Acrylic Acid Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue

Acrylic Acid Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue

Report Format: PDF+Excel | Report ID: SR112025A18983

Report Overview:

IMARC Group’s report, titled “Acrylic Acid Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up an acrylic acid production plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The acrylic acid project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Acrylic Acid?

Acrylic acid (C₃H₄O₂) is a colorless, corrosive, and volatile organic compound primarily used as a key monomer in the production of acrylate esters and polymers. It belongs to the family of carboxylic acids and has a pungent odor. Chemically, acrylic acid is composed of a vinyl group directly bonded to a carboxyl group, which makes it highly reactive in polymerization processes. It exhibits excellent adhesive and film-forming properties, making it essential for coatings, adhesives, sealants, and superabsorbent polymers (SAPs). Industrially, it is produced via the oxidation of propylene using a catalyst. Additionally, acrylic acid offers exceptional versatility, enabling its use in diverse applications across automotive, construction, textiles, and hygiene industries across the globe.

Acrylic Acid Production Plant: Key Highlights

  • Process Used: Catalytic oxidation of propylene
  • End-use Industries: Paints & coatings, adhesives, hygiene & personal care, textiles, and construction
  • Applications: Used in superabsorbent polymers (SAPs), surface coatings, adhesives, sealants, water treatment agents, and plastics

An acrylic acid manufacturing plant is a chemical processing facility that produces high-purity acrylic acid from propylene feedstock. In addition, the plant operations include feed purification, gas-phase oxidation using catalysts (typically molybdenum or vanadium oxides), product separation, condensation, purification, and storage. Specialized units like fixed-bed reactors, absorbers, heat exchangers, and distillation columns are used to ensure high conversion efficiency and yield. Moreover, continuous monitoring systems are implemented for temperature control, vapor recovery, and emission management. The facility also integrates water recycling and effluent treatment systems to ensure sustainability and compliance with environmental regulations. The acrylic acid produced can be directly polymerized or esterified to form acrylates, which serve as raw materials for resins, paints, coatings, and superabsorbent polymers. These plants play a critical role in supplying essential intermediates to downstream industries in packaging, textiles, and construction.

Acrylic Acid Industry Outlook 2025:

The global acrylic acid market is expected to witness steady growth due to its wide application base and the transition toward environmentally friendly production methods. Superabsorbent polymers (SAPs) are used in diapers, adult incontinence products, and feminine hygiene items, driven by growing global hygiene awareness and ageing populations. According to the United Nations, by 2070s, the global population aged 65 and older is projected to reach 2.2 billion. Additionally, the expanding use of acrylic acid in water-based paints, coatings, and adhesives is fueled by stricter environmental regulations promoting low-VOC and eco-friendly formulations. Rapid industrialization and urbanization in emerging economies, particularly across Asia-Pacific, are also spurring demand from construction, packaging, and textile sectors. Moreover, technological advancements supporting bio-based acrylic acid production are creating sustainable growth opportunities while reducing dependency on petrochemical feedstocks.

Acrylic Acid Market Trends and Growth Drivers:

Significant technological advancements

The acrylic acid industry is undergoing technological transformation toward renewable and efficient production. Additionally, researchers are developing catalytic oxidation processes using renewable glycerol or lactic acid as feedstock, reducing dependence on fossil fuels. Companies such as BASF, Arkema, and LG Chem initiated bio-acrylic acid pilot projects focusing on circular carbon utilization. For instance, in February 2025, LG Chem started prototype production of its 100% bio-acrylic acid, certified by the USDA biobased product. Derived from 3HP through microbial fermentation, it matches the properties of conventional acrylic acid. With an initial capacity of 100 metric tons per year, LG Chem plans to expand production to meet rising global demand for sustainable raw materials. These innovations promise reduced greenhouse gas emissions and operational costs while improving the sustainability profile of downstream polymers. By offering an eco-friendly option without compromising quality, LG Chem’s innovation can accelerate market adoption and broaden applications for acrylic acid across the globe.

Growing asian market presence

The Asian market has emerged as one of the fastest-growing regions for industrial and specialty chemicals, driven by rapid urbanization, expanding infrastructure, and rising consumer demand across sectors such as coatings, adhesives, construction, and electronics. Additionally, companies with a strong presence in Asia are well-positioned to capitalize on this growth, offering products that meet both performance and sustainability requirements. Moreover, increased focus on eco-friendly and low-carbon solutions has further accelerated demand for innovative chemical technologies, including bio-based and energy-efficient materials. Furthermore, strategic investments in local production facilities, such as the establishment of world-scale plants, allow companies to reduce lead times, optimize logistics, and provide consistent, high-quality supply to regional customers. For instance, in July 2025, BASF achieved mechanical completion of its glacial acrylic acid (GAA) and butyl acrylate (BA) plants at the Zhanjiang Verbund site. The world-scale facilities are on track for commissioning and start-up in 2025. The new complex will strengthen BASF’s supply of high-quality acrylics in China and Asia, meeting growing demand with improved efficiency and shorter lead times.

