India Acetic Acid Market Overview,2030

India’s acetic acid market has evolved significantly from a small, fragmented sector to a robust industry integrated with domestic and export-oriented chemical production. Historically, acetic acid production in India was limited to small-scale fermentation for vinegar and traditional food applications, supplemented by imports for industrial use. In the 1980s and 1990s, industrialization and modernization of chemical manufacturing led to the adoption of methanol carbonylation and acetaldehyde oxidation technologies for synthetic acetic acid production. Key chemical clusters emerged in Gujarat, Maharashtra, and Tamil Nadu, integrating acetic acid production with downstream derivatives such as vinyl acetate monomer (VAM), purified terephthalic acid (PTA), esters, and acetic anhydride. The 2000s witnessed capacity expansion to meet growing demand from adhesives, coatings, textiles, and packaging sectors, along with increasing pharmaceutical and food-grade applications. India’s chemical industry benefitted from low-cost methanol imports and favorable government policies promoting domestic chemical production. Recent developments focus on sustainable and low-carbon production processes, driven by India’s National Electric Mobility Mission, renewable energy targets, and circular economy initiatives. Pilot projects for bio-based acetic acid, using ethanol fermentation and biomass conversion, have emerged, especially in agro-processing hubs with abundant sugarcane and other feedstocks. Today, India’s acetic acid market reflects a balance of mature synthetic production, growing domestic demand, and emerging renewable pathways, with a strong emphasis on meeting downstream industrial needs while aligning with environmental and sustainability objectives.

According to the research report “India Acetic Acid Market Overview, 2030,”published by Bonafide Research, the India Acetic Acid market is anticipated to grow at 8.51% CAGR from 2025 to 2030.India’s acetic acid market is primarily driven by expanding downstream industries, low-cost feedstocks, government policy support, and growing consumer demand for food-grade and pharmaceutical products. Vinyl acetate monomer (VAM) is a major application, supplying adhesives, paints, coatings, and packaging films, with demand driven by infrastructure, construction, and urbanization. Purified terephthalic acid (PTA) consumption in polyester fibers and PET resins supports textiles, apparel, and food packaging sectors, which continue to grow due to domestic consumption and exports. The pharmaceutical and food industries drive demand for high-purity and traceable acetic acid, particularly in active pharmaceutical ingredient synthesis, preservatives, and flavorings. India’s low-cost methanol availability and import integration provide competitive advantage for synthetic acetic acid production. Opportunities exist in bio-based acetic acid production using sugarcane, molasses, and agricultural residues, aligned with government initiatives promoting renewable chemicals and circular economy practices. Export potential is expanding to Southeast Asia, the Middle East, and Africa due to geographic advantage and growing regional demand. Challenges include feedstock price volatility, energy cost fluctuations, and competition from imported acetic acid. Nevertheless, growing industrialization, strong downstream integration, policy incentives for low-carbon production, and increasing demand for certified, sustainable chemicals provide significant growth opportunities for both synthetic and bio-based acetic acid segments in India over the next decade.

Synthetic acetic acid dominates India’s market, primarily produced via methanol carbonylation in large-scale integrated facilities located in Gujarat, Maharashtra, and Tamil Nadu. These plants supply downstream derivatives including VAM, PTA, esters, and acetic anhydride to industries such as adhesives, coatings, textiles, and pharmaceuticals. Synthetic production offers consistent quality, scalability, and cost efficiency, leveraging domestic methanol and import-linked feedstock supply chains. Bio-based acetic acid is an emerging product type in India, driven by renewable energy initiatives, circular economy policies, and sustainability demand from food, pharmaceutical, and specialty chemical sectors. Ethanol fermentation using sugarcane, molasses, or biomass, as well as biogas-derived methanol carbonylation, are being piloted to produce low-carbon acetic acid. While production costs remain higher than conventional synthetic routes, bio-based acetic acid is increasingly valued for traceability, food-grade quality, and eco-certification. Research collaborations between Indian Institutes of Technology, chemical companies, and agribusinesses are facilitating process optimization, pilot-scale demonstrations, and potential scale-up. Over the next decade, a hybrid market structure is expected, with synthetic acetic acid supplying the majority of commodity demand, while bio-based variants expand in high-value, certified, and food-grade applications. Government incentives, renewable energy policies, and growing demand for environmentally sustainable chemicals will support the gradual growth of bio-acetic acid production, complementing India’s established synthetic capacity.

In India, vinyl acetate monomer (VAM) represents the largest application segment for acetic acid, serving adhesives, paints, coatings, and flexible packaging films. Strong demand in construction, automotive, and industrial manufacturing drives continuous VAM consumption. Purified terephthalic acid (PTA) is another major downstream application, supporting polyester fiber and PET resin production for textiles, apparel, and food packaging. Acetic anhydride is used extensively in cellulose acetate, pharmaceutical intermediates, and specialty chemical synthesis. Esters and solvents such as ethyl acetate and butyl acetate are consumed in coatings, inks, industrial cleaning, and consumer goods. The food and beverage sector uses acetic acid in vinegar, preservatives, and flavoring, supported by India’s diverse culinary and processed food industry. Other applications include agrochemicals, dyes, and fine chemicals. Sustainability trends, including renewable feedstock utilization, VOC reduction, and green chemistry initiatives, are increasingly influencing application demand. Industrial integration between synthetic acetic acid production and downstream derivatives ensures efficient supply chains and reduces dependency on imports. While industrial and polymer-related applications dominate in volume, food, pharmaceutical, and specialty chemical applications represent higher-margin, growth-oriented segments. India’s acetic acid market is thus diversified across applications, balancing large-scale industrial consumption with emerging sustainable and high-value product demand.

India’s acetic acid consumption spans several high-value and high-volume end-use industries. Packaging and textiles represent the largest segment, consuming PTA- and VAM-derived products for PET bottles, films, and polyester fibers used in packaging, apparel, and industrial textiles. Adhesives and coatings are a significant segment, with acetic-acid-derived polymers supporting construction, automotive, and industrial applications. Pharmaceuticals consume high-purity acetic acid and acetic anhydride for API synthesis, intermediates, and specialty excipients, representing a growing, high-margin segment. The food and beverage sector remains a stable consumer, using acetic acid in vinegar, preservatives, and flavorings, with traceability and quality gaining importance. Other industries, including agrochemicals, fine chemicals, and specialty polymers, contribute smaller but consistent demand portions. Market growth is supported by increasing domestic industrialization, rising exports, and government initiatives promoting low-carbon production and renewable feedstock adoption. Integration of production and downstream supply chains ensures consistent quality and cost efficiency, while emerging bio-based acetic acid applications target sustainable and certified high-value end-users. Over the next decade, India’s acetic acid market is expected to expand steadily, driven by industrial growth, downstream integration, and increased adoption of bio-acetic acid in pharmaceuticals, food, and specialty chemical sectors, aligning market expansion with environmental and sustainability objectives.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Acetic Acid Interior Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Synthetic Acetic Acid
• Bio-Based Acetic Acid

By Application
• Vinyl Acetate Monomer (VAM)
• Purified Terephthalic Acid (PTA)
• Acetic Anhydride
• Esters & Solvents
• Food & Beverage (Vinegar, Preservatives)
• Others

By End-Use Industry
• Packaging & Textiles
• Adhesives & Coatings
• Pharmaceuticals
• Food & Beverage
• Others Show more