Benzoic Acid Market: Global Industry Analysis and Forecast (2024-2030)

Benzoic Acid Market was valued at US$ 1.14 Bn. in 2023. Global Benzoic Acid Market size is expected to grow at a CAGR of 5.8 % through the forecast period.
Benzoic Acid Market Overview:
Benzoic acid is an aromatic carboxylic acid. Commercial production of it involves toluene's partial oxidation with oxygen. Various plants naturally contain it as well. Many different fruits, including prunes, raspberries, plums, prunes, and cranberries, contain this naturally occurring chemical. In the production of salts like sodium benzoate, potassium benzoate, phenol, and alkyd resins, among others, benzoic acid is employed as an intermediary product.To know about the Research Methodology :- Request Free Sample Report

Benzoic acid is used in a variety of ways by the food and beverage, chemical, and pharmaceutical end-use sectors. In the food and beverage sector, benzoic acid is typically used as a preservative to inhibit the growth of germs and growths.

2023 is considered as a base year to forecast the market from 2024 to 2030. 2023’s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years' trends are considered while forecasting the market through 2030. 2023 is a year of exception and analysis, especially with the impact of lockdown by region.
Benzoic Acid Market Dynamics:
Benzoic Acid Market Drivers:

1. Increasing demand for benzoic acid from the food & beverages market: The increasing demand for benzoic acid in the food and beverage market is one of the primary factors driving the growth of the benzoic acid market. This demand growth was expected due to the growing attention on living healthy lives and eating well. The rate of growth in this market is also impacted by current economic and urban development, particularly in the Asia Pacific area. Preservative-containing food products are becoming more and more popular all over the world. The food and beverage market was valued at USD 5.8 trillion in 2023 and it is expected to grow at a CAGR of 8.9% through the forecast period.

2. Rapid urbanization and changing lifestyle: A lot of people rely on processed food and drink due to their busy lifestyles. One of the main components in these products is benzoic acid, which is expected to have an impact on the growth rate of the overall benzoic acid market. The changing lifestyle and rapid urbanization are responsible for this shift. Increasing disposable income is one of the reasons for this change in lifestyle and eating habits.

3. Increasing concerns about food safety: Food safety is a top priority for producers of processed and packaged foods. They would remain fresher for longer if benzoic acid-containing food preservatives were used. The antifungal effects of the potassium, calcium salts and sodium content help preserve food. It offers more protection against yeasts and molds and less against bacteria. Additionally, this natural food preservative keeps the pH of soft drinks, sparkling drinks, and fruit juices at an acidic level. Additionally, benzoic acid helps preserve foods that are acidic, like pickles.

Benzoic Acid Market Opportunities: High benzoic acid market growth rate is expected in the coming years due to the increasing changes in community lifestyles brought on by regional development, and urbanization. Many factors, such as the persistent rise in demand for healthy packaged and processed foods, might operate as market opportunities. The development of new technologies and products will also aid this market's growth through the forecast period.

Benzoic acid is currently used in many nations' sectors and will likely be used in the future as a more reliable substitute. The non-phthalate plasticizers are expected to replace phthalate plasticizers in the North American and European areas. Benzoic acid market is expected to grow significantly through the forecast period.

Total export of Benzoic acid from different countries was valued at USD 521 million in 2023 and it will increase significantly through the forecast period.

Benzoic Acid Market Restraints: The market for benzoic acid also has some limitations, which may be seen in several places and sectors. Even though benzoic acid has antifungal and antibacterial properties, using too much of it can have negative effects on your health.

Studies show that eating foods containing this acid for an extended period can harm the lungs and digestive system. Furthermore, there are laws prohibiting the usage of benzoic acid in some areas. These laws limit the amount of benzoic acid that can be added to packaged foods and beverages.

Benzoic Acid Market Challenges: The cost of toluene is one of the major issues highlighted in the benzoic acid market analysis for the expected period. A colorless, insoluble in water, and aromatic hydrocarbon liquid, toluene. It belongs to the group of crude oils. It has connections to a certain phenyl group, and this preparation includes benzoic acid, which is helpful.

In general terms, the price of raw materials, particularly crude oils, is unpredictable. As a result, the benzoic acid market's total market growth may be negatively impacted by toluene's fluctuating price.

Impact of Covid on Benzoic Acid Market: The benzoic acid market was impacted by the recent Covid-19 pandemic in many ways. Production levels in this market decreased in the first few months of 2020 as a result of local lockdowns and governmental limitations. The demand for pre-packaged food in the latter months of 2020 and the beginning of 2021, however, led to a delayed increase in distribution.

Insights from the Covid-19 period demonstrate changes in market-related variables such as purchasing patterns, consumer behavior, supply chain rerouting, needs, etc. The range of this market's financial profits over the course of Covid-19 was not particularly high.
Benzoic Acid Market Segment Analysis:
Based on End-Use, the Benzoic Acid Market is segmented into Food & Beverages, Chemical sector, pharmaceutical sector, and Others. The food & beverage category has dominated the segment in 2023. The food and beverage segment accounted for the largest share of the overall market. The population's changing lifestyles and growing urbanization are the main drivers of the rise in packaged food item demand.

