Ethyl Acetate Market

Ethyl Acetate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

SR496906 | 26-Mar-2021 | 110 Pages | Mordor Intelligence |

Summary

The Global Ethyl Acetate Market is projected to register a CAGR of over 5% during the forecast period (2021-2026). The outbreak of COVID-19 affected the sales of paints and coatings as the construction activities were halted. However, the interest in DIY home decorations has increased as more time is spent in the home due to lockdown, thus increased consumer's interest toward paints and coatings is acticipated to impact the ethyl acetate market. Furthermore, the chemical industries have been shut down due to COVID-19 and resulted in less production of chemical products such as pigments, solvents, and intermediates and negatively impacted the ethyl acetate market.​

- Over the medium term, the major factor driving the growth of the market studied is increasing demand from flexible packaging industries.
- Moreover, the regulations towards natural rubber production increased the production of synthetic rubbers and thus driving the market studied.
- On the flip side, the replacement of conventional coatings by water-borne and high solid coatings decreased the growth of ethyl acetate market.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.

Key Market Trends

Increasing Demand from the Paints and Coatings Industry

- The paints and coatings segment of the market studied accounted for the largest share of the ethyl acetate market. Ethyl acetate is used in paints as an activator or hardener. It is also used as an industrial solvent in coatings, adhesives, and rayon, primarily to dissolve the material. It is a common ingredient in lacquers, varnishes, and thinners that coat surfaces.
- Ethyl acetate is used for manufacturing a variety of coating formulations, such as urethanes, cellulosics, acrylics, epoxies, and vinyl. The applications of these coatings include nitrocellulose and cellulose varnishes, acetate lacquers, and shellacs for wood furniture and fixtures, decorating ceramic objects, automotive, auto refinishing, and architectural coatings for interiors and exteriors. It exhibits high dilution ratios with, both, aromatic and aliphatic diluents, and it is the least toxic of the industrial organic solvents.
- The global paints and coatings market is growing at a healthy rate, majorly owing to the increasing housing construction activities in regions, such as Asia-Pacific, North America, and Middle East & Africa.
- Furthermore, with the increasing housing construction activities, growing population, and rising income-levels in countries, such as India, China, Mexico, and Brazil, the demand for furniture is expected to increase at a healthy rate. This scenario is expected to increase the demand for wood coatings. This, in turn, is boosting the consumption of ethyl acetate, primarily for the formulation of these coatings.
- In addition, the increasing demand for epoxy coatings in the aerospace and food and beverage sectors around the world are expected to have a positive impact on the demand for ethyl acetate over the forecast period.
- However, market growth is estimated to be hampered largely by the outbreak of COVID-19, as manufacturing activities are halted due lockdown prevailed. However, the construction activities resumed, and the demand for paints and coatings is expected to revive during the forecast period, thereby driving the market for ethyl acetate.

Asia-Pacific Region to Dominate the Demand

- Asia-Pacific is expected to dominate the demand for the market studied during the forecast period. Moreover, significant growth rates are expected to be witnessed in Asia-Pacific, owing to the increasing household incomes and urbanization rates in countries, such as China, India, and Malaysia, etc.
- China is the world’s second-largest economy in terms of growth, and the increasing level of income of the country’s population is further driving the economy. Though the economy witnessed a steady growth in the past years, it is likely to recover and expand at a significant rate.
- China is the world's largest automotive producer. However, in 2018, the country witnessed a 4.16% decline in vehicles' production, accounting for 27,809,196 units of motor vehicles. The automotive industry's performance was affected by economic shifts and China's trade war with the United States. This trend sustained during 2019 as well, as the domestic automotive production and sales declined by 7.5% and 8.2%, respectively.
- The production of vehicles in the country is estimated to decline further in 2020. Despite the domestic recovery in the economy in Q2 2020, low consumer confidence and supply chain disruptions remain as the reasons for the downfall in automotive production. The sales of new vehicles in the country have decreased by over 8% for the period of January to August 2020, compared to the previous year.
- The demand for ethyl acetate in India has been growing at a steady rate in the recent past. Automotive, food and beverage and packaging are the key end-user industries that occupy significant shares in the consumption of ethyl acetate in the country.
- The government’s initiative, to develop smart cities and to build almost 30 million homes by 2022, is likely to propel the demand for wood coatings. Rising floor renovating activities in the country and shift toward wooden flooring, primarily in commercial buildings, such as hotels and resorts, is boosting the demand for floor coatings.
- Owing to the robust demand from the food and beverage and pharmaceutical sectors, the Indian market for flexible packaging is witnessing a rapid growth. The packaging industry in the country is expected to witness significant growth during during the forecast timeline.
- Due to all such factors, the market for ethyl acetate in the region is expected to have a steady growth during the forecast period.

Competitive Landscape

The ethyl acetate market is consolidated in nature. Some of the major players in the market include INEOS, Sipchem, Celanese Corporation, Eastman Chemical Company, and DAICEL CORPORATION among others.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support