Organic Acids Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[221+ Pages Report] According to the report published by Facts Factors, the global organic acids market size was worth USD 10,982.40 million in 2021 and is estimated to grow to USD 14,971.57 million by 2028, with a compound annual growth rate (CAGR) of approximately 5.30% over the forecast period. The report analyzes the organic acids market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the organic acids market.

Organic Acids Market- Overview

Organic acid is an organic compound with weak acidic properties. It can be produced through molasses, and agro-industrial residues, such as soybean, sugarcane, wheat bran, citric pulp, and fruit peels. It includes some commonly used carboxyl, formic, lactic, and malic acid. Food manufacturers widely use them as antioxidants and preservatives, inactivating or inhibiting the growth of bad microorganisms and foodborne pathogens. Organic acids are highly beneficial in treating oil, gas, and metallic ions. It improves environmental hygiene by avoiding microbial and fungal deterioration of animal feed. Due to these factors, the global organic acid market demand is expected to increase during the forecast period. However, changing prices of raw materials such as corn, maze, and other high investments are expected to hamper the growth of the organic acid market during the forecast period. At the same time, the high concentration of acetic acid in animal feed can harm animals, plants, and aquatic life. These are the major challenge faced by the organic acids market during the forecast period.         

COVID-19 Impact:

The COVID-19 pandemic has negatively affected the organic acids market. The disturbance of supplying chain has impacted the availability of raw materials to formulate acids, which affected the scarcity of the final product in the market. Whenever the government declares a complete lockdown, it also affects the availability of skilled professionals, which hampers production. In the organic acids market, consumer preference for products made from organic acid is expected to increase due to the shortage of chemical additives.

Key Insights

• As per the analysis shared by our research analyst, the global organic acids market value is expected to grow at a CAGR of 5.30 percent over the forecast period.
• In terms of revenue, the global organic acids market was valued at around USD 10,982.40 million in 2021 and is projected to reach USD 14,971.57 million by 2028.
• Organic acids improve environmental hygiene by avoiding microbial and fungal deterioration of animal feed is expected to drive market growth during the forecast period.
• By type, the acetic acid segment dominated the market in 2021.
• By application, the food and beverage category dominated the market in 2021.
• The Asia Pacific dominated the organic acids market in 2021.

Growth Drivers

• The use of organic acid in different applications is driving the market growth

The various applications of organic acids comprise food, beverages, and personal care products, which have attained significant attention in the past few years. The major organic acids, lactic acid, acetic acid, and fumaric acid, are used in making plastic, textiles, tanning, papers, metals, perfumes, herbal insecticides, colors, dyes, and lubricants in food & beverages applications and by cosmetic manufacturers. The increased demand for skin care products will aid the global organic acids market during the forecast period.  

Restraints

• Fluctuation of raw materials prices is hampering the market growth

The fluctuating prices of raw materials are a major restrain to hamper the market's growth because the price of raw materials is essential, influencing the production cost of organic acids. In the past few years, organic acid prices have been explosive. Increase in the production cost significantly due to the high cost of raw material, transport, and energy, further increased the prices of organic acids. Thus, this impacts the production of organic acids and hampers the global organic acids market growth during the forecast period.

Opportunity

• The liberality of regulated policies for organic acid provides the growth opportunity

Organic acids such as citric acid, lactic acid, and formic acid are harmful to food additives as deemed by various food safety administrative. CODEX Alimentarius is used for various listed food and beverage products under the good manufacturing practices in the preamble of the codex. Thus, these factors are expected to offer various opportunities for market players during the forecast period. 

Segmentation Analysis

The global organic acids market has been segmented into type, application, and region.

Based on type, the organic acids market is categorized into acetic acid, lactic acid, citric acid, formic acid, propionic acid, ascorbic acid, gluconic acid, fumaric acid, malic acid, and other acids. Among these, acetic acids dominated the segment in 2021 due to various uses, ranging from food and beverage to textile and construction. Most of the acetic acid produced is used to create vinyl acetate monomer (VAM), a crucial ingredient in manufacturing numerous building supplies, including paints and adhesives.

Based on application, the market is segmented into food & beverages, feed, pharmaceuticals, and industrial. In 2021, the food and beverage segment dominated the market. The developing food & beverages industries and an increase in the production of soft drinks & food products are the factors likely to drive segmental growth during the forecast period.

Recent Developments                                                         

•  July 2019: Royal DSM, a science-based company in nutrition, health, and sustainable living, announced the Upgradation of ascorbic acid.

Report Scope

Regional Landscape                 

• The Asia Pacific region dominated the market in 2021

The Asia Pacific dominated the global organic acids market in 2021 due to the rising demand for organic acids from the petrochemical, textile, food & beverage, and construction industries—which is mostly driven by the demand for acetic acid—the consumption of these substances is particularly high in this region. For example, the Indian textile industry, valued at about USD 150 billion, is predicted to reach USD 250 billion by 2019. (IBEF). According to the China Energy Group, Chinese exports of clothes and textiles account for 40% of all global exports. Similar to the construction industry's wealth, the Global Building Performance Network reports that only around 75% of the buildings predicted to exist in India in 2030 have been constructed. Because of this, the organic acids market is anticipated to increase.

Competitive Landscape

• Cargill 
• BASF SE 
• the Dow Chemical Company 
• Henan Jindan Lactic Acid Technology Co. Ltd 
• Archer Daniels Midland Company 
• Eastman Chemical Company 
• Myriant Corporation 
• Corbion N.V. 
• Koninklijke DSM N.V.

Global Organic Acids Market is segmented as follows:

By Type

• Acetic acid
• Lactic acid
• Citric acid
• Formic acid

• Propionic acid
• Ascorbic acid
• Gluconic acid
• Fumaric acid
• Malic acid
• Other acids

By Application

• Food and beverages
• Feed
• Pharmaceuticals
• Industrial

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America