Global Organic Acids Market: Overview
Organic compounds comprising acidic properties are called organic acids, and find wide applications in a variety of manufacturing sectors. Ranging from chemical analysis of compounds and industrial manufacturing to food preservation and cosmetic manufacturing, organic acids are indispensable components in different production environments. The global organic acids market is primarily being driven by rapidly-advancing food and beverages industry. Organic acids are extensively used for regulating the acidic content of foods, and also to enhance the flavor. The antioxidant and preservative properties of the these compounds makes them highly preferred by businesses dealing in food manufacturing, thereby boosting the market’s growth. These properties are also relevant for production of drugs and medicines. Thus, the expanding pharmaceutical industry has been significantly propelling the global organic acid market to make it achieve tremendous growth.
Statistically speaking, the global organic acid market had gained a valuation of US$8.02 bn in 2017, which is further expected to rise up to US$10.61 bn by 2022. This increase is projected to occur at a healthy CAGR of 5.8% during the forecast period from 2017 – 2022.
Acetic Acid Holds Leading Position in Terms of Maximum Applications
Production type and applications are two major criteria, which serve as the basis of several segments in the global organic acid market. Under product type, acetic acid, formic acid, lactic acid, citric acid, propionic acid, ascorbic acid, gluconic acid, fumaric acid, and malic acid are key segments in this market. Of these, acetic acid has attracted maximum revenue in recent times, mainly due to its widespread use in the food and beverage market. This acid type also possesses antibacterial and antifungal properties, which are highly useful for food preservation, thereby showcasing a high demand.
North America Grabs Lion’s Share in Context of Market Revenue
The global organic acid market is mainly spread across North America, Asia Pacific excluding Japan, the Middle East and Africa, Japan, Europe, and Latin America. Of these, North America portrayed maximum utilization of the acids due to its widespread use in foods and beverages industry. Existing healthy economic conditions also have led towards this market performing well in this region. A splendid industrial infrastructural setup in North America ensures that the production of the compounds remains bountiful. During forthcoming years, the global organic acids market is expected to hold onto its leading position in this region, possible for a long duration.
The global organic acids market is expected to perform outstandingly in countries having a high GDP growth rate, which is mostly in case of emerging nations. The market is bound to get bolstered with the help of momentum provided by a high rate of organic acids utilization witnessed in emerging economies. Considering this trend, the market is expected to witness notable growth in Asia Pacific, mainly due to the mushrooming food industry in this region.
The global organic acid market exhibits a highly tough competitive competition in the form of widespread product differentiation existing thanks to presence of innumerable companies. Most companies are focusing on carrying out extensive research and development. A few businesses are tapping onto the production of bio-based organic acids, which also has been a recent trend in this market. Key companies operating in the global organic acids market 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