South Korea Bio-Acrylic Acid Market Outlook

the south korean market for bio-acrylic acid (baa) has been gaining momentum in recent years due to increasing demand for sustainable and cost-effective chemical products over conventional acrylic acid. growing focus on environmental protection and strong government incentives to switch to renewable energy sources have fueled the growth of the baa market in south korea. driven by the consideration of cost-effectiveness and environmental benefits, baa is becoming increasingly popular among manufacturers of textiles, paints and coatings, adhesives, and detergents in south korea. baa is a renewable resource produced from biomass, offering a sustainable alternative to traditional petroleum-based acrylic acid that can help reduce the overall carbon footprint. in order to support the growing demand for baa, various large producers are planning to expand their production facilities in south korea. most notably, basf recently announced plans to invest over us$20 million to set up a new production facility for baa in gunsan, south korea. this is expected to be the firm’s largest baa production facility and will be fully operational in 2020. in addition, the south korean government has been providing support for baa production and consumption through various tax breaks and subsidies. for example, a 5% vat exemption for the production and sale of baa was introduced in 2015. this has been extended to 2020, aiming to promote the adoption of baa and help boost the country’s economic growth. the outlook for the south korea baa market is highly positive, with a growing number of manufacturers investing in baa production and the government providing various incentives to encourage the adoption of this sustainable chemical. the local demand for baa is expected to remain strong over the next decade, due to its cost-effectiveness and environmental benefits, creating significant opportunities for the growth of the market.