Benzoic Acid Market
Benzoic Acid Market Analysis, By Application (Benzoates, Benzoates Plasticizers, Benzoyl Chloride, Alkyd Resins and Animal Feed Additives), By End-Use Industry (Food & Beverages, Chemicals, Pharmaceuticals, Other) & Region - Global Market Insights 2022 to 2032
Analysis of Benzoic Acid Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Benzoic Acid Market Growth Outlook (2022-2032)
The global sales of the benzoic acid market in 2021 were held at US$ 1 Billion. With a 4.7% CAGR during 2022 – 2032, the projected market is expected to reach a valuation of US$ 1.6 Billion by 2032.
Benzoic Acid Market for Benzoates application is expected to be the highest revenue-generating segment, with a projected CAGR of 5.5% during 2022 – 2032.
Market Size in 2022
US$ 1 Billion
Market Forecast Value in 2032
US$ 1.6 Billion
Global Market CAGR (2022-2032)
U.S. Market CAGR (2022 – 2032)
Key Companies Covered
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Revenue of Benzoic Acid Market from 2017 to 2021 Compared to Demand Outlook for 2022 to 2032
As per the Global Benzoic Acid Market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2017 to 2021, the value of the Benzoic Acid Market increased at around 3.7% CAGR.
The key revenue drivers, which affect Benzoic Acid demand, are a surge in urbanization and consumer lifestyle changes, and rising demand for processed foods and beverages. Acidic foods and beverages like jams, pickles, fruit juices, effervescent beverages, and more are frequently preserved with benzoic acid.
With the sectors of chemicals, plasticizers, food, drink, and feed developing at a fast pace, the consumption of packaged and ready meals has significantly grown due to busier lifestyles, which has led to an increase in the preservative benzoic acid. Additionally, strict requirements in the plasticizers sector to adopt more environmentally friendly products will benefit regional trends in the benzoic acid market.
Furthermore, many compounds, including benzoyl chloride, benzoyl peroxide, and phenol, are produced using benzoic acid. It also finds its utility in the manufacturing of various compounds, including dyes, fragrances, and pesticides. Due to the rise in the market for the compounds the market for Benzoic Acid is expected to propel at a faster rate.
Which Factors are Propelling Benzoic Acid Demand?
The increased demand for benzoic acid in the production of aromatic chemicals as a disinfectant, and phenols for mouthwashes and home cleansers, have been propelling the market. Besides, owing to the enormous demand from numerous industries for benzyl chloride, benzyl peroxide, and phenol, benzoic acid demand is additionally increasing.
In order to meet this rising demand, the rising use of benzoic acid as an intermediate in the production of numerous items has been fueling the demand.
Food items that are processed, packaged and mass-produced to satisfy daily dietary needs are especially popular among people interested in lifestyle choices including fasting.
The predominant practice of skipping meals in European countries has given rise to greater consumer demand for processed and packaged foods and beverages. Beverage companies have been actively looking for new uses for benzoic acid, an antioxidant used in drinks as an agent for preservation.
The demand for benzoic acid is rising as a result of the increased use of benzoates for polyvinyl chloride (PVC). Mono-Benzoate and di-benzoate plasticizers are made using benzoic acid. Floor coverings, wall coverings, adhesives and sealants, inks and waxes, films, and board products frequently employ benzoate plasticizers.
There is a growing market for phthalate-free plasticizers, which drives the demand for benzoate plasticizers, which consequently drives the demand for benzoic acid. As a result, the market for benzoic acid is expanding due to the substitution of phthalate plasticizers with non-phthalate plasticizers.
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Which Factors are restraining the growth of the Benzoic Acid Market?
Benzoic acid contains antifungal and antibacterial qualities; however, using it excessively might be harmful to the health of users. According to the studies, eating meals containing benzoic acid on a regular basis can harm the lungs and digestive system.
Additionally, benzoic acid usage is restricted by legislation in several regions. The amount of benzoic acid that can be added to packaged foods and drinks is restricted by these laws.
There is an unpredictably rising cost of raw materials, particularly oil, in addition to toluene, which is utilized in the synthesis of benzoic acid. The fluctuating price of toluene will consequently have a detrimental impact on the market growth for benzoic acid as a whole.
Which Region is projected to offer the Largest Benzoic Acid Market Opportunity?
Asia Pacific is anticipated to be the highest revenue-generating region during the forecast period. This is due to a number of factors, including the growing use of food preservatives in various commodities, which is driving the regional benzoic acid market.
The demand for sodium-potassium benzoate has been steadily increasing in the region, which is another element pushing the market as a whole. The increase in demand for sodium benzoate, as a food additive, and the growing prices of benzoic acid in the domestic market are also increasing the market growth. There is high demand for products from the pharmaceutical, food, and beverage, as well as other downstream businesses.
The need for benzoic acid in the region is rising as the animal feed businesses are developing in several Asian nations, including India. A growing number of small-scale food and beverage businesses and strict government regulations are also making a substantial contribution towards fuelling market growth.
China is one of the largest markets for benzoic acid. In addition to the food and beverage sector, India and China have significant per capita plastic usage which has increased the usage of plasticizers and boosted the need for benzoic acid.
The rising demand for frozen and packaged food products in countries like India, Thailand, China, and numerous other growing APAC nations is a crucial growth-driving factor for the expansion of the Asia-Pacific market during the forecast period. India and China, produce a sizeable portion of the world's benzoic acid and export it to several countries.
U.S. Benzoic Acid Market Analysis
The United States is expected to account for the highest market of US$ 464.9 Mn by the end of 2032. It is expected to account for an absolute dollar growth of US$ 163.4 Mn.
