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Benzoic acid market size is predicted to increase substantially over 2023-2032, considering the product application scope in end-use industries including food and beverages. The compound has gained ground as a useful chemical in foods, owing to its ability to inhibit or kill fungi and bacteria. These attributes have also boosted its popularity as a common food additive and preservative.
The rising emphasis on processing facility expansion will therefore escalate the adoption of benzoic acid in foods. Citing an instance, in March 2023, McCain Foods invested approximately USD 438 million to double the size and output of its processing plant in Alberta. This expansion plan was intended to create two state-of-the-art production lines, thereby asserting a positive influence on benzoic acid developers.
Benzoic acid refers to an organic compound produced through the partial oxidation of toluene with oxygen. The compound has a colorless appearance in the solid state, an aromatic ring that provides a faintly pleasant odor, and other properties. Its primary use is the industrial production of aromatic compound phenols.
A prominent reason behind the global benzoic acid market expansion is the growing burden of fungal skin infections. According to data from LIFE (Leading International Fungal Education), tinea capitis is common in black children and adults, registering over 200 million cases globally. This factor will contribute to the sales of benzoic acid ointments to prevent fungal skin diseases. Likewise, the strong demand for paper production and strict regulations to promote phthalate plasticizer replacement with non-phthalate plasticizers will foster industry trends over the forthcoming years.
Benzoic acid market value from the benzoate product segment is projected to witness an upsurge over 2023-2032, considering its effectiveness as a food preservative to control the growth of bacteria and molds. The external doses of benzoic acid in the form of sodium benzoate can also help treat hyperammonemia caused due to genetic defects in the urea cycle. However, the adoption of this compound in the therapeutic regimen is linked with neurotoxic effects, liver and kidney damage, and other abnormalities, thereby limiting its usage to some extent.
The food & beverage application segment will account for a major share of the benzoic acid market over the estimated timeline, given the high intake of processed and packaged food items, especially in rural areas. As per FMCD companies, in July 2022, rural areas observed an improvement in sales of packaged food products in India. Multiple food and beverage brands have also planned the expansion of their product portfolio. These factors, alongside the rise in disposable income, will accelerate the utilization of benzoic acid as a food preservative to address consumer needs.
Europe benzoic acid market is slated to garner considerable profits by 2032, as a result of the growth of animal feed, food & beverage, cosmetics, and chemical industries. For example, in November 2022, Oriflame expanded its list of over 60 markets through the expansion of its presence in Germany, promoting the use of benzoic acid for cosmetics. Due to busy lifestyles, the consumption of ready-to-eat food also surged, further influencing the regional industry outlook in the upcoming years.
Global benzoic acid market key players include Sinteza S.A., Chemcrux Enterprises Ltd., Huangshi Taihua Industry, Shri Hari Chemicals, Novaphene, and Emerald Kalama Chemical (LANXESS). These companies are incorporating new strategies such as new product developments to stay ahead of the global competition.
While beauty brands continue to rebound from the impacts of COVID-19, the inflation crisis hit the industry, especially across Europe and the U.S. The costs associated with the full supply chain, ranging from sourcing raw materials to transporting goods, have surged, asserting a profound impact on cosmetic businesses already hard-hit by the pandemic. Factors such as these may limit the production of benzoic acid for skin care and other cosmetics applications.