The Past, Present, And Future Of The Ethyl Acetate Market

ethyl acetate market

What is Ethyl Acetate

The ethyl acetate is an organic chemical compound that is colorless. There are numerous ethyl acetate uses. It is used as a coating agent in formulations such as acrylics, vinyl, epoxies, cellulosic, and urethanes. There are various industries that use ethyl acetate such as the marine sector, construction and mining industry, automobile industry, and agriculture industry among others. Ethyl acetate is used as a viscosity reducer for resins in its highly pure form and is useful in the electronics sector. Ethyl acetate is used as an extraction solvent in food production and pharmaceutical-related production. The chemical compound is used in herbicides.

Ethyl Acetate Density

Ethyl Acetate is commonly known as ETAC or EA is basically an organic compound with density 0.902 g/cm3 or 902 kg/cm3 .

Future Of The Ethyl Acetate Market

The global capacity of the chemical was 4.75 MMT in 2017. The global demand in the following year was 3.8 MMT. According to the 2020 market intelligence report by Beroe, the global ethyl acetate market growth is expected to be 4.5% until 2022. The major supply markets of ethyl acetate are APAC, the EU, and North America. APAC has a market share of 81.5%, the EU has a market share of 6.9%, and North America has a market share of 1.7%. North America has a high supplier power while it has a low buyer power. The EU has a high supplier power and low buyer power like North America. The Asia Pacific region has low supplier power but has a high buyer power.

There are many global suppliers in the ethyl acetate industry. The top global suppliers are Shanghai Huayi Acrylic Acid Co., Ltd., Ineos, Jiangmen Handsome Chemical Development Ltd., Jiangsu Lianhai Biological Technology, and Jiangsu Sopo (Group) Co., Ltd. It has been observed that there is excess capacity of ethyl acetate in Asia. North America and Europe import from Asia due to these reasons. North America imports from South Africa too because of low domestic production. However, Europe and North America are planning to increase their production through capacity expansions which can point to a decrease in imports from various regions marginally.

By the end of 2022, around 80,000 MT will come online according to market evaluation and insights. By 2023, Beroe experts predict that a total capacity of 283,000 MTPA will come online globally. There are many capacity expansions that are expected by the end of 2021 too. For example, Russia will witness expansion and so will the UK. There have been demand and supply gaps according to Beroe on a global scale. This is because of excess capacities in the past, particularly in Asia. In 2010, China and India added capacities that increased production of ethyl acetate. Saudi Arabia did this in 2013 which added to the excess supply.

This scenario will change in the future because the ethyl acetate demand is going to increase. It has been expected that by 2022, the capacity additions might fall short because the demand is going to be more than supply. However, with the planned expansions there will be a demand and supply balance according to Beroe. Developing countries are increasing their demand for ethyl acetate especially LATAM, India, and China because of a surge in demand in various sectors including auto sales and construction sectors. There has been an increase in adhesives, paints, and coatings demand in these regions which will propel growth. This is expected until 2021.

The buyers of ethyl acetate are mainly those in paints, adhesives, and coatings industry. The CPG buyers are small buyers in comparison. Not many options are available for buyers in Europe and North America for CPG buyers and so they have low negotiation power. In such cases, they have to accept high prices of ethyl acetate when the supply is low. North American buyers prefer contracts to ensure they get the quality supply and to get buying safety. According to the ethyl acetate market report by Beroe, Asia and Europe have the option of choosing from on spot and long-term contracts. In Asia, buyers generally choose on spot rather than long-term contracts.

The ethyl acetate market looks promising as demand is likely to catch up with supply. There are even trends that point to the demand becoming higher than the supply in the future. But with the capacity additions, the gap is likely to narrow down and balance out eventually over the years. However, the market is not without challenges. There have been environmental concerns with regard to the use of solvents. There might be environmental regulations in place that can hinder the ethyl acetate market and slow down the production of the chemical in the future which means there is a high chance of demand exceeding supply.