Organic Acids Market

Global Organic Acids Market:

The global organic acids market size reached US$ 26.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 50.4 Billion by 2032, exhibiting a growth rate (CAGR) of 7.1% during 2024-2032. The surging demand for natural preservatives, the expanding pharmaceutical industry, the growing health consciousness, and the adoption of sustainable agriculture are primarily driving the market growth.

Organic Acids Market Analysis:

• Major Market Drivers: Significant growth in the food and beverage industry across the globe is one of the key factors creating a positive outlook for the market. Due to hectic schedules and busy lifestyles, there is an increasing consumer demand for ready-to-eat (RTE) food products manufactured using organic acids to prevent the growth of bacteria, thereby escalating the overall market.
• Key Market Trends: The widespread product adoption as a substitute for antibiotic growth promoters (AGP) in animal feed is contributing to the market demand. Additionally, the implementation of favorable government policies promoting the manufacturing of bio-based organic acids through renewable resources, along with the increasing product utilization to produce various intermediates and petrochemical products, is anticipated to drive the market towards growth in the coming years.
• Competitive Landscape: Some of the prominent market companies include BASF SE, Cargill Incorporated, Celanese Corporation, Dow Inc., Koninklijke DSM N.V., DuPont de Nemours Inc., Eastman Chemical Company, Henan Jindan Lactic Acid Technology Co. Ltd., Tate & Lyle PLC, and The Archer-Daniels-Midland Company, among many others.
• Geographical Trends: Asia-Pacific currently dominates the market, owing to the increasing consumption of processed and convenience foods, along with the demand for natural preservatives and flavor enhancers, which is boosting product use in the region.
• Challenges and Opportunities: Fluctuating prices of raw materials and high competition from synthetic alternatives are hampering the market's growth. However, the introduction of bio-based product variants is projected to fuel the market over the forecasted period.
   

Organic Acids Market Trends:

Rising Health Consciousness

Consumers are becoming more health-conscious, leading to increased interest in organic food products, including organic acids in supplements and health foods. For instance, in February 2024, Califia Farms announced the introduction of nutritionally enhanced plant-based milk with all essential organic acids.

Growing Food Processing Industry

The growing food processing sector in various economies, including India, China, and the U.S., is a significant driver of the market growth. For instance, according to the IMARC, the India food processing market size reached approximately INR 28,027.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach INR 61,327.5 Billion by 2032, thereby exhibiting a growth rate (CAGR) of 8.8% during 2024-2032. Organic acids, such as citric acid and acetic acid, are widely used as preservatives. They help extend the shelf life of processed foods by inhibiting microbial growth. These factors are expected to propel the organic acids market’s recent price in the coming years.

Adoption of Sustainable Agriculture

The adoption of sustainable agriculture is a prominent driver of growth in the market. Organic acids aid in enhancing soil structure and fertility, promoting better nutrient availability and microbial activity, which are essential for sustainable farming practices. For instance, according to an article published by Big Haat, humic acid enhances soil structure by improving soil aggregation. It also reduces soil erosion by enhancing soil structure and boosting water-holding capacity. Besides this, humic acid also improves nutrient availability by transforming nutritional components into usable forms, making them available for plant absorption, thereby boosting the organic acids market revenue.

Global Organic Acids Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global market report, along with the organic acids market forecast at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type, source, and end user.

Breakup by Type:

• Acetic Acid
• Citric Acid
• Formic Acid
• Lactic Acid
• Gluconic Acid
• Fumaric Acid
• Itaconic Acid
• Others
   

Acetic acid holds the majority of the total organic acids market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes acetic acid, citric acid, formic acid, lactic acid, gluconic acid, fumaric acid, itaconic acid, and others. According to the report, acetic acid represented the largest market segmentation.

