The global organic acids market is forecast to exhibit strong growth between 2017 and 2022 on the back of the expanding food and beverages industry and the surging demand for environmentally acceptable additives. Over the years, the demand for organic acids has continued increasing at a steady pace, and is expected to remain so on account of their wide use in downstream industries. Factors such as the rising awareness regarding diseases and side-effects caused by preservatives and additives in food products or in cosmetics has led to the high demand for organic and natural compounds. Against this backdrop, the global organic acids market is forecast to exhibit a promising CAGR during the forecast period.
Prospects are likely to be much lucrative in emerging nations, as they demonstrate a high GDP growth. While the developed nations will continue accounting for the lion’s share in the global market, growing population and rising investment toward industrial sector will enable the organic acids market up its ante in developing nations.
According to Transparency Market Research, the global organic acids market is forecast to exhibit a CAGR of 5.8% between 2017 and 2022. At this pace, the market will reach US$10.61 bn by the end of 2022, from its valuation of US$8.02 bn in 2017.
Acetic Acid Emerges as Dominant Product Segment
On the basis of product, acetic acid constituted the leading segment in the global organic acids market. Acetic acid is primarily used in the food and beverages sector. Owing to its antifungal and antibacterial properties, the use of acetic acid is forecast pick further pace in the coming years, thus enabling growth in the overall organic acids market. Besides this, the rising demand from bakeries and confectionaries to prevent fungal and bacterial growth in their food products will enable the acetic acid segment to clock an accelerated pace of gains. In addition, the market is also expected to witness rising demand for citric acid in applications such as chelating or cleaning agent and water treating solvent in cosmetics and other industries.
Rising Application in Food and Beverages Industry to Steer Growth
The extensive use of organic acids in the food and beverages industry has remain one of the chief drivers of the global market. This acidic extract comes to the benefit of leading names in the industry as it helps in regulating acidity and enhances flavor. Besides this, antioxidants and preservative properties of organic acids have made them indispensable for the food and beverages industry. While organic acids are used to counter pathogens in food for the past many years, it is important to gauge and improve their sustainability and efficacy from time to time. Besides the food and beverages sector, the rising demand witnessed in the pharmaceutical industry has enabled the market witness accelerated pace of gains in the last few years.
North America Projected to Remain Dominant through Forecast Period
Among its regional markets, organic acids have found maximum lucrative prospects in North America, thus sealing its dominance in the global market. Over the course of the forecast period, growth witnessed across various industries in the region will creative an environment conducive to the expansion of the organic acids market in North America. Furthermore, the region boasts a steady GDP post economic rebound that has helped industries gain pace, subsequently fuelling the demands for organic acids.
The market is also expected to witness attractive prospects in Asia Pacific on account of high GDP and population growth in emerging economies such as India and China.
Some of the most prominent companies profiled in the report are Archer Daniels Midland Company, BASF SE, BioAmber Inc., BP Plc, Cargill, Celanese Corporation, Corbion N.V., E. I. Dupont De Nemours and Company, Eastman Chemical Company, Elekeiroz S.A, Fuso chemical co. ltd, Genomatica, Henan Jindan Lactic Acid Technology Co. Ltd, Koninklijke DSM N.V., LUXI GROUP CO., LTD., Myriant Corporation, Nature Works LLC, Polynt-Reichhold, Tate & Lyle, and The DOW Chemical Company.
Global Organic Acids Market: Overview
As the food and beverages industry is one of its key end users, the rising population worldwide and GDP growth will pique the demand for organic acids in the forthcoming years. Also high growth witnessed in the pharmaceutical sector is expected to augur well for the market owing to the increasing use organic acids in various drugs such as phenacetin and aspirin. Meanwhile, the demand for organic acids will continue scaling higher in the food and beverages industry on back of its rising use in the production of soft drinks and various food products.
Despite the strong growth prospects, stringent regulations implemented to curb the use of synthetic organic acids pose threat to the market. This is because the synthetic variants of organic acids are produced from non-renewable sources and on several occasions were considered hazardous to the environment. Nonetheless, mitigate such concerns, several of the prominent market players have willingly increased their investment in the research and development of bio-based organic acids. This showcases potential to enable strong growth in the global organic acids market in the coming years.
Global Organic Acids Market: Segmentation
The global organic acids market is studied and evaluated on the basis of product type and application. In terms of product, the global organic acids market is segmented into acetic acid, formic acid, lactic acid, citric acid, propionic acid, ascorbic acid, gluconic acid, fumaric acid, malic acid, and others. Of these, the acetic acid segment held dominance in the market in 2016 and is forecast to exhibit an impressive between 2017 and 2022. As per TMR, the segment stood at US$1,743.2 mn in 2017.
Besides this, the market can be classified into bakery and confectionaries, dairy, beverages, poultry, meat, and seafood, livestock, companion animal, pharmaceuticals, industrial, and others in terms of application.
Global Organic Acids Market: Regional Analysis
Regionally, the global organic acids market is classified into North America, Latin America, Europe, Japan, APEJ, and the Middle East and Africa. Among these regions, North America is expected to offer highly lucrative prospects, thus emerging at the fore of the global market as the dominant region. According to TMR, the North America organic acids market stood at US$2.94 bn in 2017 and is likely to exhibit a CAGR of 6.1% between 2017 and 2022.
Besides this, Asia Pacific excluding Japan is forecast to offer attractive opportunities to the market. Asia Pacific encompasses India and China, two of the nations with the largest population, which has emerged as a chief factor giving impetus to the region’s organic acids market. Moreover, high growth showcased by the emerging economies of Asia Pacific has created an environment conducive to growth of the organic acids market in the region. Europe on the other hand will emerge as the second-leading regional market trailing North America. Also in Japan the market is expected to witness considerable growth opportunities as the nation’s GDP continue scaling higher.
Global Organic Acids Market: Competitive Analysis
The report is compiled with an intent of offering a holistic overview of the global organic acids market. It has therefore profiled some of the leading players operating therein and studied their trajectory based on company overview, product portfolio, key development, and sales data obtained via proven methodologies. Some of the companies profiled in the report are Archer Daniels Midland Company, BASF SE, BioAmber Inc., BP Plc, Cargill, Celanese Corporation, Corbion N.V., E. I. Dupont De Nemours and Company, Eastman Chemical Company, Elekeiroz S.A, Fuso chemical co. ltd, Genomatica, Henan Jindan Lactic Acid Technology Co. Ltd, Koninklijke DSM N.V., LUXI GROUP CO., LTD., Myriant Corporation, Nature Works LLC, Polynt-Reichhold, Tate & Lyle, and The DOW Chemical Company. In addition SWOT analysis is conducted on these companies to gauge their strengths and weaknesses. The analysis also presents insights into opportunities and threats that these companies may witness in the coming years.
The scope of the study offers a comprehensive assessment of stakeholder strategies, as well as winning essentials for them, by segmenting the global organic acids market as below:
Global Organic Acids Market, Product Analysis
- Acetic Acid
- Formic Acid
- Lactic Acid
- Citric Acid
- Propionic Acid
- Ascorbic Acid
- Gluconic Acid
- Fumaric Acid
- Malic Acid
Global Organic Acids Market, Application Analysis
- Bakery and Confectionaries
- Poultry, Meat, and Seafood
- Companion Animal
In addition, the report also delivers a cross-sectional analysis of all aforementioned segments across the following geographical markets:
Global Organic Acids Market, by Geography
- North America
- Latin America
- Asia-Pacific excluding Japan (APEJ)
- Middle East & Africa (MEA)
- GCC Countries
- South Africa