Benzoic Acid Market Outlook from 2024 to 2034

The global benzoic acid market size is anticipated to reach USD 1,121.3 million in 2024. The sector will likely expand at a CAGR of around 5.3% in the assessment period 2024 to 2034. It is projected to attain a value of USD 1,879.4 million by 2034.

The demand for benzoic acid is rising worldwide due to its diverse applications across multiple industries. One of the primary drivers is the booming food and beverage sector, where acid is widely used as a preservative.

The acid effectively inhibits the growth of mold, yeast, and certain bacteria, helping to extend the shelf life of various food products. As global populations increase and urbanization accelerates, demand for processed and convenience foods rises, further boosting the need for effective preservatives like benzoic acid.

Attributes Description
Estimated Global Benzoic Acid Market Size (2024E) USD 1,121.3 million
Projected Global Benzoic Acid Market Value (2034F) USD 1,879.4 million
Value-based CAGR (2024 to 2034) 5.3%

Market demand for specific types of benzoic acid is anticipated to rise in the chemical sector. It serves as an essential intermediate in the synthesis of various chemicals, including benzoyl chloride, phenol, and plasticizers. Growth of the chemical manufacturing sector, especially in developing countries, is bolstering demand for a critical raw material.

The rise of the cosmetics and personal care industry is contributing to this trend. Benzoic acid and its derivatives are frequently used in the production of skincare and haircare products due to preservative and pH-regulating properties. The global beauty industry is experiencing robust growth driven by increased consumer awareness and spending on personal care products. This is one of the growth factors influencing the benzoic acid market.

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Key Industry Highlights

Trends towards Eco-friendly and Green Benzoic Acid Products

The benzoic acid market is witnessing a trend towards increased use of biodegradable and eco-friendly products. As consumers and manufacturers shift towards sustainable practices, the demand for biodegradable polymers and resins that incorporate this acid is growing.

This trend aligns with global environmental initiatives and regulatory pressures aimed at reducing plastic waste and promoting green alternatives. The impact of sustainability trends on the benzoic acid market

Rising Use in Medications for Antifungal Properties to Bolster Sales

The pharmaceutical sector is an emerging application for benzoic acid products. It is a key ingredient in the formulation of medications such as ointments, creams, and cough syrups due to antifungal and antibacterial properties. With the increasing prevalence of healthcare issues and a growing emphasis on health and wellness, the pharmaceutical industry continues to expand, driving sales.

Market Opportunities for Specialized Benzoic Acid Brands Lie in Animal Feed

An opportunity in the benzoic acid market lies in its potential use in the animal feed industry. Benzoic acid is being explored as a preservative and growth promoter in animal feed, which can enhance feed efficiency and improve the health of livestock. With the global demand for meat and dairy products on the rise, the adoption of this acid in animal nutrition presents a significant growth opportunity for key players.

Strict Import and Export Dynamics in the Benzoic Acid Industry to Hamper Demand

A notable restraint in the benzoic acid market is the stringent regulatory framework governing its use in food and beverage applications. Regulatory bodies in various regions impose strict limits on the permissible levels of this acid in food products due to potential health concerns.

The regulations can hinder market expansion by limiting the use of this acid and necessitating costly compliance measures for manufacturers. Stringent regulations associated with imports and exports of the acid are also set to restrain demand.

Country-wise Insights

Booming Food and Beverage Industry Fuels Demand in India

In India, the rising demand for benzoic acid is primarily driven by the booming food and beverage industry. Increasing urbanization and changing lifestyles are leading to high consumption of processed and convenience foods, which require effective preservatives to ensure longer shelf life and safety.

Additionally, growth of the pharmaceutical sector, fueled by a burgeoning middle class and improved healthcare infrastructure, is contributing to the increased use of this acid in medicinal formulations.

Germany’s Well-established Chemical Manufacturing Sector Spurs Growth

Germany's benzoic acid demand is growing primarily due to its robust chemical and manufacturing sectors. The country is a leading producer of chemicals, and the organic compound is a critical intermediate in the synthesis of various industrial chemicals, plasticizers, and resins.

Germany's strong emphasis on environmental sustainability is driving the adoption of eco-friendly materials, including biodegradable polymers that use this acid. The well-established cosmetics industry also adds to the demand, with this organic compound being used in various personal care products.

Rising Demand for Preserved Food to Create Growth Avenues in Canada

In Canada, increasing benzoic acid sales are influenced by the expanding food and beverage industry, driven by a rise in consumer demand for preserved foods. The country's stringent food safety regulations and the need for effective preservation solutions bolster the use of this acid.

