Increasing Health Concerns
According to the U.S. Department of Agriculture reports, on an average, the current consumption of linoleic acid by adult men is 16 gram per day and by adult women is 12.6 gram per day in the U.S. This data clearly shows that people across the globe are getting more aware and conscious for health and are taking various measures to maintain a healthy lifestyle. This is anticipated to boost the demand for linoleic acid during the forecast period in the world.
Developing Impact of Bio-based Materials
The impact of bio-based materials for the use in paints and coatings and for adhesives on account of ecological concerns from petrochemical products is developing rapidly which is expected to drive the growth of the market.
Price Fluctuations of Raw Materials
Demand for raw materials required in food & beverages and paints is increasing and may affect the supply of raw material for commercial production. Additionally, the commercial production is dependent on raw material price fluctuations. Sourcing of these raw materials, risk associated with sourcing and transportation due to seasonality may restrain the growth of linoleic acid market during the forecast period.
In the recent scenario, consumers are focusing on improving their lifestyle by including yoga, gym and healthy diet in their lifestyle. On account of concern for health in consumers and increasing awareness among the consumers is projected to boost the linoleic acid market growth. Rising obesity incidents in various regions, long working hours and high consumption of packaged foods has led to rise in the consumption of supplements which in turn, is anticipated to favor the market growth. The attractive nutritional value of the supplements tends to promote the consumption of supplements for weight loss and improvement in the overall health.
The worldwide linoleic acid market was valued at USD 3.7 Billion in 2018 and is anticipated to cross USD 5.4 Billion by 2027. The market is anticipated to record a CAGR of around 9.5% over the forecast period i.e. 2019-2027. The market is segmented by usage & end use industry. The market is segmented by application into paint and coatings, food and beverages, adhesives, cosmetics and others out of which, the food and beverages segment is anticipated to have significant growth on account of shift in the consumption pattern of consumers and increase in the preference of healthy lifestyle. A rise in the health benefits of linoleic acid owing to its contribution in reduction of risks of diabetes, hypertension and strokes, is leading to its application in dairy and baking industries and in aroma & flavoring component. The paint and coatings segment is estimated to have leading shares on account of its properties of enhancing the texture of paints, is color retentive and dries quickly which makes it useful for marine and automotive equipment painting.
The market is further segmented by grade into reagent & technical grade, medical grade, food grade, others.
Rise in the impact of bio-based material mainly for the use in paints and adhesives on the back of environmental concerns from petrochemical products are expected to contribute towards the growth of the market. It has been notified that recommendations and health & nutritional claims from EFSA (European Food Safety Authority) have led to the innovations in the product. Regulatory regimes related to foods and nutraceutical marketing and labelling that claim health benefits with recommendations on dosage are pleasing the consumers. Adoption of organic ingredients over synthetic chemicals in cosmetics by the consumers with availability of premium natural skincare products is projected to drive the industry growth. Additionally, ethyl linoleic acid, a derivative of linoleic acid is widely used in cosmetics known for its anti-inflammatory, antibacterial properties, healing of wounds and clinically proven as an anti-acne agent. These properties of the product are anticipated to boost the growth of the market.
Our-in depth analysis of the linoleic acid market includes the following segments:
By End Use Industry
On the basis of regional analysis, the linoleic acid market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific is projected to have leading share during the forecast period owing to increasing applications in protective coatings for color retention and fast drying coating production. Rise in the automotive production along with increasing demand for premium quality automobile in India will approve paint and coating demand and increasing construction activities with expansion in infrastructural projects may drive the growth in the demand for paints and coatings thus promoting the market growth. Europe is anticipated to have significant growth attributed to product inventions related to natural cosmetic ingredients which are demanded by the consumers and this may propel the linoleic acid demand. Latin America region with countries such as Brazil is estimated to experience increasing demand for linoleic acid on account of its utilization in dairy and home care products. Moreover, the growth of the market is driven by increasing awareness about health and medical benefits.
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The linoleic acid market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.