Organic Acid Market Analysis by Type (Acetic, Formic, Citric, Lactic, Itaconic, Propionic, Succinic, and Others); by Source (Starch, Molasses, Agro-Industrial, Chemical Synthesis, and Others); and by End-User (Animal Feed, Chemical & Industrial, Personal Care, Food & Beverage, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2022-2031
Buy Now Report ID: 81 | Published Date: Feb 14, 2023
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, the Chemical industry in the U.S. accounted for 16.43% of manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in the future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, which accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. The easy availability of low-cost raw materials & labor, as well as government subsidies and relaxed environmental norms, have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for investment in businesses in Asia Pacific countries in the upcoming years.
Growth Drivers
For instance, there are about 5500 animal food manufacturing facilities observed to be working solely in the USA that produces around 250 million tons of pet food every year.
As of 2021, the entire worth of pharmaceutical sales was estimated to reach around USD 500 billion.
Acids are used in medicines and as catalysts in organic and industrialist chemistry. One of the most common examples of organic acids is carboxylic acids. Additionally, they come in many forms such as, citric, formic, lactic, malic, tartaric, oxalic, and others.
The grain production across the globe is estimated to be around 55 million tons and was projected to reach approximately 2000 million tons in the time period 2021 to 2022.
In 2020, approximately 100,000 metric tons of textiles fibers were produced, out of which, around 80,000 metric tons were chemical fibers.
The global organic acid market is segmented and analyzed for demand and supply by end-user into animal feed, chemical & industrial, personal care, food & beverage, and others, out of which, the chemical & industrial segment is projected to witness noteworthy growth over the forecast period. The growth of the segment can be accounted to the rising utilization of organic acid in the respective industry. For instance, the revenue generated by the global chemical industry was estimated to be approximately USD 4 trillion in 2021.
Regionally, the global organic acid market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2031. The growth of the market in the region is attributed to the growing demand for organic acid in the chemical industry. For instance, in 2021, the value of chemical shipment in the United States was estimated to be around USD 750 billion. Additionally, the presence of major key players and rising R&D in the production of efficient organic acids are projected to propel the growth of the market over the forecast period.
The global organic acid market is further classified on the basis of region as follows:
Our in-depth analysis of the global organic acid market includes the following segments:
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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.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Higher utilization of organic acids in the food and beverage industry and growing sales of animal food are estimated to majorly boost market growth.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2022 – 2031.
Ans: The higher costs associated with the organic acid production and disrupted supply chain due to COVID-19 are estimated to challenge the market growth.
Ans: The market in North America region is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
Ans: The major players in the market are Tate & Lyle PLC, BASF SE, Archer Daniels Midland Company, Henan Jindan Lactic Acid Technology Co. Ltd., Cargill, Incorporated, Celanese Corporation, Myriant Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, source, end-user, by region.
Ans: The chemical & industrial segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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