[174 Pages] The global organic acids market was valued at USD 8.27 billion in 2016 and is projected to reach USD 11.39 billion by 2022, at a CAGR of 5.5% during the forecast period. The market is growing due to wide scale usage of organic acids in various applications such as food & beverages, personal care products, and pharmaceuticals. Growing demand for convenience food and technological innovations, and production of organic acids from cost effective renewable sources are other factors driving the market growth. Furthermore, increased usage of organic acids in animal feed as a substitute of antibiotic growth promoters (AGP) is another factor that is expected to drive the market for organic acids during the forecast period.

See how this study impacted revenues for other players in Organic Acids Market Client�s Problem Statement Our client, a British organic acids producer, was keen to enter the organic acids market for feed application. The company wanted to expand its market reach in APAC and understand the overall consumption of organic acids by feed manufacturers in major APAC countries. MnM Approach MNM provided an inside-out perspective on the market potential of organic acids (such as acetic acid, citric acid, lactic acid, and propionic acid) used in feed applications in APAC. We identified key competitors in the region for organic acids, along with potential end-use applications�such as food and beverages, pharmaceuticals, and industrials (other than feed).

MNM interviewed potential customers in end-use industries to understand their unmet needs, along with the demand for different types of organic acids. Revenue Impact (RI) Our findings helped the client refine its value proposition and devise an appropriate market penetration strategy. The client was able to better understand the regional market, upcoming applications, and key winning strategies of leading players. The study helped it understand the penetration level of organic acids for feed application among target customers and allowed it to develop a new product to enter the organic acids business for the feed segment in APAC. The client was also able to devise a targeted product plan with new offerings to penetrate new revenue pockets, projected at USD 70�80 million in five years. Consult our Analyst now

The demand for citric acid is expected to be the highest during the forecast period.

In 2016, the global market was led by acetic acid, followed by citric acid. Acetic acid is one of the most largely commercially available types of organic acid. However, the citric acid market is projected to grow at higher rate due to the increased demand in the food & feed industry and wide usage of citric acid in various applications.

The food and beverage segment is expected to account for the largest share in the market

On the basis of application, the food & beverages sector is estimated to account for the largest market share due to increased consumer demand for organic acid-fortified food & beverages, owing to their antioxidant and preservative properties. There is also a growing demand for foods that are produced using milder treatments, which include heat, salt, sugar, and chemicals. Also, newer technologies are introduced to prevent the growth of dangerous bacteria, thus increasing the demand for organic acids in food applications.

Asia Pacific is projected to witness the highest growth rate during the forecast period.

Asia-Pacific accounted for the largest market share for organic acid in 2016, owing to the increase in demand for organic acid in countries such as China and India. Asia-Pacific is projected to be the fastest-growing market during the forecast period, due to the increased awareness related to the health benefits of organic acid. The relatively lower operational costs in this region enable manufacturers to have competitive pricing on a global platform. In this region, countries are less stringent, in terms of regulations, over the trade and domestic marketing of food additives. Organic acids are manufactured on a large scale in China and are exported to international markets

Market Dynamics

Use of organic acids in various applications is driving market growth.

The major applications of organic acids include food & beverages, personal care products, and pharmaceuticals, which have gained significant attention in the last few years. The main organic acids� acetic acid, citric acid, lactic acid, and fumaric acid�are used in plastic making, tanning, textiles, paper, metal, pharmaceuticals, perfumes, herbal insecticides, colors & dyes, lubricants, in food & beverage applications, and cosmetic manufacturing. Formic acid and acetic acid are the acids chiefly used in pharmaceutical and industrial applications. Increased demand for multifunctional skincare products is expected to steer the market for organic acids during the forecast period. In addition, acidulants such as malic and fumaric acids are replacing antibiotics in animal feed, owing to their advantages compared to other feed acidulants. Fumaric and malic acids improve animal health by controlling the microbial growth in digestive tract. Further, due to the increased concerns of using antibiotic growth promoters (AGP) in animal feed, the manufacturers are using organic acids as alternatives.