Acetic acid is a key raw material for various industrial chemicals, particularly vinyl acetate and acetic anhydride, which are essential in manufacturing adhesives, paints, and coatings. Moreover, as a widely used food preservative and acidulant, acetic acid's role in the food and beverage industry significantly boosts its demand, particularly with the rise in processed food consumption. Besides this, the increasing focus on sustainable materials has led to a rising demand for bioplastics, for which acetic acid is a critical component, aligning with eco-friendly initiatives. According to the organic acids market outlook, this is stimulating the growth of this segment.

Breakup by Source:

• Biomass
• Molasses
• Starch
• Chemical Synthesis
• Agro-industrial residue
   

Chemical synthesis currently exhibits a clear dominance in the organic acids market demand

The report has provided a detailed breakup and analysis of the market based on the source. This includes biomass, molasses, starch, chemical synthesis, and agro-industrial residue. According to the report, chemical synthesis represented the largest market segmentation.

Organic acids can also be synthesized chemically, often providing a more controlled process. The demand for synthesized organic acids continues to grow in pharmaceuticals, food additives, and industrial applications. Besides this, chemical-synthesized organic acids are utilized in fertilizers, soil amendments, and herbicides, aligning with the trend towards modern agricultural practices. Furthermore, technological advancements in chemical synthesis methods also play a crucial role, enhancing efficiency and cost-effectiveness, which, in turn, boost production capacity. According to the organic acids market overview, this is propelling the market.

Breakup by End User:

• Food and Beverage
• Animal Feed
• Chemical and Industrial
• Pharmaceuticals
• Personal Care
• Agriculture
• Others
   

Chemical and industrial accounts for the largest market share

The report has provided a detailed breakup and analysis of the market based on the end user. This includes food and beverage, animal feed, chemical and industrial, pharmaceuticals, personal care, agriculture, and others. According to the report, chemical and industrial represented the largest market segmentation.

Organic acids are crucial in producing a variety of chemicals, including solvents, plastics, and coatings. Their versatility makes them essential in multiple manufacturing processes. Moreover, the chemical and industrial sectors utilize organic acids as intermediates in various processes, including the production of solvents, polymers, and adhesives. The shift towards sustainable practices and green chemistry has led to increased demand for bio-based organic acids derived from renewable resources. Besides this, the growing emphasis on reducing carbon footprints in manufacturing is driving innovation in organic acid applications, positioning them as critical components in sustainable industrial processes. This, in turn, represents the organic acids market's recent opportunities.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia-Pacific currently dominates the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia-Pacific accounted for the largest market share.

According to the organic acids market statistics, Asia Pacific exhibits a clear dominance, owing to the increasing demand for processed and packaged foods, which drives the need for organic acids like citric acid and acetic acid. For instance, according to IMARC, India's packaged food market size reached US$ 113.9 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 210.81 Billion by ​2032​, exhibiting a growth rate (CAGR) of 7.08% during 2024-2032. Besides this, favorable government policies and regulations promoting the use of bio-based and eco-friendly chemicals encourage the adoption of organic acids.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major organic acids market companies have also been provided. Some of the key players in the market include: 

• BASF SE
• Cargill Incorporated
• Celanese Corporation
• Dow Inc.
• Koninklijke DSM N.V.
• DuPont de Nemours Inc.
• Eastman Chemical Company
• Henan Jindan Lactic Acid Technology Co. Ltd.
• Tate & Lyle PLC
• The Archer-Daniels-Midland Company
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Organic Acids Market Recent Developments:

• July 2024: Floractive Profissional launched organic nano gel for improved hair treatment and care. This gel is formulated with antioxidant and vitamin-rich components, such as rosehip oil, seaweed algae, sunflower oil, and organic acids.
• June 2024: Leon partnered with one of the kombucha firms in the UK, Remedy, to provide its consumers with a healthier beverage option. These drinks contain organic acids and antioxidants, which have been shown to improve intestinal health.
• January 2024: Innovative Solutions, a division of KENT Nutrition Group, introduced Humisyn, a synergistic blend of organic acid sources that helps to decrease the impacts of a prevalent disease in chicken by enhancing overall gut health.

Organic Acids Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the organic acids market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global organic acids market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the organic acids industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.