Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) -- The "Bio Organic Acid Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The expected compound annual growth rate (CAGR) of the bio-organic acid market is 5.86% between 2024 and 2029.
Growing pharmaceuticals demand
According to the World Health Organization, non-communicable diseases (NCDs) result in the deaths of 41 million people each year. This challenge is rising due to increasing environmental risk factors such as air pollution, changing lifestyles, and increased use of tobacco and alcohol. Almost all people of ages, regions, and demographics are affected by noncommunicable diseases (NCDs). This resulted in increased healthcare spending on pharmaceuticals and medical devices. The pharmaceutical sales of many major European Union countries are showing an increase such as Italy's pharmaceutical sales have risen by 9.27% from 2021 to 2022, similarly for Belgium's increase was 15.12%, Luxembourg's 8.74%, Spain's 9.30%, Sweden's staggering increase of 25.11%, and Switzerland's 10.37%, according to OECD database.
The number suggests the growing need for pharmaceuticals in the citizens' lives for various physical and mental ailments. Different types of organic acids are needed in the manufacturing of medicines, such as citric acid, succinic acid, ascorbic acid, etc. Organic acids' purpose could differ for different medicines, such as acidulants, preservatives, buffering agents, stabilizing agents, pH adjusters, etc.
The demand for pharmaceuticals is also increasing due to the increasing geriatric population worldwide. According to the United Nations, the proportion of the old age population, which is 10% in 2022, is estimated to be 16% by 2050. This sharp rise in the geriatric population also led to the overall healthcare demand for this population. The geriatric population is prone to more chronic disease ailments and needs better health supplements such as folic acid for better mental agility and cognitive function.
Increasing demand from the food processing industry
The food industry worldwide is accommodating bio-organic acids in their various functions, such as preservatives for natural antimicrobial properties and taste enhancers. The growing demand for food processing has impacted the demand for food preservatives and enhancers. The US imports of foods, feeds, and beverages increased 4.11% year-on-year in 2024. Similarly, the European Union's imports of agricultural, fisheries, and food and beverage products were €192 billion in 2022.
The growing demand for processed food has created an opportunity for the raw material ingredients industry. In 2022, the European Union had a trade surplus for animals and animal products of about €10.7 billion. They exported processed F&B products for about €116.0 billion in 2022, while importing crop products and related raw food materials. Processed food is the primary profit driver for the European Union.
Furthermore, innovative applications such as Corbion are making corn tortillas with more folic acid, which can be helpful for mothers and their babies. According to the U.S. Food & Drug Administration (FDA), consuming folic acid during the first weeks of pregnancy helps lower the risk of neural tube defects. This product enriched with folic acid would deliver greater value to their customer and help seize the opportunity for nutritious products by bridging the folic acid gap.
Surging animal feed demand:
The expected meat consumption around the world is continuously increasing, leading to increased livestock and animal keeping. The data by OECD shows the increase of beef and veal meat consumption to be 3.39% from 2023 to 2027, further, an increase of 4.36% from 2027 to 2032.
Similarly, poultry meat consumption will increase to 5.18% from 2023 to 2027 and 6.34% from 2027 to 2032. This increase can be related to innovative and better feed choices across the market such as, Eubiotics are the feed additives by DSM for supporting gut health. It has ingredients such as organic acids, probiotics, and prebiotics.
Further, LAFEED was developed by Corbion, a lactic acid-based feed-grade additive to improve the digestive health of the cattle. The growing milk demand further exponentiates the demand for better feeds. The milk production was 910,964 kt pw in 2023 and is expected to be 1,039,320 kt pw in 2032.
Asia Pacific region to dominate the bioorganic acid market during the forecast period.
Major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. India and China are the world's largest growing economies. According to IBEF, India's domestic food market will grow 47% between 2022 and 2027. The food processing industry in India is going through a transformation through government and industrial support. Multiple schemes were launched in the food processing market, such as the PM Formalisation of Micro Food Processing Enterprises Scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), etc.
