Acrylic acid is an organic compound with the formula CH2=CHCO2H. It is a colorless liquid with a characteristic acrid unpleasant odor. Acrylic acid and its derivatives, such as esters and polymers, find a variety of applications across industries such as adhesives and sealants, diapers, surface coatings, and water treatment aids among others. Rising demand for acrylate esters and polymers from the adhesive and sealants market is majorly contributing to the growth of acrylic acid.
The global acrylic acid market is estimated to be valued at US$ 13.18 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Acrylic adhesives offer excellent bonding strength to a wide variety of substrates including metal, ceramic, glass, and wood. They also provide high transparency, extreme weather resistance, and flexibility. These characteristics have resulted in wide acceptance of acrylic adhesives in construction, automotive, packaging and other industrial applications. Growing demand for acrylic adhesives from the adhesive and sealants market is expected to present lucrative opportunities for acrylic acid manufacturers over the forecast period. Increasing R&D towards development of bio-based and eco-friendly adhesives using acrylic acid is further expected to boost the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the acrylic acid market is low as it requires high R&D investments and capital to set up manufacturing facilities.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of many established manufacturers. However, the unique properties of acrylic acid give buyers less influence over prices.
Bargaining power of suppliers: Acrylic acid manufacturers depend majorly on propylene and benzene as raw materials whose global supplies are consolidated, giving suppliers moderate bargaining power.
Threat of new substitutes: Substitutes like methacrylates and polyvinyl alcohol possess limited thread as acrylic acid offers unique properties like transparency and UV resistance preferred for diversified end-use industries.
Competitive rivalry: The market has major global players competing on pricing and product differentiation resulting in high competitive rivalry.
SWOT Analysis
Strengths: Acrylic acid has wide applications as a monomer for water-based paints and coatings, superabsorbent polymers, and specialty polymers industries.
Weaknesses: Volatility in raw material prices and stringent environmental regulations for production increase costs.
Opportunities: Growing end-use industries like paints and construction provide new areas for acrylic acid derivatives. Asian markets offer high growth potential.
Threats: Environmental issues during manufacturing and developing new bio-based technologies for substitutes.
Key Takeaways
The Global Acrylic Acid Market Size is expected to reach US$ 13.18 Billion by 2024, exhibiting robust growth during the forecast period owing to growing application industries. The Asia Pacific region currently dominates the market and is expected to maintain its leading position till 2030 backed by China and India’s massive construction and coatings industries driving acrylic acid demand. Key players operating in the acrylic acid market are Abbott, BD, Cardinal Health, Johnson & Johnson, Medtronic, 3M, Steris, and Teleflex. The Asia Pacific acrylic acid market is estimated to witness the highest CAGR during the forecast period due to increasing infrastructure development activities and growing manufacturing sector. Key manufacturers are focusing on expanding their production facilities in the region to cater to the rising demand.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it