The global benzoic acid market reached a value of US$ 1011.3 Million in 2022. FMI expects the market to reach US$ 1694.9 Million by 2032, growing at a CAGR of 5.3% from 2022 to 2032.
Attributes
Details
Benzoic Acid Market CAGR
5.3%
Benzoic Acid Market (2022)
US$ 1011.3 Million
Benzoic Acid Market (2032)
US$ 1694.9 Million
The benzoic acid market revenue is likely to grow in the coming years due to the changing consumer lifestyle and the demand for benzoic acid from the food and beverage industry.
In the food and beverage industry, benzoic acid is extensively used for preventing as well as inhibiting the growth of bacteria and fungi in food products. Benzoic acid is also used as a chemical reagent for preserving food products.
As a result of rapid urbanization and the increase in the number of working-class people, the benzoic acid product has gained popularity. Consumers have opted for packaged food instead of homemade meals due to an increase in working hours and a need for nutrient-rich food.
A huge demand for packaged food and beverages throughout the world is pushing benzoic acid for food preservatives. It preserves food products and extends their shelf-life. The ability to produce desired results depends on the pH of the food.
Therefore, benzoic acid is also used for preserving acidified foods like pickles, sparkling drinks, and fruit juice. Benzoic acid market growth is expected to be boosted by the growing demand for alternatives to phthalate plasticizers in various applications.
In addition, benzoic acid is used to make phenols, which are used in the chemical industry, and as preservatives in toothpaste and mouthwash, which are essential staples. Furthermore, the substitution of phthalate plasticizers with non-phthalate plasticizers, particularly in North America and Europe, has created a substantial market opportunity for benzoic acid manufacturers due to its increased use in the paper industry.
Due to the presence of preservative companies, the North American market is currently mature. As a result of the growing demand for processed food and beverages, particularly in emerging Asian nations, the latter region is expected to see lucrative growth opportunities in the near future.
The Asia Pacific region has strongly registered a strongly rising demand for sodium benzoate and potassium benzoate, another factor driving the overall benzoic acid market. Another factor contributing to the increase in demand for benzoic acid in the region is the growing animal feed industry in Asian countries such as India.
To meet their daily meal needs, consumers shifted to processed foods and beverages such as snacks, fruit juices, packaged meat snacks, and others. In many European countries, consumers skip meals like breakfast, which has increased their preference for packaged and processed foods.
Due to the importance of preservatives, including benzoic acid, in processed food and beverage products, the end-user industries are actively seeking innovation in benzoic acid products. Through the expansion of their product portfolio and product launches, manufacturers have been able to gain significant market share.
The chemical name for benzoic acid is C6H5COOH. It is a crystalline, colorless, fragrant carboxylic acid. Gum benzoin, or the resin of Styrax tree species, was initially used to make benzoic acid. To prevent the growth of germs and fungus, benzoic acid is frequently employed as a preservative in the food and beverage sector. This flavorless substance is additionally utilized as a chemical reagent.
Because of benzoic acid's useful properties, which include antifungal and antibacterial properties, the demand for it has increased in several end-use industries. Many fruits, including raspberries, cranberries, plums, and prunes, naturally contain them. The chemical, pharmaceutical, food, and beverage sectors use it the most.
The growing need for preservatives to extend the shelf life of food goods is one of the primary drivers of the growth of the worldwide benzoic acid market. Some of the key elements projected to drive demand for benzoic acid in the forecast years and therefore drive market expansion are the product's antifungal qualities and use in the formulation of various cosmetic and personal care products.
The market is expected to grow as a result of the swift development of the global pharmaceutical and food additives industries, which has spawned several Research and Development projects for developing secure chemicals and flavoring agents. Additionally, it is estimated that during the forecasted period, increased consumer desire for convenience and ready-to-drink (RTD) food and beverages will favorably affect the global benzoic acid market.
