Huge Demand from End-use Industries to Bolster the Global Organic Acids Market
The organic acids market is exceptionally competitive with the presence of numerous players. However, manufacturers holding majority of the share are Dow Dupont, BASF, Eastman Chemical Company, LyondellBasell Industries N.V., Celanese Corporation, and many more. The key focus of manufacturers is on the advancement of production technologies, reduction of raw material costs, and expansion in emerging markets. Organic acids are produced industrially by the fermentation process, or by chemical synthesis. In recent years, due to the advancements in biotechnology, a significant amount of organic acids are being produced by the fermentation process from natural resources.
According to the research study, the global organic acids market is expected to witness steady growth with a CAGR of around 5% during the long-term forecast. This growth is attributed to the increased demand from the food & beverages and pharmaceutical industries. Organic acids are widely used in the food & beverages industry, due to the versatile anti-oxidant properties. There are over 600 organic acids available globally, and the food & beverages industry consumes over 45% of the organic acids. Moreover, it is also used in various niche applications such as detergents, cosmetics, animal feed, and industrial & chemical processing applications.
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Food & Beverages Remains the Major Hotspot for the Global Organic Acids Market
The food & beverages industry is one of the key end users of organic acids. The rising global population, coupled with GDP growth, will pique the demand for organic acids in the forthcoming years. Also, high growth witnessed in the pharmaceutical industry is expected to augur well for the market, owing to the increasing use of organic acids in various drugs such as aspirin and phenacetin. Meanwhile, the demand for organic acids will continue to scale higher in the food and beverages industry on the back of its increasing use in the production of soft drinks and various food products.
Organic acids are quite suitable for use in the food & beverages industry. Acetic acid accounted for the largest share in terms of demand for organic acids. Its increased use in the food & beverages industry, owing to its antibacterial and antifungal properties, is a significant growth attribute for the market. In the bakery and confectionery industry, both acetic and citric acid are used for the prevention of fungal and bacterial growth. Other than their use for antibacterial and antifungal properties, organic acids are also useful in regulating acidity, used as preservatives, antioxidants, and flavor enhancers in several food products.
Niche Applications to Bring Lucrative Opportunities in the Future
Apart from the food & beverages industry, organic acids find numerous applications in diverse industries such as paints & coatings, feed, adhesive & sealants, textiles, consumer goods, and many more. Acetic acid accounts for the lion’s share in the global organic acids market. Acetic acid finds a vast application in the production of vinyl acetate monomer (VAM), terephthalic acid, and ethyl acetate. Organic acids, such as formic acid and citric acid, are mainly used in animal feed as a preservative. Formic acid also finds applications in deicing, oil-drilling, leather tanning, etc. Lactic acid sees massive demand in the production of polylactic acid. It is also used as an acidifier in cosmetics applications and disinfectant in pharmaceuticals. Propionic acid, other than food and feed application, is widely used in the production of propionate esters for solvents, such as n-butyl and pentyl propionate. Other organic acids, such as ascorbic acid, acetic acid, gluconic acid, fumaric acid, malic acid, also find numerous applications in diverse industries that bring growth prospects for the overall organic acids market.
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Bio-based Version to Attract Investments and Collaborations
Increasing preference towards renewable and bio-based chemicals – on the back of stringent government regulations is influencing chemical industries towards investments in the expansion and development of existing organic acid production facilities. Growing requirements for green substitutes and the crucial need to improve bio-refining processes are creating opportunities for organic acid manufacturers. For instance, bio-succinic acid has surpassed the petroleum-based succinic acid in terms of demand owing to its cost-competitiveness, and growing adoption in production of biodegradable plastics. In addition to this, with the advancement in biotechnology, manufacturers have successfully adopted fermentation process for the production of organic acids. Commercially viable organic acid technologies have been attracting investments and partnerships between leading market stakeholders.
New Product Development and Acquisitions to be the Top Strategies of Key Market Players
The key manufacturers in the organic acids market are mainly involved in research and development activities to develop new production technologies to cater to the growing needs of end-use industries. Moreover, these manufacturers are also entering into a long-term partnership with end-use industries, global players, and raw material suppliers to have a strong presence in the worldwide market. Some of the significant developments in the market include:
In November 2018, Celanese Corporation, a chemical and specialty materials company announced the expansion of production facility of acetic acid at Clear Lake, Texas from 1.3 million tons to 2 million tons by late 2021. Moreover, the company has recently announced the acquisition of synthetic gas production units from Linde plc, an industrial gas company. This acquisition will enable the company to reduce the production cost of acetic acid as syngas is the key raw material.
