Hydroxyacetic Acid Market

Ongoing R & D Efforts Have Led to the Discovery of New Applications for Hydroxyacetic Acid

The hydroxyacetic acid market is set to enjoy a valuation of US$ 330 Million in 2023 and further expand at a CAGR of 6.6% to reach US$ 625 Million by the end of 2033.

Overall, the increasing demand for hydroxyacetic acid can be attributed to factors such as consumer awareness, evolving beauty standards, advancements in skincare formulations, and the need for improved textile products. As industries continue to explore new applications and benefits of hydroxyacetic acid, the demand is expected to witness sustained growth in the near future.

Report Attributes	Details
Hydroxyacetic Acid market size (2023A)	US$ 330 Million
Estimated Market Value (2027E)	US$ 452 Million
Forecasted Market Value (2033F)	US$ 625 Million
Global Market Growth Rate (2023-2033)	6.6% CAGR
Key Companies Profiled	The Chemours Company (US) China Petrochemical Corporation (CHINA) CABB Group GmbH (Germany), Zhonglan Industry Co., Ltd. (China), Water Chemical Co., Ltd (China)

Demand Analysis of Hydroxyacetic Acid Market (2018-2022) Vs. Sales Forecast Outlook (2023-2033)

The global market for hydroxyacetic acid has garnered opportunity-driven growth over the past half-decade owing to their diverse and multiple uses among public and private end users. In 2018, the global demand for hydroxyacetic acid was around 40,000 tons. From 2018 to 2023, the demand for hydroxyacetic acid is expected to grow at a CAGR of around 6%, driven by increasing demand from various end-use industries such as cosmetics and personal care, healthcare, and food and beverages.

The growth is expected to be driven by increasing demand from emerging markets, where the demand for consumer goods is expected to increase significantly. Additionally, the growing awareness of the benefits of hydroxyacetic acid is expected to further drive the market growth, especially in the cosmetics and personal care and healthcare industries.

Owing to the aforementioned market dynamics, the global market is anticipated to witness of 6.6% CAGR, projected to create absolute dollar opportunity of US$ 295 Million during the forecast period.

• Short Term (2023-2026): Hydroxyacetic acid market could be to increase its adoption in the pharmaceutical industry. Hydroxyacetic acid has been found to be effective in the treatment of various skin conditions, including acne, hyperpigmentation, and photoaging. Therefore, increasing its usage in the pharmaceutical industry can lead to higher demand for hydroxyacetic acid.
• Medium Term (2026-2029): Hydroxyacetic acid market could be to increase its application in the construction industry. Hydroxyacetic acid is used as a concrete surface treatment agent, as it can improve the adhesion of coatings and reduce dust formation. Increasing its use in this industry can lead to higher demand for hydroxyacetic acid.
• Long Term (2029-2033): Hydroxyacetic acid market could be to achieve a more sustainable and eco-friendly production process. This could involve developing new production methods that minimize the use of non-renewable resources and reduce the amount of waste generated during the process.

Over the 2018-2022 historical period, the global hydroxyacetic acid market registered a CAGR of 4.6%, and according to Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.6% CAGR between 2023 and 2033.

Market share analysis of hydroxyacetic acid based on grade and region is illustrated briefly in the above image. Under the grade segment, cosmetic grade sub-segment will dominate with 65.2% market share in 2023.

How Textile Industry is providing Growth Platform for Increasing Market Size?

Hydroxyacetic acid offers a cost-effective solution for textile processing when compared to traditional methods. Its efficient dyeing properties, reduced processing time, and lower water and energy requirements make it an attractive choice for textile manufacturers, resulting in increased demand

Hydroxyacetic acid offers eco-friendly advantages in textile processing. It enables reduced water and energy consumption during dyeing and finishing processes. With growing environmental concerns and increasing emphasis on sustainable practices, textile manufacturers are adopting hydroxyacetic acid as a greener alternative, driving its demand.

What Factors are Anticipated to Anchor the Global Market Growth?

Growing consumer awareness about skincare ingredients and their benefits has played a significant role in driving the demand for hydroxyacetic acid. Increased access to information through the internet and social media platforms has empowered consumers to make informed choices and seek products containing hydroxyacetic acid.

Cosmetic companies have been incorporating hydroxyacetic acid into a wide range of skincare products, including cleansers, toners, serums, masks, and peels. The availability of various formulations and concentrations of hydroxyacetic acid has provided consumers with options to address their specific skincare needs, further driving the demand.

Continuous research and development efforts in the textile industry have resulted in innovative uses for hydroxyacetic acid. New techniques and formulations incorporating hydroxyacetic acid as a textile processing agent have emerged, expanding its applications and driving the demand for this versatile chemical

What Factors are Restraining the Market Growth?

