Acrylic acid is a versatile organic compound used across a wide range of industries, from adhesives and paints to textiles, detergents, and superabsorbent polymers. With a significant role in manufacturing high-performance materials and coatings, the acrylic acid market has been witnessing robust growth. As of 2023, the global Acrylic Acid Market Size stands at approximately 8.44 million metric tons (MMT), and is projected to grow at a compound annual growth rate (CAGR) of 5.1%, reaching around 13.21 MMT by 2032.

Key Benefits of Acrylic Acid

1. Versatility Across Industries: Acrylic acid’s ability to be used in a wide variety of applications, such as paints, adhesives, textiles, and construction, is one of its primary benefits. Its role in creating superabsorbent polymers for products like diapers and sanitary napkins is significant.
2. Improved Performance and Efficiency: Acrylic acid is used in the production of polymers that offer enhanced performance characteristics. For instance, in paints and coatings, acrylic acid improves the durability, gloss, and scratch resistance of products.
3. Sustainability: The demand for sustainable and bio-based acrylic acid is increasing, especially in the wake of rising environmental concerns. Advances in the production of acrylic acid from renewable raw materials are driving the growth of green chemistry practices in the industry.
4. Economic Growth in Emerging Markets: Acrylic acid’s use in construction and manufacturing materials is particularly important in emerging economies where rapid urbanisation and industrialisation are taking place.

Key Industry Developments

The global acrylic acid market has seen several notable developments in recent years, including:

1. Bio-based Acrylic Acid: Companies are increasingly focusing on developing bio-based acrylic acid as an alternative to traditional petroleum-based sources. For instance, in 2020, companies like BASF and Novozymes announced partnerships aimed at commercialising bio-based acrylic acid, capitalising on sustainable practices.
2. Innovation in Production Methods: Technological innovations such as the use of glycerin as a feedstock for acrylic acid production are gaining traction. This innovation is driven by the demand for more cost-effective and eco-friendly production methods.
3. Increasing Investments in R&D: Manufacturers are investing heavily in research and development (R&D) to create more efficient production processes, develop new applications, and optimise the use of acrylic acid in high-performance materials.
4. Strategic Mergers and Acquisitions: To consolidate their positions in the acrylic acid market, major players are engaging in strategic mergers and acquisitions. For example, in 2021, Mitsubishi Chemical and Dow Chemical Company entered a joint venture to strengthen their production capacity and expand their geographical reach.

Driving Factors for Acrylic Acid Market Growth

The growth of the global acrylic acid market can be attributed to several key drivers:

1. Booming Demand in the Superabsorbent Polymers Sector: The primary application of acrylic acid is in the production of superabsorbent polymers (SAPs), which are used in products like diapers, adult incontinence products, and feminine hygiene products. As the global population grows and consumer demand for hygiene products increases, the market for SAPs is expanding rapidly.
2. Growth in the Paints and Coatings Industry: Acrylic acid is an essential ingredient in the production of paints and coatings, contributing to the creation of durable, high-performance products. As construction, automotive, and other industries grow, the demand for acrylic-based paints and coatings is expected to continue its upward trajectory.
3. Demand for Adhesives and Sealants: Acrylic acid-based adhesives and sealants are widely used in automotive, construction, and packaging industries. The growth in these sectors, particularly in emerging economies, is driving the demand for acrylic acid.
4. Environmental Awareness and Green Chemistry: With rising environmental concerns, there is a growing demand for sustainable production methods in the acrylic acid industry. The increasing shift towards bio-based acrylic acid offers an opportunity to reduce reliance on fossil fuels and mitigate carbon emissions.
5. Technological Advancements in Production: Advancements in manufacturing technologies, including more efficient catalytic processes, are helping acrylic acid producers lower costs and increase production efficiency, further driving market growth.

