Projected Compound Annual Growth Rate (CAGR) for Food-Grade Acetic Acid Market Reaches 7.0% by 2034
In the realm of food preservation and processing, the market for food-grade acetic acid is experiencing significant growth, particularly in North America and India. This growth is driven by a combination of regulatory demands, technological advancements, and consumer preferences for natural and organic food ingredients.
INEOS Oxide LLC, a key player in the industry, has recently upgraded its facilities to produce high-purity food-grade acetic acid, catering to the needs of the sauces, dressings, and canned food sectors in both the EU and US.
The global food-grade acetic acid market is projected to reach an impressive USD 4.3 billion by 2034. In North America, stringent food safety regulations enforced by agencies such as the FDA, USDA, and EPA have increased the use of acetic acid and its derivatives in food processing, preservation, and sanitation.
India, part of the Asia-Pacific region identified as the fastest-growing market for related acids, is experiencing growth due to expanding industrialization, urbanization, and healthcare expansion. The low production cost, availability of raw materials, and R&D investments in pharmaceutical and food sectors contribute to increased acetic acid demand.
Advances in microbial fermentation technologies, renewable feedstock usage, and downstream processing are key technological trends improving acetic acid production efficiency and sustainability worldwide, including in India and North America.
Moreover, growing consumer preference for organic, clean-label, and natural products, particularly in North America, is stimulating innovation and diversification in acetic acid applications. Companies like Daicel Corporation and Eastman are investing in bio-based acetic acid to align with eco-friendly food processing trends.
Celanese Corporation and INEOS Oxide LLC are examples of companies focusing on sustainable production methods, reducing carbon emissions in manufacturing. Eastman has launched a new food-grade acetic acid line with improved stability for the beverage and dairy industries, and is exploring renewable feedstocks to produce sustainable acetic acid.
DuPont is an example of a company collaborating with food manufacturers to develop customized solutions for pickling and condiment production. Jubilant Ingrevia has commissioned a green ethanol-based production facility in Gajraula, Uttar Pradesh, with an annual capacity of 25,000 tons.
The market's compound annual growth rate (CAGR) is 7.0% during the forecast period from 2025 to 2034. Notably, the North American market led the market in 2024, holding a 44.9% share and generating USD 0.9 billion in revenue.
In a significant step, INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have entered into a Memorandum of Understanding to explore building a 600,000-tonne-per-year acetic acid plant. Currently, GNFC is India's only domestic producer of acetic acid, with an annual output of approximately 1.36 million tonnes.
The market is characterized by regulatory-driven demand for safer preservatives and sanitizers, technological advancements in sustainable production, and consumer trends favoring natural and organic food ingredients. The market is poised for steady growth in both regions into the mid-2020s and beyond.
- Companies such as Daicel Corporation and Eastman are moving towards sustainable production methods by investing in bio-based acetic acid, aligning with eco-friendly food processing trends, particularly in North America.
- Sustainable production is a focus for companies like Celanese Corporation and INEOS Oxide LLC, as they seek to reduce carbon emissions in manufacturing processes.
- Eastman has introduced a new food-grade acetic acid line with improved stability for the beverage and dairy industries, and is considering the use of renewable feedstocks for sustainable production.
- In a partnership, INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) are exploring the possibility of constructing a 600,000-tonne-per-year acetic acid plant, with potential implications for the real-estate and commercial sectors due to the large scale of the project in India.
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