Bio-acetic Acid Market Trends

Growth Drivers

• Growing Prices of Crude Oil– Brent crude futures jumped USD 1.10, or 1.3%, to USD 86.24 per barrel, while West Texas Intermediate crude rose USD 1.27. A rise in crude oil prices can push the economic incentives for the development and production of bio-based chemicals, including bio-based acetic acids.
• Increasing Demand for Biofuels – In comparison to 2021, the demand for biofuel in the world will rise by around 6% or 9100 million liters per year in 2022. Renewable diesel accounts for the majority of this year-on-year growth. The higher production of biofuel can also benefit the production of bio-acetic acid, as it can rely on shared feedstock infrastructure of biomass, sugarcane, corn, and others.
• Growing Production of Automobiles- In 2022, around 85 million motor cars were manufactured around the world, representing a 5.7% increase over 2021. The automotive industry is increasingly using bio-based acetic acid for manufacturing the interior components of automobiles.

Challenges

• Slow Scaling of the Bio-acetic Acid- It is difficult to maintain efficiency, and cost-effectiveness and to achieve scalability at the same time. Therefore, achieving economies of scale is crucial to compete with the production of conventional acetic acid.
• Low Awareness Among People Related to Bio-acetic Acid
• Lack Of Raw Material for Bio-acetic Acid