Global Acetone Market Report, Size, Share, Opportunities, and Trends By Application, End-Use, and Geography - Forecast From 2025 To 2030

Description

Acetone Market Size:

The global acetone market is anticipated to register a compound annual growth rate (CAGR) of 4.85% during the projection period.

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Acetone, which is also known as propanone, is a type of liquid that is colorless in nature. It is generally considered safe as it exists in minimum quantities, has low toxicity, and is naturally inflammable. This chemical dissolves very well in water and tends to dry up very quickly, making it useful in homes and industries. Some common uses of acetone are as a paint thinner, automobile or furniture varnish, deglazing or degreasing of textile products, and in plastics production. Moreover, the US Food and Drug Administration has decided that acetone is safe to use as an indirect additive in adhesives and food-contact coatings. Several governmental and research bodies have looked into the impacts of acetone under the REACH program of the European Chemicals Agency, the WHO International Program on Chemical Safety, and the EPA’s Integrated Risk and Information System Assessment program.

Acetone Market Growth Drivers:

• Product innovation and development in the acetone market drive growth by offering new applications while enhancing existing ones. Product developments, such as the environmentally friendly production of acetone, use higher purity grades to meet changing environmental demands and customer needs. LG Chem, for instance, announced in July 2022 that it is starting to ship its first bio-balanced phenol and acetone. It is a product that has achieved the International Sustainability & Carbon Certification PLUS (ISCC PLUS), an eco-friendly material sustainability certificate widely recognized worldwide, using renewable bio-feedstock like biomass or waste frying oil.

In formulations and derivations, the versatility of acetone products expands its utilization in industries like medical, electronics, and automotive coatings. Additionally, changes in the more specialized and specific sub-segments, for example, advances in acetone in forming high-performance adhesives or solvents for specific industries, open up new avenues for consumption and market potential. This leads to total consumption across different uses while enhancing the performance of acetone, thus expanding the market.

• Acetone is a solvent used in paints and coatings. It dissolves other components, such as resins and pigments, in paints to provide a smooth flow for easy application on the surface and to increase the rate of drying of the paint's surface. It evaporates faster than other solvents, which is good for obtaining a level surface.

With the growth in building construction around the globe, the acetone market is being utilized immensely. According to new residential construction figures released by the United States Census Bureau and the United States Department of Housing and Urban Development in April 2024, the number of building permits was 1,440,000, while housing completions were 1,623,000.

In building and construction, acetone, as a solvent for paints and coatings, offers value addition, especially in processes related to the development of painting surfaces. This enhances the architectural beauty of buildings, bridges, and other infrastructure developments. For instance, the Secretariat of Infrastructure in the Planning Commission is engaged in practicing the formation of world-class infrastructure in India by implementing multiple policies. These policies focus on bridges, dams, power, roads, and urban infrastructure development.

• Acetone is largely utilized in the automobile industry as a solvent in paints and varnishes to improve durability and surface quality. Still, it also serves in the manufacturing of polycarbonate plastics for different vehicle components due to its efficient polymer mixing abilities. Furthermore, with the growth in the automobile industry, the acetone market is anticipated to be positively impacted. As per the PIB (Press Information Bureau), two-wheelers, motors, and passenger automobiles took the major market shares for FY 2021-22. The market share was 77% of two-wheeler motors and 18% of passenger automobiles. A significantly large percentage of the passenger automobile divisions can be classified as small and medium. Similarly, the export of autos increased to 5,617,246 in 2021-22 from 4,134,047 in 2020-21.

Alongside this, due to their mechanical strength, durability, and other features such as chemical resistance, excellent adhesion, and low CO2 emissions, the new VESTA eCO grades offered by Evonik are expected to be used as a sustainable component in paint, lacquer, and binder materials for modern coating systems. They may also be used in high-performance composite materials such as wind turbine rotor blades or vehicle interiors to manufacture higher-quality instrument panels and trims, as well as in the most recent chemical synthesis methods.

Acetone Market Segment Analysis:

• By end-user, electronics and electrical are among the most popular segments.

In the electronics and electrical industry, acetone is used to clean circuit boards and electronic components to remove flux and other substances from the surface. It is also used to create special types of adhesives and coatings necessary for electronic assembly, which provide maximum performance and durability in use. According to the World Electronics Update 2020, the electronics sector crossed $2.9 trillion.

Moreover, acetone is largely used in semiconductor device manufacturing to remove photoresist materials from silicon wafers, a critical step in photolithography procedures. It is also used to clean and degrease semiconductor surfaces, which ensures high-quality device production. In January 2022, the Department of Commerce released a Request for Information to assist in steering CHIPS Act-funded programs to support a robust domestic semiconductor sector. Moreover, countries like India depend on imports for almost all their semiconductor demands. The International Trade Administration further states that India imports 95 percent of its semiconductors from China, Taiwan, South Korea, and Singapore. Owing to the increased demand for semiconductors and electronics, the acetone market is expected to grow. 

