Global Anthranilic Acid Market - Forecast(2023 - 2028)

Global Anthranilic Acid Market Overview

The global anthranilic acid market size is estimated to reach US$130.6 million by 2027 after growing at a CAGR of 1.8% during the forecast period 2022-2027. Anthranilic acid is an aromatic acid, also known as 2-aminobenzoic acid or o-aminobenzoic acid. The molecule consists of a benzene ring, ortho-substituted with a carboxylic acid and an amine. Industrially it is produced from phthalic anhydride. Chorismic acid is used for the biosynthesis of anthranilic acid by the action of the enzyme, anthranilate synthase. It is used as an intermediate in dyes and pigments, drugs, and pharmaceuticals. Its esters have found applications in perfumes. Anthranilic acid can be used in organic synthesis to generate the benzyne intermediate. The flourishing pharmaceutical industry acts as a driver for the global anthranilic acid market.

COVID-19 Impact

Currently, due to the COVID-19 pandemic, the core industries such as the chemical industry are highly impacted. Due to social distancing policy, most of the chemical manufacturing plants were shut down, which declined production. To mitigate their losses many chemical manufacturers began producing sanitizers and disinfectants to combat the pandemic. For instance, Hungarian lubricant manufacturer, Mol, transformed one of its production facilities at Almásfüzito into a sanitizer production plant, where it produces around 50,000 litres every day. In addition, border closures and travel bans caused major hurdles such as supply chain disruptions due to raw material delays or non-arrival, and disrupted financial flows, resulting in lower demand and consumption of anthranilic acid in 2020. According to a report from Eurostat, Europe’s chemicals output was 4.4% lower year on year in the first nine months of 2020 compared to 2019. The widespread nature of restrictions on movement and on retail and hospitality venues, alongside the continued impact of the virus on air travel, second and third wave, the fluctuating prices of crude oil, all have severely impacted the chemical industry and thereby, the global anthranilic market as well.

Report Coverage

The report: “Global Anthranilic Acid Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the anthranilic acid industry.

By Grade: Pharmaceutical Grade, Reagent Grade, and Others
By Purity: 95%, 98%, 99.5%, and Others
By Application: Chemical (Dyes, Pigments, and Others), Pharmaceutical, Corrosion Inhibitor, Mold Inhibitor, Perfumes, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominates the global anthranilic acid market on account of a large number of chemical plants in the region. According to Invest India, the market size of the chemicals & petrochemicals sector in India is expected to grow to $300 billion by 2025.
• Anthranilic acid is an aromatic acid. The molecule consists of a benzene ring, ortho-substituted with a carboxylic acid and an amine.
• Anthranilic acid is used as an intermediate in the synthesis of dyes, perfumes, and other chemicals. It also plays a vital role in the biosynthesis of tryptophan and its derivatives, as well as in several types of alkaloids.
• The major opportunity for this market is high research spending and the discovery of newer applications.

Figure: Asia-Pacific Anthranilic Acid Market Revenue, 2021-2027 (US$ Billion)

Global Anthranilic Acid Market Segment Analysis – By Grade

The reagent grade held a significant share in the global anthranilic acid market with 40% in 2021. Anthranilic acid is used as an intermediate in the production of azo dyes, pigments, and saccharin. It is a target of various chemical transformations, such as alkylation or acylation reactions at the amino group, esterification and coupling with amines at the carboxyl group, and electrophilic aromatic substitution reactions. Anthranilic acid and its derivatives have applications in various sectors, including the food and perfumery industries. According to the Cosmetics, Toiletry and Perfumery Association (CTPA), Europe is the largest cosmetics and personal care market. As per the International Fragrance Association (IFRA), approximately 7,000 people are employed directly in the European fragrance industry, making perfumes one of the most lucrative industries. Scents play an important role. According to a recent consumer survey, 30% of consumers prefer floral scents and 23% prefer fruity scents. Anthranilic acid and its esters are used in preparing perfumes to mimic the scent of floral and fruity scents such as jasmine and orange.

Global Anthranilic Acid Market Segment Analysis – By Application

The chemicals segment held the largest share in the global anthranilic acid market in 2021. Anthranilic acid is a versatile and low-cost starting material for the synthesis of benzo-fused heterocycle compounds. Anthranilic acid is used as an intermediate in the production of azo dyes and pigments. Azo dyes are the most important class of dyes, accounting for over 50% of world annual production. They are the most widely used chromophores in dye chemistry. Many of the dyes used on cotton are azo dyes (e.g., fiber reactive, direct, azoic). These are used in dyeing textile fibers, particularly cotton but also wool, silk, viscose, and synthetic fibers. These are easy to use, relatively cheap, and provide clear and strong colors. Online sales soared during the pandemic especially for clothing, according to figures from Ireland’s Central Statistics Office (CSO), in 2019, 7% of clothing, footwear, and textile sales were generated online. This increased to 66% of total sales in the sector in April 2020. Online clothing, footwear, and textiles sales reached 67% in November 2020, 63% in January 2021, and 66% in February 2021. Hence, an increase in sales of textiles, in turn, leads to an increase in the sales of azo dyes which boosts the market for anthranilic acid.

