Ethyl Acetate Market - Forecast(2023 - 2028)

Overview

Ethyl Acetate Market size is forecast to reach the market size of $4.9 billion, grow at a CAGR of 4.2% during 2020-2025. Increasing demand from the flexible packaging industry is leading the market growth of ethyl acetate. Apart from this, the replacement of conventional coatings by high solid and water-borne coatings is expected to hinder the growth of ethyl acetate industry.

Ethyl acetate, also known as ethyl ethanoate, acetoxyethane, acetic acid ethyl ester, acetic ether, ethyl acetic ester, vinegar naphtha, acetic acid, ethyl ester, ethylacetate, acetidin, acetic ester, is one organic compound and is used predominantly as a solvent in various reactions. Ethyl acetate is obtained through the direct esterification of ethyl alcohol with acetic acid, a process that involves combining acetic acid with excess ethyl alcohol and adding a small amount of sulphuric acid.

Report Coverage

The report: “Ethyl Acetate Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Ethyl Acetate Industry.

Key Takeaways

Innovations in production of ethanol from coal or natural gas industry is likely to act as an opportunity in future.

The rapidly expanding of construction industry due to the demand of new infrastructure and the income of green field investments across various sectors are becoming the major factors which helps to dominate the APAC region in ethyl acetate market.

By Application - Segment Analysis

Ethyl acetate has a wide range of applications as an effective solvent for nail polish removers, nail polishes and base coats. It has a fruity flavor and works in nail polish as a film-forming agent. It is also used in the extraction of nail polish as it is soft on nail enamel and absorbs nail paint easily. Frequent spa and salon customer visits to hold the nails will add to market demand. Increasing demand for nail products due to growing awareness of personal grooming, particularly in younger generations, may boost demand for products in applications for nail care. On the other hand, for paints and entomological killing agent, it is also used as an activator or hardener and as a solvent for inks, enamels and other chemical processes. Increasing disposable income and evolving behavior fuels the fragrance market, which in turn creates substantial opportunities for ethyl acetate to develop.

By End User - Segment Analysis

Food and beverages had the largest volume share on the global market for ethyl acetate in 2017 by end-use industries and is expected to grow with the CAGR of 4.1% over the forecast period from 2020 to 2025. It is anticipated that increasing demand for food & drinks would drive growth in the global market for ethyl acetate. Due to the increasing demand for ethyl acetate from the packaging industry, Asia Pacific had a significant market share in the global market for ethyl acetate in 2017. In the manufacture of plastic packaging, polyester and BOPP movies, ethyl acetate is used. In addition to packaging, the development in the region's online food distribution and e-retail business is expected to drive growth in the Asia Pacific ethyl acetate market during the forecast period due to rising food and beverage demand. Nonetheless, replacing solvent-based coating with water-borne coatings during the forecast period that impede the growth of the ethyl acetate industry.

Geography - Segment Analysis

It is predicted that Asia-Pacific will control the market demand analyzed during the forecast period with market share of more than 70% in 2019. Due to rising household incomes and urbanization levels in countries such as India, China, and Malaysia, significant growth rates are anticipated in Asia-Pacific. In terms of growth, China is the second largest economy in the world, and the increasing income rate of the country's population is driving the economy higher. Although in recent years the economy has seen steady growth, it is likely to recover and expand at a significant rate. In the recent past, demand for ethyl acetate has grown steadily over India. Automotive, meat, drink, and furniture are the main end-user industries in the country which hold significant shares in ethyl acetate use. In addition, increasing output of new vehicles, along with expanding manufacturing facilities in the region, demand for automotive coatings is expected to continue to rise in the coming years, which is expected to drive demand for the market being studied.

Drivers – Ethyl Acetate Market

Growing demand from paints and coatings application leads the market growth.

Ethyl acetate has its applications in a range of painting formulas in the paints and coatings business, such as epoxies, urethanes, cellulosic, acrylics, and vinyl. Ethyl acetate is the main use in oils as an activator and hardener. The global market for paints and coatings is rising at a healthy rate, largely due to the increasing housing construction activities in Asia-Pacific emerging economies, along with a rise in Asia-Pacific and Europe automobile production. With increasing housing development, population, and income levels in countries like India, China, Mexico, and Brazil, furniture demand is rising at a healthy rate. This scenario is expected to increase demand for wood coatings, in effect enhancing the use of ethyl acetate used to formulate these coatings, which further propels the market demand analyzed during the forecast period.

Market Landscape