Based on the Application, the Benzoic Acid Market is segmented into Benzoates, Benzoate Plasticizer, Alkyd Resin, Benzoyl Chloride, Feed Additive, Others. Sodium benzoate and potassium benzoate are both used in the benzoate application area of the market.

The increase in per capita income of consumers and the shift in consumer preferences for packaged food and beverages are both responsible for the growth of the benzoates application sector of the benzoic acid market. Pickles, jams, fruit juices, sodas, and other foods and beverages all include benzoates as a food preservative.

Due to the rising demand for frozen food items and beverages around the world, the processed and packaged food and beverage business has also experienced tremendous growth.

Wires, cables, flooring, and wall coverings are just a few items in the building and construction business that use benzoate plasticizers. Researchers have discovered in recent years that phthalate plasticizers seriously damage human health, leading to breast cancer, neurodevelopmental problems, etc. Benzoate plasticizers fit within this category of phthalate-free plasticizers, which is why there is a rising demand for them.
Benzoic Acid Market Regional Insights:
The Asia Pacific region dominated the market with a 33 % share in 2023.

The Asia Pacific region is expected to witness significant growth at a CAGR of 6.2% through the forecast period. The demand for safe food preservatives in the region is being highlighted by the rising use of food preservatives in various goods, which is boosting the region's benzoic acid market.

In 2023, Benzoic Acid prices increased in the Asia-Pacific area. The main driver of rising Benzoic Acid pricing in the domestic market is the rising downstream demand for sodium benzoate, which is used as a food additive.

Benzoic acid is the upstream for Sodium Benzoate. The price increase of the feedstock toluene is yet another reason driving up the cost of benzoic acid. Additionally, rising freight costs and the price of crude oil contributed to an increase in benzoic acid prices.

During the first quarter of 2024, domestic prices for benzoic acid in North America spiked due to strong downstream demand and high upstream costs. The pharmaceutical, food, and beverage industries, as well as other downstream businesses, all had strong demand.

Additionally, the price of upstream toluene was rising, which contributed to the price increase of benzoic acid. In addition, escalating logistics costs and the price of crude oil added to benzoic acid's already rising cost. The prices of Benzoic Acid were also driven up by the ongoing labor scarcity and port congestion.

Due to increased demand from end-use industries and rising feedstock prices, benzoic acid prices are on the rise in Europe. Prices of Benzoic Acid climbing together with the cost of Toluene (Feedstock). The demand for sodium benzoate from the food and beverage industries helped to drive up the cost of benzoic acid even further.

Additionally, the price of benzoic acid increased due to rising freight costs and the price of crude oil as well as the tensions surrounding the Russia-Ukraine war. Other factors that led to the increase in the price of benzoic acid included shipping limitations on several crucial ports and a shortage of shipment containers.

The objective of the report is to present a comprehensive analysis of the global Benzoic Acid Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Benzoic Acid Market dynamic, and structure by analyzing the market segments and projecting the market size. Clear representation of competitive analysis of key players by Product type, price, financial position, product portfolio, growth strategies, and regional presence in the Benzoic Acid Market make the report investor’s guide.
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Global Benzoic Acid Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US$ 1.14 Bn.


Forecast Period 2024 to 2030 CAGR:
5.8%
Market Size in 2030:
US$ 1.69 Bn.


 Segments Covered:
by End-Use
Food and Beverage
Chemical
Pharmaceutical
Others


by Application
Benzoates
Benzoate Plasticizer
Alkyd Resin
Benzoyl Chloride
Feed Additive
Others



Benzoic Acid Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Benzoic Acid Market Key Players
1. Velsicol Chemical (US)
2. Ganesh Benzoplast Limited (India)
3. Tianjin Dongda Chemical Group Co. Ltd. (China)
4. Choice Organochem LLP (India)
5. Spectrum Chemical Manufacturing Corp. (U.S.)
6. Hemadri Chemicals (India)
7. Emerald Performance Materials (U.S.)
8. Wuhan YouJi Industries Company Limited (China)
9. Alfa Aesar (US)
10. Thermo Fisher Scientific (U.S.)
11. Avantor (U.S.)
12. MP Biomedicals LLC (U.S.)
13. Dayang Chem (China)
14. FOOD Chem (China)

Frequently Asked Questions:

1] What segments are covered in the Global Benzoic Acid Market report?
Ans. The segments covered in the market report are based on Application and End-Use.

2] Which region is expected to hold the highest share in the Global Benzoic Acid Market?
Ans. The Asia Pacific region is expected to hold the highest share in the market.

3] What is the market size of the Global Benzoic Acid Market by 2030?
Ans. The market size of the market by 2030 is expected to reach US$ 1.69 Bn.

4] What is the forecast period for the Global Benzoic Acid Market?
Ans. The forecast period for the market is 2024-2030.

5] What was the market size of the Global Benzoic Acid Market in 2023?
Ans. The market size of the market in 2023 was valued at US$ 1.14Bn.