Global Anthranilic Acid Market Segment Analysis – By Geography

The Asia-Pacific region held the largest share in the global anthranilic acid market in 2021 up to 42% owing to a number of chemical plants in the region. After the recession of 2008, many chemical industries have come up in Asia making the region an attractive chemical hub. Asian countries hold a monopoly over the chemical market and most of the chemical manufacturers come from this region, especially from China, Japan, India, Indonesia, and Vietnam. According to Invest India, the market size of the chemicals & petrochemicals sector in India is currently around $178 billion and is expected to grow to $300 billion by 2025. Anthranilic acid is used as an intermediate for the production of azo dyes. Due to their excellent fastness properties and the ability to impart high intensity and bright colors, azo dyes are extensively used in textile dyeing. Owing to the ease of manufacturing and low production cost, a majority of commercial dyes are azo dyes. These dyes possess intense bright colors which makes them suitable for natural coloring in the textile industry. Asia is the world’s textile manufacturing hub led by China, India, Bangladesh, Vietnam, Pakistan, Sri Lanka, and Indonesia. The textile industry is highly labor-intensive. Hence, the lower cost of production and cheap labor are the main reasons for the growth of the textile industry in this region. China is the world's largest exporter of textiles followed by India. The textile industry in China is booming with increasing investments and government support from the 13th Five-year Plan. Therefore, this region is expected to dominate the global anthranilic acid market.

Global Anthranilic Acid Market– Drivers

Rise of Insect-Borne Diseases

Due to global warming, the incidence of insect-borne diseases is increasing. Insects such as fleas, ticks, and mosquitoes, act as vectors and carry pathogens that cause infectious diseases such as malaria, dengue, chikungunya, yellow fever, Japanese encephalitis, and Lyme disease to name a few. According to the World Health Organization, vector-borne diseases account for more than 17% of all infectious diseases and cause more than 700,000 deaths annually. Using insecticides is one way to prevent such diseases. DEET (N,N-diethyl-meta-toluamide) is one such insecticide. DEET is the active ingredient in many repellent products. It is widely used to repel biting pests such as mosquitoes and ticks. According to the US Environmental Protection Agency, an estimated 33% of the US population uses DEET every year. However, DEET is toxic to pets and several side effects have been reported in humans. The esters of anthranilic acid, N,N-dimethylanthranilic acid (DMA), ethyl anthranilate (EA), and butyl anthranilate (BA) repel both fruit flies and mosquitos. DMA and EA repel mosquitos from feeding on humans, while EA and BA repel them from depositing eggs in water. These anthranilate-based insect repellents have been proposed as replacements for DEET. Thus, the rise of insect-borne diseases acts as a driver for the global anthranilic acid market.

Flourishing Pharmaceutical Industry

The pharmaceutical industry has been growing leaps and bounds. The emergency of the pandemic served as a catalyst for this growth. During the pandemic, sales of vitamins, immune boosters, and supplements shot up. According to data provided by SPINS (Chicago) on the US mainstream dietary supplement channel during the 52 weeks ending November 2020, multivitamins saw double-digit sales gains across the board. The COVID-19 vaccines have turned the pharmaceutic industry into one of the most lucrative industries. According to India Brand Equity Foundation (IBEF), India’s domestic pharmaceutical market was valued at US$42 billion in 2021 and is expected to reach US$65 billion by 2024 and further expand to reach US$120-130 billion by 2030. Anthranilic acid is used in the pharmaceutical industry as it exhibits anticancer, antimicrobial, insecticide, antiviral, and anti-inflammatory activities. Fenamic acid, a derivative of anthranilic acid,? is a nitrogen isostere of salicylic acid, which in turn is the active ingredient in aspirin.? Several non-steroidal anti-inflammatory drugs, such as mefenamic acid, tolfenamic acid, flufenamic acid, and meclofenamic acid are derived from fenamic acid or anthranilic acid and are called anthranilic acid derivatives or fenamates. Anthranilic acid is also the precursor to the amino acid, tryptophan. Thus, the flourishing pharmaceutical industry drives the global anthranilic acid market.

Global Anthranilic Acid Market– Challenges

Manufacturing of Drugs

Anthranilic acid is an aromatic acid that is whitish to yellowish in color and sweet to taste. Anthranilic acid is the main precursor in the manufacture of methaqualone. Methaqualone is a synthetic drug that acts as a central nervous system depressant, similar to barbiturates. It was initially used to treat sleep disorders and later gained notoriety as a recreational drug. It is placed under Schedule 2 of the 1971 Convention on psychotropic substances due to abuse, addiction and the high potential for dependence. The drug produces similar effects to those of other central nervous system depressants, including calmness, and the relief of stress, anxiety and tension. It has a relatively easy process of manufacturing meaning it can be manufactured in a lab making it easy for criminals to produce. Such factors can prove to be a challenge for the global anthranilic acid market.

Global Anthranilic Acid Industry Outlook

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the global anthranilic acid market. Global anthranilic acid market top 10 companies include:

1. TCI Chemicals Pvt. Ltd.
2. Xiangli Chemical
3. New Sunlion Chemical
4. Shandong Wochi Chemicals
5. Shandong Taihong New Material Technology
6. Dongying Xinfeng Chemical
7. Shandong Co-Strength Chemicals
8. Dongying Kexin Chemical
9. Aurora Fine Chemicals
10. BOC Sciences

Recent Developments

In June 2021, Rancho Santa Fe Bio, Inc., a California-based clinical-stage cardiovascular platform company, announced that it has entered into an exclusive worldwide license agreement with Sanofi, a global biopharmaceutical company. This agreement provides RSF Bio with Sanofi’s rights to Ataciguat, a novel anthranilic acid derivative.

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