The global acetone market is currently navigating a period of significant structural realignment, characterized by a dichotomy between contracting capacities in mature Western markets and aggressive expansion in the Asia-Pacific region. As of late 2025, the market is defined by its intrinsic link to the phenol value chain, with acetone production largely dictated by the demand for phenol derivatives. The global acetone industry, a critical sub-segment of the petrochemical sector, supports essential downstream industries including automotive, construction, electronics, and pharmaceuticals through its role as a solvent and a chemical intermediate for Bisphenol A (BPA) and Methyl Methacrylate (MMA).
Forecasting into the medium term, the global market size for acetone in 2026 is estimated to range between 3.6 billion and 6.2 billion USD. The market is projected to witness a stabilized but moderate trajectory, with a Compound Annual Growth Rate (CAGR) of 1.6% to 3.6% expected from 2026 through 2031. This growth profile reflects a market reaching maturity in developed regions while finding new momentum in emerging economies, particularly India and Southeast Asia, despite facing headwinds from global economic volatility and raw material fluctuations.
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Forecasting into the medium term, the global market size for acetone in 2026 is estimated to range between 3.6 billion and 6.2 billion USD. The market is projected to witness a stabilized but moderate trajectory, with a Compound Annual Growth Rate (CAGR) of 1.6% to 3.6% expected from 2026 through 2031. This growth profile reflects a market reaching maturity in developed regions while finding new momentum in emerging economies, particularly India and Southeast Asia, despite facing headwinds from global economic volatility and raw material fluctuations.
Product Overview and Technical Production Analysis
- Chemical Identity: Acetone (Dimethyl Ketone), CAS Number: 67-64-1, is the simplest and most important aliphatic ketone. It is a colorless, volatile, flammable liquid with a characteristic pungent odor. It is miscible with water and serves as an important solvent in its own right, in addition to being a chemical feedstock.
- Manufacturing Process (The Hock Process):
The production workflow involves several sophisticated chemical engineering stages:
- Feedstock Preparation: The primary raw materials, benzene and propylene, undergo an alkylation reaction to generate cumene (isopropylbenzene).
- Oxidation: Fresh and recycled cumene are fed into a series of oxidizers. Here, the cumene is contacted with air in a liquid-phase oxidation reaction to convert it into Cumene Hydroperoxide (CHP). The resulting oxidate is then concentrated via a multi-stage cumene stripping system to prepare for cleavage.
- Cleavage (Decomposition): The concentrated CHP flows to a cleavage unit where it is decomposed under acid-catalyzed conditions (typically using sulfuric acid). This step is critical and is controlled precisely to maximize the yield of phenol and acetone while suppressing the formation of heavy by-products.
- Fractionation and Purification: The cleavage effluent is neutralized and routed to a complex fractionation section. The first column separates the crude acetone, unconverted cumene, and light by-products from the heavier phenol stream. The distillate proceeds to a second column where high-purity acetone is recovered as a final product.
- By-product Recovery (AMS): The bottoms of the acetone column, containing cumene and alpha-methylstyrene (AMS), are sent to an AMS recovery system. Here, AMS is hydrogenated back into cumene, which is then recycled to the oxidation stage, enhancing overall process efficiency.
- Phenol Recovery: The bottoms from the initial fractionation column undergo vacuum fractionation to produce crude phenol, which is further refined via extractive distillation to meet pharmaceutical or polycarbonate-grade specifications.
- Environmental Management: Modern facilities employ closed-loop systems where aqueous wastes are treated via extraction to recover dissolved phenol before biological treatment. Vent gases containing volatile acetone and phenol are chilled and scrubbed to minimize emissions and recover valuable product.
Global Industry Value Chain Analysis
The acetone value chain is deeply integrated into the broader petrochemical complex, exhibiting a high degree of interdependence between upstream feedstock availability and downstream derivative consumption.- Upstream: The value chain begins with crude oil and natural gas liquids, processed in refineries and steam crackers to produce benzene and propylene. The volatility of crude oil prices directly impacts the cost structure of cumene, and consequently, acetone. In North America, the abundance of shale gas-derived propylene provides a structural cost advantage, whereas European producers rely more heavily on naphtha-based crackers, exposing them to higher volatility.
