Organic Acid Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Acetic Acid, Citric Acid, Formic Acid, Lactic Acid, Others), By End Use (Industrial, Food & Beverage, Pharmaceutical, Personal Care, Others), By Region, and Competition 2018-2028

Market Overview

Global Organic Acid Market has valued at USD11.42 billion in 2022 and is anticipated to grow at a CAGR of 5.28% during the forecast period. Organic acids are classified as weak acids due to their incomplete dissociation in water, contrasting with mineral acids. Notably, formic acid and lactic acid exhibit miscibility in water, while higher molecular mass organic acids like benzoic acid remain completely insoluble in their neutral form. Traditionally, lactic acid and formic acid were generated through fermentation processes. However, advancements in biotechnology and chemical synthesis have since supplanted these earlier methods. Additionally, a range of agro-industrial residues, such as cassava bagasse, coffee husk, apple pomace, soybean, sugarcane, corn-cobs, press-mud, citric pulps, wheat bran, and kiwi fruit peel, are now utilized for organic acid production. Organic acids are extensively employed as antioxidants, acidulants, emulsifiers, flavor enhancers, and preservatives. Unlike mineral acids, which are traditionally utilized, organic acids exhibit lower reactivity and can withstand extreme temperatures. Consequently, they are widely applied in the production of food and beverages, animal feed, and pharmaceuticals.

Key Market Drivers

Expansion of Pharmaceutical Industry

Organic acids are also employed in drug formulation, acting as excipients, and enhancing drug stability. The growing emphasis on natural and sustainable ingredients in pharmaceuticals has further fueled the use of organic acids.  In the pharmaceutical industry, organic acids are employed for their antimicrobial and preservative properties. Notably, citric acid and acetic acid have been extensively researched for their ability to inhibit microbial growth in meat products, thereby mitigating the risk of foodborne illnesses. Citric acid is extensively utilized as an organic acid in the pharmaceutical sector. It serves as an excipient in medications, enhancing drug stability, solubility, and bioavailability. In addition, it finds application in the formulation of effervescent tablets and as a pH adjuster in oral solutions. Moreover, Acetic acid is employed in the pharmaceutical industry for a range of purposes, such as the production of acetates that function as solvents, or intermediates in drug synthesis. Additionally, it finds application in the manufacturing of cellulose acetate, a widely utilized material in drug delivery systems. Organic acids are sometimes used as excipients in enteric coatings for tablets or capsules. These coatings can protect the drug from degradation in the acidic environment of the stomach and ensure its release in the intestines.

Rising Demand of Citric Acid in Food and Beverage Industries

Citric acid is widely utilized in the food and beverage industry as a prevalent additive, serving as an acidulate and preservative to extend the shelf life of convenience foods. Its low toxicity, in comparison to other acidulates, makes it a preferred choice. This versatile compound is present in non-alcoholic beverages, jams, gelatin-based desserts, tinned vegetables, and fruits. Its role in enhancing flavors, particularly in the drinks industry, cannot be understated. The sour and refreshing taste it impart helps to balance the sweetness in many beverages. Regulatory bodies, like the US Food and Drug Administration, consider citric acid as a safe natural acid in the diet, further contributing to its market growth. According to the FDA, the consumption of 500 milligrams of citric acid per day is deemed harmless. Additionally, the use of citric acid in processed frozen foods and as an additive in certain fats and oils enhances the effectiveness of antioxidants, thereby reducing the rate of product deterioration. Furthermore, the European Union regulations permit the use of citric acid as an additive in beer and malt beverages, which will contribute to the growth of the market with increasing demand for malt beverages.  Benzoic acid, an organic acid with weak properties, is widely employed as a preservative in a variety of food and beverage items. It effectively hinders the proliferation of bacteria, yeasts, and molds, thereby extending the shelf life of soft drinks, fruit juices, pickles, and sauces. Sorbic acid, along with its potassium salt, potassium sorbate, finds extensive usage in preserving bakery products, cheese, and processed meat. These substances effectively impede the growth of mold, yeast, and certain bacteria, thereby aiding in spoilage prevention and maintaining product freshness. Propionic acid and its salts, such as calcium propionate, serve as preservatives in bread, baked goods, and dairy items. Their primary function is to control the growth of mold and bacteria, particularly in products with high moisture content.