In May 2019, BASF-YPC, a 50:50 joint venture in Nanjing, China announced the startup of 30 kilotons production plant of propionic acid. The total production capacity of two plants increased to 69 kilotons per annum.
In July 2019, Royal DSM, a science-based company in nutrition, health and sustainable living announced the upgradation of its Vitamin C (Ascorbic Acid) facility in Jiangshan, China to enhance quality, safety, sustainability, and production efficiencies.
Few of the other companies in the organic acids market are also involved in product innovation, expansion of product portfolio, and collaboration with industry giants and end users to hold a strong position in the market.
Organic Acids Market – Regional Developments in the Market
The primary application of organic acids is in food & beverages and feed additives, and hence, regulatory policies on food safety have a significant impact on the development of the global organic acids market. North America holds the majority share in the global organic acids market owing to the presence of advanced production technologies and huge demand from end-use industries. Europe, on the other hand, due to the stringent regulations will witness stagnant growth in the coming future. In addition to this, the advent of advanced technologies and healthy growth in the food & beverages industry has resulted in the growth of the organic acids market in the region. Asia Pacific excluding Japan, is the most attractive region for organic acids. The emerging economies of China and India, large expansion plans in China, and growing demand for organic acids due to a huge population remain the major key factors for the growth of the market. China is expected to have around 40% of the global organic acid production in coming years, followed by North America. The Middle East & Africa, due to the steady supply of raw materials, will witness a profitable growth in the coming future. Manufacturers of organic acid see a vast growth opportunity in Latin America, owing to rising urbanization and growth in the food & beverages industry in the region.
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Organic Acids Market- Global Industry Analysis
The recent study by Fact.MR on organic acids offers a 9-year forecast for organic acids during 2019-2027. The study analyzes crucial trends that are currently determining the growth of the organic acids market. This report explicates on vital dynamics, such as drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of organic acids. The study also provides dynamics that are expected to influence the future status of the organic acids market over the forecast period.
A detailed assessment of organic acids value chain analysis, business execution, and supply chain analysis across the regional markets has been covered in the report. A list of prominent companies operating in the organic acids market, enhances the reliability of this comprehensive research study.
Organic Acids Market: Report Summary
The study offers a comprehensive analysis on diverse features including demand, product developments, revenue generation, raw material sourcing strategy, list of distributors, and sales in the organic acids market across the globe.
A comprehensive estimate on the organic acids market has also considered the market estimates through an optimistic scenario, and a conservative scenario regarding the sales of organic acids in the forecast period. Price point comparison by regions with global average price is also considered in the study.
Organic Acids Market Segmentation
Fact.MR has studied the organic acids market with detailed segmentation on the basis of product, application, and key regions.
Organic Acids Market: Analysis on Market Size Evaluation
A detailed assessment on organic acids has been provided for each market segment, in terms of volume (Tons) and value (US $ Mn) analysis for organic acids.
Market estimates at global and regional levels for organic acids, is available in terms of “US$ Mn” for value and in “tons” for volume. A Y-o-Y growth contrast on prominent organic acids market segments, along with the market attractiveness evaluation has been incorporated in the report. Another key feature of the organic acids market report is the analysis of all key segments in terms of absolute dollar. Absolute dollar opportunity is critical in assessing the level of opportunity that a manufacturer can look to achieve, as well as in identifying potential resources, from a sales and delivery perspective in the organic acids market.
Organic Acids Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the organic acids report, which has helped to deliver a projection on regional markets. These chapters include regional macros (political economic, and business environment outlook), which are expected to have a momentous influence on the growth of the organic acids market during the forecast period.
Country-specific valuation on demand for organic acids has been offered for each regional market, along with the market scope estimate and forecast, price index, and impact analysis of dynamics of prominence in regions and countries. For all regional markets Y-o-Y growth estimates have also incorporated in the report.
Detail breakup in terms of value & volume for emerging countries have also been included in the report.
Organic Acids Market: In-depth Analysis on Competitive Landscape
The report sheds light on leading manufacturers of organic acids along with their detailed profiles. Essential and up-to-date data information related to the market performers, who are principally engaged in the production of organic acids, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report, permit report readers to take preemptive steps in advancing their businesses.
Company profiles have been combined in the report, which include essentials such as product portfolio, along with an all-inclusive SWOT analysis on each player. The company presence is mapped and presented through the matrix for all prominent players, thus, providing readers with actionable insights, which help in thoughtfully presenting market status, and predicting the competition levels in the organic acids market. Prominent companies operating in the global organic acids market, include BASF SE, DowDupont, Celanese Corporation, Cargill, Koninklijke DSM N.V., Eastman Chemical Company, BP Plc, LyondellBasell, Corbion N.V., and LUXI GROUP CO., LTD., amongst others.
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