The global market for ethyl acetate has been driven by end-user industry trends in 2018. Used as a solvent in inks, oil-based enamels, adhesives, and numerous chemical processes, amongst others, the scope for the use of ethyl acetate is almost limitless, thus making it a lucrative commodity for investment. Therefore, advances and growth in industries such as paints & coatings, food & beverage, cosmetics, plastics, pharmaceutical, and packaging, etc. have driven the market for ethyl acetate in 2018.
Ethyl acetate price trend has experienced changes in growing economies such as the Asia-Pacific, led by countries like China, India, and Japan. In addition to this, the demand for ethyl acetate has also increased in regions such as the Middle East, Europe, and Africa, primarily from pharmaceutical, cosmetics, and automotive industries in these regions.
The market size for ethyl acetate has grown significantly in 2018 due to its application in many end-user segments, which have defined its growth:
Growing Preference for Flexible Packaging:
Flexible packaging has now become the most sought-after solution in the packaging industry. This is due to its numerous benefits of relatively lower costs, increased flexibility, and lighter weight of products that allow variability in sizes, ease of recycling, and greater shelf life. These benefits have resulted in flexible packaging being utilized in almost every industrial application. It has been noticed in 2018 that flexible packaging has been increasingly preferred over rigid packaging. Ethyl acetate is extensively used in flexible packaging for laminated adhesives and as a solvent for printing inks, due to its properties of quick evaporation. For these reasons, the growing demands for flexible packaging across industries are also driving the demand for ethyl acetate market. This particular trend has dominated the greater part of 2018 and is expected to continue with the emergence of e-retail and e-commerce businesses.
Rise in Global Chromatography:
Ethyl acetate is also used as a solvent in column chromatography. Since it has more than four polarities, ethyl acetate is used extensively to perform difficult separations. For this reason, ethyl acetate also finds application in the wine industry for the study of wine vintage and differentiation of various wine types. The growth in the market for global chromatography coupled with an increase in wine consumption in the UK and Germany have also contributed significantly towards the growth in ethyl acetate market.
Food and Beverage as the Greatest End-User Industries:
Among the several end-user industries, food and beverages have dominated the market for ethyl acetate in 2018, owing to its application for flavor enhancement in both food and beverages industries. It has extensive uses for rendering different flavors, such as banana, pineapple, strawberries, apple, and several others. The active growth of the food and beverage industry in the Asia Pacific has also been a rising trend, mainly due to an increase in online food deliveries in the region.
Growth in Coffee Consumption:
It is an established industry standard to wash cocoa, tea leaves, and coffee leaves with ethyl acetate to reduce their caffeine content through decaffeination. European and U.S. markets account for the highest consumption of coffee across the globe, and 2018 has only observed a rise in this general trend. In addition to this, the introduction of a wide range of flavors, brews, and industry outlets has propelled the demand for coffee. This has been further accentuated by a decrease in the popularity of soft drinks, which has increased coffee consumption for the population falling under the age group of 18 to 25. The trend for an increase in spending on recreational drinks coupled with the rise of disposable income has further stimulated the demand for products which has had a positive influence on the global ethyl acetate market.
Increased Demand for Artificial Leather:
Ethyl acetate has a robust scope of application in the manufacturing of artificial leather as its solvent plays a significant role in the production process. The global market for synthetic leather is estimated to show significant growth in the coming years, due to an increase in demand for cruelty-free leather accessories such as bags, wallets, belts, and apparels. An increased number of fashion brands are now recognizing the need to align themselves with green products, thus contributing to the increased demand for artificial leather, and by extension, for ethyl acetate. This is due to stringent regulations against the production of natural leather and global awareness of animal well-being.
Expansion in Fragrances and Flavors Industry:
One of the most prominent applications of ethyl acetate is its use as a precursor to ester in the development of fragrances. Ethyl acetate has a property that allows it to impart a sweet taste and is hence used in the production of drugs, particularly mouthwash and cough syrups. Due to its properties of imparting pleasant fragrances, ethyl acetate has extensive application in perfumes, air fresheners, soaps, and various cosmetic products. Consequently, the rising demand for scents and flavors from manufacturers of cosmetics, household products, and toiletries has increased the consumption of raw materials such as ethyl acetate. In addition to this, R&D on aroma chemicals, which is a segment of fragrances and flavors market has led to an increase in demand for ethyl acetate throughout 2018.
While the global market share for ethyl acetate is moderately fragmented among critical markets such as Japan, China, India, France, UK, Germany, U.S., and Canada, the trends across various end-user industries have experienced stable growth in 2018. With key players like INEOS, Nippon, Celanese, Wood and Chemicals, Lee Chang Yung, and Lonza driving production, the market for ethyl acetate is anticipated to experience further growth in the coming years.
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