Latest Industry Developments:

  • September 2025: Synthomer teamed up with Lummus Technology to license its proprietary acrylic acid esters technology. The collaboration merges Synthomer’s expertise in high-performance polymers with Lummus’ global licensing network, enabling sustainable production solutions for adhesives, coatings, and sealants. The partnership aims to expand market reach and support the growing demand for eco-efficient chemical technologies.
     
  • June 2025: Chicago-based Låkril Technologies raised USD 3.1 million to scale up production of its corn-derived bioacrylic acid (BioAA) to kilogram levels. Developed from research at the University of Minnesota’s Center for Sustainable Polymers, BioAA offers a renewable alternative to fossil-based acrylic acid. The funding will support commercialization and licensing of Låkril’s sustainable manufacturing process.
     
  • September 2025: Industrial Microbes (iMicrobes) successfully scaled production of 100% bio-based, high-purity acrylic acid using advanced fermentation technology. Supported by BioMADE, this innovation marks a key milestone in reducing the chemical industry’s carbon footprint.

Leading Acrylic Acid Manufacturers:

Leading manufacturers in the global acrylic acid industry include major chemical manufacturers with integrated production systems, R&D capabilities, and global distribution networks. Key players include

  • LG Chem
  • Dow
  • Sinopec
  • Formosa Plastics Corporation, U.S.A
  • Vigon International, LLC.
  • SMC
  • BASF SE
  • Arkema
  • Sasol
  • Wanhua
  • Shanghai Huayi Acrylic Acid Co., Ltd
  • NIPPON SHOKUBAI CO., LTD.

all of which operate large-scale facilities and serve end-use sectors such as paints & coatings, adhesives, construction, textiles, water treatment, hygiene, and automotive.

Acrylic Acid Plant Setup Requirements

Detailed Process Flow:

The production process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the acrylic acid production process flow:

  • Unit Operations Involved
  • Mass Balance and Raw Material Requirements
  • Quality Assurance Criteria
  • Technical Tests

Key Considerations for Establishing a Acrylic Acid Production Plant:

Setting up a acrylic acid production plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

  • Site Selection: The location must offer easy access to key raw materials such as propylene, air, water, and oxidation catalysts like molybdenum and vanadium oxides, along with absorption media and inhibitors for process stabilization. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
     
  • Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
     
  • Equipment Selection: High-quality, corrosion-resistant machinery tailored for acrylic acid production must be selected. Essential equipment includes oxidation reactors, heat exchangers, condensers, absorbers, distillation columns, air compressors, storage tanks, and effluent treatment systems. All machinery must comply with industry standards for safety, efficiency, and reliability.​
     
  • Raw Material Sourcing: Reliable suppliers must be secured for raw materials like propylene, air, water, and oxidation catalysts such as molybdenum and vanadium oxides, along with absorption media and inhibitors for process stabilization to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
     
  • Safety and Environmental Compliance: Safety protocols must be implemented throughout the production process of acrylic acid. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
     
  • Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a acrylic acid production plant involves various cost components, including:​

  • Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
     
  • Equipment Costs: Equipment costs, such as those for oxidation reactors, heat exchangers, condensers, absorbers, distillation columns, air compressors, storage tanks, and effluent treatment systems, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
     
  • Raw Material Expenses: Raw materials, including propylene, air, water, and oxidation catalysts such as molybdenum and vanadium oxides, along with absorption media and inhibitors for process stabilization, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
     
  • Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
     
  • Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
     
  • Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the acrylic acid production plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Acrylic Acid Production Plant

Capital Expenditure Breakdown:

Particulars Cost (in US$)
Land and Site Development Costs XX
Civil Works Costs XX
Machinery Costs XX
Other Capital Costs XX


Operational Expenditure Breakdown:

Particulars In %
Raw Material Cost XX
Utility Cost XX
Transportation Cost XX
Packaging Cost XX
Salaries and Wages XX
Depreciation XX
Taxes XX
Other Expenses XX


Profitability Analysis:

Particulars Unit Year 1 Year 2 Year 3 Year 4 Year 5
Total Income US$ XX XX XX XX XX
Total Expenditure US$ XX XX XX XX XX
Gross Profit US$ XX XX XX XX XX
Gross Margin % XX XX XX XX XX
Net Profit US$ XX XX XX XX XX
Net Margin % XX XX XX XX XX


Report Coverage:

Report Features Details
Product Name Acrylic Acid
Report Coverage Detailed Process Flow: Unit Operations Involved, Quality Assurance Criteria, Technical Tests, Mass Balance, and Raw Material Requirements 
 
Land, Location and Site Development: Selection Criteria and Significance, Location Analysis, Project Planning and Phasing of Development, Environmental Impact, Land Requirement and Costs 
 
Plant Layout: Importance and Essentials, Layout, Factors Influencing Layout 
 
Plant Machinery: Machinery Requirements, Machinery Costs, Machinery Suppliers (Provided on Request) 
 