The pharmaceutical and cosmetics industries are further experiencing growth, supported by high consumer spending on health and personal care products. Canada's focus on sustainability and environmentally friendly products also supports the increased use of benzoic acid in biodegradable and green applications.

Nikhil Kaitwade
Nikhil Kaitwade

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Category-wise Insights

Grignard Reagents to be the Most Preferred Production Method

Demand for Grignard reagents is surging due to their critical role in several key industrial and research applications. One significant driver is the expanding pharmaceutical industry, where these reagents are essential for synthesizing a wide range of pharmaceuticals, including active pharmaceutical ingredients (APIs) and complex organic compounds.

As the global population ages and the need for advanced medications grows, the pharmaceutical sector's reliance on Grignard reagents is increasing.

Another factor contributing to rising demand is the chemical industry's ongoing innovation and development. Grignard reagents are fundamental in the production of various specialty chemicals and intermediates used in agrochemicals, fragrances, and flavors. The push towards developing new chemical compounds and materials is boosting the need for these versatile reagents.

Food Preservative Manufacturers Seek Advanced Benzoic Acid Formulations

Demand for benzoic acid in food preservative applications is increasing due to several key factors. One primary reason is the rising consumer awareness and demand for safe and long-lasting food products. Consumers are increasingly looking for foods that maintain their quality over extended periods, driving manufacturers to use effective preservatives like benzoic acid to meet these expectations.

Globalization of the food supply chain necessitates the use of preservatives to ensure that food products remain safe and fresh during long transit times. As food products are shipped over greater distances, especially with the rise of international trade, the need for reliable preservatives becomes crucial to prevent spoilage and maintain quality.

Rapid growth of the ready-to-eat and convenience food markets is another significant factor. As lifestyles become busier, there is a high demand for ready-made meals and snacks that are convenient yet safe to consume. Benzoic acid helps extend the shelf life of these products, ensuring these remain safe and palatable over time.

Competition Outlook

The competitive landscape of the benzoic acid industry varies significantly by region. In Asia Pacific, particularly China and India, the market is highly competitive due to the presence of several local manufacturers who benefit from low production costs and abundant raw materials. The region is also experiencing rapid industrial growth, especially in the food and beverage, pharmaceutical, and chemical sectors, driving demand for benzoic acid.

In North America and Europe, the market is more consolidated, with few but large-scale players who have strong brand recognition and advanced technological capabilities.

Key players in the benzoic acid industry focus on high-quality products and compliance with stringent regulatory standards by adopting unique pricing strategies in the benzoic acid market. In Europe, growth is mainly influenced by strict environmental and safety regulations, which drive innovation towards more sustainable and eco-friendly production methods.

Industry Updates

  • In June 2024, Active Concepts, headquartered in North Carolina, launched a sustainably sourced ingredient called ACB Sal-Vation. The ingredient was extracted from prunes and sugar beets.
  • In March 2024, Symrise Cosmetic Ingredients, based in Germany, introduced a multifunctional hydroxypropolyester called Savelite® HB under the company’s existing range of beauty ingredients.

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Leading Benzoic Acid Brands

  • Emerald Kalama
  • Novaphene
  • Huangshi Taihua Industry
  • Shri Hari Chemicals
  • Chemcrux Enterprises Ltd
  • Sinteza S.A
  • Wuhan Youji Industries; Fushimi
  • San Fu
  • Huayin Jinqiancheng
  • Nantong Haiers
  • Merck KGaA
  • Chemcrux Enterprises Ltd
  • Emerald Performance Materials
  • IG Petrochemicals Ltd.

Key Segments of Market Report

By Production Method:

Two key production methods are Grignard reagents and Friedel-crafts reaction.

By Application:

A few leading applications include food preservatives, corrosive inhibitors, alkyd resins, synthesis intermediates, plasticizers, and feed additives.

By End-use:

Chemicals, food & beverages, cosmetics, and personal care, and pharmaceuticals are the prominent end-uses.

By Region:

Information about significant countries of North America, Latin America, Europe, South Asia and Pacific, East Asia, and the Middle East and Africa is provided.

Frequently Asked Questions

What is the demand outlook for benzoic acid?

The industry is set to reach USD 1,121.3 million in 2024.

What is benzoic acid used for?

Perfumes, dyes, topical drugs, and insect repellents.

What is the price of benzoic acid in commercial markets?

About USD 1612/MT.

How much does benzoic acid cost?

Rs 72.5/kg in Mumbai, India.

What is the forecast CAGR of the industry?

The industry is set to witness a 5.3% CAGR through 2034.

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