Hydroxyacetic acid is typically produced through the chemical synthesis of raw materials like formaldehyde and sodium chlorate. Any fluctuations or limitations in the availability and cost of these raw materials can affect the production and supply of hydroxyacetic acid, thus impacting market growth.

The price of hydroxyacetic acid can be subject to fluctuations due to factors such as raw material costs, production capacity, and market demand. Price volatility can impact profit margins and affect the affordability of hydroxyacetic acid-based products, potentially hindering market growth.

Country-wise Insights

How U.S. Market Leads from Front in the Product Innovation and Application?

The United States is a hub for innovation in the cosmetics industry. Companies continually invest in research and development to introduce new and advanced skincare products. This focus on innovation has led to the development of novel formulations and delivery systems that incorporate hydroxyacetic acid, further driving market growth.

The United States has a robust skincare industry, with a high demand for products that address concerns like anti-aging, acne, and hyperpigmentation. Hydroxyacetic acid, known for its skin-renewing and exfoliating properties, is a key ingredient in many skincare formulations. The increasing consumer focus on skincare and the availability of a wide range of hydroxyacetic acid-based products contribute to market growth.

Overall, the United States offers a conducive environment for the growth of the hydroxyacetic acid market, driven by factors such as a thriving skincare industry, consumer awareness, innovation, strong distribution channels, professional skincare treatments, regulatory standards, and the expanding male grooming market.

What Are the Trends That Have Impelled China to grow at a Significant Pace?

The Chinese government has shown support for the development of the cosmetics and personal care industry. Initiatives such as simplified regulatory processes, favorable policies, and investments in research and development have created a conducive environment for market growth. This support encourages the production and use of hydroxyacetic acid in the skincare industry.

China has a well-established manufacturing infrastructure and capabilities in the cosmetics and personal care sector. The country's manufacturing prowess allows for the efficient production of hydroxyacetic acid and its incorporation into various skincare products. Additionally, China's export capabilities make it a significant player in the global hydroxyacetic acid market

Category-wise Insights

Why Cosmetic Grade Type is Production is Dominating in the Market?

The men's skincare market has witnessed significant growth in recent years, driven by changing grooming habits and increased awareness of skincare among men. Cosmetic grade hydroxyacetic acid is increasingly being incorporated into men's skincare products, including cleansers, moisturizers, and shaving creams, to address specific skin concerns. The expansion of the men's skincare market expands the market for cosmetic grade hydroxyacetic acid.

Overall, the cosmetic grade hydroxyacetic acid market is driven by factors such as the increasing demand for skincare products, anti-aging skincare trends, consumer awareness, product innovation, professional skincare treatments, the expansion of the men's skincare market, and regional market growth. These factors create favorable conditions for the growth and expansion of the cosmetic grade hydroxyacetic acid market.

How Increasing Demand for Personal Care Products Driving Product Adoption

Hydroxyacetic acid is effective in reducing the appearance of fine lines, wrinkles, and hyperpigmentation. It stimulates collagen production and helps in improving the elasticity and firmness of the skin. With an increasing focus on anti-aging skincare routines, the demand for hydroxyacetic acid-based products has risen.

Hydroxyacetic acid promotes skin cell turnover, which leads to the regeneration of new, healthier skin cells. This results in a more radiant and glowing complexion. Consumers seeking products that enhance their skin's natural radiance have contributed to the demand for hydroxyacetic acid.

Competitive Landscape

Prominent hydroxyacetic acid manufacturers are Area Four Industries, The Chemours Company (US), China Petrochemical Corporation (CHINA), CABB Group GmbH (Germany), Zhonglan Industry Co., Ltd. (China). These companies are focusing on research and development activities to introduce innovative products and expand their market presence.

Key hydroxyacetic acid manufacturers are investing rigorously in research and development activities to explore new application areas for this multifunctional substance. Besides this, they are adopting strategies such as mergers and hydroxyacetic acid acquisitions as well as product portfolio expansion.

For instance :

• In January 2021, Solvay SA announced the launch of its new sustainable hydroxyacetic acid product, GlyAcid® XR, produced with Solvay’s innovative biotechnology. The company aims to address the increasing demand for eco-friendly personal care, home care, and industrial applications by providing a reliable and sustainable source of hydroxyacetic acid.
• In February 2021, Arkema announced the launch of its new bio-based Hydroxyacetic Acid, which is produced from renewable raw materials and offers a sustainable alternative to traditional hydroxyacetic acid.

Fact.MR has provided detailed information about the price points of key manufacturers of hydroxyacetic acid positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Hydroxyacetic Acid Industry Research

• Hydroxyacetic Acid Market by Grade :

  • Cosmetic grade
  • Technical grade

• Hydroxyacetic Acid Market by Application :

  • Personal Care & Dermatology
  • Household
  • Textile
  • Pharmaceutical
  • Industrial
  • Others

• Hydroxyacetic Acid Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA