The global organic acid market is estimated to reach USD 12.5 billion in 2024. Sales are anticipated to grow at a CAGR of 5.5% during the projected period and reach a value of USD 21.4 billion by 2034.
Organic acids are used prominently in the making of functional foods. Sales of functional foods are rising, in accordance with consumers’ desire to eat healthier. As such, the functional food ingredient market is expected to cross the USD 20 billion mark by 2034.
There is also a clamor for organic ingredients, as more consumers follow all-natural diets or generally look to curb inorganic food intake. Hence, the increase in healthy eating is expected to drive the organic acid market.
The demand for functional foods is complemented by consumer inclination toward ready-to-eat meals. As lifestyles become more hectic, the demand for ready-to-eat meals is set to surge.
The ready-to-eat food market is estimated to reach nearly USD 400 billion by 2034. Organic acids are used for preservation and flavoring in ready-to-eat food. Hence, the rise in demand for ready-to-eat food is beneficial for the organic acid market.
Another area where the preservative quality of organic acids comes in handy is in manufacturing beverage. The use of natural acids in the beverage sector is wide, from fruit juices to energy drinks. These acids are also used in wine-making. An emerging area is plant-based milk. With the plant-based milk market expected to reach nearly USD 50 billion by 2034, the opportunities for organic acid suppliers are set to increase.
Manufacturers are concentrating on streamlining the production process. Technological advancements help producers find innovative ways for acid production.
Instead of regular chemical processes, a significant number of manufacturers are shifting to various methods, such as fermentative production, with genetically modified microbes. Other technologies being brought into play are synthetic biology and omics-based system biology tools.
| Attributes | Description |
|---|---|
| Estimated Global Organic Acid Market Size (2024E) | USD 12.5 billion |
| Projected Global Organic Acid Market Value (2034F) | USD 21.4 billion |
| Value-based CAGR (2024 to 2034) | 5.5% |
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The table exhibits the estimated CAGR for the global organic acid market over semi-annual periods ranging between 2023 and 2024. The analysis provides organizations with a better understanding of the growth over the year by divulging crucial shifts in performance and growth patterns. The first half (H1) of 2023 spans from January to June. The second half of H2 includes July to December.
Figures presented in the below table exhibit the growth rate for each half from 2023 to 2024. The market is anticipated to grow at a CAGR of 4.1% in the first half (H1) of 2023. However, the second half of the same period is estimated to witness an increase in the CAGR at 4.3%.
| Particular | Value CAGR |
|---|---|
| H1 | 4.1% (2023 to 2033) |
| H2 | 4.3% (2023 to 2033) |
| H1 | 5.1% (2024 to 2034) |
| H2 | 5.2% (2024 to 2034) |
Moving on to the following period, from 2024 to 2034, the CAGR is projected to be 5.1% in the first half (H1). Similar to the first half of 2023 to 2033, the market is set to marginally increase in the second half of 2024 to 2034, at 5.2% CAGR.
Sustainable Production Takes Precedence
The traditional production method of organic acid involves petrochemicals as raw materials. However, the use of petrochemicals is harmful to the environment. Hence, producers are looking at more eco-friendly raw materials for production.
With the aid of the fermentation process, manufacturers are producing organic acids from microbes. Taking microbes as raw material reduces the environmental footprint of manufacturers, also helping them comply with regulations. As technological advances are made in genetic engineering, production is set to become even more convenient for producers.
Application in Textile Industry to Improve Demand for Organic Acids
While food and beverage applications, such as poultry and functional foods, remain the primary source of demand, the use of organic acids in the textile sector is also growing.
The acids are used for dyeing, neutralizing, and other functions in clothes. The textile industry is booming worldwide, with Asia as a major hub. With the Asia textile chemicals market set to cross the USD 25 billion mark by 2034, opportunities are rife for organic acids in the textile sector.
Environmental Concerns with Production Limit Market Growth
The traditional method of producing organic acids involves petrochemicals. As petrochemical-related production is environmentally harmful, the production of organic acids has come under scrutiny. The handling of these acids is also potentially harmful to workers and machinery. Hence, alternatives to organic acids are being found. For instance, Biovet S.A. has developed Alquermold Natural from natural extracts as an alternative to organic acids.
To counter the environmentally harmful nature of production, microbe-based techniques for production are developed. However, their production yield is lesser than traditional production, making the process more expensive. Hence, small and medium-scale organizations still resort to traditional methods of production.
Principal Consultant
The global organic acid market was valued at USD 10.1 billion in 2019. It grew at a CAGR of 4.3% during the historical period to reach a size of USD 11.9 billion in 2023.
The pandemic affected the market adversely in the historical period, leading to a slowing down of growth. Supply chain disruptions led to a scarcity of raw materials. Food and textile manufacturing units also shut down, leading to a reduction in the use of organic acids.
However, the market recovered once the effects of the pandemic receded. Market giants continued to expand production facilities. For instance, BASF SE expanded its Ludwigshafen Verbund facility in Germany.
Tier 1 companies are characterized by large research facilities and robust distribution networks. Sustainability considerations are also becoming a more important part of players’ strategies. With their sizable research and development departments, tier 1 players are also at the forefront in terms of technology in production. Some notable tier 1 players include BASF SE and Cargill.
Tier 2 companies are generally companies that have an extensive portfolio of natural items. To compete with tier 1 players, tier 2 companies are focusing on coming up with new raw materials. Though not as extensive as tier 1 players, tier 2 companies too focus keenly on research and development. Some tier 2 companies are Mitsubishi Chemical Corporation and Nexira.
Tier 3 players are focused on regional demand. Not possessing the financial resources and funds of tier 1 and 2 companies, they serve local small-scale operations. These tier 3 players have their most presence in China and India.
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The below section provides companies with an overview of the market. It comprises a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics is estimated to help businesses understand the market's complex nature.
India is estimated to dominate the country-wise growth in the industry during the forecast period with a predicted CAGR of 7.2%. Other prominent countries in the market include China and the United Kingdom, with CAGRs of 5.5% and 5.8%.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 7.2% |
| China | 5.5% |
| United Kingdom | 5.8% |
India is poised to emerge as a lucrative country in the organic acid market over the assessment period with a CAGR of 7.2%.
The organic acid market in India is currently on an upswing due to a rise in demand for processed foods and beverages. Various health and wellness awareness factors now prompt consumers to rely on more natural and organic content, thereby driving the demand for organic acids.
The growing demand for organic farming is also leading to the increasing use of organic acids as feed additives in animal agriculture for better health and productivity. Government policies for promoting organic farming, food safety regulations, and the expansion of pharmaceutical and cosmetics industries in India are also giving a boost to the market. Overall, consumer preference has proved the primary driver of growth in India.
The organic acid market in the United Kingdom is estimated to grow at a CAGR of 5.8% from 2024 to 2034.
With sports culture thriving, energy drinks and fruit juices that use organic acids are climbing in demand in the United Kingdom. New applications for these acids are also being found in sports nutrition. For instance, acetic acid is becoming more common in sports nutrition in the country.
Acetic acid’s ability to reduce muscle cramps sees it being favored by the sports community. The acid received a further boost in the United Kingdom when it came to light that the England team at the European Championships in 2024 was using pickle juice, containing acetic acid, to reduce muscle cramps.
The China organic acid market is anticipated to grow at a CAGR of 5.5% during the forecast period.
The market in China is growing due to rapid industrialization and urbanization. Within the high-profile food and beverage industry, manufacturers are looking to acquire organic acids for preservative purposes and to enhance the flavor profile. Also, changing preferences among the middle-class population toward processed and packaged foods trigger a further increase in demand for organic acids.
The increased focus on environmental factors and tougher controls on food safety are the impetuses forcing producers to choose cleaner, safer additives. Organic acids seem to become even more appealing for consumption under these circumstances. Advances in the pharmaceutical industry also begin, as organic acids start being used in both drug compositions and productive processes.
Lastly, increased knowledge of biotechnology and fermentation technology makes this production conducted with efficiency and at lower costs, hence increasing supply. The synergistic effect of industrial growth, shifting consumer preferences, and new regulatory developments is driving the development of the organic acid market in China.
The section offers companies with insightful data and analysis of the two leading segments. Segmentation of these categories is predicted to help organizations understand the dynamics of the industry and invest in beneficial zones.
Citric acid is the most in-demand organic acid. Poultry & farming is the sector where the organic acids are dominantly used.
| Segment | Citric Acid (Product Type) |
|---|---|
| Value Share (2024) | 12.2% |
Citric acid is set to hold 12.2% of the market share in 2024. The citric acid segment holds the largest share in the market due to its wide usage in various industries, including food and beverages, pharmaceuticals, and cosmetics.
Citric acid, as a natural product, offers excellent preservative properties, adds flavor to food products, and is used as a compound in the food industry. Additionally, citric acid is used as an effective pH-regulating agent in the production of soft drinks and processed foods.
The trend toward natural and organic ingredients further propels the use of this product, as the demand for fewer artificial additives in products is on the increase among consumers. Citric acid is another fermentation product, so it is inexpensive when compared to synthetic equivalents. It dominates the market due to its versatility in industrial applications, including cleaning agents and detergents.
| Segment | Poultry & Farming (Application) |
|---|---|
| Value Share (2024) | 32.3% |
Poultry & farming is estimated to account for 32.3% of the market share in 2024. Several formic, acetic, and propionic acids are included as feed additives to promote gut health, enhance nutrition absorption, and minimize the spread of pathogens among livestock. This is even more critical in poultry farming, where normal gut microbiota can ensure optimal growth rates and better feed efficiency.
The increasing demand for quality meat products also necessitates the use of organic acids. The integration of sustainable livestock production with no antibiotics has also increased the use of organic acids because they represent a natural alternative to antibiotics. Besides, regulatory pressures and consumer preference for safer, more natural food products push farmers towards adopting organic acid solutions.
The organic acid market is a fairly fragmented one. Despite the presence of numerous giants in the chemical sector like Cargill and BASF SE, the market remains competitive due to the myriad of regional players. These regional players provide stiff competition to market giants on a local basis.
Collaborative strategies are common among competitors. Partnerships and mergers happen as players look to combine technological capabilities to come up with advances in acid-making. Acquisitions are also a common sight.
Industry Updates
The market encompasses various products, including acetic acid, formic acid, propionic acid, ascorbic acid, lactic acid, citric acid, gluconic acid, fumaric acid, malic acid, and other acids
The application of organic acid includes poultry & farming, pharmaceuticals, industrial, and food & beverages.
The industry is spread across North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
The market is estimated to reach USD 12.5 billion in 2024.
The market is predicted to reach a size of USD 21.4 billion by 2034.
Koninklijke DSM N.V., Corbion N.V., and BASF SE are a few of the key manufacturers.
The market is predicted to witness a CAGR of 5.5% during the forecast period.
India is projected to dominate with a CAGR of 7.2% during the assessment period.
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Organic Acid Market