Key Market Challenges

Availability of Raw Materials

The availability of raw materials poses a significant challenge for the organic acids market. The production of organic acids heavily relies on specific raw materials like biomass, corn, maize, sugar, and other feedstocks. Fluctuating prices and limited availability of these raw materials can greatly impact the production cost and supply chain of organic acids. The increasing demand for organic acids in various industries, including pharmaceuticals, food and beverages, personal care, and agriculture, further exacerbates the issue. However, the consistency of raw material availability remains a concern, leading to potential disruptions in the supply chain, price volatility, and potential shortages in the organic acids market. Additionally, sourcing renewable raw materials presents challenges as the market moves towards sustainable and eco-friendly solutions. Ensuring a consistent and reliable supply of these raw materials can be problematic, especially when agricultural yields and weather conditions affect crop production.

Volatility in Prices of Organic Acid

The fluctuation in prices of organic acids presents a significant challenge for the global organic acids market. Price volatility can have implications for the profitability and sustainability of organic acid producers, as well as influence purchasing decisions of end-users. This price volatility can intensify competition among suppliers, as they may need to adjust their prices in order to remain competitive. Consequently, this can lead to pricing pressures and profit margin challenges for market participants. Additionally, volatile prices can impact the purchasing decisions of end-users, including pharmaceutical companies, food and beverage manufacturers, and agricultural industries. The uncertainty surrounding pricing can make it difficult for these industries to effectively plan their budgets and make long-term purchasing commitments.

Key Market Trends

Growing Demand in Animal Feed

The escalating demand for organic acids in animal feed is emerging as a significant trend in the global organic acid market. The increasing need for organic acids in animal feed is primarily fueled by their potential benefits in enhancing animal nutrition, health, and performance. Organic acids, such as formic acid, propionic acid, and lactic acid, are utilized as feed additives to bolster gut health, improve digestion, and inhibit the proliferation of harmful bacteria in animals. Furthermore, organic acids have demonstrated the ability to enhance feed efficiency in livestock by augmenting nutrient absorption and utilization. This heightened efficiency can result in reduced feed costs and bolstered profitability for farmers, thereby further propelling the demand for organic acid-based feed additives. Additionally, regulatory agencies in different regions are acknowledging the potential advantages of organic acid-based feed additives and granting approvals for their utilization in animal nutrition. This regulatory endorsement is bolstering the adoption of organic acids in animal feed and contributing to the expansion of the global organic acid market.

Advancements in Industrial Biotechnology

Another key trend behind the global organic acid market is the continuous advancements in industrial biotechnology. Industrial biotechnology encompasses the utilization of biological systems and organisms to efficiently produce a wide range of chemicals and materials on a large scale. Within this field, significant progress has been made in the development of microbial processes for organic acid production. Through genetic engineering and selective breeding, microorganisms such as bacteria and fungi can be optimized to effectively synthesize organic acids. This approach not only offers a sustainable and cost-effective method for obtaining organic acids used in food and beverage preservation but also enables researchers to enhance yields, optimize production rates, and even introduce novel organic acid varieties with specific properties. Furthermore, the utilization of co-culture systems, where multiple microorganisms work together symbiotically, has emerged as a prominent strategy in industrial biotechnology. By harnessing the synergistic interactions between different microorganisms, co-culture systems have proven to be effective in enhancing organic acid production.

