Benzoic Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form (Powder, Granules), By Application (Food and Beverages, Cosmetics, Pharmaceuticals, Others), By Region and Competition, 2019-2029F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationBenzoic Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form (Powder, Granules), By Application (Food and Beverages, Cosmetics, Pharmaceuticals, Others), By Region and Competition, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 1.24 Billion |
| CAGR (2024-2029) | 4.86% |
| Fastest Growing Segment | Food and Beverages |
| Largest Market | Asia Pacific |
| Market Size (2029) | USD 1.63 Billion |
Market Overview
Global Benzoic Acid Market was valued at USD 1.24 Billion in 2023 and is anticipated to project steady growth in the forecast period with a CAGR of 4.86% through 2029. Benzoic acid, a carboxylic acid known for its antibacterial and antifungal properties, can be found naturally in various fruits like cranberries, raspberries, and plums. Its remarkable ability to repel bacteria and yeast has made it highly sought after in the food and beverage industries. Benzoic acid is widely utilized in the chemical industry for the production of different phenols. This versatile compound is commonly used as a preservative in cosmetics and personal care items, including toothpaste and mouthwash.
With the growing concern for health and wellness, consumers are increasingly gravitating towards healthier food and beverage options. Consequently, low-calorie, gluten-free, sugar-free, and organic food products, particularly packaged ones, have gained significant appeal among customers. To maintain the freshness of these packaged foods and drinks for extended periods, additives with preservation properties are crucial. Benzoic acid plays a prominent role as a preservative in packaged food and beverages. Its popularity as a food preservative stems from the fact that it does not affect the taste or odor of the products it is added to. The May 2024 pricing analysis for Benzoic Acid reveals divergent trends across different regions. In North America, prices experienced a decline of 1.9%, settling at USD1.04 per kilogram. Conversely, Europe saw a 1.6% increase, with prices reaching USD1.25 per kilogram. Similarly, Northeast Asia witnessed a 1% uptick, with prices rising to USD1.05 per kilogram. In India, prices remained unchanged at USD1.16 per kilogram. These price fluctuations can be attributed to various factors, including shifts in supply and demand dynamics, fluctuations in production costs, currency exchange rates, and overall market sentiment. While North America observed a decrease, Europe and Northeast Asia experienced modest increases, indicating regional disparities in market conditions. The stability of prices in India suggests a relatively balanced market environment in the region.
Under normal conditions, benzoic acid is stable and non-toxic. However, it should be noted that exposure to high concentrations of benzoic acid can pose health risks, particularly in individuals with vulnerable skin that may be prone to allergies. Proper handling and disposal of benzoic acid as hazardous waste may be necessary. Consequently, some countries have implemented restrictions or outright bans on the use of benzoic acid, particularly in food and beverage products. The importance of understanding the implications and regulations surrounding benzoic acid underscores the need for careful consideration and adherence to safety measures in its use.
Key Market Drivers
Growing Demand of Benzoic Acid in Pharmaceutical Industry
Benzoic acid, a simple carboxylic acid, is a white crystalline substance that is readily found at in nature and can also be chemically synthesized. It possesses antimicrobial properties, making it a widely used preservative in both the food and pharmaceutical industries. In the world of medicine, it is utilized as an expectorant, antiseptic, and local anesthetic. The pharmaceutical industry heavily relies on benzoic acid due to its numerous medicinal benefits. It is used in the production of a wide range of therapeutic drugs, including cough syrups, lotions, ointments, and pills. Not only that, but it is also incorporated into topical antifungal medications due to its exceptional antifungal properties. This versatile acid serves as an excipient, an inactive substance that serves as a carrier for the active ingredients of a medication. In this crucial role, it enhances the stability and efficacy of the drugs, ensuring that they deliver the desired therapeutic effects.
