Acetophenone Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Acetophenone Market Size, Share & Trends Analysis Report By Type(The Oxidation of Ethylbenzene, The Oxidation of Cumene), By End-user(Perfumes and Fragrances, Resins, Pharmaceuticals, Flavoring agents, Others), By Region, And Segment Forecasts, 2024 - 2031

Acetophenone Market Size

Global Acetophenone Market reached US$ 159.4 million in 2023 and is expected to reach US$ 233.7 million by 2031, growing with a CAGR of 4.9% during the forecast period 2024-2031.

Acetophenone is an organic compound represented by the chemical formula (C6H5COCH3). It is one of the simplest compounds in the form of a slightly oily liquid. The liquids form crystals at low temperatures. Acetophenone has an odor similar to sweet orange or jasmine with a bitter taste. It is naturally present in many plants and foods such as apple, apricot, banana, cauliflower, cheese and cocoa.

Acetophenone's growing use in tablets is predicted to result in a major increase in its utilization within the pharmaceutical sector. It is anticipated that the acetophenone market would be driven by the pharmaceutical and drug industries' increasing need for anticonvulsants. Further driving up demand for acetophenone in pharmaceutical applications is likely to be the increased use of the compound in the synthesis of some medications, including pyrrobutamine, dextropropoxyphene, pridinol, trihexyphenidyl, biperiden, procyclidine, cycrimine, benmoxin, mesuximide and acifran.

Asia-Pacific is among the growing regions in the global acetophenone market covering more than 1/3rd of the market. The building industry is being driven by the rapid urbanization and industrialization occurring in nations like China, India and South Korea. The is increasing the need for products made of styrene. The demand for oxidized ethylbenzene is also greatly influenced by the expanding consumer electronics industry, which mostly depends on polystyrene for strong and lightweight case materials.

Acetophenone Market Scope

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Acetophenone Market Dynamics

Expansion of the Flavor and Fragrance Industry 

Acetophenone dissolves in ether, fatty oils, alcohol, glycerol and chloroform. Moreover, acetophenone is biodegradable and extremely soluble in water, according to the Hazardous Substances Data Bank (HSDB). The characteristics raise the need for acetophenone in personal care products such body wash, lotions and scents. Additionally, it is anticipated that throughout the projected period, there will be a rise in demand for personal care products due to rising disposable income.

The global market for acetophenones is also significantly driven by the growth of the fragrance and flavor sector. Acetophenone's attractive odor and chemical stability make it a popular choice for use in fragrance and flavoring agent synthesis. Due to shifting consumer lifestyles, urbanization and rising disposable incomes, there is a growing demand for cosmetics, fragrances and personal care items globally. The increased demand for acetophenone is a direct result of this spike in the market for scent products.

Growing Usage of Acetophenone in Various Pharmaceutical Applications 

The acetophenone market is set to witness notable gains from the pharmaceutical industry due to its increasing tablet applications. Furthermore, the rising demand for hypnotic and anticonvulsants in the pharmaceutical industry will fuel the industry's growth. In addition, increasing consumption in the synthesis of pyrrobutamine, trihexyphenidyl, dextropropoxyphene, pridinol, biperiden, cycrimine, procyclidine, mesuximide, benmoxin and acifran will enhance the product scope in pharmaceutical applications.

The growing demand from the pharmaceutical sector is one of the main factors driving the globally acetophenone market. In the manufacture of many medications, including active pharmaceutical ingredients (APIs) and other necessary chemicals, acetophenone is a crucial intermediary. The demand for pharmaceuticals is greatly increased by the expanding global healthcare industry, which is fueled by an aging population, an increase in the prevalence of chronic illnesses and growing healthcare costs.

Environmental Regulations and Health Concerns

The strict environmental laws and health risks connected to acetophenone usage and manufacture are two major factors limiting the market's growth globally. Acetophenone is categorized as a hazardous chemical because it is made using potentially toxic raw ingredients and produces hazardous byproducts throughout the manufacturing process.

The Environmental Protection Agency (EPA) in U.S. and the European Chemicals Agency (ECHA) in the European Union are two examples of regulatory bodies from different regions that have imposed stringent guidelines on the acceptable levels of emissions and waste disposal methods for acetophenone manufacturers. Producers' operating expenses rise as a result of the significant investments required to comply with these laws in waste management and pollution control technology. 

Fluctuating Raw Material Prices

The price volatility of raw materials, especially benzene and ethylbenzene, is a significant barrier impacting the globally acetophenone industry. Since these raw materials are made from crude oil, supply and demand imbalances, geopolitical events and global oil market dynamics may all affect their price. Stable profit margins might be difficult to sustain for acetophenone producers due to uncertain manufacturing costs brought on by significant price fluctuation.

The cost of benzene and ethylbenzene, for example, can rise in response to an unanticipated surge in crude oil prices, which would raise the cost of acetophenone manufacturing as a whole. The aggressive chemical sector, where producers are sometimes unable to pass on the increasing costs to end-users due to price sensitivity and competitiveness, exacerbates this price volatility even further. Because of this, manufacturers may see a strain on their profit margins when raw material costs are high.

