Benzenecarboxylic Acid Market - Forecast(2023 - 2028)

Benzenecarboxylic Acid Market Overview

Benzenecarboxylic Acid Market size is forecast to reach US$1.4 billion by 2026, after growing at a CAGR of 5.5% during 2021-2026. Benzoic acid is a carboxylic acid with various functional properties including antifungal and antibacterial properties of potassium benzoates and others are used in the food & beverages industry. Benzoic acid to produce benzoyl chloride and phenols is also likely to remain a major driver for the benzenecarboxylic acid market. Furthermore, replacing phthalate plasticizers, as it is harmful, with benzoate plasticizer generates market opportunity for the market during the forecast period. Apart from this, benzoic acid is a constituent of Whitfield’s Ointment (topical treatment of dermotophytosis) which is used for the treatment of fungal infections such as ringworm and athlete’s foot. Hence, such factors are estimated to growing the consumption of benzenecarboxylic acid.

Due to COVID 19, the food industry faced some challenges regarding supply chain and production. Lockdown resulted in the restriction on demand for packed food, food trade facilities, and supply chain of foods. Hence, due to this pandemic, the food industry was also affected which hampering the benzenecarboxylic acid market growth.

Report Coverage

The report: “Benzenecarboxylic Acid Market – Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Benzenecarboxylic Acid Industry.

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.

Figure: APAC Benzenecarboxylic Acid Market Revenue, 2021-2026 (US$ Billion)

Benzenecarboxylic Acid Market Segment Analysis – By Application

Benzoates lead the benzenecarboxylic acid market in 2020 including sodium benzoate and potassium benzoate owning to change in consumer preferences for packaged food & beverages. Sodium benzoate and potassium benzoate are used for food preservation. There is a significant growth witnessed for benzenecarboxylic acid by the packaged food & beverages industry due to the increased demand for frozen foods & beverages across the globe. In October 2018, Conagra acquired Pinnacle Foods Inc. (US); the acquisition helped Pinnacle foods to widen its frozen meals & snacks, and sweet treats categories. Hence, increasing preference towards packed food is estimated to the growing demand for benezecarboxylic acid.

Benzenecarboxylic Acid Market Segment Analysis – By End-Use Industry

Food & beverages held the largest share for the global benzenecarboxylic acid market share in 2020 and is growing at a CAGR of 5.6% 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. According to the China Food Industry (CFI) almost 15,00 tons of fresh food, 1.8 million bottles of disinfectant solution, and 3 million bottles of liquid soap were sold in 2020. Thus, the growing food market is estimated to increasing the consumption of benzenecarboxylic acid.

Benzenecarboxylic Acid Market Segment Analysis – By Geography

Asia pacific dominated the benzenecarboxylic acid market with more than the share of 30% in 2020 due to growing demand from the cosmetic sector, food industry, and others in developing countries such as China and India. The Government of India is taking some initiatives to improve the food processing sector in India. Under Union Budget 2016-2017, the Government of India planned to allow two Indian dairy companies, Parag Milk Foods, and Schreiber Dynamix Dairies, to export milk products to Russia for six months, after that these companies approved for their products by Russian inspection authorities. 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. According to Cosmetic Europe, a personal care association, China’s cosmetics market increased by 15.33 % to euro 54.9 billion (US$ 61.45 billion) in 2019 compared to euro 47.6 billion (US$ 56.21) in 2018. Hence, such factors are increasing demand for the benezencarboxylic acid.

Benzenecarboxylic Acid Market Drivers

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. According to the European Federation of Pharmaceutical Industries and Association, the R&D expenditure in the pharmaceutical sector in the United States was increased by US$ 62.2 million in 2019 compared to US$ 55.7 million in 2018. In Europe, this expenditure increased by euro 36.3 billion (US$ 40.63 billion) in 2019 compared to euro 35.4 billion (US$ 41.80 billion) in 2018. Hence, such factors are increasing the demand for benezenecarboxylic acid.

Benzenecarboxylic Acid Market Challenges

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. Hence, due to various health effects, it may limit the consumption of benezencarboxylic acid.

Benzenecarboxylic Acid Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Benzenecarboxylic Acid Industry. Major players in the Benzenecarboxylic Acid Market are astman Chemical, Emerald Performance Materials, Fushimi Pharmaceutical, San Fu Chemical, Foodchem, Velsicol Chemical, Hebei Smart Chemicals, Liao Ning Huayi Chemical, Chemcrux Enterprise Limited, Apollo Scientific, Huangshi Taihua Industry, Novaphene, Sinteza S.A, Ganesh Benzoplast Limited, Hubei Phoenix Chemical, and among others.

Acquisitions/Technology Launches

• In 2019, Emerald Performance Materials launched two new Kalama VITROFLEX range of benzoate plasticizers, namely, Kalama VITROFLEX A90 and Kalama VITROFLEX A99. These products provide high-performance formation and eco-friendly alternatives to existing technologies.
• In 2019, Gabriel Performance Products, a U.S.-based producer of specialty chemicals including coatings and adhesives, acquired from Deltech Resin Company a subset of alkyd resins products. This acquisition is expected to boost the alkyd resins product portfolio.

Relevant Reports

For more Chemicals and Materials Market reports, please click here