The overall growth of the market is driven by various measures for food processing, such as preservation, preparation, packaging, enrichment, fortification, processing aids, etc. All these steps require organic acids in various applications, such as the use of acids or enzymes to enhance the fermentation of foods or preservation. This will drive the regional bio-organic acid market growth.
Bio-organic acid market restraints:
- The high production cost and the costly sourcing of raw materials are hindering potential market growth. Additionally, the companies' net carbon target has already burdened many organizations.
- The production facility should have an additional safety feature for the workers to work hazards, which increases the additional cost.
Bio-organic acid market key developments:
- In May 2024,Corbion announced the expansion of the partnership with IMCD to include Thailand and to make a further make presence in the APAC region. IMCD is a global distributor of chemicals and ingredients. Corbion operates its largest lactic acid manufacturing site in Rayong, Thailand; this partnership strengthens the commercial and formulation in the regional market, including Singapore, Australia, New Zealand, and others. This distribution channel would supply Corbion's PURAC range of lactic acid.
- In December 2023, Corbion completed a new circular lactic acid plant in Rayong, Thailand. Corbion is a sustainable company that ensures the lactic acid produced in the facility would have the lowest carbon footprint. The process used in the production makes gypsum a by-product, which makes this method more cost-effective.
- In October 2023,Solugen and ADM announced a partnership by Solugen to build a new 500,000-square-foot biomanufacturing facility near ADM's Marshall, Minnesota, corn complex. Under the agreement, ADM would provide dextrose as an ingredient for producing bioorganic acids for various industry applications. The biomaterial produced could have commercialization opportunities in applications such as energy, water treatment, agriculture, construction materials, cleaning, and personal care, among others. The partnership would bring commercial value to sustainable products. The location of the production site ensures a better supply of corn for dextrose conversion and supports Solugen's chemoenzymatic process to convert plant-derived substances into essential materials.
Key Topics Covered:
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1. Key Findings
3.2. Analyst View
4. MARKET DYNAMICS
4.1. Market Drivers
4.1.1. Growing pharmaceuticals demand
4.1.2. Increasing demand from the food processing industry
4.1.3. Surging animal feed demand
4.2. Market Restraints
4.2.1. The high production costs
4.3. Porter's Five Forces Analysis
4.4. Industry Value Chain Analysis
5. BIO ORGANIC ACID MARKET BY END-USER INDUSTRY
5.1. Introduction
5.2. Pharmaceuticals
5.3. Food and Beverages
5.4. Animal Feed
5.5. Textiles
5.6. Other Industries (Personal Care, Supplements, etc.)
6. BIO ORGANIC ACID MARKET BY PRODUCT TYPE
6.1. Introduction
6.2. Acetic Acid
6.3. Citric Acid
6.4. Lactic Acid
6.5. Propionic Acid
6.6. Ascorbic Acid
6.7. Malic Acid
6.8. Other Product Types (formic acid, fumaric acid, gluconic acid, fumaric acid succinic acid etc.)
7. BIO ORGANIC ACID MARKET BY RAW MATERIAL
7.1. Introduction
7.2. Corn
7.3. Sugar
7.4. Biomass
7.5. Molasses
7.6. Other Raw Materials (fruits, vegetables)
8. BIO ORGANIC ACID MARKET BY GEOGRAPHY
8.1. Global Overview
8.2. North America
8.3. South America
8.4. Europe
8.5. Middle East and Africa
8.6. Asia-Pacific
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
- ADM
- BASF
- Cargill
- Corbion
- DSM
- Mitsubishi Chemical Corporation
- Dupont
- Polynt-Reinchhold
- Henan Jindan Lactic Acid Technology Co. Ltd
- Eastman Chemical Company
- Dow Chemical Company
- Ineos
- Thermo Fisher Scientific Inc.
For more information about this report visit https://www.researchandmarkets.com/r/m042vm
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