India Ethyl Acetate Market Expected to Reach $824.4 Million by 2031

According to a new report published by Allied Market Research titled, “India Ethyl Acetate Market by Application and End-Use Industry: Regional Opportunity Analysis and Industry Forecast, 2022–2031”

The India ethyl acetate market size was valued at $432.0 million in 2021, and is projected to reach $824.4 million by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

Ethyl acetate is a colorless, volatile, and flammable liquid with a fruity odor. Ethyl acetate is a chemical compound that is commonly used as a solvent in various industries, including pharmaceuticals, food and beverage, and paint manufacturing in India.  

Ethyl acetate is widely used in the adhesive industry in India, primarily as a solvent for various synthetic polymers. It is used to dissolve the polymers and improve their flow properties, resulting in a strong and durable bond. Ethyl acetate is used in the manufacturing of various adhesives used in the packaging industry. It is used as a solvent for various synthetic polymers, including polyethylene, polypropylene, and polyester. In March 2022, TCPL packaging limited doubled its flexible packaging plant capacity, which has gone into commercial production in India. The company also expanded offset capacity by adding a new printing line at the Goa plant.

Ethyl acetate is used in the manufacturing of various adhesives used in the automotive industry in India. It is used as a solvent for various synthetic polymers, including polyurethane and epoxy. These adhesives are used to bond various materials such as metal, plastic, and rubber, providing a strong and durable bond.

Ethyl acetate is also used as a solvent in the manufacturing of various woodworking adhesives. It is used to dissolve various polymers such as phenol-formaldehyde resins and melamine-formaldehyde resins, which are used to bond wood products. These adhesives are commonly used in the production of furniture, cabinetry, and flooring. As a result, increasing demand from the adhesive industry is expected to provide sufficient development prospects for the India ethyl acetate market in the future.

However, lack of technological advancement in India is expected to hamper the market growth. India is still using conventional manufacturing processes for ethyl acetate production, which can lead to high production costs and limited production capacity. The lack of advanced technology also means that the quality of the product may not be as good as it could be. The conventional manufacturing processes used in India for the production of ethyl acetate are not optimized for energy efficiency or process sustainability. This can lead to higher production costs as well as negative environmental impacts.

Separation technology is an important aspect of ethyl acetate production, as it determines the quality and purity of the final product. However, most of the separation processes used in India are based on distillation, which can be energy-intensive and expensive. There is a need for more advanced separation technologies, such as membrane separation and reactive distillation, which can reduce energy consumption and improve the quality of the product.

Conversely, ethyl acetate is commonly used as a solvent in the production of pigments, particularly in the paint and coatings industry. Ethyl acetate is used in the manufacturing of pigments due to its low boiling point, which allows for easy evaporation and the formation of a dry and non-oily residue. It is also non-toxic and has a pleasant fruity odor, which makes it a popular choice among producers.

In addition, the use of ethyl acetate and pigments in the paint and coatings industry is widespread. These materials are used to manufacture a variety of products such as decorative paints, industrial coatings, automotive paints, and wood coatings. In October 2022, Asian paints announced that it is expected to invest $324.20 million to set up a manufacturing facility for ethyl acetate plant monomer in India. This investment will help the company with backward integration. Thus, the increasing demand for pigments is expected to offer new growth opportunities in India ethyl acetate market.

The India ethyl acetate is segmented into application, and end-use industry. On the basis of application, the market is classified 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, pharmaceutical, and others.

On the basis of application, the process solvents segment dominated the India ethyl acetate market in 2021. Ethyl acetate is becoming increasingly popular as a process solvent for adhesives used in a variety of 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.   

By end-use industry, the pharmaceuticals segment dominated the India 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.   

Key players engaged in development and production of ethyl acetate across India include Celanese Corporation, Dhanlaxmi Organics & Chemical, HELM AG, IOL Chemicals and Pharmaceuticals Limited, Jubilant Ingrevia Limited, Maharashtra Aldehydes & Chemicals Ltd, Merck KGaA, Saanvi Corp., Solvay S.A., and Vizag Chemical International.

KEY FINDINGS OF THE STUDY

• The India ethyl acetate market size is provided in terms of revenue and volume.
• 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.