Acetic Anhydride

Acetic anhydride is a colorless liquid with a pungent odor and strong lachrymatory properties. In the United States, the major portion of acetic anhydride consumption is captive by producers of cellulose acetates and related products. Much of the acetic anhydride is produced from recovered acetic acid from cellulose acetate operations. In Europe, most acetic anhydride is consumed in cellulose acetate production; tetraacetylethylenediamine (TAED) is also a significant consumer of acetic anhydride. Likewise in Japan, the majority of acetic anhydride is used for cellulose acetates and products. In China, acetic anhydride production capacity has increased significantly in recent years. Consumption is split fairly evenly between cellulose acetate use and other uses, including flavors and fragrances, dyes, TAED, artificial sweeteners, polymers and resins. Other Asian countries consume acetic anhydride primarily for the pharmaceutical industry.

Global production of acetic anhydride has been growing at an average annual rate of 4% since 2007. China has been responsible for much of this growth, thanks to the huge capacity investments it has made in acetic anhydride and cellulose acetate flake in the last fifteen years. During 2007–2012, China's production grew at an impressive 20% per year. In contrast, acetic anhydride production in the United States, Western Europe and Japan declined at average annual rates of 3%, 2% and 4%, respectively.

The following pie chart shows world consumption of acetic anhydride:

Sixty-two percent of the acetic anhydride consumed globally in 2012 went to the production of cellulose acetate flake. Cellulose acetate flake, in turn, is converted to cigarette filter tow, filament yarns and plastics. With the exception of Asia (outside Japan), the markets for cellulose acetates in most regions are mature and declines have occurred in recent years. In the past, China imported very large quantities of cellulose acetate from the United States and Europe. However, as China began building facilities for cellulose acetate plants, as well as acetic anhydride, its imports decreased. This trend will continue because more domestic capacity will be built in the next few years.

Pharmaceuticals accounted for 10% of global acetic anhydride consumption in 2012. This end use is mature in the developed regions, but is still growing in Asia, particularly in China and India where industry production has increased.

TAED amounted to about 5% of global acetic anhydride consumption in 2012; it is significant in Europe and usage might be higher than indicated because of its partial inclusion in the Other category.

Other uses for acetic anhydride, including polymers/resins, dyes, flavors and fragrances, and modified starches, account for the remaining 23% of consumption.

China will be one of the few bright spots for acetic anhydride during 2012–2018. Driven by the continued strong growth in cigarette consumption in Asia, acetic anhydride consumption will grow at 4% per year during the forecast period. Given the availability of acetic anhydride, the country is also expected to diversify into other anhydride markets, including flavors and fragrances, dyes, sweeteners, TAED and PTMEG.

Other Asia (outside Japan and China) will experience consumption growth rates ranging from 2% to 6% per year. The main driver will be the pharmaceutical industry as more producers start up in the region, such as in India. There will also be increased use in the dyes and pigments industries.

Overall, global acetic anhydride consumption is expected to grow at a rate of about 1–2% annually during 2012–2018.

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