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Historical V/S Forecast Market Outlook For Benzoic Acid Market
During the Historical Assessment period of 2017 to 2021, significant developments in the global market for benzoic acid were seen. The market for benzoic acid experienced a compound annual growth rate (CAGR) of 4.7% from 2017 to 2021. The benzoic acid business was significantly impacted by the recent Covid-19 outbreak.
In the first few months of 2020, manufacturing levels in this market declined due to local lockdowns and legal restrictions. However, the demand for pre-packaged food in the latter months of 2020 and the beginning of 2021 delayed a rise in distribution.
Strict government regulations enacted in the wake of the sudden COVID-19 epidemic increased demand across the globe for canned and packaged foods, drinks, and confections. As a result, after a gradual recovery from COVID-19 during the historical period, benzoic acid consumption has significantly grown.
It is anticipated that the market for benzoic acids would grow more quickly than it did in the past. As per the latest analysis of FMI, the market is anticipated to grow at a CAGR of 5.3%between 2022 to 3032. The benzoic market has shown favorable growth in recent years due to its dominance in the application areas and is anticipated to grow more quickly over the projected period.
Due to the rising changes in community lives brought on by regional development and urbanization, a high rate of benzoic acid market expansion is anticipated in the next years.
There may be market potential due to a variety of variables, including the ongoing increase in demand for healthy packaged and processed foods. Throughout the projection period, this market's expansion will also be aided by the creation of new technologies and products.
Many countries now utilize benzoic acid, and it will probably be replaced in the future as a more trustworthy alternative. In North America and Europe, non-phthalate plasticizers are anticipated to take the place of phthalate plasticizers. The market for benzoic acid is anticipated to expand significantly throughout the given time frame.
Market Dynamics
Spike in Consumption of Benzoic acid in the food andbeverage industry to augment the market growth
The paradigm change among consumers is toward processed food and drink items such as snacks, fruit juices, processed meat snacks, and others to fulfill their daily meal requirements. In many European nations, skipping meals like breakfast is commonplace, which has boosted customers' appetite for processed and packaged food and beverage items.
The end-user industries are actively seeking innovation in benzoic acid because preservatives, including benzoic acid, are a key component in processed food and beverage products. This has created a fantastic opportunity for manufacturers to establish a strong market position by enhancing their product portfolio and new product launches.
Benzoic acid and its sodium, potassium, or calcium salts are used as food preservatives due to their strong antifungal effects. It has a slight antibacterial action and is particularly useful in reducing the formation of mold and yeast.
The increased demand for packaged and preserved food from the global consumer population is anticipated to fuel the demand for effective natural preservatives like benzoic acid. Because it functions better at an acidic pH, benzoic acid is required for meals and beverages that are acidic. Benzoic acid is being used more frequently as a food preservative because it does not affect the flavor or scent of the foods or beverages it is added to.
The processed and packaged food and beverage industry has grown significantly as a result of the increased demand for frozen food items and beverages around the world. Due to the developing food preservative markets in China and India, the food & beverages end-use sector segment of the worldwide benzoic acid market is anticipated to grow more quickly than the rest of the globe.
Fluctuations in raw material prices & stringent regulations are likely to constrain market growth
One of the key concerns emphasized in the benzoic acid market study for the anticipated term is the price of toluene. Toluene is a liquid aromatic hydrocarbon that is colorless, water-insoluble, and aromatic. It is a member of the crude oil family.
This formulation contains benzoic acid, which is advantageous, and it has linkages to a certain phenyl group. In general, the price of raw materials is uncertain, especially the price of crude oil. As a result, the fluctuating price of toluene could hurt the overall market growth for benzoic acid.
On the other hand, the expansion of the benzoic acid business has been hampered by strict regulations in emerging nations, which has stunted the rise of alkyd resins. However, in the approaching years, benzoic acid's unfavorable health effects may constrain the market. It can also harm the lungs and digestive systems when used and exposed frequently.
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Category-Wise Insights
Which is the leading segment by end-use in the Benzoic Acid market?
