Benzenecarboxylic Acid Market - Forecast(2024 - 2030)

Benzenecarboxylic Acid Market - Overview

Benzenecarboxylic Acid Market size is forecast to reach US$1.7 billion by 2030, after growing at a CAGR of 5% during 2024-2030. Benzene carboxylic acid, commonly known as benzoic acid, is a crucial compound in various industries, particularly in the chemical and pharmaceutical sectors. As a colorless crystalline substance, benzoic acid finds extensive application as a preservative in food and beverages, as well as in the production of plastics, dyes, and medications. The market for benzene carboxylic acid is witnessing notable growth driven by increasing demand from end-user industries, technological advancements in production processes, and growing consumer awareness regarding product safety and quality. One significant growth trend is the rising adoption of benzoic acid as a food preservative due to its effectiveness against microbial growth and its minimal impact on food flavor and texture, aligning with consumer preferences for natural and healthier food additives. Another prominent trend is the expanding application of benzoic acid in pharmaceutical formulations, driven by its antimicrobial properties and its role as a precursor in the synthesis of various active pharmaceutical ingredients (APIs). Pharmaceutical companies are increasingly incorporating benzoic acid into their drug formulations to enhance shelf life and stability while ensuring compliance with regulatory standards, thus driving market growth.

Report Coverage

The report: “Benzenecarboxylic Acid Market – Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Benzenecarboxylic Acid Industry.

By Application: Benzoates (Sodium Benzoate, Ethyl Benzoate, Glycol Benzoate, Methyl Benzoate, others), Acid Halides, Benzoyl Chloride, Benzamide, Benzoate plasticizer, Potassium Slat/Potassium Benzoate, Alkyd Resins, and Others.

By End Use Industry: Food & Beverages (Baked Goods, Processed Food, Beverages, Others), Cosmetics & Personal Care (Skin Care Products, Hair Care Products, Oral Care Products, Others), Pharmaceutical Industry, and Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

·       Asia Pacific dominates the global benzenecarboxylic acid market due to increasing demand for packed food in Asian Countries such as India, China, Japan, and others.

·       An increasing need for packed food due to the rise in working-class people has fueled the demand for benzenecarboxylic acid.

·       Increasing the uses of benzoate plasticizers for consumer goods and potassium benzoate for the preservation of foods is likely to propel the demand for benzenecarboxylic acid.

Benzenecarboxylic Acid Market Segment Analysis- By Application

Benzoates lead the benzenecarboxylic acid market in 2023 owing to change in consumer preferences for packaged food & beverages. Sodium benzoate and potassium benzoate are used for food preservation. consumers' growing awareness and preference for natural and clean-label ingredients have propelled the demand for benzoates as they are perceived as safer alternatives to synthetic preservatives, aligning with the increasing health-conscious consumer base. Secondly, the expansion of the food and beverage industry, particularly in emerging markets, has contributed to the heightened demand for benzoates, as manufacturers seek effective ways to extend shelf life and maintain product quality amid evolving consumer preferences. Additionally, the pharmaceutical and personal care sectors are experiencing robust growth, further bolstering the demand for benzoates due to their antimicrobial properties and ability to enhance product stability. Moreover, stringent regulatory standards regarding food safety and hygiene have prompted manufacturers to opt for benzoates to comply with regulatory requirements, thus driving the demand even higher.

Benzenecarboxylic Acid Market Segment Analysis- By End-use Industry

Food & beverages held the largest share for the global benzenecarboxylic acid market share in 2023 and is growing at a CAGR of 4.6% during this forecast period, as it is extensively used for preserving food & beverage products such as soft drinks, barbecue sauces, pickles, milk products, and among others. Benzencarboxylic acid and its salt sodium and potassium benzoate is an organic colorless compound that helps in curing the growth of fungi and bacteria. Benzoic acid is also used as a chemical reagent and it acts as an essential precursor for many organic compound syntheses. Thus, increasing the food industry is expected to boost the market size. Nestle plans to invest between Rs 6,000 to 6,500 crore in expanding its manufacturing operations in India from 2020 to 2025. The investment aims to enhance capacity and distribution. Nestle's move aligns with its objective to bolster its presence and cater to growing demands in the Indian market. The investment underscores Nestle's commitment to India's market potential and reflects its confidence in the nation's economic trajectory. Thus, the growing food and beverage market is estimated to increasing the consumption of benzenecarboxylic acid.

