The global organic acid market is growing at a CAGR of 4.5% during the forecast period (2020 - 2025).



The global market for organic acid is mainly driven by its rising application in packaged food due to its antioxidant properties, preservation, acidity regulation, flavor enhancement, and many others. High growth in the pharmaceutical industry is also fuelling demand for organic acids, due to its functional properties such as lactic acid is commonly used in the pharmaceutical industry. Further, the use of organic acid in the textile, feed and personal care industry is also remarkable.



Asia-Pacific accounts for the largest share in the global market, followed by Europe, which is one of the regions that have a high potential for the growth of the organic acids market. North America is expected to witness comparatively slower growth as compared to other regions.

Key Market Trends

Rising Demand of Citric Acid in Food and Beverage Industries

Citric acid is one of the most widely used additives in the food and beverage industry, both as an acidulate and preservative to enhance the shelf life of convenience?foods, due to its low toxicity, when compared with other acidulates. It is found in non-alcoholic beverages and in jams, gelatin-based desserts, and tinned vegetables and fruit. It also plays a huge role in enhancing flavors, particularly in the drinks industry, as it provides a sour and refreshing flavor, which offsets the sweetness of many drinks. Also, regulatory bodies, such as the US Food and Drug Administration considers citric acid a safe natural acid in the diet, thus favoring the market growth. The FDA reports that consuming 500 milligrams of citric acid per day has no harmful effects. In addition, the use of citric acid in processed frozen foods and as an additive in some fats and oils enhances the action of antioxidants, which effectively reduces the deterioration rate of these products. Also, regulation of the European Union specifies that citric acids are permitted additives for beer and malt beverages. Thus, an increase in demand for malt beverages will further fuel the market growth.

Asia Pacific to Drive the Organic Acid Market

Asia-Pacific accounts for the largest market share in the global market of organic acids owing to the increasing consumption of processed food and growing disposable income in the region. Also, according to a survey conducted by Associated Chambers of Commerce and Industry of India (ASSOCHAM), due to the steep rise in the prices of vegetables, people are turning to other alternatives by purchasing processed ginger-garlic pastes, tomato purees, and ketchup. Therefore, the rise in 20-225% sales of these products in November 2015 has resulted in fueling the food organic acids market in the region.

Competitive Landscape

The global market for organic acid is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Major global players in the market are Cargill, Incorporated, Eastman Chemical Company, BASF SE, Archer Daniels Midland Company, Tate & Lyle PLC, DSM, and Dow Inc. among others.

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