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Bio-acrylic Acid Market Overview
The global bio-acrylic acid
market size is forecast to reach US$9.2 billion in 2027 after growing at a CAGR
of 7% during 2022-2027. The bio-acrylic acid market is on the rise owing to its
eco-friendly and renewability nature as compared to conventional organic acids.
Superabsorbent polymer is projected to contribute hugely to the market’s
growth. Superabsorbent polymers come with excellent large
volumes of liquid absorption and retaining quality which makes them suitable
for fluid-containing products such as diapers, absorbent medical dressings,
adult incontinence pads, etc. Acrylic esters dominated the market in the last
few years. The acrylic
esters are segmented into ethyl acrylate, methyl acrylate, hydroxypropyl acrylate, ethylhexyl acrylate, and butyl acrylate.
Corn is anticipated to drive the bio-acrylic acid market’s growth owing to its
renewable nature and increasing environmental concerns. The high usage of paints
and coatings in the expanding construction activity is expected to contribute
extensively to the market's growth in the coming years. However, the need for
cost-effective production of bio-acrylic acid might slow down the growth of the
target market.
COVID-19 Impact
The bio-acrylic acid market suffered badly due to the COVID-19 impact.
Disruptions in supply chain and factory shutdowns disturbed the bio-acrylic
acid ecosystem, creating a shortage in feedstock used in the manufacturing of
bio-acrylic acid. Moreover, the shutdown of the construction and industrial
sector which utilizes bio-acrylic acid-based paints and coatings, adhesives,
and sealants, also affected the target market severely during the pandemic.
However, once the market got operational post-COVID-19, there has been an
increasing demand for bio-acrylic acid due to rapid construction work globally.
Also, due to the increased consciousness about clean surroundings and personal
hygiene, the demand for laundry care products has jumped amid the pandemic,
which saw bio-acrylic acid used in the production of liquid laundry detergent,
contributing to the growth of the bio-acrylic acid market. Going forward, as
there are too many construction activities going on globally, the target market
will witness huge growth owing to the usage of bio-based paints and coatings,
adhesives, etc.
Report Coverage
The report: “Bio-acrylic Acid Market Forecast (2022 -2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Bio-acrylic Acid Industry.
Key Takeaways:
- Superabsorbent polymers will contribute hugely to markets growth in the forecast period owing to their eco-friendly and renewability properties, making them a desirable choice for liquid-absorbing and containing products.
- The paints and coatings segment will drive the growth of the bio-acrylic acid market in the coming years owing to their increased demand in expanding construction and industrial sector. For instance, according to India Brand Equity Foundation (IBEF) report, Foreign Direct Investment (FDI) received for the construction development sector (townships, housing, built-up infrastructure, and construction development projects) in India was valued at US$ 26.08 billion between April 2000 and March 2021.
- Asia-Pacific region
will contribute immensely to the market’s growth owing to rapid construction
activities occurring in emerging economies such as China, India, Japan, etc.
For instance, according to International Trade Administration 2021 data,
the Chinese construction sector is on a progressive track since May 2020 even
the industry being slowed down by the COVID-19 pandemic.
Figure: Asia Pacific Bio-acrylic Acid Market Revenue, 2021-2027 (US$ Billion)
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Bio-acrylic Acid Market - By Type
Superabsorbent polymer is anticipated to drive
the bio-acrylic acid market’s growth in the forecast period with a CAGR of 6.8%.
These polymers have the quality to absorb and contain large volumes of aqueous
solutions due to which, they are used in liquid-absorbing applications like
adult incontinence pads, diapers, controlled-release drugs, absorbent medical
dressings, etc. Superabsorbent polymer is one of the largest markets for
bio-acrylic acid and this type of polymer is widely used in diapers. For
instance, according to the statistics of the National Diaper Bank Network of
the US, a baby needs 6-12 diapers per day, which is a high number. This high
demand for baby diapers will augment the usage of superabsorbent polymer,
ultimately driving the growth of the bio-acrylic acid market. Furthermore,
various government initiatives involving different media centers and NGOs to
educate people about personal hygiene and develop the habit of using sanitary
napkins among women will boost the usage of superabsorbent polymer, thereby
boosting the bio-acrylic acid market growth in the forthcoming years. Acrylic esters like methyl acrylate, ethylhexyl acrylate, hydroxypropyl acrylate, among
others are expected to witness significant demand in paints and coatings and
textiles which will contribute to the growth of the bio-acrylic
acid market in the forthcoming years.
Bio-acrylic Acid Market - By Raw Material
Corn dominated the raw material segment in the
bio-acrylic acid market in 2021. Corn has been gaining traction in the last few
years in the manufacturing of bio-acrylic acid globally. Manufacturers
are more driven towards using corn as the raw material for producing bio-acrylic acid due to its
sustainable property. For instance, in May 2020, agribusiness giant Cargill, which
deals with corn, worked along with Procter & Gamble
(P&G) on the development of bio-acrylic acid from lactic acid. This collaboration was done to breathe fresh
life into Cargill’s effort to produce bio-acrylic
acid from corn. Such development in the production of bio-acrylic acid implementing corn will drive the growth of the target
market. Furthermore, the renewable and sustainable quality of corn
makes it a suitable choice to use in the production of bio-acrylic acid. All these superior qualities will put forward corn as the
key raw material, thereby driving the growth of the bio-acrylic acid market in the forecast year.