- Midstream: This segment comprises the integrated Phenol/Acetone producers. Since acetone is a co-product, its supply is often inelastic relative to its own demand; it is produced "on-purpose" only in rare alternative processes (like IPA dehydrogenation), which are not economically competitive in the current landscape. This unique dynamic means that a downturn in the construction sector (affecting phenol/plywood demand) can inadvertently tighten acetone supply, even if demand for acetone derivatives (like PMMA) remains robust.
- Downstream: The chain bifurcates into solvent applications and chemical derivatives. The derivative segment (BPA, MMA, MIBK) captures the majority of the value, feeding into high-performance engineering plastics used in electric vehicles, wind energy, and consumer electronics.
Regional Market Analysis and Trends
The global acetone capacity currently stands at approximately 10 million tons per annum. The geographic distribution of this capacity has shifted decisively over the last decade, with the "center of gravity" moving from the Atlantic basin to the Pacific.- Asia-Pacific (APAC):
- Dominance: APAC is the undisputed leader, holding the largest share of both global capacity and consumption. The region is characterized by a mix of mature markets (Japan, Korea) and high-growth engines (China, India).
- China: As the world's largest producer and consumer, China's domestic capacity has surged past 3.6 million tons following a five-year investment cycle. This massive build-out has transitioned China from a net importer to a balanced or net-export position, fundamentally altering global trade flows. Major clusters in East and South China dominate the landscape.
- Taiwan, China: Remains a critical technology and export hub, with major players like Chang Chun Group and Formosa Chemicals & Fibre Corporation maintaining high operating rates to serve the regional electronics and epoxy sectors.
- India: Emerging as the next frontier for growth. With low per capita consumption and strong government support for manufacturing (Make in India), investments by players like Deepak Nitrite and Haldia Petrochemicals are accelerating to reduce import dependency.
- Europe:
- Capacity: Approximately 1.5 million tons.
- Trend: The European market is in a state of contraction and rationalization. High utility costs, carbon pricing, and aging infrastructure have rendered several assets uncompetitive. The region is seeing significant capacity exits (Germany, Netherlands, Poland), leading to a structural deficit that will likely be met by imports.
- Strategic Shift: Remaining producers are focusing on specialty grades and sustainability certifications rather than bulk volume competition.
- North America:
- Capacity: Approximately 1.2 million tons.
- Trend: The market is relatively stable, underpinned by cost-advantaged feedstocks. North America acts as a balancing region, exporting excesses to Latin America and Europe. The focus here is on operational efficiency and integration with downstream BPA and Polycarbonate units.
- Middle East & Africa (MEA):
- Capacity: Approximately 0.29 million tons.
- Trend: Production is concentrated in Saudi Arabia (Saudi Kayan) and South Africa (Sasol). The region leverages cheap feedstock but has limited downstream derivative capacity compared to Asia.
- South America:
- Capacity: Less than 0.15 million tons.
- Trend: Highly import-dependent, with Brazil being the primary market. Political and economic instability often creates volatility in demand.
Application Segment Analysis
- Bisphenol A (BPA):
- Share: The largest downstream application for acetone.
- Trend: BPA demand is driven by Polycarbonate (PC) and Epoxy Resins. The proliferation of Electric Vehicles (EVs) is a major tailwind, as PCs are used for lightweight automotive components and battery housings. Similarly, epoxy resins are vital for wind turbine blades, aligning acetone consumption with the green energy transition.
- Solvents:
- Share: A significant portion of direct use.
- Trend: Acetone is a preferred solvent due to its high evaporation rate and compliance with many VOC regulations (exempt status in some regions). It is widely used in paints, coatings, adhesives, and pharmaceutical processing. However, environmental pressures are promoting closed-loop recovery systems in industrial applications.
- Methyl Methacrylate (MMA) via Acetone Cyanohydrin (ACH):
- Trend: This route remains the dominant technology for MMA production globally. MMA is processed into Polymethyl Methacrylate (PMMA), used extensively in construction (shatterproof glass), automotive taillights, and LCD screens. Demand fluctuates with the global construction and automotive cycles.
