Benzoic Acid Market Size, Share and Industry Analysis Report, Regional Outlook, Application Development, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI340
Benzoic Acid Market size will continue to witness an upward growth trend with the compound’s growing prominence in applications like food & beverage, animal feed, chemicals, plasticizers, and others. Developed regions such as North America and Europe and emerging as lucrative markets for benzoic acid suppliers due to robust demand in paper production and regulations promoting the replacement of phthalate plasticizers with non-phthalate plasticizers.
Food & beverage applications will likely capture a substantial share of the benzoic acid market by the year 2027 due to increasing consumption of packaged and processed food items with a rise in disposable income of consumers. The number of food and beverage brands has increased worldwide due to growing demand. These brands are constantly looking to expand their product portfolio to capture the attention of consumers. Benzoic acid is widely used for preservation of acidic foods and beverages such as jams, pickles, fruit juices, sparkling drinks, aerated drinks, and others.
Europe is estimated to experience commendable growth through 2027 with rapid expansion of chemicals, plasticizers, food & beverage, and animal feed industries. With busier lifestyles, the consumption of packaged and ready-to-eat meals has increased considerably, augmenting the consumption of benzoic acid as a preservative. Also, strict regulations in the plasticizers industry to adopt more sustainable products will positively impact the regional benzoic acid market trends.
Emerald Kalama Chemical, Novaphene, Shri Hari Chemicals, Huangshi Taihua Industry, Chemcrux Enterprises Ltd., and Sinteza S.A. are some of the major benzoic acid producers worldwide. In order to meet the growing market demand and stay ahead of the global competition, manufacturers are adopting different growth and expansion strategies. These include acquisitions, mergers, collaborations, capacity expansion, and installation of new production facilities, among others.
In February 2021, American chemicals manufacturer Emerald Kalama was acquired by German specialty chemicals giant Lanxess in a deal worth USD 1.1 billion. Emerald Kalama is among the world’s largest manufacturers of benzoic acid.
COVID-19 crisis and its impact on benzoic acid industry forecast
The year 2020 has been difficult for nearly every industry vertical due to the outbreak and rapid spread of the coronavirus pandemic. The COVID-19 crisis posed numerous roadblocks for chemicals manufacturers due to supply chain and logistic issues. Also, many manufacturing facilities had been forced to shut down or operate at reduced capacity, leading to lower production of most materials. Shortage of workforce due to government restrictions may have created several challenges for the benzoic acid market.
However, sales of packaged foods & beverages have remained consistent and even experienced a surge in numerous regions due to panic buying among consumers ahead of lockdown restrictions. Even during nationwide lockdowns, when retail stores and outlets had been forced to shut down or operate for limited durations, packaged food sales continued to rise as many consumers switched to online shopping channels in developing countries.
For instance, food companies in India have reported a rise of 30-50% in food product sales during 2020 compared to the previous year. Many consumers shifted from unbranded o branded packaged foods during the pandemic, leading to increased sales of snacks, savory foods, ready-to-cook foods, noodles, protein rich foods, and immunity boosting products.
Positive opportunities in the food & beverage sector along with recovery of chemicals and plasticizers industries should augment the benzoic acid market forecast through 2027.
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