By end-use food and beverage industry holds the major share of the market. Benzoic acid is often used as a preservative in processed foods and drinks. It is frequently employed to preserve acidic foods and beverages, including pickles, jams, fruit juices, carbonated beverages, and sparkling beverages.
The rationale for benzoic acid's increased use as a food preservative may be that it has no effect on or changes the flavor of the foods or beverages to which it is applied.
Other factors influencing the expansion of the benzoic acid market segment of the end-use food and beverage industry include the rise in consumer per capita income and changes in customer preferences for packaged foods and beverages. The processed and packaged food and beverage business is experiencing substantial growth due to the increased demand for frozen food items and beverages around the world.
Country-Wise Insights
What Is the Growth Outlook of the Benzoic Acid Market in the Asia Pacific Countries?
Asia Pacific has been the region with the highest per capita purchases over the past few years. Increases in disposable income and a shift in consumer preferences toward processed foods and RTD beverages are projected to fuel regional demand, particularly in China and India.
As phenol production rises along with expansion in end-use industries including food and beverage, personal care, and pharmaceuticals, Asia Pacific is also anticipated to have significant gains throughout the projection period.
Contrarily, the replacement of phthalate plasticizers with benzoate plasticizers as a result of stringent government regulations is projected to encourage growth in this area. Over the course of the projected period, demand for benzoate plasticizers in Asia Pacific countries is anticipated to rise due to the aforementioned reason.
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Competitive Landscape
Market participants are spending globally to improve their Benzoic Acid production capacity to meet the growing needs of end consumers. The numerous technological innovations and the increasing growth attempts of the top competitors through strategic alliances, Mergers, and agreements have opened up a wide range of market prospects.
Further, participants are exerting great effort to create and launch cutting-edge technological innovations to stay ahead of the competition. All of these developments imply that the Benzoic Acids market will have enormous growth potential internationally in the years to come.
For Instance,
In 2021, Lanxess AG declared that it had planned to purchase Coca-Cola Company, which is a large supplier of Emerald Kalama, the key manufacturer of benzoic acid for USD Billion1.08. For usage in food, home, confectionery, and other items, Lanxess has chosen to create novel flavor compounds and preservatives.
Scope Of The Report
Attribute
Details
Growth Rate
CAGR of 5.3% from 2022 to 2032
Base Year for Estimation
2021
Historical Data
2017 to 2021
Forecast Period
2022 to 2032
Quantitative Units
Revenue in USD Million for Value, Volume in Tons, and CAGR from 2022 to 2032
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered
Production Method
Application
End-use
Region
Regions Covered
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East and Africa
Key Countries Covered
USA
Canada
Mexico
Brazil
Germany
United Kingdom
France
Italy
Spain
Russia
BENELUX
China
Japan
South Korea
India
ASEAN Countries
Australia
New Zealand
GCC Countries
Turkey
Northern Africa
South Africa
Key Companies Profiled
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
I G Petrochemicals Ltd.
Customization & Pricing
Available upon Request
Benzoic Acid Market Segmentation
By Production Method, Benzoic Acid Market is segmented as:
Grignard reagents
Friedel-Crafts reaction
By Application, Benzoic Acid Market is segmented as:
Food Preservatives
Corrosive Inhibitors
Alkyd Resins
Synthesis Intermediates
Plasticizer
Feed Additives
Others
By End-use, Benzoic Acid Market is segmented as:
Chemical Industry
Food & Beverages
Cosmetics and Personal Care
Pharmaceutical Industry
By Region, Benzoic Acid Market is segmented as:
North America
Latin America
Europe
South Asia Pacific
East Asia
Middle East & Africa
Frequently Asked Questions
The market is likely to register a CAGR of 5.3% through 2032.
The market is currently valued at US$ 1011.3 Million in 2022.
The market is likely to grow to a valuation of US$ 1694.9 Million by 2032.
Asia Pacific is likely to be a leading market during the forecast period.
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