Restraining Factors for Acrylic Acid Market

Despite its widespread applications and growth prospects, the acrylic acid market faces several challenges:

1. Fluctuating Raw Material Prices: The production of acrylic acid depends heavily on petrochemical derivatives like propylene and acetylene. Fluctuations in the prices of these raw materials, driven by global supply and demand, can impact the overall production cost of acrylic acid.
2. Environmental Regulations: Stringent environmental regulations governing the production of acrylic acid, particularly related to emissions and waste management, can lead to increased operational costs for manufacturers. This can inhibit growth, especially in regions with stricter regulations.
3. Intense Competition: The acrylic acid market is highly competitive, with numerous global and regional players vying for market share. This intense competition can result in price wars, reducing profit margins for manufacturers.
4. Economic Slowdowns: Economic downturns and instability, particularly in key end-use sectors such as construction and automotive, can lead to reduced demand for acrylic acid, affecting overall market growth.

Market Segmentation

The global acrylic acid market can be segmented based on application, production process, and region.

1. By Application

• Superabsorbent Polymers (SAPs): This is the largest and fastest-growing segment due to the increasing demand for hygiene products.
• Paints and Coatings: Acrylic acid-based coatings are used in the automotive, construction, and packaging sectors for their durability and performance.
• Adhesives and Sealants: Acrylic acid plays a crucial role in the production of adhesives for various applications, from construction to automotive.
• Water Treatment Chemicals: Acrylic acid is used in water treatment chemicals due to its effectiveness in water flocculation and scale inhibition.

2. By Production Process

• Propylene-based Acrylic Acid: This is the most common method for acrylic acid production, derived from propylene.
• Bio-based Acrylic Acid: As the demand for sustainable and eco-friendly products increases, bio-based acrylic acid production is gaining traction, with a growing emphasis on renewable feedstocks.

3. By Region

• North America: The North American market is driven by the robust demand for superabsorbent polymers and coatings. The US is the leading producer and consumer of acrylic acid in the region.
• Europe: Europe’s acrylic acid market is influenced by stringent environmental regulations and increasing adoption of bio-based products.
• Asia-Pacific: The Asia-Pacific region holds the largest market share due to the rapid industrialisation and growing demand from emerging economies like China and India.
• Latin America: Growing construction and automotive sectors are driving acrylic acid demand in this region.
• Middle East and Africa: The region’s acrylic acid market is expanding due to increasing demand from the oil and gas, automotive, and construction industries.

Market Outlook and Trends

The global acrylic acid market is expected to witness steady growth during the forecast period of 2024-2032, driven by rising demand in applications such as superabsorbent polymers, paints and coatings, and adhesives. Innovations in bio-based acrylic acid and improvements in production processes will further fuel market growth.

Additionally, increasing consumer awareness about sustainability and environmental issues is likely to lead to a greater focus on green chemistry solutions, with more manufacturers adopting bio-based feedstocks for acrylic acid production.

Major Key Players

• BASF SE
• Nippon Shokubai Co. Ltd. 
• The Dow Chemical Company
• Arkema Group
• LG Chem. Ltd. 
• Shanghai Huayi Acrylic Acid Co., Ltd
• Evonik Industries AG
• Mitsubishi Chemical Corporation
• SIBUR International GmbH
• Satellite Chemical Co.,Ltd.
• Wanhua Petrochemical (Yantai) Co., Ltd.
• Toagosei Co., Ltd
• China Petroleum & Chemical Corporation
• Others

Opportunities and Challenges

Opportunities:

• Expansion into Emerging Markets: With rapid industrialisation and urbanisation in emerging economies, there is a significant opportunity for acrylic acid producers to expand their presence in these regions.
• Adoption of Green Chemistry: The shift towards sustainable practices offers a lucrative opportunity for players investing in bio-based acrylic acid and eco-friendly production technologies.

Challenges:

• Price Volatility: The reliance on petrochemical feedstocks makes the acrylic acid market vulnerable to price volatility.
• Regulatory Hurdles: Compliance with strict environmental regulations in key markets can increase production costs and create operational challenges.