The size of the global benzoic acid market is expected to attain a value of USD 1.72 billion by 2028, growing at a 5.58% CAGR during the forecast period from USD 1.22 billion in 2021.
The size of the global benzoic acid market is expected to attain a value of USD 1.72 billion by 2028, growing at a 5.58% CAGR during the forecast period from USD 1.22 billion in 2021. This report discusses market research on the benzoic acid market, its market growth factors, and its challenges. The report also talks about the opportunities available to stakeholders, researchers, and potential investors for the benzoic acid market, discussing the recent changes due to the pandemic.
Benzoic Acid Market: Overview
The global benzoic acid market is growing in response to the rising global supply of processed foods and drinks. To prolong the shelf life of such items, benzoic acid is used. Because the capacity to create intended impact is dependent on the pH of food, benzoic acid is often used to preserve acidified food items such as pickles, effervescent beverages, and fruit juice.
Benzoic acid is used in a variety of sectors, including polymers, pharmaceuticals, chemicals, and others. Animal feed, color compounds, and medicinal applications are all possible uses for benzoic acid. Athlete's feet, ringworm, tinea, and other fungal skin infections are treated with benzoic acid. As a disinfectant, benzoic acid is used extensively in the cosmetics industry. Benzoic acid is found in toothpaste, antiperspirants, mouth rinses, and other products.
As a result of supply chain and logistics concerns, the COVID-19 crisis created multiple barriers for chemical makers. Several production plants were compelled to close or operate at smaller power, resulting in a lower production process. Several obstacles for the benzoic acid business may have arisen as a result of a worker shortage caused by regulatory limitations. Nevertheless, sales of processed products and drinks have remained stable, and in some cases have even increased, as a result of panic shopping by customers ahead of the lockdown restriction. Processed food sales continued to climb even during statewide lockdowns, when major retailers and outlets were compelled to close or function for restricted periods of time, since many customers in emerging nations shifted to internet purchasing channels.
During the outbreak, many customers switched from buying unbranded to buying branded packaged goods, resulting in higher purchases of snacks, savory meals, ready-to-cook meals, ramen, nutrient foods, and immunity-boosting items. The global benzoic acid market prediction must be bolstered by positive possibilities in the food and beverage industry, as well as the revival of the chemical and plasticizers sectors, through 2028 to help revive the industry.
Benzoic Acid Market: Growth Drivers
Increased demand for processed food items to drive market growth
To satisfy their daily meal requirements, customers are moving their approach towards processed food and beverage goods such as appetizers, fruit drinks, processed meat, and others. In several European nations, the popularity of omitting breakfasts or lunch has led to consumers' increased desire for packaged and processed food and beverage goods. Because preservatives, such as benzoic acid, are an essential component in packaged food and beverage products, end-user sectors are constantly searching for benzoic acid advancements, which has given producers great opportunities to acquire a substantial market placement by diversifying their product profile and introducing new products.
Benzoic Acid Market: Restraints
Fluctuating price of toluene to restrain the market growth
The variation in crude oil prices is the most recent market pattern gaining traction. The aromatic chemical toluene is a key element to make benzoic acid. Gasoline is a major component in the production of toluene, which is produced during the production of coke from coal. The price of crude oil influences the price of raw materials, which influences the cost of producing toluene, in turn affecting the global benzoic acid market.
Benzoic Acid Market: Opportunities
Increased variety of preserved and processed food items to provide opportunities for market growth
Developments in preservation methods that use benzoic acid are introducing new alternatives of ready-to-go meals, ranging over a wide spectrum of dairy products, bakeries, snacks, meals, poultry, confectionery, ready meals, and others. Several regional, traditional and local meals are now available in ready-to-go packs, which are affordable for the middle working-class community, offering opportunities for growth of the global benzoic acid market.
Benzoic Acid Market: Challenges
Strict regulation of food additives and preservatives to affect market growth
The expansion of the benzoic acid industry has been hampered by strict regulation in emerging nations, which has hampered the rise of alkyd resins. However, unfavorable health concerns connected with benzoic acid may stymie the industry in the next years. Furthermore, constant exposure and usage might harm the gastrointestinal system and lungs.
Benzoic Acid Market: Segmentation Analysis
The market is bifurcated based on applications, end-users, and region.
The market, by application is divided into benzoates, benzoate plasticizers, alkyd resins, and others. Due to the increasing consumption of non-plasticizers, which also include benzoate plasticizers in varied uses such as wires & cables, flooring & wall coverings, and consumer products, among others, the benzoate plasticizers industry is estimated to exhibit the highest growth over the forecast period.
The market, by end-user is segregated into food & beverages, chemical industry, pharmaceutical industry, and others. In the given period, the food & beverage category held the largest market share of the entire market. Growth of the market for processed foods is being driven by growing urbanization and lifestyle changes of the population.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
Benzoic Acid Market: Regional Landscape
Asia Pacific to lead global market due to increased preference for packed foods in India and China
Because of rising per-capita disposable income and a steady move toward packaged goods, the use of benzoic acid has gradually increased across Asia Pacific during the last few years. India and China are the two highest contributors in this area. During the forecasted period, North America is expected to grow at a healthy CAGR after Asia Pacific.
