Benzoic Acid Market To Reach USD 1.81 Billion By 2031, Fueled By Growing Demand In Food & Beverage Industry

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A new report by SNS Insider forecasts substantial growth for the benzoic acid market . Valued at USD 1.2 billion in 2023, the market is projected to reach USD 1.81 billion by 2031, with a steady CAGR of 5.2% throughout the forecast period.

The benzoic acid market's robust growth is primarily attributed to its widespread use in the food and beverage industry.

With consumers increasingly opting for processed and convenience foods, the demand for effective preservatives like benzoic acid is on the rise. Beyond food preservation, benzoic acid finds extensive application in the manufacture of perfumes and artificial flavors. Its use in flavoring tobacco further contributes to market expansion.

The benzoic acid market is characterized by a dynamic interplay of factors that influence its growth trajectory. The increasing demand for preservatives in the food industry remains a key driver, as consumers prioritize product longevity and safety. Additionally, the compound's versatility in various applications, ranging from cosmetics to pharmaceuticals, presents lucrative growth opportunities. However, the market also faces challenges. Stringent regulations on food additives and potential health concerns associated with high benzoic acid consumption could pose limitations.

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Some of the Key Players Included are:

The major key players are Chemcrux Enterprises Ltd, Merck KGaA, LANXESS, Thermo Fisher Scientific Inc., Ganesh Benzoplast Limited, Fushimi, I G Petrochemicals Ltd., Hemadri Chemicals, Eastman Chemical Company, GFS Chemicals Inc., Spectrum Chemical, and other key players mentioned in the final report.

The benzoic acid market has witnessed notable developments in recent years , highlighting its growing significance. Strategic collaborations and acquisitions have become prevalent, as companies seek to enhance their market presence and product portfolios.

• In August 2022, Brenntag , a leading chemical distributor, partnered with ISCA, a specialty chemical manufacturer, to expand its preservative offerings in the European cosmetics market.
• In August 2021, Lanxess AG , a German specialty chemical company, acquired Emerald Kalama Chemical, strengthening its consumer protection segment with aroma chemicals and preservatives.
• In July 2021, Adven Oy collaborated with Eastman Chemical Company on an innovative energy project in Estonia, significantly boosting benzoic acid production and exports.
• In April 2021, Eastman Chemical Company acquired 3F Feed & Food, a European leader in feed and food additives, further solidifying its position in the market.

The food and beverage segment currently dominates the benzoic acid market, with a projected CAGR of 5.3% during the forecast period.

This dominance is attributed to the widespread use of benzoic acid as a preservative in various food products. The growing popularity of packaged foods and the increasing demand for longer shelf life are key drivers behind this segment's growth.

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Market segmentation

By Form

• Liquid
• Anhydrous

By Application

• Sodium Benzoate
• Benzyl Benzoate
• Potassium Benzoate
• Benzoate Plasticizers
• Benzoyl Chloride
• Alkyd Resin
• Feed Additives
• Others

By End-use

• Food & Beverage
• Chemical
• Cosmetics and Personal Care
• Pharmaceuticals
• Others

Impact of Global Events

The ongoing conflict between Russia and Ukraine has had a notable impact on the global benzoic acid market. Russia is a significant producer of crude oil, a key raw material for benzoic acid production. The war has disrupted supply chains, leading to increased raw material costs and production challenges. Additionally, the conflict has caused economic instability in the region, impacting consumer spending and overall market demand.

The global economic slowdown has further exacerbated these challenges. Reduced consumer spending power has led to a decrease in demand for non-essential products, including certain food and beverage items that utilize benzoic acid as a preservative. This has put downward pressure on market growth.

The Asia Pacific region held the largest share of the benzoic acid market in 2023.

The increasing demand for frozen and packaged food products in countries like India, Thailand, and China is a significant contributor to this growth. Furthermore, stringent government regulations favoring benzoate plasticizers over phthalate plasticizers are expected to drive market expansion in the region.

North America is another rapidly expanding market for benzoic acid, primarily due to its thriving food and beverage industry. The United States and Canada play a crucial role in driving market growth in this region. Furthermore, the increasing demand for cosmetic products in North America is contributing to the market's upward trajectory.

Key Takeaways

• The benzoic acid market is poised for significant growth, driven by the food & beverage industry and expanding applications.
• The market presents lucrative opportunities, but challenges like regulatory constraints and health concerns need to be addressed.
• The Asia Pacific region leads the market, with China as a key player, while North America is experiencing rapid growth.
• Benzoic acid's versatile applications in food preservation, flavoring, cosmetics, pharmaceuticals, and industrial processes underpin its market expansion.
• Stringent regulations promoting the use of benzoate plasticizers over phthalate plasticizers are influencing market dynamics, particularly in the Asia Pacific region.

Table of Contents – Major Key Points