Bio-acrylic Acid Market - By Application
The paints and coating segment dominated the
bio-acrylic acid market in 2021 and is growing at a CAGR of 7.2% during the
forecast period. This segment is gaining attraction owing to its increasing
demand in the construction sector. Bio-acrylic acid is used in the production
of paints and coatings which are used extensively in the construction sector.
Post COVID-19 pandemic, construction activities across the globe is booming.
For instance, according to a 2021 statistical report by European Construction
Industry Federation, in 2021, the housebuilding segment is anticipated to witness
an excellent investment growth rate of 5.5%. Similarly, according to India
Brand Equity Foundation (IBEF) report, the Indian construction sector is
projected to be the world’s third-largest construction market by 2022. These
expanding construction sectors globally will augment massive usage of paints
and coatings, thereby driving the growth of the bio-acrylic acid market in the
forecast period. Apart from the construction sector, the rising demand for superabsorbent polymers,
made up of bio-acrylic acid, is used massively in the manufacturing of diapers
and female sanitary pads, which, in turn, will contribute significantly to the
market's growth in the forecast period.
Bio-acrylic Acid Market - By Geography
The Asia-Pacific region held the largest market share in the bio-acrylic acid market in 2021 with 28% share. This region will contribute to the maximum growth of the bio-acrylic acid market through increasing demand for bio-acrylic acid-based paints and coatings, widely used in the construction sector, especially in emerging economies such as China, India, and Japan. China being the largest construction market in the world, the region will witness massive usage of paints and coatings due to expansion in construction activities. For instance, according to International Trade Administration 2021 report, between 2021 to 2029, the Chinese construction sector is projected to grow at an annual average of 5.2 %. Similarly, according to India Brand Equity Foundation (IBEF) data, Foreign Direct Investment (FDI) received in the construction (infrastructure) activities between April 2000 and March 2021 was valued at US$ 24.72 billion. These positive growth rates in the construction sector will demand more uses of paints and coatings, adhesives, and sealants, thereby stimulating the bio-acrylic acid market in the forecast market. The European region is also expected to contribute significantly to the market’s growth owing to increasing construction activities in the region. For instance, according to the 2021 statistical report by European Construction Industry Federation, the non-residential construction sector is projected to have an investment growth of 2.6% in 2021. This growing investment and expansion in the construction sector in the region will drive the target market’s growth in the coming years.
Bio-acrylic Acid Market Drivers
Expanding construction sector will drive the market’s growth
The construction
sector post COVID-19 is booming due to extensive construction projects and high
investments in the sector. Bio-acrylic acid is used in the production of paints
and coatings which are extensively used in the construction sector, and the expanding
construction activities will help the target market to grow rapidly. For
instance, according to Eurostat August 2021 report, the building construction
sector in the Euro Area and European Union jumped by 3.1% and 3.8% respectively
in June 2021. Similarly, countries like China and India in the Asia-Pacific
region, are also witnessing huge growth in the construction sector. For
instance, according to National Investment Promotion and Facilitation Agency
report, construction output is projected to grow at an average of 7.1% each
year by 2025. These increasing activities in the construction sector will drive
the bio-acrylic acid market in the forecast period.
Growing demand for sustainable products will drive the bio-acrylic acid market
Manufacturers and brand owners are engaging more in
the incorporation of bio-acrylic acid to minimize the environmental impact and
develop more sustainable products. Furthermore, manufacturers want to use
renewable crops like corn, maize, etc to deliver more renewable solutions. In
recent sustainable product development, Procter & Gamble (P&G) was
awarded the American Chemical Society (ACS) 2020 Award for Affordable Green
Chemistry for an innovative sustainable technology the company developed with
the incorporation of bio-acrylic acid last year. Such progress in the field of
sustainable product development will witness more utilization of bio-acrylic
acid, thereby boosting the growth of the target market in the forecast period.
Bio-acrylic Acid Market Challenges
Cost-effective production of bio-acrylic acid might hinder the market’s growth
The main challenge persisting in the target
market is the production of bio-acrylic acid from renewable resources
cost-effectively. At present, many manufacturers globally are considering
lactic acid as the key raw material for manufacturing bio-acrylic acid. The
manufacturers are dealing with deriving bio-acrylic acid from lactic acid but
it is far from reaching commercial-scale manufacturing. Manufacturers like
Cargill, Archer Daniels Midland (ADM), and many more are constantly exploring
various ways to tackle the challenge to produce bio-acrylic acid
from renewable resources in a cost-effective way and provide a sustainable
solution to the customers. According to July 2020 European
Patent Office data, the different approaches for producing bio-acrylic
acid is not yet cost-competitive and involve high operational cost and capital
cost. So, there is a need for additional cost-effective ways for the production
of bio-acrylic acid at a commercial scale, and this, in turn, might affect the
growth of the bio-acrylic acid market in the coming years.
Bio-acrylic Acid Industry Outlook
Investment in R&D activities, acquisitions, product
and technology launches are key strategies adopted by players in the Bio-acrylic Acid
Market. Major players in the Bio-acrylic Acid
Market are:
- Cargill
- BASF
- Novozymes
- Dow Chemicals
- LG Chem
- Archer Daniels Midland (ADM)
- Arkema
Group
- Mitsubishi Chemical Corporation
- Nippon Shokubai Co. Ltd
- Others
Acquisitions/Product Launches
In September 2019, US based company Archer Daniels Midland (ADM) joined hands with South Korea’s LG Chem to create bio-acrylic acid from corn. This project aims at economically viable production of bio-acrylic acid, which contributes to the growth of the bio-acrylic acid market.