Acetone Market Geographical Outlook:

• Asia Pacific's acetone market is anticipated to grow significantly.

The Asia Pacific acetone market is being boosted by rising industrialization in industries such as automotive, electronics, and chemicals in nations like India and China. Acetone is used to produce plastics, adhesives, coatings, and solvents, which help the region's manufacturing growth. Increased acetone usage in products like polycarbonates by the plastics and polymers industry also increases demand. For instance, the Indian plastic industry is one of the significant industries in the country. The history of the plastic industry in India dates back as early as 1957 with the production of polystyrene. As per the latest data reported by India Brand Equity Foundation in April 2024, the Indian government aims to boost the plastic industry's economic activity from Rs. 3 lakh crore (US$ 37.8 billion) to Rs. 10 lakh crore (US$ 126 billion) within the upcoming 4-5 year time span.

Another significant factor driving the acetone market is the growth in the electronics industry. In 2023, India's electronics sector was estimated at $155 billion, with local manufacturers accounting for 65%, as stated by Invest India. Nevertheless, as per the Shanghai Municipal People’s Government, the retail sales of China's consumer electronics sector expanded by 4% to US$305 billion in 2023, with the growth rate increasing to 5% in 2024.

Alongside this, to pave the way for India’s technological leadership in the industry, the Semicon India Program was established with an incentive outlay of US$10 billion to develop a sustainable semiconductor and display ecosystem in the nation. This material thus serves as a cornerstone and ensures the performance of a wide array of electronic products, which impacts market growth.

Technological developments and increased research spending further help drive innovation and sustainability in the Asia Pacific's acetone industry. The use of acetone in the electronics and electrical sector, coupled with its usage in the automotive industry interior, fuels the demand for the product in the Asia Pacific region.

Acetone Market Key Developments:

• October 2025: China's acetone market experienced a supply glut as local phenol-acetone plants operated at over 75% capacity, causing CFR Shanghai prices to plunge by 8.4%.
• June 2025: INEOS Phenol announced its intention to permanently close its Gladbeck, Germany, phenol and acetone plant, citing uncompetitive European energy costs and high CO? taxation impacting operations.
• June 2025: European acetone prices continued to decline amid weak demand and high logistics costs, despite structural supply contraction following global plant rationalizations.
• April 2025: Deepak Chem Tech Ltd. (Deepak Nitrite) approved and greenlighted a Rs 3,500 crore expansion project to add 300 KTA phenol, 185 KTA acetone, and 100 KTA IPA capacity, strengthening integrated phenol–acetone feedstock supply.
• April 2025: Orlen confirmed the decommissioning of its phenol and acetone unit in P?ock, Poland, citing costly modernization and environmental compliance requirements.

Acetone Market Scope:

Acetone Market Segmentation:

• By Application
  • Solvent
  • Bisphenol A
  • Methyl Methacrylate
  • Others
• By End-Use
  • Paints & Coatings
  • Plastic
  • Automotive
  • Adhesives
  • Pharmaceuticals
  • Cosmetics
  • Electrical & Electronics
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Rest of Middle East and Africa
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Growing Demand for Acetone in various End-User Industries

4.1.2. Rise in Utilization as Feedstock for Chemical Synthesis

4.2. Market Restraints

4.2.1. Price Fluctuations of Acetone

4.2.2. Availability of Substitutes

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GLOBAL ACETONE MARKET BY APPLICATION

5.1. Introduction

5.2. Solvent

5.3. Bisphenol A

5.4. Methyl Methacrylate

5.5. Others

6. GLOBAL ACETONE MARKET BY END-USER

6.1. Introduction

6.2. Paints & Coatings

6.3. Plastic

6.4. Automotive

6.5. Adhesives

6.6. Pharmaceuticals

6.7. Cosmetics

6.8. Electrical & Electronics

6.9. Others

7. GLOBAL ACETONE MARKET BY GEOGRAPHY

7.1. Global Overview

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Rest of South America

7.4. Europe

7.4.1. United Kingdom

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Rest of Europe

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. United Arab Emirates

7.5.3. Rest of Middle East and Africa

7.6. Asia-Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Rest of Asia-Pacific

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Ineos

9.2. Honeywell International Inc.

9.3. Altivia

9.4. Cepsa Chemicals

9.5. Borealis AG

9.6. Covestro

9.7. Formosa Chemicals and Fibre Corporation

9.8. Mitsui Chemicals. Inc.

9.9. Prasol Chemicals

9.10. Glentham Life Sciences

9.11. Chemical Packaging Company

Companies Profiled

Ineos

Honeywell International Inc.

Altivia

Cepsa Chemicals

Borealis AG

Covestro

Formosa Chemicals and Fibre Corporation

Mitsui Chemicals. Inc.

Prasol Chemicals

Glentham Life Sciences

Chemical Packaging Company

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