Benzoic Acid Market: Competitive Landscape
The business for benzoic acid is extremely fragmented, with a huge variety of local competitors operating all over the world. Because of the widespread usage of benzoic acid in a variety of end-user sectors, active producers have launched a growing number of items to strengthen their position in the global benzoic acid market. The major manufacturers are also increasing their product offerings in order to capture the widest variety of benzoic acid applications and gain a dominant position in the market. Some well-known companies in the industry are-
The global benzoic acid market is segmented as follows:
Benzoic acid (C7H6O2, CAS NO. 65-85-0) is a form of carboxylic acid. It is a colorless chemical which is crystalline in nature and soluble in water. Benzoic acid is extensively used to manufacture its derivatives such as sodium benzoate and potassium benzoate.
The global benzoic acid market is expected to grow at a substantial rate within the forecast period. The growing demand for food preservatives from the food and beverage sector in emerging economies fuels the growth of the market. Furthermore, increasing demand in the packaging industries for the benzoic acid is expected to be a major driver for the global benzoic acid market within the forecast period. Increasing population, growing disposable income, and changing lifestyle also leads to an increase in the growth of the benzoic acid market. Benzoic acid is also used in the manufacturing of benzoate plasticizers, benzoates, benzoyl chloride, alkyd resins, and animal feed additive. Stringent regulation in developed countries has restricted the growth of alkyd resins; as a result, it is hampering the benzoic acid market growth. However, adverse health effects associated with benzoic acid may hinder the market in the coming years. In addition, its prolonged usage and exposure can harm the lungs and digestive tracts. As there is an increased demand for the benzoic acid from industrial, chemical, and food preservation sectors its demand is expected to increase in the forecast period. Nonetheless, product innovation and emerging market in the Asia Pacific is likely to open new avenues for the major players of the market during the years to come.
The global benzoic acid market has been segmented on the basis of application, end-use industry, and region. On the basis of application, the benzoic acid market is classified into benzoate plasticizers, benzoates, benzoyl chloride, alkyd resins and animal feed additive. Benzoates segment is anticipated to account for the largest share for the benzoic acid market in the forecast period.
Based on end-use industry, the global benzoic acid market is mainly segmented into food & beverages, chemical, and pharmaceutical. In terms of value, the pharmaceutical segment is anticipated to grow at the highest CAGR in the forecast period owing to increasing demand from emerging economies of the Asia Pacific and Latin American regions. Inorganic lubricants were the leading application segment of global benzoic acid market in 2017. The usage of benzoic acid is expected to increase in the food & beverages sector as the consumer are moving towards the adoption of convenience food and ready to drink (RTD) beverages across the globe. This factor is expected to be the major driver for the growth of the benzoic acid market. In the pharmaceutical segment, benzoic acid is used as an antifungal agent, antimicrobial preservative, and as a tablet & capsule lubricant. It is very effective in the prevention of bacterial infection. Hence, the demand for the benzoic acid will increase in the pharmaceutical sector in the coming years.
In terms of geography, the benzoic acid market has been classified into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2017, Asia Pacific is estimated to be the largest market for benzoic acid. This growth is mainly attributed to the rising demand for benzoic acid from various countries such as China, India, Japan, and South Korea. Moreover, Asia Pacific is predicted to be the fastest growing market of benzoic acid within the forecast period owing to the increasing demand from the food and beverages sector in the region. The Asia Pacific was followed by North America and Europe in the same year. The market growth rate in North America and Europe is anticipated to stay comparatively superior in the forecast period.
Some of the major players of the global benzoic acid market include Emerald Performance Materials, Tianjin Dongda Chemical Group, Wuhan Youji Industries Co., Liao Ning Huayi Chemical Industry & Commerce Co., Ganesh Benzoplast Limited, Shri Hari Chemicals, Hebei Smart Chemicals Co. Ltd., Merck Group, Novaphene Specialties Pvt Ltd., Chemcrux Enterprises, Apollo Scientific, Shree Chemopharma Ankleshwar Pvt. Ltd., and Clarion Drugs Ltd., among others.
Increase in demand for electric Benzoic Acid in global defense sector to strengthen international boundaries and restrict mobility across countries along with increase in size of middle class population will influence the Benzoic Acid market growth over the forecast period.
The size of the global Benzoic Acid market is expected to attain a value of USD 1.72 billion by 2028, growing at a rate of growth at the rate of 5.58% CAGR during the forecast period from USD 1.22 billion in 2021.
According to Zion Market Research, Asia Pacific to lead the global Benzoic Acid market due to increased preference for packed foods in India and China.
Insights from Zion Market Research state that major manufacturers are also increasing their product offerings in order to capture the widest variety of benzoic acid applications and gain a dominant position in the market. Some well-known companies in the industry are The Chemical Company, Merck KGaA, Chemcrux Enterprises, Emerald Performance Materials, and IG Petrochemicals Ltd.