Ethyl Acetate Market Expected to Reach $10.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Ethyl Acetate Market," The ethyl acetate market was valued at $5.7 billion in 2021, and is estimated to reach $10.3 billion by 2031, growing at a CAGR of 6.1% from 2022 to 2031.

Ethyl acetate is a colorless and sweet-smelling organic compound which is commonly used as a solvent for a variety of purposes, including pharmaceuticals, perfumes, and food flavorings. 

Ethyl acetate is used as a solvent for the pharmaceutical industry. It is used to dissolve various drugs and active ingredients, making them easier to administer to patients. Ethyl acetate is also used as a solvent in the manufacture of various pharmaceuticals, including antibiotics, anti-inflammatory drugs, and painkillers. In addition, it is used as a solvent in the production of vitamins, hormones, and other active ingredients.

Ethyl acetate is also used as a flavoring agent in a variety of foods and beverages, including candies, ice creams, and soft drinks. It is also used in the production of certain food additives, such as emulsifiers and thickeners. In addition to its industrial uses, ethyl acetate is also used in the laboratory for various purposes, including chromatography and extraction. It is a common solvent for organic compounds and is often used in the extraction of natural products from plants and other sources.

The use of ethyl acetate is regulated by various government agencies, including the Central Pollution Control Board (CPCB) and the Ministry of Environment and Forests (MoEF). Companies that use ethyl acetate in their manufacturing processes must comply with these regulations and take steps to reduce emissions and minimize environmental impact. All these factors drive the demand of the global market. 

However, availability of substitute products and the environmental impact of ethyl acetate is expected to hamper the market growth. Acetone is also a common solvent that can be used as a substitute for ethyl acetate. It has comparable solvent properties and can be used in some formulations as a cleaner or a solvent. Acetone is used as a cleaning agent in various industries, including electronics, automotive, and pharmaceuticals.

It helps to remove contaminants from surfaces and equipment, ensuring that they are clean and ready for use. It helps to dissolve the ingredients and improve their flow properties in personal care, resulting in a uniform and consistent product. Thus, the availability of substitutes is expected to hinder the growth of the ethyl acetate market during the forecast period.

On the contrary, the growing demand for ethyl acetate in adhesives and sealants end-use industry is anticipated to offer lucrative growth opportunities in the forecast period. Ethyl acetate is used as a solvent for the production of hot-melt adhesives, which are widely used in the packaging industry for bonding cartons, boxes, and other packaging materials. Ethyl acetate is also used as a solvent for the production of sealants, which are used to fill gaps and joints between two or more substrates, such as in the construction and automotive industries. 

Ethyl acetate is also used as a solvent for contact adhesives, which are widely used in the footwear, automotive, and construction industries. Contact adhesives offer good bonding strength and flexibility and are commonly used to bond materials such as leather, rubber, and foam. Sealants are commonly made from silicone, polyurethane, or other polymers, and ethyl acetate is used to dissolve and process the polymer before it is applied as a sealant.

In 2021, Sika established a new technology center and manufacturing factory for high-quality adhesives and sealants in Pune, India. The company primarily manufactures products for the transportation and construction industries through its three new production lines. Thus, the increasing demand for process solvents is expected to boost the ethyl acetate market during the forecast period.

The ethyl acetate is segmented into application, and end-use industry. On the basis of application, the market is segmented into pigments, paints and coatings, process solvents, adhesives and sealants and others. On the basis of end-use industry, the market is divided into artificial leather, packaging, automotive, food and beverages, and pharmaceutical. Region-wise the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of application, the process solvents segment dominated the ethyl acetate market in 2021. Ethyl acetate is becoming more popular as a process solvent for adhesives used in various sectors, including automotive, construction, and woodworking. Ethyl acetate is a commonly used solvent for extracting flavors and fragrances from natural sources like fruits, flowers, and spices.

Ethyl acetate is considered safe for use in food applications as it is non-toxic and has a low odor & taste. As per the Careerizma, the food processing business accounts for around $130 billion from the overall food and beverage industry. It contributes 10% of agricultural GDP and 12% of manufacturing GDP. Thus, the increasing demand for process solvents is expected to boost the ethyl acetate market during the forecast period. 

By end-use industry, the pharmaceuticals segment dominated the ethyl acetate market in terms of revenue in 2021. Ethyl acetate is used as a purification solvent in the pharmaceutical industry to remove impurities and contaminants from pharmaceutical compounds. It is a mild solvent that can dissolve many types of impurities without affecting the purity of the active ingredient.

Ethyl acetate is also growing in popularity as a coating material for tablets and capsules to improve their appearance, taste, and stability. It is used as a solvent for various pharmaceutical formulations, including injectables and oral suspensions. Ethyl acetate is used as a flavoring agent in some pharmaceutical formulations, such as syrups and suspensions.

It is a common ingredient in fruit-flavored syrups and is added to mask the bitter taste of some drugs. Ethyl acetate is also used as a solvent in the production of antibiotics, steroids, and other active pharmaceutical ingredients (APIs). Thus, the increasing demand for pharmaceuticals is expected to boost the ethyl acetate market during the forecast period. 

By region, the Asia-Pacific dominated the ethyl acetate market in terms of revenue in 2021. Ethyl acetate is generally recognized as safe for use in food and pharmaceutical applications by regulatory authorities in the Asia Pacific region. The demand for ethyl acetate in the Asia Pacific region is expected to grow at a steady pace in the coming years, driven by the growing demand for processed foods, pharmaceuticals, and cosmetics in the region.

In China 2021, Smithfield Foods Inc. acquired Mecom Group, which is a meat processing company for rising its production in terms of ham, soft salami, dry salami and sausages, bacon, smoked items, and meat products as Mecom Group has two large plants which produce 4,000 tons of production per month. 

The Asia Pacific ethyl acetate market is expected to be driven by several factors in the coming years, including the growth of end-use industries, increasing demand for eco-friendly solvents, and rising disposable incomes in emerging economies. Thus, the increasing demand for processed food and pharmaceuticals is expected to boost the ethyl acetate market during the forecast period.

The major players operating in the ethyl acetate market include Celanese Corporation, Daicel Corporation, Eastman Chemical Company, INEOS, IOL Chemicals and Pharmaceuticals Limited, Jubilant Ingrevia Limited, Maharashtra Aldehydes and Chemicals Ltd., Sasol Limited, Sipchem and Solvay.

Key findings of the study:

• By application, the process solvents segment was the highest revenue contributor to the market.
• By end-use industry, the pharmaceuticals segment was the highest revenue contributor to the market, with a CAGR of 6.6%.
• By region, Asia-Pacific accounted for major share in 2021 and is anticipated to grow at the fastest CAGR during the forecast period.