High price of raw materials and technology barriers are restraining growth of the market.

The price and availability of raw materials are the key elements that influence the production cost of organic acids. The prices of organic acids have been volatile over the past few years. A significant rise in prices for commodities (raw materials used for lactic acid production) has been recorded from 2010, especially for corn, tapioca, and wheat. The lactic acid market is expected to be influenced by the prices of commodities in the near future. Production costs increase significantly due to higher costs of raw materials, transport, energy, and chemicals, which leads to increase in prices; these in turn impact the margins for manufacturers. For instance, Corbion N.V. (Netherlands), a key market player, increased its prices worldwide for product categories that include lactic acid and lactates from 2010, owing to an increase in the costs of raw materials. Further, factors such as decline in value of the Euro, along with rapid increase and sustained volatility in raw material prices have led to an increase in the cost of imports. In order to combat the increased import costs, the suppliers of organic acids in the European region have increased their prices in the last few years.

Leniency in regulatory policy for organic acids is expected to be a major growth opportunity.

Most organic acids such as citric acid, lactic acid, and fumaric acid are considered as harmless food additives by various food safety regulating authorities. For instance, citric acid, according to the CODEX Alimentarius, may be used in a variety of listed food & beverage products under the Good Manufacturing Practices (GMP) as outlined in the Preamble of the Codex GSFA. Regulation (EC) 1333/08 of the European Union specifies that E330 citric acids are permitted additives for beer and malt beverages. With the increasing consumption of malt beverages and less impact of regulations on the use of citric acid as food additives would drive the demand in this market.

Environmental concerns are a major challenge for organic acids market.

Acetic acid can be a hazardous chemical if not used in safe and appropriate quantities. Acetic acid is used not only for industrial applications, but also in pesticide formulations, as an herbicide to control weeds on fruits; it is also used to control mold and reduce bacterial growth in feed. However, the high concentration of acetic acid in herbicides or animal feed can be harmful to animals, plants, and aquatic life. This is one of the major challenges faced by the manufacturers of organic acids. Further, the consumption of propionic acid in herbicides is decreasing gradually, owing to environmental concerns and regulatory guidelines. In the past, many herbicide products containing propionic acid have been used in various developed countries. The countries have started banning some of these products due to presence of several impurities that were toxic in nature.

Scope of the Report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units Value (USD Million) and Volume (KT) Segments covered Application, Type, and Region Geographies covered North America, South America, Europe, Asia Pacific, and RoW Companies covered Cargill (US) , BASF SE (Germany), the Dow Chemical Company (US), Henan Jindan Lactic Acid Technology Co. Ltd (China), Archer Daniels Midland Company (U.S.), Eastman Chemical Company (U.S.), Myriant Corporation (U.S.), Corbion N.V. (Netherlands), Koninklijke DSM N.V. (Netherlands)

On the basis of type, the organic acids market has been segmented as follows:

Acetic Acid

Lactic Acid

Citric Acid

Formic Acid

Propionic Acid

Ascorbic Acid

Gluconic Acid

Fumaric Acid

Malic Acid

Other Acids

On the basis of application, the market has been segmented as follows:

Food & beverages

Feed

Pharmaceuticals

Industrial

On the basis of region, the market has been segmented as follows:

North America

South America

Europe

Asia Pacific

RoW (the Middle East & Africa)

Break-up of Primaries:

By Company Type: Tier 1 - 40 %, Tier 2 - 40%, and Tier 3 - 20%

Tier 1 - 40 %, Tier 2 - 40%, and Tier 3 - 20% By Designation: C-level - 20%, D-level - 40%, and Others* - 40%

C-level - 20%, D-level - 40%, and Others* - 40% By Region: North America - 25%, Europe - 25%, Asia Pacific - 50%

*Others include sales managers, marketing managers, and product managers.