Segmental Insights

Type Insights

In 2022, the organic acid market was dominated by the acetic acid segment and is predicted to continue expanding over the coming years. The expansion is attributed to applications of acetic acid in various industries, ranging from construction and textiles to food and beverages. A significant portion of acetic acid production is dedicated to the manufacturing of vinyl acetate monomer (VAM), an essential component used in the production of construction commodities like paints and adhesives. The textile sector also relies on acetic acid for its dyeing operations, where it serves as a buffering agent in the cloth dyeing process. Additionally, the food and beverage industry produces a considerable amount of products aiming to address the issue of obesity. According to the World Health Organization (WHO), around 39 million children under the age of 5 were overweight or obese in 2020. Consequently, companies have been incorporating fat-reducing agents into their products, with apple cider vinegar being a prominent example. Vinegar, which is diluted acetic acid, acts as a short-chain fatty acid that dissolves with hydrogen and acetate in the body, aiding in fat burning. Thus, acetic acid is utilized in flavoring, food additives, and preservatives. 

End Use Insights

In 2022, the organic acid market was dominated by the food and beverage segment and is predicted to continue expanding over the coming years. This can be attributed to an increasing demand for organic acid substitutes driven by consumer preferences for a healthy lifestyle and the availability of functional foods and nutrient-rich ready-to-eat meals. Organic acids play a vital role in food processing by reducing antibacterial activities and effectively targeting fungi, including yeast. They also contribute to maintaining dietary acidification and pH levels in ingested foods. According to the European Food and Drink Industry, the EU holds the highest turnover at 44%, followed by the USA at 20%, and China at 19%. With the growing population, it is projected that agricultural production needs to increase by 70% by 2050, rising to nearly 100% in fast-growing or fully developed economies.

Regional Insights

The Asia Pacific region has established itself as the leader in the Global Organic Acid market. The Asia-Pacific region boasts a substantial population base and a growing middle class, resulting in heightened consumption of food, beverages, and personal care products. This surge in demand for organic acids, utilized as preservatives and flavor enhancers, has significantly contributed to the region's prevailing dominance.

Recent Developments

• In June 2022, Jungbunzlauer proudly announced the addition of two new mineral salts to their product portfolio: zinc gluconate and monomagnesium citrate. Zinc gluconate is derived from the neutralization of gluconic acid using a highly pure zinc source, while monomagnesium citrate is a partially neutralized magnesium salt of citric acid. These exceptional products belong to our Special Salts product group and are conveniently available through our sales offices and representatives.
• In March 2021, Corbion initiated a comprehensive initiative to substantially enhance production capacity for lactic acid and its derivatives in anticipation of a previously announced significant expansion in Thailand by 2023. This global endeavor encompasses four existing Corbian facilities, which will undergo capital expenditure. The cumulative increase in output is tantamount to establishing a new production site, albeit without the physical construction.
• BASF-YPC, a 50:50 joint venture in Nanjing, China, announced the launch of a 30 kiloton propionic acid production plant in May 2019. This expansion increased the combined output capacity of the two plants to 69 kilotons per year.
• In July 2019, Royal DSM, a science-based company specializing in nutrition, health, and sustainable living, upgraded its vitamin C facility in Jiangshan, China. The objective of the upgrade was to enhance quality, safety, sustainability, and production efficiency while maintaining high standards.
• In February 2021, GMM Pfaudler obtained a majority stake in Pfaudler Group's worldwide operations, encompassing the formic acid sector. This strategic move has solidified GMM Pfaudler Limited's prominent position in the organic acid market.
• In January 2020, BASF SE announced a capacity expansion for methane sulfonic acid, resulting in an increased annual production capacity of 50 MMT.

Key Market Players

• Celanese Corporation
• Jiangsu sopo chemical co. ltd.
• Eastman Chemicals Company
• Archer Daniels Midland
• Tate and Lyle Plc.
• BASF SE
• Dow Chemical
• BioAmber Inc.
• Henan Jindan Lactic Acid Technology Co., Ltd.
• Nature Works LLC

In this report, the Global Organic Acid Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Organic Acid Market, By Type:

o   Acetic Acid

o   Citric Acid

o   Formic Acid

o   Lactic Acid

o   Others

• Organic Acid Market, By End Use:

o   Industrial

o   Food & Beverage

o   Pharmaceutical

o   Personal Care

o   Others

• Organic Acid Market, By Region:

o   North America

o   Asia Pacific

o   Europe

o   Middle East & Africa

o   South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Organic Acid Market.

Available Customizations:

Global Organic Acid Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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