Benzenecarboxylic Acid Market Segment Analysis- Geography

Asia pacific dominated the benzenecarboxylic acid market with more than the share of 30% in 2023 owing to growing demand from the cosmetic sector, food industry, and others in developing countries such as China and India. According to India Brand Equity Foundation, The Indian food processing industry is among the largest in the nation in terms of growth, production, consumption and exports. The industry produces several food products such as meat, poultry, fisheries, fruits, vegetables, spices, milk and milk products, alcoholic beverages, plantations and grains. The food sector is currently undergoing a transition in India. The Agricultural and Processed Food Products Export Development Authority (APEDA) forecasts that the sector will grow at a compounded annual growth rate (CAGR) of 3% between 2022 and 2030. On the other hand, China is projected to be the fastest-growing benzenecarboxylic acid market in the region, due to the increasing domestic demand for cosmetics. Hence, such factors are increasing demand for the benezencarboxylic acid.

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Drivers – Benzenecarboxylic Acid Market

· Increasing Consumption for Food and Beverages Preservation

Growing consumption from the food and beverage industry is likely to be a major driver for the global benzenecarboxylic acid market. Benezenecarboxylic acid is used to increase the shelf-life of products such as sparkling drinks, pickles, and fruit juice. There is also a significant growth witnessed by the packaged food & beverages industry due to the increasing demand for frozen food items & drinks across the globe. Benzenecarboxylic acid and its sodium, potassium, or calcium salts are used as food preservatives due to their effective antifungal property. The benzoate plasticizer formation is also used to protect foods against bacteria. Hence, the growing consumption due to such properties is estimated to grow the market.

· Increasing Demand from Pharmaceutical Industry

Benzenecarboxylic acid is used in the treatment of athlete's foot and as an antifungal for treating diseases such as ringworm. It is also used as an antifungal agent in topical therapeutic preparations. It is used to protect against bacterial infection and drugs. It is excreted hippuric acid which is not highly toxic thus, that can be used in the treatment of skin irritation caused by insect bites, burns, and so on. Thus, increasing R&D expenditure in the pharmaceutical sector is estimated to growing the consumption of benzenecarboxylic acid.  In November 2023, Micro Labs, known for Dolo pain relief pills, is entered the OTC market with wellness products. This move capitalizes on Dolo's success and expands its brand offerings, including Dolo 500, Dolo Pain Relief Gel, and Dolo Spray. The expansion leverages the growing demand for OTC drugs. Micro Labs' previous success with Dolo-650 highlights its capability to meet market needs. Hence, such factors are increasing the demand for benezenecarboxylic acid.

Challenges – Benzenecarboxylic Acid Market  

Health Hazardous Associated with Benzencarboxylic Acid

Repetitive uses of benezenecarboxylic acid and exposure may damage the lungs and digestive tracts. It irritates the nose and throat during inhalation, which may cause coughing, wheezing, or shortness of breath. Exposure to benzoates in high concentrations, particularly in susceptible individuals, may cause a skin allergy. Additionally, excessive use of this acid may cause permanent eye injury. Moreover, consumer awareness regarding the health risks associated with chemical additives in products has escalated, prompting stringent regulations and demand for safer alternatives. As a result, companies face pressure to invest in research and development of safer formulations and production methods to mitigate health hazards associated with Benzene Carboxylic Acid. Hence, due to various health effects, it may limit the consumption of benezencarboxylic acid.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Benzenecarboxylic Acid Industry. 

The top 10 companies in the Benzenecarboxylic Acid market are

1.     Eastman Chemical

2.     Merck KGaA

3.     Velsicol Chemical LLC.

4.     Chemcrux Enterprises Ltd

5.     Sinteza S.A.

6.     Huangshi Taihua Industry Co. Ltd

7.     Foodchem International Corporation

8.     Hebei Smart Chemicals Co., Ltd.

9.     Lanxess AG

10.  Fushimi Pharmaceutical

Developments:

Ø  In August 2021, Lanxess AG, a German specialty chemicals company, completed the acquisition of Emerald Kalama Chemical for $1.08 billion. Emerald Kalama is a US-based company that manufactures specialty chemicals, including benzoic acid.