The global bio-acetic acid market was valued at USD 258.4 million in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032. The growth is primarily driven by the increasing demand for renewable and sustainable substitutes for petrochemical-derived chemicals. Bio-acetic acid, produced through bio-based fermentation or biomass routes, offers a low-carbon alternative widely used in industries such as polymers, textiles, solvents, and coatings. The growing emphasis on environmental responsibility and carbon footprint reduction is accelerating the adoption of sustainable production processes, which in turn fuels the market for bio-based chemicals like bio-acetic acid.
The market experienced a rebound after the disruptions caused by the COVID-19 pandemic. The temporary suspension of automotive and construction activities during 2020–2021 reduced demand for vinyl acetate monomer (VAM), a major downstream product of acetic acid. However, with the resumption of industrial operations and the global push for green chemistry, the bio-acetic acid market regained growth momentum by late 2023 and expanded strongly through 2024.
North America remains one of the key markets, led by the United States, which accounted for more than 70% of the regional revenue share in 2024. Rising consumption of VAM in paints, adhesives, and coatings, especially in the automotive and infrastructure sectors, has strengthened demand. Bio-acetic acid also acts as a precursor for polyvinyl alcohol (PVOH), a material known for its excellent film-forming and adhesion properties used extensively in packaging and industrial coatings. The revival of the automobile and construction sectors across the U.S. has thus propelled the market demand in the region.
The vinyl acetate monomer (VAM) segment dominated the market in 2024 with a revenue share of 44.1%, driven by its extensive use across adhesive, paint, film, and textile industries. It is a key intermediate in the formulation of several high-performance polymers and resins. The increasing utilization of bio-based VAM for producing sustainable coatings and packaging films supports market expansion. Rapid industrialization in developing economies coupled with a strong demand for renewable raw materials is expected to strengthen this segment through 2032.
The acetic anhydride segment is anticipated to experience notable growth in the coming years. Its demand is supported by its application in pharmaceuticals, cellulose acetate, and tetraacetylethylenediamine (TAED) manufacturing. Acetic anhydride also plays a crucial role in producing acetylated compounds used in drug formulations like aspirin, paracetamol, and corticosteroids. The growth in pharmaceuticals, packaged foods, and eco-friendly packaging materials continues to create opportunities for the bio-acetic acid market.
In addition, the growing use of acetate esters and purified terephthalic acid (PTA) in flexible packaging, hygiene products, and polymer films further supports industry expansion. Developments in bio-refineries and enzymatic conversion technologies are expected to improve production efficiency, offering cost advantages in the long term.
Asia Pacific retained its leading position in 2024, accounting for around 47% of global market revenue. The region benefits from a strong presence of automotive, coatings, plastic, and chemical manufacturing industries. Increasing production volumes in countries such as China, India, Japan, and South Korea have contributed significantly to market growth. High population density, expanding economic development, and rising sustainability targets encourage local industries to adopt bio-based feedstocks for chemical manufacturing.
North America represents a significant market segment driven by demand from the packaging, coatings, and cosmetic sectors. The increased use of bio-acetic acid in personal care applications as a pH adjuster and preservative has further supported regional growth. Europe continues to progress due to stringent emission regulations and government incentives promoting bio-based chemical integration in manufacturing networks. In 2025, multiple regional producers in Germany and France launched R&D collaborations focusing on improving fermentation yields of bio-acetic acid from second-generation biomass sources.
The bio-acetic acid market is moderately consolidated, featuring a competitive mix of global and regional companies. Key participants are prioritizing technological innovation, strategic partnerships, and capacity expansions to gain a competitive advantage. Sustainability goals have pushed manufacturers to optimize resource utilization and reduce waste in biorefinery processes.
Recent developments reflect strong momentum in bio-based innovation. In February 2025, Afyren SAS introduced its next-generation biocarboxylic acid platform optimized for higher yields in acetic acid production from sugar derivatives. In March 2025, Cargill, Inc. announced the expansion of its biochemicals division to scale up renewable acid intermediates in the U.S. and Europe. Similarly, LanzaTech advanced its carbon recycling technology for industrial-scale production of acetic acid using captured CO₂ streams, further accelerating the global transition toward circular chemical production.
| Report Attribute | Details |
| Market size value in 2024 | USD 258.4 million |
| Revenue forecast in 2032 | USD 392.7 million |
| Growth Rate | CAGR of 5.5% from 2025 to 2032 |
| Base year for estimation | 2024 |
| Historical data | 2020 – 2023 |
| Forecast period | 2025 – 2032 |
| Quantitative units | Revenue in USD million, volume in thousand tons, and CAGR from 2025 to 2032 |
| Report coverage | Revenue forecast, volume analysis, company rankings, market trends, and growth drivers |
| Segments covered | Application, Region |
| Regional scope | North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
| Country scope | U.S.; Canada; Mexico; Germany; UK; France; China; India; Japan; South Korea; Brazil; Argentina; Saudi Arabia; Egypt; South Africa |
| Key companies profiled | Airedale Chemicals; Bio-Corn Products EPZ Ltd.; GODAVARI BIOREFINERIES LTD.; Sucroal SA; Cargill, Inc.; Novozymes A/S; LanzaTech; Afyren SAS; BTG Bioliquids |
This report analyzes revenue and volume growth at global, regional, and country levels across multiple sub-segments from 2020 to 2032. The market segmentation is as follows:
What is the size of the bio-acetic acid market in 2025?
The global bio-acetic acid market is estimated to be worth USD 272.5 million in 2025 and is forecast to reach USD 392.7 million by 2032.
What is the expected growth rate of the bio-acetic acid market?
The market is anticipated to expand at a CAGR of 5.5% from 2025 to 2032, supported by rising industrial adoption of renewable raw materials and eco-friendly production processes.
Which region accounts for the largest market share?
Asia Pacific leads the market with a 47% revenue share in 2024, primarily due to strong industrial bases in China, Japan, and India, along with expanding automotive and coatings sectors.
Who are the leading companies in the bio-acetic acid market?
Major participants include Afyren SAS, GODAVARI BIOREFINERIES LTD., Cargill, Novozymes A/S, LanzaTech, Sucroal SA, and BTG Bioliquids.
What factors are driving market growth?
Growing environmental awareness, government incentives for green manufacturing, and increasing demand for bio-based polymers, solvents, and coatings are the key factors driving bio-acetic acid market growth.
