Global Benzoic Acid Market - 2022-2029

Global Benzoic Acid Market - 2022-2029

Market Overview

The global benzoic acid market has reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.

Benzoic acid is a crystalline carboxylic acid with antifungal and antibacterial properties employed in various end-use sectors, including food and beverage, chemical, cosmetics and pharmaceutical. It can be found in various fruits, including cranberries, raspberries and plums. Benzoic acid is utilized as a food preservative in various foods such as salad dressings, fruit juices, soft drinks and pickles. The global demand for processed and packaged foods is predicted to drive up demand for benzoic acid in the market.

Market Dynamics

Increasing demand for frozen and packaged food & beverages is expected to drive the global benzoic acid. However, regulations and a ban on benzoic acid to restrict its food items will likely hamper the market.

Increasing demand for frozen and packaged food & beverages

The frozen and packaged food and beverage business has started the decade on a high note because of creative product introductions, at-home eating and consumers seeking convenience. For instance, according to the Food Industry Association and the American Frozen Food Institute, frozen food sales in U.S. are expected to climb by 21% in 2020.

Further, a consumer shift toward better lifestyles and packaging advances drives up demand for packaged goods. The industry is being driven by an increasing trend for plant-based and organic goods. Consumers gradually gravitate toward healthier food and beverage alternatives with increased health consciousness. As a result, low-calorie, gluten-free, sugar-free and organic food products are gaining popularity among customers, particularly serve as packaged food.

Packaged foods and beverages rely on additives having preservation characteristics to keep them tasting fresh over long periods. Benzoic acid is most commonly used as a preservative in packaged foods and beverages. The rising usage of benzoic acid as a food preservative can be linked to the fact that it does not affect the taste or odor of the food or beverage to which it is added.

In addition, it is mostly used to preserve acidic foods and beverages, including jams, fruit juices and aerated drinks. For instance, the most common preservatives utilized in soft drinks have been sodium benzoate, a salt or derivative of benzoic acid.

Regulations and ban on benzoic acid to restrict its use in food items

Benzoic acid is stable and non-toxic under normal conditions. Benzoic acid can constitute a health risk despite the lack of occupational exposure limitations. High-concentration benzoic acid exposure may result in a skin allergy, particularly in susceptible individuals. In addition, benzoic acid may need to be contained and disposed of as hazardous waste.

Therefore, several countries worldwide have put bans and regulations on the use of benzoic acid, particularly in food & beverage items. In June 2019, Japan identified 18,168 bottles of Vietnamese chili sauce for violating food safety and labeling requirements. The imported chili sauce included benzoic acid, which is prohibited in all Japanese chili sauces. According to Japanese authorities, the bottles contained 0.41 to 0.45 grams of benzoic acid per kilogram of chili sauce.

COVID-19 Impact Analysis

The global benzoic acid market was significantly impacted by massive disruption in the chemicals and materials industry supply chain. According to the Food & Environment Reporting Network, COVID-19 affected at least 462 meat packaging plants, 257 food-processing businesses and 93 farm and industrial sites in U.S. On the other hand, social alienation and restaurant closures have resulted in online grocery shopping and prioritizing food customers. The fastest-moving foods have been staples like pasta and canned meals.

Segment Analysis

The global benzoic acid market is segmented into natural and synthetic based on the source.

Nowadays, the majority of benzoic acid generated is synthetic. The hydrolysis of benzotrichloride to calcium benzoate, followed by acidification, was its first industrial production. The process has been replaced by toluene air oxidation, which eliminates the issue of product contamination with chlorinated byproducts.

Synthetic benzoic acid is manufactured commercially by partially oxidizing toluene with oxygen. Cobalt or manganese naphthenates catalyze the reaction. In addition, the technique uses low-cost raw ingredients, produces a high yield and is environmentally friendly. Benzoic acid is inexpensive and widely available.

Moreover, benzoic acid can be refined by recrystallization from water for all syntheses because of its high solubility in hot water and weak solubility in cold water. The production is quite safe because organic solvents are not used for recrystallization. Acetic acid, benzene, petroleum ether and a combination of ethanol and water are all suitable as recrystallization solvents.

Geographical Analysis

The global benzoic acid market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.

North America is projected to have a significant market share due to expanding demand for packaged and processed food & beverages, particularly in U.S. According to a study from the NYU School of Global Public Health, consumption of ultra-processed foods has increased across nearly all sectors of the U.S. population over the last two decades.

Consumption of ultra-processed foods increased from 53.5 percent of calories at the start of the study period (2001-2002) to 57 percent at the end (2017-2018). Ready-to-eat or heat meals, such as frozen dinners, grew the most. As a result, the increased consumption of ultra-processed foods in U.S. pushes the demand for preservatives.

The most prevalent application of benzoic acid is a preservative in packaged foods and beverages. Benzoic acid production capacity in U.S. is estimated to be 126,000 tons per year, with the majority consumed domestically to prepare preservatives. Furthermore, benzoic acid as preservatives are an essential ingredient in processed food and beverage goods and they have created a huge potential for manufacturers to gain a substantial market position in the region by expanding their product range and launching new items.

Competitive Landscape

The global benzoic acid market is moderately competitive and consolidated with multinational businesses and local brands. Significant companies in the market include LANXESS, Eastman Chemical Company, Merck KGaA, IG Petrochemicals Ltd. (IGPL), Chemcrux Enterprises Ltd, Wuhan Youji Industries Co., Tianjin Dongda Chemical Group, ITW Reagents Division, The Chemical Company and Sinteza SA, among others. The major players in the market are known to incorporate numerous market strategies to achieve growth in the global benzoic acid market; these include mergers, acquisitions, product launches, contributions and collaborations.

LANXESS

Overview: Lanxess is a specialty chemicals firm established in Germany specializing in producing, developing and supplying chemical intermediates, additives and polymers. Its headquarters are located in Cologne, Germany. Furthermore, the corporation divides its operations into four segments: Specialty Additives, Advanced Intermediates, Engineering Materials and Consumer Protection.

Product Portfolio: LANXESS offers benzoic acid in various grades under the Purox B brand. The company uses natural sources such as fruits, cinnamon and cloves to produce benzoic acid. Further, the company claims to have the highest purity of benzoic acid.

Key Development:

In August 2021, LANXESS acquired Emerald Kalama Chemical, a specialty chemicals manufacturer based in U.S. With the acquisition; the company aims to increase its market position by expanding into new high-margin application areas, particularly in the food and beverage sectors, as well as in cosmetic and cleaning products.

Why Purchase the Report?

To visualize the global benzoic acid market segmentation by source, grade, application, end-user and region and understand key commercial assets and players.

Identify commercial opportunities in the global benzoic acid market by analyzing trends and co-development.

Excel data sheet with numerous data points of benzoic acid market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consisting of key products of all the major market players

The global benzoic acid market report would provide approximately 69 tables, 66 figures and almost 198 pages.

Target Audience 2022

Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals

Food & Beverage Business

Cosmetic Companies

Government and Regulator Bodies