This is due to several factors such as an increase in the usage of Benzoic acid in various sectors like food and beverages, pharmaceutical, chemical, and other industries.
Various industry-leading companies present in the United States including Asiamerica Group, Inc, Thomas Scientific, Penta Manufacturing Company, Spectrum Chemicals & Laboratory Products, Richman Chemical Inc, and KIC Chemicals among others also support the country’s high-value utility for Benzoic Acid.
U.K. Benzoic Acid Market Analysis
Under Miscellaneous Food Additives Regulations 1995, benzoic acid is permitted in the U.K. added as either its sodium or potassium salt. The benzoic acid market in the U.K. is projected to reach a valuation of US$ 70.2 Mn by 2032. Growing at a CAGR of 4.9% during 2022 – 2032, the market is projected to witness an absolute dollar opportunity of US$ 26.8 Mn.
South Korea Benzoic Acid Market Analysis
South Korea produces more than 700 tons every year, wherein most of it is used as a stabilizer for the synthesis of dyes and pharmaceutical products. Besides, it is also used as raw material for the manufacturing of fungicides, disinfectants, and paints. The Market for benzoic acid in South Korea is expected to reach a valuation of US$ 32 Mn by 2032. Growing at a CAGR of 2.7%, the market in the country is expected to gross an absolute dollar opportunity of US$ 7.8 Mn, during 2022 – 2032.
Why Benzoic Acid Revenue through Food & Beverages End-Use is projected to Witness the Fastest Growth?
The benzoic acid market in the food & beverages industry is projected to account for a CAGR of over 5.3%. Most packaged foods and beverages contain benzoic acid as a preservative. It is mostly employed to preserve foods and beverages that include acids, such as pickles, jams, fruit juices, carbonated beverages, and sparkling beverages. Since it has no effect on the flavor or aroma of the food or drink, benzoic acid is being used more frequently as a food preservative.
Market growth of the benzoic acid in the food and beverage end-use segment is also fuelled by shifting customer tastes for packaged foods and beverages and rising consumer per capita income. Due to the rising demand for frozen food and beverages globally, the processed and packaged food and beverage business is also expanding significantly. The food and beverage end-use segment of the worldwide benzoic acid market is anticipated to grow at a faster rate than other end-use segments due to China and India's expanding preservative markets.
Which Application of Benzoic Acid is expected to be Most Lucrative?
Benzoate is the largest consumer industry for Benzoic Acid, which is projected to account for a CAGR of 5.5%. Benzoates come in two different forms mono-benzoates and di-benzoates. Benzoate and di-benzoate are made using benzoic acid. Floor coverings, wall coverings, adhesives and sealants, inks and waxes, films, and board products.
There is a growing market for phthalate-free plasticizers, which drives the demand for benzoate di-benzoate, consequently pushing the demand for benzoic acid. As a result, the market for benzoic acid is expanding owing to the substitution of phthalate plasticizers with non-phthalate plasticizers.
The key force behind the benzoate market is the rising demand from the food industry. Benzoate is mostly utilized as a preservative at pH levels below 4.5; its efficiency rises as pH decreases. Another factor that is projected to propel the worldwide sodium benzoate market during the forecast period is the rise in the usage of synthetic preservatives for poultry and meat in the Asia Pacific and Middle East and Africa regions.
The need for benzoates will rise as a result of other sectors, including the pharmaceutical and cosmetics industries. Market growth is also anticipated to be fueled by factors such as increased food security, longer food shelf lives, improved standards of living, particularly in developing nations, and ongoing urbanization.
Some of the key players operating in the benzoic acid Industry include Aarsha Chemicals, Navyug Pharmachem, Reliance Industries, IG Petrochemicals, Krishna Chemicals, Emerald Performance Materials, Wuhan Youji Industries Co, Tianjin Dongda Chemical Group, Liao Ning Huayi Chemical Industry & Commerce Co., and Merck KGaA.
Some of the recent developments in the Benzoic Acid Industry are :
- In February 2021, German specialty chemicals behemoth Lanxess acquired American chemical manufacturer Emerald Kalama which is a prominent benzoic acid producer globally.
- In July 2021, Adven announced that it will collaborate with Eastman, which makes plasticizers, sodium benzoate, and benzoic acid at a facility in Estonia. Eastman will significantly enhance production and export its goods to Europe, North America, and Asia owing to this ground-breaking energy initiative in Estonia.
- In August 2021, a natural preservative made by fermentation of p-coumaric acid was introduced by the American biotechnology company Conagen (PCA). This broadens the selection of organic preservatives that Blue California's business partner provides.
Benzoic Acid Industry Segmentation
By Application :
- Benzoates Plasticizers
- Benzoyl Chloride
- Alkyd Resins
- Animal Feed Additives
By End-Use Industry :
- Food & Beverages
- Other End-Use Industries
By Region :
- North America
- Latin America
- FAQs -
The global Benzoic Acid Market is worth more than US$ 1 Billion at present.
The value of the Benzoic Acid Market is projected to increase at a CAGR of around 4.7% during 2022 – 2032.
While the market in South Korea is expected to grow at nearly 2.7%, the market in Japan is projected to register a CAGR of nearly 4.1% during 2022 - 2032.
The global demand for Benzoic Acid is being fueled by a considerable increase in the commercial aircraft segment, and their usage to obtain higher efficiency from the automotive as well as the sports and leisure market.
The growth of the market for Benzoic Acid in China is projected to expand at a CAGR of around 5.9% during 2022 – 2032.
The growth of the market for Benzoic Acid in the United States is projected to expand at a CAGR of around 4.4% during 2022 – 2032.
The value of the Benzoic Acid Market increased at a CAGR of around 3.7% during 2017 – 2021.