- Isopropyl Alcohol (IPA):
- Trend: While traditionally IPA is made from propylene hydration, some acetone is hydrogenated to produce IPA. Demand spiked during the pandemic (sanitizers) and has since normalized, but remains a steady growth area in pharmaceutical and electronic cleaning applications.
- Methyl Isobutyl Ketone (MIBK):
- Trend: Used primarily as a solvent for surface coatings and as an anti-ozonant in rubber tires (6PPD). The tire industry's growth, driven by the automotive sector, supports stable MIBK consumption.
Competitive Landscape and Key Market Players
The global acetone market is fragmented, with a mix of multinational chemical giants and regional national oil companies. The competitive landscape is currently defined by consolidation in the West and expansion in the East.Top 10 Global Producers:
- INEOS Phenol
- Moeve
- Chang Chun Group
- Formosa Chemicals & Fibre Corporation
- LG Chem
- Zhejiang Petroleum & Chemical Co Ltd (ZPC)
- Kumho P&B Chemicals
- AdvanSix
- Versalis
- PTT Global Chemical Public Company Limited
Other Key Industry Participants:
- Mitsui Chemicals
- Lotte GS Chemical
- Solvay
- Shell Chemical
- Olin Corporation
- Altivia
- Domo Chemicals
- Borealis
- Sasol
- Saudi Kayan Petrochemical Company
- Haldia Petrochemicals Ltd
- Deepak Nitrite Limited
- Wanhua Chemical Group
- Lihuayi Weiyuan Chemical Co.Ltd.
- Hengli Petrochemical Co. Ltd.
- Shenghong Refining & Chemical (Lianyungang) Co. Ltd.
- Jiangsu Ruiheng New Material Technology Co. Ltd.
- Sinopec Zhenhai Refining & Chemical Company
- Shiyou Chemical (Yangzhou) Co. Ltd.
- Huizhou Chung Shun Chemical Co. Ltd.
- Shanghai Huayi Group
- Longjiang Chemical Co.Ltd.
- CNOOC and Shell Petrochemicals Company Limited
- CNPC Jilin Petrochemical
Key Strategic Developments and Company Updates (2023-2026)
The period from 2023 to 2025 has been pivotal, marked by a wave of strategic retreats by Western majors and aggressive capacity additions by Asian players.- Major Closures and Rationalizations in Europe & Japan:
- INEOS Phenol: In a drastic move to address poor economics, INEOS Phenol announced on June 17, 2025, the permanent closure of its Gladbeck, Germany facility (removing 400,000 tons of acetone capacity). Further tightening supply, on June 18, 2025, the company stated it would not restart its Antwerp production plant until 2027.
- Orlen: The Polish integrated oil company Orlen announced on April 30, 2025, that it decided to end phenol and acetone production at its Plock petrochemicals site by the end of 2025. This removes approximately 30,000 tons of acetone co-product from the regional market.
- Mitsui Chemicals: Reflecting the pressure on Japanese assets, Mitsui announced in April 2024 the closure of its phenol/acetone plant in Ichihara by fiscal year 2026 (year to March 2027) due to declining profitability.
- Olin Corporation: An early indicator of the trend, Olin announced the shutdown of its Cumene facility in Terneuzen, Netherlands, back on March 21, 2023.
- Capacity Expansions and New Projects in Asia:
- Deepak Nitrite Limited (India): On April 9, 2025, the company approved a major greenfield project involving 185 KTA of Acetone and 300 KTA of Phenol, with a capex of ~3,500 Crores INR. This capacity is intended to be integrated downstream into Polycarbonate Resins.
- Haldia Petrochemicals Ltd (India): HPL is aggressively expanding. On November 14, 2024, it announced an additional investment of Rs 2,000 crore to expand phenol/acetone capacity at its Haldia facility. The project is nearing completion and is expected to be operational by Q1 2026.
- Shandong Ruilin Polymer Materials (China): The company’s 350kt phenol/acetone unit (contributing ~130kt acetone) completed interim delivery in October 2025 and is projected to start production in 2026.
- Sinopec Hunan Petrochemical (China): Similar to Ruilin, this subsidiary completed the interim delivery of its 350kt unit in October 2025, with a 2026 startup date targeted.
