The Global Organic Acids Market is expected to reach USD 16.45 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 5.9% from 2022 to 2028. Numerous usages of organic acids in multiple applications such as personal care products, pharmaceuticals, and food & beverages are increasing rapidly. In addition, increasing demand for packed food and technological innovations in the development of food products is fuelling the growth of the organic acid market in the coming years.
- The citric acid market is projected to grow at a substantial CAGR in the Organic Acids Market. This is owing to the rising use of citric acid in the food & feed industry.
- The food & beverages sector is expected to account for steady growth of the market over the forecast period. The increasing demand for organic acid-fortified food because of its preservative and antioxidant properties spikes the growth of the Organic Acids Market in the food & beverages sector.
- Asia Pacific projected to grow at the fastest CAGR during the forecast period. This surge is mainly attributed because of high usage of organic acid in developing counties such as China and India.
The major players involved in the development of Organic Acids Market are - Koninklijke DSM N.V. (Netherlands), BASF SE (Germany), Cargill (US), Henan Jindan Lactic Acid Technology Co. Ltd (China), the Dow Chemical Company (US), Archer Daniels Midland Company (U.S.), Myriant Corporation (U.S.), Eastman Chemical Company (U.S.), Corbion N.V. (Netherlands).
For the last few years, organic acid is widely used in major applications such as pharmaceuticals, personal care products, and food & beverages. The organic acid provides essential functionalities in various cellular processes such as temporary carbon storage, phosphorous acquisition, communication between microorganisms, stomatal function, interchanging of reductive power, CO2 concentrating metabolism, and aluminum tolerance. These acids are also used in lubricants, herbal insecticides, tanning, colors & dyes, plastic making, metal, perfumes, textiles, and paper. All these factors are responsible for the growth of the Organic Acids Market in the coming years.
The major challenge in the development of the Organic Acids Market is the environmental concern. Acetic acid can be dangerous if used in the wrong quantity as it is majorly used in various industrial applications. This acid is also used in pesticide formulations to reduce bacterial growth in feed. However, the high concentration of acetic acid in herbicides or animal feed can be dangerous to aquatic life, animals, and plants. This is one of the major challenges observed by many of the manufacturers.
October 2021: A joint venture between BASF and PETRONAS Chemicals Group Berhad intends to expand the annual production capacity of 2-Ethylhexanoic Acid (2-EHA) from 30,000 to 60,000 metric tons by 2024.