Abstract

Acetaldehyde is produced throughout the world primarily from ethylene, although some is still

derived from ethanol and acetylene. Demand for acetaldehyde worldwide has continued to

decrease primarily as a result of less consumption for acetic acid manufacture, as the industry

continues to move toward the more efficient and lower-overall-cost carbonylation-of-methanol

process. For example, all manufacture of acetic acid from acetaldehyde in North America has been

discontinued and in Europe significant capacity for this process has been permanently shut down.

Acetaldehyde use for acetic acid manufacture in Asia continues but is under pressure from the

ongoing establishment of methanol carbonylation technology.

Demand has also significantly declined in the production of plasticizer alcohols, which has totally

switched to oxo processes. As a result of these process replacements, acetaldehyde capacity has

been shut down in Western Europe and in other areas, such as Mexico. In addition to the

disappearance of use for acetic acid and plasticizer alcohols, acetaldehyde demand has also

declined in the last few years because of mature end-use markets and the effects of the economic

downturn on these acetaldehyde-derived products. There has also been continued substitution for

acetaldehyde-based chemistries with other materials, which has further contributed to the drop in

acetaldehyde use.

The following pie chart shows world consumption of acetaldehyde:

Consumption in China is expected to grow over 5% annually in the next five years. Acetaldehyde

use for acetic acid production will increase, although this will be more of a recovery back to the

pre-2009 level. Actual growth might be limited because of acetic acid production from the

methanol carbonylation process. Strong growth of over 6% annually will actually occur in pyridine
production and there will be moderate growth for use in pentaerythritol, as alkyd resin enamel and

varnish production goes up. Other uses are generally mature, such as sorbic acid production.

Indian consumption is anticipated to have moderate growth of over 3% annually in the next

several years. Acetaldehyde demand for acetic acid production will grow 34% per year, while

consumption for pyridines is expected to return to the 2008 level. Other uses for acetaldehyde will

also increase 34% annually.

Overall, the global market for acetaldehyde is expected to grow 23% annually during 20092014.

However, some of this growth is actually a recovery from the significant decline experienced in

2009 (for example, China's use in the acetic acid market). Major regions including Japan, Western

Europe and the United States will have low growth because of no use or no growth for acetic acid

production, minimal growth in other acetaldehyde-consuming products, or continued product

replacement of materials that consume acetaldehyde.