The rising prevalence of various diseases worldwide has led to an increased demand for effective drugs, thereby boosting the use of benzoic acid in pharmaceutical manufacturing. The ongoing research and development activities in the pharmaceutical sector are continuously uncovering new uses for this compound, potentially driving the market further and expanding its applications. The growing awareness about hygiene and health among consumers has propelled the increased use of antifungal and antibacterial products, where benzoic acid plays a crucial role. Its remarkable properties make it an indispensable ingredient in these products, ensuring their effectiveness in combating harmful microorganisms. The escalating demand for benzoic acid in the pharmaceutical industry has positively impacted the global benzoic acid market. With the ongoing advancements in medical science and the ever-increasing need for effective medications, it is expected that this trend will continue to flourish. The versatility and usefulness of benzoic acid make it a vital component in the development of innovative pharmaceutical solutions, catering to the evolving healthcare needs of the global population.
Growing Demand of Benzoic Acid in Food & Beverage Industry
Benzoic acid, a naturally occurring carboxylic acid found in numerous plants, is also commonly produced industrially. This renowned white, crystalline substance possesses remarkable antimicrobial properties, making it a favored preservative across diverse industries, with the food and beverage sector being one of its prominent consumers. Within the food and beverage industry, benzoic acid and its salts, such as sodium benzoate and potassium benzoate, find extensive use as food preservatives. These compounds effectively hinder the growth of yeast, mold, and certain bacteria, thereby extending the shelf life of a wide range of products including fruit juices, soft drinks, pickles, sauces, and salad dressings.
Benzoic acid plays a pivotal role in enhancing the overall quality of food products. By preventing spoilage and preserving the nutritional value, taste, and aroma, it has become an indispensable ingredient in the global food and beverage industry. The demand for food preservatives like benzoic acid has been further amplified by the rising global population and shifting consumer preferences towards ready-to-eat and packaged foods. In addition, with an increased awareness about food safety among consumers worldwide, the demand for products with extended shelf life has surged, thereby driving the utilization of benzoic acid. The rapid pace of urbanization, augmented disposable income, and hectic lifestyles have contributed to the growing consumption of processed and convenience foods. This, in turn, has fostered the use of benzoic acid in food preservation.
Key Market Challenges
Volatility in Price of Raw Materials
Benzoic acid, a key compound used in various industries, is primarily produced through the oxidation of toluene, which is derived from crude oil. This oxidation process involves the use of catalysts, resulting in the formation of benzoic acid. However, there are alternative methods of production, such as the reaction of benzotrichloride with water or the hydrolysis of benzonitrile. The production of benzoic acid is greatly influenced by global oil prices, as toluene is a derivative of crude oil. Fluctuations in oil prices directly impact the cost of producing benzoic acid. With crude oil prices known for their volatility, factors like geopolitical tensions, natural disasters, and changes in global supply and demand can lead to significant price fluctuations. As a result, the prices of toluene become unstable, creating uncertainties for manufacturers of benzoic acid.
When the prices of raw materials, including toluene, increase, manufacturers often face the challenge of absorbing the additional costs. This situation can lead to reduced profit margins, higher production costs, and potentially higher prices for the end product. In some cases, manufacturers may even need to temporarily suspend production until prices stabilize, which can disrupt the supply chain and impact the overall market dynamics. The uncertainty associated with volatile raw material prices can also deter potential investments in the benzoic acid market. Investors may hesitate to commit capital due to the risks posed by unpredictable price fluctuations. This can limit the market's growth potential and hinder the development of new applications for benzoic acid. Considering the intricate relationship between benzoic acid production, toluene prices, and global oil dynamics, it is crucial for industry participants to closely monitor and adapt to these ever-changing market conditions. By strategically managing raw material costs and exploring alternative production methods, manufacturers can mitigate risks and ensure the stability and growth of the benzoic acid market in the long run.
Key Market Trends
Surge in Regulatory Environment
Regulatory environments encompass a wide array of rules, laws, and regulations that businesses must carefully adhere to in their day-to-day operations. These regulations can cover various aspects, ranging from environmental guidelines that promote sustainability and protect our planet, to worker safety standards that ensure the well-being of employees, to labeling requirements that provide consumers with accurate and transparent product information. In recent years, there has been a notable increase in both the number and complexity of these regulations. This surge in regulatory changes has a direct and profound impact on the benzoic acid market. For instance, regulations focused on environmental protection and sustainable practices could impose restrictions on the production methods used to manufacture benzoic acid. As a result, manufacturers may be required to implement costly upgrades or make significant changes to their manufacturing processes to align with these regulations.
The rise in regulations pertaining to worker safety could introduce additional costs for benzoic acid manufacturers. Ensuring compliance with these regulations may involve investing in protective equipment and implementing enhanced safety measures to safeguard the well-being of workers involved in the manufacturing process. Regulations related to product labeling are also a crucial aspect that affects the marketing and packaging of benzoic acid products. Compliance with these labeling requirements ensures that consumers have access to accurate and comprehensive information about the product, fostering transparency and informed decision-making. It is important to recognize that the benzoic acid market operates on a global scale. This means that manufacturers face the challenge of navigating a complex web of regulations across different countries and regions. Each jurisdiction may have its own specific requirements and standards, adding another layer of complexity to the operations of benzoic acid manufacturers.
Segmental Insights
Form Insights
Based on Form, Powder have emerged as the dominating segment in the global market for benzoic acid in 2023. Benzoic acid powder, with its easy handling and transportability, proves to be a versatile substance. This powder exhibits remarkable solubility in water and other liquids, adding to its convenience in various scenarios. Its extensive range of applications encompasses not only food preservation, pharmaceuticals, and personal care products but also extends to many other industries. The relatively low cost of benzoic acid powder further enhances its appeal as a cost-effective choice for numerous applications, making it a preferred option for those seeking both efficacy and affordability.
Application Insights
Based on Application, Food and Beverages have emerged as the fastest growing segment in the Global Benzoic Acid Market during the forecast period. Benzoic acid, a widely used preservative in processed food products and beverages, is essential for maintaining freshness and extending shelf life. This versatile compound is commonly found in various acidic food items and drinks, such as pickles, jams, fruit juices, aerated drinks, and sparkling beverages. The significant growth of the benzoic acid market within the food and beverage industry is driven by several factors.
One key factor is consumers' preference for convenient and readily found at packaged foods and beverages. As lifestyles become busier, the demand for preserved and easily consumable products has increased. Additionally, rising per capita income has boosted the demand for processed foods and beverages. The global growth of the processed and packaged food industry is another driving force behind the benzoic acid market. The convenience and extended shelf life of frozen food products and drinks have increased their popularity, leading to higher demand for food preservatives like benzoic acid. The market is expected to see significant growth due to the rising demand for food preservatives in countries such as China and India. As these nations undergo rapid economic growth and urbanization, the demand for packaged foods and beverages has surged. To meet this demand while ensuring product safety and longevity, the use of benzoic acid as a food preservative is becoming increasingly important.
Regional Insights
Based on Region, Asia Pacific have emerged as the dominating region in the Global Benzoic Acid Market in 2023, holding the largest market share in terms of value. Over the past few years, the Asia Pacific region has emerged as the largest buyer, driven by increasing per capita disposable income levels. There has been a notable shift in consumer preferences towards processed foods and ready-to-drink (RTD) beverages, further fueling the regional demand. This trend is particularly evident in countries like China and India, where the demand for such products is expected to rise significantly. The Asia Pacific region is projected to experience substantial growth over the forecast period. This growth can be attributed to the anticipated increase in phenol production and the expanding end-use industries, including food and beverages, personal care, and pharmaceuticals. As these industries continue to evolve and thrive, the demand for phenol and its derivatives is expected to witness a considerable upswing in the region.
Recent Development
- In March 2024, Symrise Cosmetic Ingredients announced the addition of Savelite HB to its portfolio of beauty ingredients. Savelite HB is a clear, colorless, and odorless liquid that enhances product protection by combating microorganisms and oxidation. This cold-processable ingredient allows for easy handling, saving time and energy during production. Building on well-established propanediol and benzoic acid molecules, Savelite HB offers the functionality of proprietary ingredients. This launch, coming 10 years after the revolutionary SymSave H, expands Symrise's formulator toolbox.
Key Market Players
- Avantor Inc.
- MerckKGaA
- GaneshBenzoplast Ltd.
- SpectrumChemical Manufacturing Corp
- WuhanYouji Industries Co. Ltd.
- FBCIndustries, Inc.
- TengzhouTenglong Chemical Co., Ltd.
- CellMarkAB
- A.M. FoodChemical Co. Limited
- Hugestoneenterprise Co. Ltd.
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