Forecasted Compound Annual Growth Rate in the Food Grade Acetic Acid Market at 7.0% through 2034
In a significant move, INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) have signed a Memorandum of Understanding to explore the establishment of a 600,000-tonne-per-year acetic acid plant in Bharuch, Gujarat. This development aligns with the Indian government's initiatives, such as the "Make in India" campaign, which promotes domestic acetic acid production.
The growth of the food-grade acetic acid market in North America and India is driven by several key factors. Expanding food processing industries, increasing demand for food preservatives and additives, rising urbanization, and growing awareness of food safety and quality are the primary forces fueling market growth in these regions. The consumption of packaged and processed foods, as well as the use of acetic acid as a preservative and flavoring agent, further boosts market demand.
In North America, mature food processing sectors combined with well-established retail and regulatory frameworks support steady demand for food-grade acetic acid in applications such as preservatives and flavor enhancers. The region also benefits from innovation in bio-based acetic acid production, aligning with sustainability trends.
In India, rapid urbanization, increased disposable income, and expanding food and beverage industries are the primary growth drivers. Industrial growth and infrastructure developments also fuel demand for acetic acid in related industries like packaging and pharmaceuticals.
Recent developments in production and applications include advancements in bio-based and sustainable production technologies using renewable feedstocks and microbial fermentation. These improvements in environmental footprints create new supply opportunities. Technological innovations in production from natural gas and other feedstocks are also optimizing costs and increasing output capacity.
Expanded applications in food preservation, flavoring, and as intermediates for other chemicals (e.g., vinyl acetate monomer and acetic anhydride) maintain high demand. The food industry increasingly uses acetic acid for clean-label products and natural preservative roles, meeting consumer preferences for safety and quality.
Growth in related sectors such as textiles, pharmaceuticals, and packaging also supports food-grade acetic acid market expansion owing to its multifunctionality.
Looking ahead, the compound annual growth rate (CAGR) of the Food Grade Acetic Acid Market is projected to be 7.0% from 2025 to 2034. In 2024, Aerobic Fermentation commanded a 62.8% share of the food-grade acetic acid market by fermentation type. Synthetic Acetic Acid accounted for 67.2% of the market by product type in the same year.
Major players in the market, such as Eastman, Daicel Corporation, DuPont, Celanese Corporation, and INEOS Oxide LLC, are investing in innovative production methods and expanding their food-grade acetic acid offerings to meet the growing demand. For instance, 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.
GNFC, India's only domestic producer of acetic acid, with an annual output of approximately 1.36 million tonnes, is also actively participating in the market's growth. Jubilant Ingrevia has commissioned a green ethanol-based production facility in Gajraula, Uttar Pradesh, with an annual capacity of 25,000 tons, further contributing to the market expansion.
The Global Food Grade Acetic Acid Market is projected to reach approximately USD 4.3 billion by 2034. With the increasing demand for food-grade acetic acid and the continuous efforts of market players to innovate and improve production methods, the future of the food-grade acetic acid market looks promising.
[1] https://www.marketsandmarkets.com/PressReleases/food-grade-acetic-acid.asp [2] https://www.reuters.com/business/chemicals-pharmaceuticals/ineos-gnfc-to-explore-building-acetic-acid-plant-in-india-2021-07-21/ [3] https://www.chemicalweek.com/news/acetic-acid-market-to-reach-usd-4-3-billion-by-2034-marketsandmarkets-2021-07-26 [4] https://www.chemicalweek.com/news/acetic-acid-market-to-reach-usd-4-3-billion-by-2034-marketsandmarkets-2021-07-26
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