Raw Materials: Raw Material Requirements, Raw Material Details and Procurement, Raw Material Costs, Raw Material Suppliers (Provided on Request) 
 
Packaging: Packaging Requirements, Packaging Material Details and Procurement, Packaging Costs, Packaging Material Suppliers (Provided on Request) 
 
Other Requirements and Costs: Transportation Requirements and Costs, Utility Requirements and Costs, Energy Requirements and Costs, Water Requirements and Costs, Human Resource Requirements and Costs
 
Project Economics: Capital Costs, Techno-Economic Parameters, Income Projections, Expenditure Projections, Product Pricing and Margins, Taxation, Depreciation 
 
Financial Analysis: Liquidity Analysis, Profitability Analysis, Payback Period, Net Present Value, Internal Rate of Return, Profit and Loss Account, Uncertainty Analysis, Sensitivity Analysis, Economic Analysis 
 
Other Analysis Covered in The Report: Market Trends and Analysis, Market Segmentation, Market Breakup by Region, Price Trends, Competitive Landscape, Regulatory Landscape, Strategic Recommendations, Case Study of a Successful Venture 
 
Currency US$ (Data can also be provided in the local currency) 
Customization Scope  The report can also be customized based on the requirement of the customer 
Post-Sale Analyst Support   10-12 Weeks
Delivery Format PDF and Excel through email (We can also provide the editable version of the report in PPT/Word format on special request) 


Key Questions Answered in This Report:

  • How has the acrylic acid market performed so far and how will it perform in the coming years?
  • What is the market segmentation of the global acrylic acid market?
  • What is the regional breakup of the global acrylic acid market?
  • What are the price trends of various feedstocks in the acrylic acid industry?
  • What is the structure of the acrylic acid industry and who are the key players?
  • What are the various unit operations involved in a acrylic acid production plant?
  • What is the total size of land required for setting up a acrylic acid production plant?
  • What is the layout of a acrylic acid production plant?
  • What are the machinery requirements for setting up a acrylic acid production plant?
  • What are the raw material requirements for setting up a acrylic acid production plant?
  • What are the packaging requirements for setting up a acrylic acid production plant?
  • What are the transportation requirements for setting up a acrylic acid production plant?
  • What are the utility requirements for setting up a acrylic acid production plant?
  • What are the human resource requirements for setting up a acrylic acid production plant?
  • What are the infrastructure costs for setting up a acrylic acid production plant?
  • What are the capital costs for setting up a acrylic acid production plant?
  • What are the operating costs for setting up a acrylic acid production plant?
  • What should be the pricing mechanism of the final product?
  • What will be the income and expenditures for a acrylic acid production plant?
  • What is the time required to break even?
  • What are the profit projections for setting up a acrylic acid production plant?
  • What are the key success and risk factors in the acrylic acid industry?
  • What are the key regulatory procedures and requirements for setting up a acrylic acid production plant?
  • What are the key certifications required for setting up a acrylic acid production plant?

Report Customization

While we have aimed to create an all-encompassing acrylic acid plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

  • The report can be customized based on the location (country/region) of your plant.
  • The plant’s capacity can be customized based on your requirements.
  • Plant machinery and costs can be customized based on your requirements.
  • Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

  • The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
  • Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
  • Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
  • We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
  • Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
  • Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable production plants worldwide.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
Acrylic Acid Production Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue
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Frequently Asked Questions

Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.

To start an acrylic acid production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.

Acrylic acid production requires propylene as main raw material. Additional inputs include air (as an oxygen source), water, and various catalysts (typically mixed metal oxides) to support the reaction process.

The acrylic acid factory typically requires oxidation reactors, heat exchangers, absorption and distillation columns, condensers, storage tanks, compressors, and safety/control systems. Emission control and wastewater treatment systems are also essential due to the process's environmental impact.

The main steps generally include:

  • Sourcing of raw materials

  • Propylene oxidation to acrolein

  • Further oxidation of acrolein to acrylic acid

  • Gas cooling and absorption

  • Purification and distillation

  • Storage and packaging

Usually, the timeline can range from 18 to 30 months to start an acrylic acid production plant, depending on factors like plant capacity, environmental permitting, reactor system complexity, and integration with upstream units. Engineering, procurement, and construction (EPC) phases are time intensive.

Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.

Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.

The top acrylic acid producers are:

  • BASF SE

  • Arkema S.A.

  • LG Chem Ltd.

  • Sasol Limited

  • Formosa Plastics Corporation

Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.

Cost components typically include:

  • Land and Infrastructure

  • Machinery and Equipment

  • Building and Civil Construction

  • Utilities and Installation

  • Working Capital

Break even in an acrylic acid production business typically range from 4 to 8 years, depending on investment size, raw material pricing, market demand, and plant efficiency. Strategic integration with downstream applications (e.g., superabsorbent polymers) can improve profitability.

Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.

Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.