acid in China, the United States, Western Europe and Japan. VAM is used in polymer manufacture for adhesives and coatings. Acetic acid use for acetic anhydride production accounts for 18% of total global acetic acid consumption. Acetic anhydride is used mainly for cellulose flake production. Approximately 17% of the global consumption of acetic acid is used for terephthalic acid (TPA) production. TPA is used mainly for the manufacture of polyethylene terephthalate (PET) solid-state (packaging) resins, fibers and films. Acetic acid use for acetate ester production accounts for 17% of total global acetic acid demand. Acetate esters are used mainly as solvents for inks, paints and coatings. The remainder of acetic acid (15%) is consumed for other purposes such as monochloroacetic acid (MCA), ketene and diketene derivatives, pharmaceuticals, dyestuffs and in other industries.

The following pie chart shows world consumption of acetic acid:

The future growth of the acetic acid market will continue to be driven by the Chinese market. New capacity is expected onstream in the next few years, while strong growth of 6–7% per year is expected for consumption. Acetic acid use in China for VAM production will grow 7% annually in the next five years as a result of the commercial processes used. There will also be good growth for acetic anhydride consumption as domestic demand for cellulose acetate increases. Use in acetate esters will grow 5–6% annually as China continues to produce ethyl and butyl acetates, and acetic acid use in TPA will grow nearly 6% per year as TPA capacity increases. Finally, other acetic acid uses in markets such as monochloroacetic acid, pharmaceuticals and dyestuffs are expected to reach nearly 9% annual growth.

Acetic acid demand will also experience strong growth in other regions. For example, the Middle East is expected to have double-digit growth because of the expansions of VAM and TPA capacities. A new acetic acid unit came onstream in late 2009 to support these projects. In Central and Eastern Europe, strong growth for acetic acid use is anticipated as TPA capacity expansions are planned in the near future. In Central and South America, 4–5% annual growth for acetic acid consumption is expected as acetate esters use continues to grow. Also, growth will occur as a result of new TPA and VAM capacities.

Overall, an average annual growth rate of 3–4% is forecast for world acetic acid consumption during 2009–2014. The rest of Asia, the United States and Western Europe will experience limited growth of 1–2% per year.