Acrylic Acid Procurement Intelligence Report 2025-2030

Acrylic Acid Supply-Demand Overview

Key drivers of acrylic acid procurement report include the growing e-commerce sector, which boosts demand for packaging materials and coatings, and the increasing use of superabsorbent polymers in hygiene products due to population growth and rising living standards, particularly in emerging regions. Additionally, strong demand from the construction and automotive industries, where acrylic acid is used in coatings and adhesives, is contributing to demand growth. The Asia-Pacific region, particularly China and India, leads both in production and consumption, driven by their rapidly expanding manufacturing sectors and large consumer sectors.

The supply side in acrylic acid procurement report is seeing increased investments in production capacity, especially in regions like Asia-Pacific and the Middle East, to meet rising demand. However, supply stability faces challenges due to raw material availability—especially for propylene, which is the main feedstock for acrylic acid production—and energy costs. Furthermore, environmental regulations in key regions, such as stricter emissions controls, are influencing production processes, adding cost pressures. The ongoing focus on bio-based acrylic acid production and sustainable manufacturing practices is helping address sustainability concerns, reduce dependency on fossil resources, and diversify supply sources.

Acrylic Acid Cost Structure

The cost modeling of acrylic acid production is influenced by key factors, including raw materials, energy costs, catalysts, operational expenses, and regulatory compliance. Raw materials, particularly propylene, represent the largest component of production costs. Propylene, a byproduct of petroleum refining and natural gas processing, is subject to price fluctuations driven by crude oil and natural gas industry dynamics. The availability and cost of acetic acid, another key feedstock, also affect production expenses.

As per acrylic acid procurement report, energy cost modeling play a significant role in acrylic acid production, as the process requires high temperatures for the dehydration of propylene. Energy-intensive steps, such as steam cracking and oxidation, make production sensitive to rising energy prices, particularly in regions with higher electricity and natural gas costs. In areas with elevated energy prices, production costs can be substantially higher.

Catalysts, including silver-based catalysts used in the oxidation of propylene to acrylic acid, also contribute to costs. Although these catalysts are highly effective and long-lasting, their initial cost and the need for periodic replenishment can add to overall production expenses.

Operational costs, including labor, plant maintenance, and overheads, are another important consideration in acrylic acid procurement report. Optimizing plant efficiency through automation and lean manufacturing practices can help mitigate these costs. Additionally, the proximity of production facilities to raw material sourcing and end-use sectors affects transportation and distribution expenses, particularly since acrylic acid is often shipped in bulk to industries such as coatings, adhesives, and plastics.

Acrylic Acid Pricing Trends

Acrylic acid pricing models are influenced by fluctuations in raw material costs, energy prices, and supply-demand dynamics. The primary feedstocks for acrylic acid production are propylene and acetic acid, with propylene being the key determinant. As propylene is derived from crude oil and natural gas, its price is highly sensitive to volatility in global oil and gas sectors. Recent pricing trends in acrylic acid procurement report show rising prices driven by robust demand from industries such as superabsorbent polymers (SAPs), paints and coatings, and adhesives, especially in the Asia-Pacific region, where industrial growth is strong.

Price increases have been further exacerbated by supply chain disruptions, including raw material shortages and logistical challenges. Additionally, rising energy costs, driven by fluctuations in natural gas and electricity prices, have contributed to higher production expenses for acrylic acid manufacturers. Moreover, compliance with increasingly stringent environmental regulations around emissions and waste disposal has added to the cost burden for producers in regions with tight environmental controls.

Acrylic Acid Procurement Best Practices

Procurement practices in the acrylic acid procurement report are centered around securing consistent, cost-effective, and high-quality raw materials while navigating price volatility and aligning with sustainability goals. Key strategies include establishing long-term contracts with suppliers of propylene and acetic acid, the primary feedstocks, to mitigate the impact of price fluctuations. Supplier diversification is crucial to reduce dependency on specific regions and ensure a steady supply amid global supply chain disruptions. Additionally, a strong emphasis is placed on sourcing from suppliers with strong environmental compliance, as the industry faces increasing regulatory pressure to reduce its environmental footprint.

As per acrylic acid procurement report, efficient logistics and inventory management are vital to ensure the timely and secure delivery of raw materials, as acrylic acid production requires precise coordination between multiple stages of the supply chain. With the increasing complexity of global logistics, advanced digital tools and real-time tracking are becoming integral for optimizing procurement operations, enabling better forecasting, and minimizing the risk of stockouts or excess inventory.

As the acrylic acid industry shifts toward more sustainable production methods, including bio-based production technologies and renewable feedstocks, procurement practices are evolving. Suppliers with capabilities in bio-based materials or energy-efficient production processes are becoming increasingly important. These sustainable procurement and pricing strategies not only align with corporate sustainability objectives but also help reduce reliance on fossil resources, improving cost efficiency and environmental impact over the long term.

Key Players in the Acrylic Acid Industry

Recent Developments in the Acrylic Acid Procurement Report

• According to procurement research, in October 2023, Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced its agreement with Air Liquide Engineering & Construction to acquire rights to license and market ester grade acrylic acid technology, and light and heavy acrylates process technology.
• As per the acrylic acid procurement report, in May 2023, PT. NIPPON SHOKUBAI INDONESIA, a subsidiary of NIPPON SHOKUBAI CO., LTD inaugurated new acrylic acid (“AA”) facility with the production capacity of 100,000 MT/Y in Cilegon, Banten, Indonesia. 
• In March 2023, BASF broke ground on acrylic acid complex at Zhanjiang Verbund site in China. The facility will have a production capacity of approximately 400,000 metric tons of BA and 100,000 metric tons of 2-EHA.