Furthermore, investments in capacity growth and technology advancements as well as long-term strategy planning may be hampered by the price volatility of raw materials. The erratic nature of the financial landscape is a noteworthy obstacle to the acetophenone market's consistent expansion, as producers endeavor to maintain a balance between cost containment and competitive pricing tactics within volatile market conditions. 

Acetophenone Market Segment Analysis

The global acetophenone market is segmented based on type, end-user and region.

Increasing Use of The Oxidation of Ethylbenzene in the Pharmaceuticals Industry

The oxidation of ethylbenzene segment is among the growing regions in the global acetophenone market covering more than 1/3rd of the market. Because of its key function in acetophenone manufacturing, ethylbenzene oxidation has become a driving force in the globally acetophenone market. Acetophenone, an intermediate used in the manufacture of several compounds and medications, is produced through the essential chemical process known as ethylbenzene oxidation.

A key growth driver for acetophenone is the growing need for it in the pharmaceutical sector, where it is utilized in the production of active pharmaceutical ingredients (APIs). Growing globally healthcare requirements and improvements in medical therapies, which call for a consistent supply of premium acetophenone, support this need further.

Acetophenone Market Geographical Share

Increasing Demand for Acetophenone in Pharmaceutical and Cosmetics Industries in Asia-Pacific

Asia-Pacific has been a dominant force in the global acetophenone market. Increasing product consumption in organic synthesis and polymerization of olefins will propel revenue growth. Rising demand for high-end, luxury and lifestyle products, particularly in China and India, will drive the demand in this region. China catered to the dominating demand for acetophenone, followed by India and Japan.

The Indian Brand Equity Foundation projects that the country's market for grooming, cosmetics and beauty products will grow to US$ 20 billion by 2025. Soon, acetophenone demand will rise as a result of the surge in demand for cosmetic and beauty care goods. Conversely, mass-market brands like L'Oreal, Lakme, Maybellene, Nivea and Color Bar target younger and less affluent women.

Acetophenone, an essential intermediate in the synthesis of several medications and perfumes, is becoming more and more in demand due to the growing pharmaceutical and cosmetic industries in nations like China, India and Japan. The need for pharmaceuticals and personal hygiene products is increasing due to the region's growing population and rising standards of living, which is driving up demand for acetophenone.

COVID-19 Impact Analysis On Acetophenone Market 

Following the COVID-19 outbreak in December 2019, the disease has spread to over 100 countries globally and the World Health Organization has declared it a public health emergency. According to the World Health Organization’s report, the coronavirus (COVID-19) manifestation has resulted in more than 52.7 million infected individuals globally as of November 13, 2020.

COVID-19 has affected every market globally and has also impacted the global acetophenone market in the following ways; by directly affecting production and demand, creating disruptions in distribution channels and its financial impact on firms and financial markets. Further, weaker consumer demand for lifestyle and well-being products due to social restrictions and lockdown policies may harm the demand for cosmetic ingredients and certain categories of food additives.

Furthermore, players operating in the global acetophenone market face significant challenges on various fronts due to the COVID-19 pandemic. The significant challenges include the supply of raw materials for manufacturing drug formulations due to irregularities in the transportation facility. Moreover, distributors of products are experiencing irregular demand for products from retailers due to the increasing patient population suffering from COVID-19 and other life-threatening disorders.

Russia-Ukraine War Impact Analysis

The supply chains of raw materials and energy resources necessary for chemical manufacture have been severely impacted by the Russia-Ukraine war, which has caused a major disruption in the globally acetophenone industry. Energy resources like natural gas are among the essential inputs utilized in the chemical sector and both Russia and Ukraine are major suppliers. The battle has raised energy costs and caused limitations in supplies, which has an impact on acetophenone availability and manufacturing costs.

Businesses that depend on these supplies now have to pay more or look for other suppliers, which drives up total expenses and may cause production delays. Furthermore, wider market concerns have been brought on by the geopolitical unrest, which has influenced international trade laws and resulted in sanctions against Russia. The region's supply of chemicals and raw materials has been further curtailed by these restrictions, forcing industries to modify their supply chains.

Key Developments

• On April 08, 2024, Mitsui Chemicals invested in FullStem, a company developing high-density, large-scale stem cell culture technology, Achieva-CS*1. The company aims to create a safe, easy-to-use device for medical applications and related products.
• On December 12, 2023, Solvay and ENOWA collaborated to build the world's first carbon-neutral soda ash production facility in Saudi Arabia, aiming to start operations by 2031. The facility will be part of ENOWA's Water Sustainability Strategy.

Acetophenone Market Competitive Landscape

The major global players in the market include SI Group, Tokyo Chemical Industry (India) Pvt. Ltd., Solvay, INEOS Phenol, A B Enterprises, Jiangsu Yalong Chemical Co., Ltd., Mitsui Chemicals, Inc., Haicheng Liqi Carbon Materials Co., Ltd., Versalis S.p.A. and Merck KGaA.

Why Purchase the Report?

• To visualize the global acetophenone market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of acetophenone market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players. 

The global acetophenone market report would provide approximately 54 tables, 43 figures and 181 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies