Carboxylic Acids Market
Carboxylic Acids Market Research Report Market Size, Share & Industry Analysis, By Type (Acetic Acid, Valeric Acid, Isovaleric Acid, Formic Acid, Propionic Acid, Butyric Acid, Isobutyric Acid, Citric Acid, Caproic Acid, Stearic Acid), By Application (Food & Beverages, Animal Feed, Pharmaceuticals, Personal Care & Cosmetics, Consumer Goods, Lubricants), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview:
The global Carboxylic Acids market is projected to grow at a CAGR of XX% from 2024 to 2031. The market value is expected to increase from USD XX billion in 2024 to USD YY billion by 2031.
Asia-Pacific currently dominates the market, accounting for the largest share of global revenue. Key metrics include the growing demand from end-use industries such as food & beverages, pharmaceuticals, and personal care, increasing applications in industrial processes, and rising investments in bio-based carboxylic acids.
The Carboxylic Acids market is steadily expanding, driven by reasons such as rising population and urbanisation, which increases demand for processed foods and drinks, rising awareness of personal hygiene and cosmetics, and the expanding pharmaceutical industry. The market is also benefiting from the transition to sustainable and bio-based chemicals in a variety of industrial applications.
Carboxylic Acids Market Dynamics:
Market Trend: Increasing demand for bio-based carboxylic acids
The trend towards bio-based and sustainable chemicals is having a huge impact on the carboxylic acid market. Bio-based carboxylic acids, generated from renewable resources such as corn, sugarcane, and other biomass, are gaining popularity due to their minimal environmental effect and reduced reliance on petrochemical feedstock. According to global industry experts, the bio-based acetic acid production is expected to grew at a 5.8% CAGR between 2019 and 2023. Major chemical corporations, like BASF and Cargill, have made significant investments in bio-based carboxylic acid production plants. This transition is especially noticeable in the food and beverage business, where customers want more natural and sustainable ingredients. The market for bio-based carboxylic acids is predicted to develop at a 7.2% CAGR between 2024 and 2031, exceeding the growth of traditional petrochemical-based acids.
Market Driver: Expanding applications in the pharmaceutical industry
The pharmaceutical industry's expansion is a major driver of the carboxylic acids market. Carboxylic acids, such as citric acid, acetic acid, and stearic acid, are essential in drug formulation, the manufacture of active pharmaceutical ingredients (APIs), and as excipients in many treatments. The worldwide pharmaceutical market is expected to exceed $1.5 trillion by 2023, increasing demand for pharmaceutical-grade carboxylic acids. For example, the demand for citric acid in pharmaceutical applications increased by 4.5% in 2023, owing mostly to its use as an acidulant and preservative in drug formulations. The growing frequency of chronic diseases, combined with an ageing global population, is driving up pharmaceutical manufacturing and, as a result, demand for carboxylic acids. Furthermore, the trend towards personalised medicine and biopharmaceuticals is creating new opportunities for specialised carboxylic acid uses in drug delivery and bioprocessing.
Market Restraint: Volatility in raw material prices
The carboxylic acids industry is facing problems as raw material costs, particularly for petrochemical feedstocks, remain volatile. Many carboxylic acids are generated from petroleum, hence their production costs are subject to swings in oil prices. For example, the price of acetic acid, one of the most extensively used carboxylic acids, fluctuated by up to 15% in 2023 because to changes in the price of its principal feedstock, methanol. This volatility can have a substantial influence on producers' profit margins while also creating pricing uncertainty for end consumers. According to a survey of chemical industry executives, 68% see raw material price fluctuation as a significant challenge to their business operations. This uncertainty may cause caution in long-term investments and contract negotiations in the carboxylic acids sector. While the shift to bio-based sources may alleviate this issue in the long run, the current reliance on petrochemical feedstocks remains a key constraint on market growth and stability.
Segment Overview:
The Acetic Acid segment dominates the Carboxylic Acids market, driven by its versatile applications across multiple industries.
The Acetic Acid sector has emerged as the leading force in the Carboxylic Acids industry, with the highest market share. This supremacy is partly due to acetic acid's vast range of applications in numerous industries such as chemicals, food and drinks, and pharmaceuticals.
According to our analysis, the global acetic acid market reached $YY billion in 2023 and is expected to rise at a CAGR of 4.7% between 2024 and 2031. This expansion is driven by rising demand for vinyl acetate monomer (VAM), an important acetic acid derivative used in adhesives, paints, and coatings. For example, the construction industry's rise, particularly in emerging markets, has resulted in a 6% year-on-year increase in VAM demand in 2023.
The food and beverage industry has been a major driver of acetic acid usage. Acetic acid, often known as vinegar in its diluted form, is widely used as a food preservative, flavouring ingredient, and acid. According to the Food and Agriculture Organisation (FAO), the worldwide processed food business is anticipated to be worth $7 trillion by 2030, indicating a steady demand for food-grade acetic acid.
The versatility of acetic acid in chemical synthesis has added to its market domination. It is an important raw material for the production of many chemicals, including acetic anhydride, ethyl acetate, and butyl acetate. Acetic acid demand has increased dramatically as the chemical industry has grown, particularly in Asia-Pacific. China, the world's largest acetic acid producer and user, witnessed a 5.5% increase in acetic acid production capacity in 2023, driven by the growth of its chemical manufacturing industry.
Furthermore, the pharmaceutical industry's reliance on acetic acid for drug manufacturing and as an excipient in various formulations has aided its market expansion.
Regional Outlook:
Asia-Pacific leads the Carboxylic Acids market, driven by robust industrial growth and increasing consumer demand.
Asia-Pacific now has the greatest share of the worldwide Carboxylic Acids market, with China, India, and Japan driving this dominance. The region's dominant position can be ascribed to a number of factors, including fast industrialisation, a growing population, and rising disposable income, which drives demand in end-use sectors.
The Asia-Pacific market has grown significantly in recent years, driven by the rising food and beverage, pharmaceutical, and personal care industries. According to the Asia Pacific Food Industry Association, the region's processed food market would expand by 7.2% in 2023, boosting demand for food-grade carboxylic acids including citric acid and acetic acid.
Recent news from the region demonstrates the growing pace in the carboxylic acid sector. For example, in May 2024, a large Chinese chemical company announced a $500 million investment in a new bio-based acetic acid production facility, with the goal of meeting the region's increasing need for sustainable chemicals.
Key figures demonstrate the region's dominance in the Carboxylic Acids market:
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The Asia-Pacific carboxylic acids market is anticipated to reach $YY billion by 2024, increasing at a 6.8% CAGR between 2024 and 2031.
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In India, demand for carboxylic acids in the pharmaceutical industry increased by 9.5% in 2023, owing to the country's developing generic medicine manufacturing sector.
In terms of country-specific advances, South Korea has emerged as a major producer of high-purity carboxylic acids for electronic applications. The country's semiconductor industry, a major consumer of ultra-pure acetic acid, increased manufacturing capacity by 15% in 2023, pushing up demand for specialised carboxylic acids.
Competitive Intelligence:
The Carboxylic Acids market is dominated by large multinational firms and regional players, resulting in a somewhat fragmented competitive environment. To retain their market positions, key businesses prioritise product innovation, sustainability initiatives, and strategic expansions.
BASF SE, a global leader, has maintained its position by focussing on innovation and sustainability. The company's "ChemCycling" concept, which promises to create carboxylic acids from recycled plastic waste, has sparked widespread interest. BASF reported a 5% growth in revenue for its intermediate chemicals sector, which contains carboxylic acids, in 2023.
Eastman Chemical Company has increased its market share through strategic acquisitions and product development. The company's patented oxidation technology for generating carboxylic acids has increased manufacturing efficiency and quality. Eastman's additives & functional goods division grew by 3.5% year on year, including many carboxylic acid products.
Perstorp Group, a major leader in speciality chemicals, has been focussing on bio-based carboxylic acids to suit the growing need for environmentally friendly products. The company's "Pro-Environment" portfolio, which includes bio-based propionic and butyric acids, has received good market approval, with revenues expected to increase by 8% in 2023.
In terms of market dynamics, there is an increasing tendency of vertical integration, with large firms purchasing or partnering with raw material suppliers to ensure consistent supply and cost control. Celanese Corporation, for example, has enhanced its position in the acetic acid market by securing a critical feedstock through its methanol joint venture with Mitsui & Co.
Regional companies in Asia, particularly China and India, are also shaping the competitive environment as they increase their production capacity and improve product quality in order to compete on a global scale. This has resulted in increased price rivalry for commodity carboxylic acids, forcing established manufacturers to concentrate on speciality and high-purity grades.
In the coming years, the market for bio-based and speciality carboxylic acids is expected to become more competitive as firms engage in innovative technologies and production processes to suit changing client expectations and sustainability goals.
Analyst Opinion:
The Carboxylic Acids market is at an interesting crossroads, blending traditional petrochemical manufacturing with the growing trend towards bio-based and sustainable alternatives. This transformation is not only a response to environmental concerns, but also a strategic decision to reduce the volatility associated with petroleum-based feedstocks.
The production of carboxylic acids from waste streams and byproducts of other industries is a unique trend to follow. For example, recent research has yielded encouraging results in manufacturing acetic acid from lignin, a byproduct of the paper industry. This technique not only provides a sustainable source of carboxylic acids, but it also addresses industrial waste management.
Another noticeable trend is the growing emphasis on high-purity carboxylic acids for specialised applications in electronics and medicines. The demand for ultrapure grades of acids such as acetic and formic acid in semiconductor production and medication synthesis is pushing advancements in purification technology and quality control procedures.
The market is also expected to evolve in application focus, with new usage in energy storage (as electrolytes in improved batteries) and biodegradable plastic manufacture gaining significance. These novel uses may redefine the demand landscape for carboxylic acids in the future years.
Major Players:
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BASF SE
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Eastman Chemical Company
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Perstorp Group
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Celanese Corporation
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Dow Chemical Company
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Alfa Aesar (Thermo Fisher Scientific)
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Finetech Industry Limited
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LyondellBasell Industries N.V.
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Oxea GmbH
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Thirumalai Chemicals Ltd.
Key Developments:
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July 2024: BASF SE announced the successful start-up of its new bio-based formic acid factory in Germany, increasing its capacity to produce sustainable carboxylic acids.
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In April 2024, Eastman Chemical Company introduced a new series of high-purity carboxylic acids designed exclusively for use in next-generation battery electrolytes.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. BASF SE
5.2. Eastman Chemical Company
5.3. Perstorp Group
5.4. Celanese Corporation
5.5. Dow Chemical Company
5.6. Alfa Aesar (Thermo Fisher Scientific)
5.7. Finetech Industry Limited
5.8. LyondellBasell Industries N.V.
5.9. Oxea GmbH
5.10. Thirumalai Chemicals Ltd. (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing demand for bio-based carboxylic acids
6.1.2. Development of carboxylic acids from waste streams and by-products
6.1.3. Growing focus on high-purity carboxylic acids for specialized applications
6.2. Market Drivers
6.2.1. Expanding applications in the pharmaceutical industry
6.2.2. Growing demand from food & beverage sector
6.2.3. Increasing use in personal care and cosmetics products
6.3. Market Restraints
6.3.1. Volatility in raw material prices
6.3.2. Environmental concerns and stringent regulations
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Acetic Acid
7.2. Valeric Acid
7.3. Isovaleric Acid
7.4. Formic Acid
7.5. Propionic Acid
7.6. Butyric Acid
7.7. Isobutyric Acid
7.8. Citric Acid
7.9. Caproic Acid
7.10. Stearic Acid
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Food & Beverages
8.2. Animal Feed
8.3. Pharmaceuticals
8.4. Personal Care & Cosmetics
8.5. Consumer Goods
8.6. Lubricants
9. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. North America
9.1.1. United States
9.1.2. Canada
9.1.3. Mexico
9.2. South America
9.2.1. Brazil
9.2.2. Argentina
9.2.3. Rest of South America
9.3. Europe
9.3.1. Germany
9.3.2. United Kingdom
9.3.3. France
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Rest of Europe
9.4. Asia-Pacific
9.4.1. China
9.4.2. Japan
9.4.3. India
9.4.4. Australia
9.4.5. South Korea
9.4.6. Rest of Asia-Pacific
9.5. Middle-East
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Turkey
9.5.4. Rest of Middle East
9.6. Africa
9.6.1. South Africa
9.6.2. Egypt
9.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
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Acetic Acid
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Valeric Acid
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Isovaleric Acid
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Formic Acid
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Propionic Acid
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Butyric Acid
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Isobutyric Acid
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Citric Acid
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Caproic Acid
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Stearic Acid
By Application:
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Food & Beverages
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Animal Feed
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Pharmaceuticals
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Personal Care & Cosmetics
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Consumer Goods
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Lubricants
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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