- Shiyou Chemical (Yangzhou): While a large project (450kt phenol/acetone) has been planned and environmentally approved, construction has not commenced as of late 2025, indicating potential caution regarding market oversupply.
- European Investment:
- Borealis: Contrasting the closure trend, Borealis plans to increase its phenol and acetone production in the Nordic and Baltic regions to 1.82 million tonnes by 2030, betting on integrated efficiencies.
Market Opportunities
- Green Chemistry and Sustainability: There is a growing opportunity for "Bio-Acetone" or mass-balance certified acetone produced from bio-circular feedstocks. As consumer brands pledge to reduce carbon footprints, premiums for sustainable solvents are emerging.
- Indian Market Growth: With China reaching saturation, India represents the most significant volume growth opportunity. The lack of sufficient domestic capacity coupled with rising demand for paints, coatings, and pharmaceuticals creates a favorable investment climate for local production.
- High-Performance Polymers: The continued expansion of the polycarbonate market, driven by automotive lightweighting and 5G infrastructure (which requires high-grade resins), provides a secure long-term demand floor for acetone via the BPA route.
Market Challenges and Restraints
- The "Co-Product" Dilemma: Acetone production is tethered to phenol. If global demand for phenol weakens (e.g., due to a housing market crash reducing demand for phenolic resins), acetone production is forced to cut back, potentially causing supply shortages and price spikes even if acetone demand is healthy. Conversely, high phenol demand can lead to an acetone glut.
- Overcapacity in Asia: The rapid commissioning of mega-complexes in China has created a supply overhang that is depressing margins globally. This overcapacity is the primary driver behind the closure of older, less efficient units in Europe and Japan.
- Feedstock Volatility: Reliance on crude oil-derived benzene and propylene exposes producers to geopolitical risks and price shocks. Non-integrated players face significant margin pressure when oil prices rise but downstream demand prevents pass-through of costs.
- Regulatory Compliance: Increasing stringency regarding VOC emissions and chemical safety (REACH in Europe, environmental inspections in China) adds to the operational cost burden and restricts the usage of acetone in certain open-application solvent markets.
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Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Trading Analysis
Chapter 9 Historical and Forecast Acetone Market in North America (2021-2031)
Chapter 10 Historical and Forecast Acetone Market in South America (2021-2031)
Chapter 11 Historical and Forecast Acetone Market in Asia & Pacific (2021-2031)
Chapter 12 Historical and Forecast Acetone Market in Europe (2021-2031)
Chapter 13 Historical and Forecast Acetone Market in MEA (2021-2031)
Chapter 14 Summary for Global Acetone Market (2021-2026)
Chapter 15 Global Acetone Market Forecast (2026-2031)
Chapter 16 Analysis of Global Key Vendors
List of Tables and Figures
Companies Mentioned
- INEOS Phenol
- Moeve
- Versalis
- Mitsui Chemicals
- LG Chem
- Lotte GS Chemical
- Solvay
- Kumho P&B Chemicals
- Formosa Chemicals & Fibre Corporation
- Chang Chun Group
- AdvanSix
- Shell Chemical
- Olin Corporation
- Altivia
- Domo Chemicals
- Borealis
- PTT Global Chemical Public Company Limited
- Sasol
- Saudi Kayan Petrochemical Company
- Haldia Petrochemicals Ltd
- Deepak Nitrite Limited
- Zhejiang Petroleum & Chemical Co Ltd (ZPC)
- Wanhua Chemical Group
- Lihuayi Weiyuan Chemical Co.Ltd.
- Hengli Petrochemical Co. Ltd.
- Shenghong Refining & Chemical (Lianyungang) Co. Ltd.
- Jiangsu Ruiheng New Material Technology Co. Ltd.
- Sinopec Zhenhai Refining & Chemical Company
- Shiyou Chemical (Yangzhou) Co. Ltd.
- Huizhou Chung Shun Chemical Co. Ltd.
- Shanghai Huayi Group
- Longjiang Chemical Co.Ltd.
- CNOOC and Shell Petrochemicals Company Limited
- CNPC Jilin Petrochemical
