Global Benzaldehyde Derivatives Market - Forecast(2023 - 2028)

Global Benzaldehyde Derivatives Market Overview

Global benzaldehyde derivatives market size is forecast to reach US$2.4 billion by 2027 after growing at a CAGR of 5.1% during the forecast period 2022-2027. Benzaldehyde and its derivatives namely cinnamic acid, benzyl alcohol, benzoic acid, sodium benzoate, cuminaldehyde, etc are aromatic aldehydes. These derivatives are used as raw materials and intermediates for a variety of applications and find usage as fragrances, food additives, agrochemical, pharmaceutical, and other specialty chemical materials. Research suggests that benzaldehyde and its derivates work as tyrosinase inhibitors. The inhibition of tyrosinase has an important role in preventing melanin accumulation in the skin and decreasing pigmentation. Owing to this property, benzaldehyde derivatives are increasingly being used in pharmaceutical and cosmetic products which also acts as a driving factor.

COVID-19 Impact

The COVID-19 pandemic changed the world and left economies and industries crippled and still reeling from its effect. The personal care and cosmetics industry had a mixed impact. Sales of products such as hand sanitizers, soaps, and handwash went through the roof while beauty products suffered. Lockdowns, closure of retail stores, and work from home affected the purchase and usage behaviour across beauty and personal care products and sales fell drastically. For instance, Procter & Gamble’s premium Japanese SK-II cosmetics brand saw a drastic reduction in sales by more than 20% due to store closures in Asia. L’Oreal reported an overall drop in worldwide sales with makeup being its most affected category. The reduction in sales of beauty and personal care products affected the global benzaldehyde derivates industry.

Report Coverage

The report: “Global Benzaldehyde Derivatives Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the anti-reflective coatings industry.

By Product: Cinnamic Acid, Benzoic Acid, Benzyl Alcohol, Ethyl Benzaldehyde, Sodium Benzoate, Cuminaldehyde, Anisaldehyde, Vanillin and Others
By Grade: Industrial Grade, Pharmaceutical Grade, Medical Grade, and Others
By Application: Flavour, Fragrance, Pharmaceutical Intermediates, Pigments, Solvents, and Others
By End-Use Industry: Food & Beverage (Beverages -Alcoholic Beverages, Non-Alcoholic Beverages & Fruit Juices, Baked Goods, Frozen Dairy, Confectionery- Candy, Chewing Gum & Others, Flavouring Essence, and Others), Personal Care & Cosmetics (Perfumes, Deodorants, Essential Oils, Shaving Creams & Gels, Body Lotions & Creams, Moisturizing Gels, and Others), Pharmaceutical, Agriculture (Fungicide, Insecticide, and Others), Chemical, 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 benzaldehyde derivatives market, on account of a large number of end use industries in this region. According to Invest India, by 2025, India’s food processing industry is expected to be worth over half a trillion dollars.
• Benzaldehyde derivatives include cinnamic acid, benzyl alcohol, benzoic acid, sodium benzoate, cuminaldehyde, etc. which are used as food additives, pharmaceutical intermediates, fragrances and in other specialty chemicals.
• Benzaldehyde derivatives are tyrosinase inhibitors so they are used in the cosmetic industry in creams and gels to reduce pigmentation.
• The major opportunity for this market is high research spending to develop sustainable products as most of the benzaldehyde derivatives used are produced synthetically although they exist in nature.

Figure: Asia-Pacific Global Benzaldehyde Derivatives Market Revenue, 2021-2027 (US$ Billion)

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Global Benzaldehyde Derivatives Market Segment Analysis – By Technology

The benzoic acid segment held the largest share in the global benzaldehyde derivatives market in 2021 and is expected to grow at a CAGR of 4.9% during the forecast period. Benzoic acid is prepared by the oxidation of benzaldehyde. Benzoic acid is a commonly used antimicrobial preservative in food and beverages. It is used in carbonated and still beverages, syrups, fruit salads, icings, jams, jellies, preserves, pickles and relishes, pie fillings, fruit cocktails, soy sauce, and caviar. It can also extend the shelf life of carbonated beverages. It is essentially used as a mold and yeast inhibitor in high acid foods. The US Food & Drug Authority (FDA) classifies benzoic acid as Generally Regarded as Safe (GRAS). It is also permitted for use in the United Kingdom by the Miscellaneous Additives in Food Regulations. As a preservative, benzoic acid possesses a wide variety of cosmetic applications, including product stabilizer, fragrance additive, and emollient. For this reason, it can be found throughout products such as sunscreens, lipsticks, and lotions. Owing to its various uses across segments, benzoic acid is forecasted to dominate the global benzaldehyde derivatives market during the forecast period.

Global Benzaldehyde Derivatives Market Segment Analysis – By End Use Industry

The food and beverage segment held the largest share in the global benzaldehyde derivatives market up to 30% in 2021. Benzaldehyde and its derivatives are used extensively in the food and beverage industry as additives. Food-grade benzoic acid functions as a preservative that decreases the growth of microorganisms in acidic food. It is mostly active on yeasts and molds. It is usually produced to its soluble salts, sodium benzoate and potassium benzoate, which are also widely used preservatives. Cinnamic acid is commonly used as a flavor compound in foods and drinks. The rising demand for packaged foods owing to safety concerns and convenience is expected to contribute to the growth of the food and beverage industry. During the pandemic, the demand for packaging food increased. This led to an increased demand for additives. In the initial stages of the pandemic, consumers stocked up on ready-to-eat, canned food, snacks, and packaged food. According to the Food Packaging & Consumer Behavior Report, which was prepared after a survey of 1,128 US consumers, 42% of respondents purchased more food products labeled pre-cooked, ready-made or stovetop-ready during the initial 3 months of the pandemic. Bizom, a B2B marketplace for FMCG retailers, tracks sales across 7.5 million retail stores in India. As per Bizom, sales of ready-to-eat products surged 9.1% in August from July 2021 and ready-to-cook grew 6.7% The online grocery shopping sector, which was already booming, saw a sudden increase in sales during the pandemic. According to UNCTAD, the online retail sector grew its sales from 16% to 19% in 2020. The shift of consumer preference towards enhanced food products that offer flavor and aroma is anticipated to drive the growth of benzaldehyde additives in the food and beverage industry. Thus, the food and beverage sector is set to dominate the global benzaldehyde market.

