Top Leading Players in the Acetone Industry, 2022
Acetone is a chemical compound that works as a solvent in commercial applications. It is a colorless, transparent, volatile liquid with a sweet odor. Increasing use of solvents and expanding demand from the cosmetic, automotive, adhesive, and pharmaceutical industries are anticipated to boost the market’s growth. The demand for acetone is rising due to the development of end-use industries such as electronics, pharmaceuticals, petroleum, cleaning, and personal care.
According to Fortune Business Insights, the global acetone market size was valued at USD 3,962.0 billion in 2019 and is expected to reach a valuation of USD 4.995.3 billion by 2027 at a CAGR of 3.7% during the 2020-2027 period. The demand for acetone is expected to rise due to the steady adoption of chemicals and petrochemicals from different industries. Consumer inclination toward leading a healthy life by adopting eco-friendly cosmetics and personal care products is expected to promote market growth.
Acetone is also known as dimethyl ketone, CH3COCH3, and 2-propane. The constantly rising demand backs the market growth of acetone for applications in cosmetics and green solvents. Acetone is used in cosmetics manufacturing, such as nail enamels and paint removers. It is also used as a solvent for many synthetic fibers and plastics. Higher demand for solvents in the pharmaceutical industry is expected to aid the market’s growth.
COVID-19 Impact: Disruption in Product Distribution to Impede Market Growth
The pandemic disrupted supply chains in various regions due to uncertain demand for the product worldwide. Port clearance shutdown and government restrictions on manufacturing activities hindered the market growth. The crude oil price war during the pandemic disturbed the rate of manufacturing. Halt in train and truck transportation between countries negatively affected the market growth of acetone.
The Top Market Players are as follows:
- LyondellBasell Industries Holdings B.V is a multinational company formed in December 2007 by Lyondell Chemical Company’s acquisition by Basell Polyolefins. The company is headquartered in Houston, Texas, and has offices in London, U.K. It is counted as one of the largest licensors of polypropylene and polyethylene technologies. It also produces propylene, ethylene, oxyfuels, and polyolefin.
In September 2020, the company started its molecular recycling facility, “MoReTec,” at its Ferrara site in Italy. LyondellBasell’s MoReTec molecular recycling technology goal is to recycle post-consumer plastic waste into its initial molecular form and use it as a feedstock for new plastic materials.
- INEOS is a British multinational company of chemicals headquartered in London. As per the data for 2021, it is the fourth-largest chemicals company worldwide. It is named after Inspec Ethylene Oxide and Specialities, which was formed by Sir Jim Ratcliffe, the Chairman, and CEO of INEOS Chemicals Group.
INEOS signed an intent in June 2020 to acquire the petrochemical unit of British Petroleum Company plc. The business emphasized acetyls and aromatics. The company has 14 plants in Europe, the U.S., and Asia, further gaining higher production.
- The company was founded in 1986 and is headquartered in Houston, Texas. It is a chemical company that produces chemicals and petrochemicals that involve acetone, ketones, alpha-methyl-styrene, and carbinol. It majorly serves its clients in the U.S.
In September 2021, Altivia revealed the sale of its water treatment chemical business to USALCO, LLC. Its water treatment business includes the production of ferrous and ferric sulfate in Texas.
Royal Dutch Shell Co
- The company is a cooperative publicly treated corporation of petroleum and was established in 2005 by the amalgamation of rival companies. It is headquartered in Hague, Netherlands. The Netherlands’ Royal Dutch Petroleum and the U.K.’s Shell Transport and Trading Company Limited united to form the Royal Dutch Shell Co.
In January 2022, Royal Dutch Shell was a surprise bidder to acquire Spring Energy, an Indian renewable platform of Actis LLP. The company is expected to compete with Canadian pension fund CPP Investment Board and Australian infrastructure fund Macquarie for the potential billion-dollar buyout.
Honeywell International Inc
- Mark C. Honeywell founded Honeywell International Inc. in 1906. It is an American multinational publicly-traded company headquartered in Charlotte, North Carolina. It primarily operates in four business areas: performance materials and technologies, aerospace, safety, productivity solutions, and building technologies.
Honeywell revealed a new set of commitments with further advanced sustainability goals to become carbon neutral in its operations and facilities by 2035.
The market share of acetone is expected to expand due to consistently rising commercial activities. The industry is upgrading every day, which is expected to surge the demand for the product. Using the product in the cosmetics and chemical industries is expected to bolster market growth.