Acetic Acid Market Outlook:
Acetic Acid Market size was valued at USD 17.2 billion in 2025 and is projected to reach a valuation of USD 40.1 billion by the end of 2037, rising at a CAGR of 5.7% during the forecast period, i.e., 2026-2037. In 2026, the industry size of acetic acid is evaluated at USD 18.2 billion.
The acetic acid market is witnessing a drastic change due to rising focus on sustainability and supply chain optimization. Suppliers are investing more in low-carbon production and circular economies to meet strict environmental regulations and corporate sustainability practices. In February 2024, climate-tech firm Again signed a record 10-year agreement with global chemical distributor HELM AG to supply 50,000 tonnes of low-carbon acetic acid made through COâ‚‚ fermentation. The agreement is the industry's transition to new, green solutions. The industry is also seeing strategic capacity build-outs and CAPEX to optimize efficiency and meet regional supply gaps, setting producers up for long-term growth.
The raw material supply chain for acetic acid is heavily dependent on the carbonylation process of methanol, utilizing methanol and carbon monoxide as primary feedstocks. The comparative price of these feeds is directly tied to volatile markets for crude oil and natural gas and their resulting direct impact on chemical prices. To cater to rising demand from the rest of the world, several companies are focused on increasing their production capacity. As per the Independent Commodity Intelligence Services (ICIS), the production capacity of acetic acid increased from 17.3 million tons in 2019 to 20.0 million tons in 2023. This increase, together with large new capacities installed in Asia in recent years, is indicative of the industry responding to protracted demand.