Global Benzaldehyde Derivatives Market Segment Analysis – By Geography

The Asia-Pacific region held the largest share in the global benzaldehyde derivatives market in 2021 up to 38%, owing to a large number of end use industries in the region. Benzaldehyde and its derivates are widely used as food additives, pharmaceutical intermediates, solvents, and in cosmetics. In the food and beverage industry, the beverage sector relies heavily on the usage of flavours. The majority of customers in this region prefer non-alcoholic drinks with a wide range of flavor enhancers, as well as there is high consumption of carbonated water. According to Korea Agro-Fisheries & Food Trade Corporation, the volume of carbonated bottled water in South Korea came to 24.3 million liters in 2020, up 28.6% from five years earlier. According to an independent survey carried out in China, about 28% and 24% of respondents said that they drank more flavored sparkling water and carbonated soft drinks, respectively, in 2020, suggesting the popularity and the availability of a wide range of flavors and carbonation in the market. Aromatic aldehydes have a pleasant fragrance and are used widely in cosmetic products and perfumes. According to an in-house study by the Japanese group, Takasago, the perfume composition leader in Asia, Asia mainly Japan, Korea, and China represented 13% of the global premium perfume market in 2020 with China registering a 15% growth despite the pandemic. Therefore, this region drives the market for global benzaldehyde derivatives.

Global Benzaldehyde Derivatives Market Drivers

Role of Benzaldehyde Derivatives as Tyrosinase Inhibitors

Benzaldehyde and its derivatives play an important role as tyrosinase inhibitors. Tyrosinase is an enzyme that catalyzes the production of melanin. Hyperpigmentation is a condition that occurs when excess melanin gets deposited in the skin and leads to darkened spots or patches on the skin. Tyrosinase inhibitors target tyrosinase and specifically inhibit melanogenesis in cells without causing any side effects. Tyrosinase inhibitors are used by the beauty industry to prevent hyperpigmentation, tanning, and other such skin issues. On account of this property, benzaldehyde derivates are widely marketed as cosmetic products to lighten marks and pigmentation. For instance, cinnamic acid is rated as a low hazard risk for use in skin care and cosmetic formulations and is safe to use as topical applications on the skin. As per a report by the World Health Organization report (WHO), half of the population in Korea, Malaysia, and the Philippines uses some kind of skin lightening treatment. And this number is even higher in India (60%) and African countries, such as Nigeria (77%). Thus, cosmetic products with tyrosine inhibitors have a large market and this drives the growth of the global benzaldehyde derivatives industry.

Increasing Flavour & Fragrance Consumption in Numerous Applications

In various industries such as food & beverages, personal care, and cosmetics, flavour and fragrance play an important role. Benzaldehyde and its derivates are widely used in bakery products, beverages, personal care, and cosmetics on account of their aroma. Due to the pandemic, the sales of products such as hand wash, soap, and sanitizers rose exponentially. Health organizations and hospitals recommended frequent hand washing or the use of sanitizers in the absence of water to combat the spread of COVID. Colgate-Palmolive reported increased demand for liquid hand soaps in 2020. According to the company’s annual report, the company reported net sales of $13,588 from its oral, personal, and home care segments and mentioned that these high sales were on account of liquid hand soaps and other COVID-related hygiene products. In general, fragrance is a top purchasing factor for all products across the personal care and household categories around the world (including soap, bath and shower products, deodorant, laundry detergent, fabric softener, hard surface cleaners, dishwashing liquid, and more). There is a high preference among consumers to buy pleasant smelling products which drive the market for the global benzaldehyde derivatives market.

Global Benzaldehyde Derivatives Market Challenges

Easy Availability of Substitutes in the Preservative Industry

There are various substitutes available in the market such as propionic acid and sorbic acid. Propionic acid is used as a preservative and flavoring agent in various types of packaged foods. Propionic acid also inhibits the growth of mold so it is used as a preservative for bread and other baked goods. Sorbic acid is the most widely used preservative in the food industry. Sorbic acid and its potassium salt are widely used antimicrobial preservatives in foods, especially for preventing mold growth. So, it is used in cheese, wine, baked goods, and other foods. The easy availability of substitutes in the preservative industry leads to intense competition among various available preservatives in the market and can act as a restraint for the growth of the global benzaldehyde derivatives market.

Global Benzaldehyde Derivatives Industry Outlook

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

1. Emerald Performance Materials
2. Mitsubishi Gas Chemical Company, Inc.
3. ChemApproach
4. Aurochemicals
5. Guangzhou Shiny Co.
6. Elan Chemical, Ltd
7. Kadillac Chemicals Pvt Ltd
8. Graham Chemical
9. Shimmer Chemicals Pvt. Ltd
10. Payan Berthand S.A.

Recent Developments

• In August 2021, LANXESS completed the acquisition of Emerald Kalama Chemical for US$1.04 billion. The acquisition of Emerald Kalama also enables LANXESS to significantly expand its portfolio of preservatives. Key products for the food industry include sodium and potassium benzoate under the Kalama, Purox and Kalaguard brands.

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