PUBLISHER: Mordor Intelligence | PRODUCT CODE: 357606
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 357606
The bio-acetic acid market is expected to grow at a CAGR of above 4% during the forecast period. The major factors driving the growth of the market studied are the rising crude oil prices, increasing demand for Vinyl Acetate Monomer (VAM) market, and stringent government regulations. On the flip side, the scarcity & social constraints for raw materials, and environmental concerns regarding the harmful effects are some of the factors hampering the growth of the studied market.
The United States segment of the market studied is expected to grow at a high pace, during the forecast period. The country's food and meat processing industry is one of the major consumers of bio-acetic acid. The production of meat and poultry has increased, due to an increase in exports to countries, like China, South Korea, Japan, Canada, and Mexico.
Advanced Hardwood Biofuels Northwest (AHB), a consortium of university and industry partners in the country, funded by the USDA National Institute of Food and Agriculture, is developing a system to produce renewable liquid biofuels and bio-based chemicals from sustainably-grown hybrid poplar trees.
One of the most financially promising bio-based chemicals that could be produced by the AHB process is acetic acid. It is the building block of ethanol, ethylene, and jet fuel. It is not only produced with the highest yields out of all the potential bio-chemicals but also has one of the highest selling prices. Configuring bio-refinery to produce acetic acid allows market flexibility and the ability to upgrade the acid to other chemicals and fuels. A sizeable amount of acetic acid can be produced in the United States, owing to technological developments in AHB.
Moreover, there are many existing bio-refineries in the United States that process corn into sugars (such as high fructose corn syrup), oils, animal feeds, and food ingredients (such as xanthan gum). More than 200 ethanol bio-refineries have been built, which use corn's starch for biofuel, and the remaining protein and fat for animal fodder and vegetable oils.
the aforementioned factors are likely to increase the demand and consumption of bio-acetic acid during the forecast period.
The bio-acetic acid market is a consolidated market, where few major players hold significant share of the market demand. Some of the major players in the market include Zea2, Godavari Biorefineries Ltd., Sucroal SA, Novozymes AS, and Wacker Chemie AG, amongst others.