Bio-Based Organic Acids Market Overview
The major trend identified in the global bio-based organic acids market is the increasing investments in specialty chemical manufacturing. Companies, across the world, are increasingly investing in the manufacturing of bio-based chemicals to encourage the use of eco-friendly products. For instance, on January 23, 2018, Lygos Inc., a biotechnology company of specialty chemicals, announced that LG Technology Ventures, an investment arm of the South Korean conglomerate LG Group, made an investment worth $5 million in Lygos’ bio-based chemical segment.
In general terms, organic acids are organic compounds with acidic properties that serve as a platform for the production of polymers, food products, coatings, lubricating oils, pharmaceuticals, cosmetics, solvents, and various other materials. Owing to their renewable and eco-friendly nature, bio-based organic acids are increasingly gaining preference over conventional organic acids in several industries. In this report, the bio-based organic acids market is segmented on the basis of raw material, product, application, and geography.
Based on raw material, the bio-based organic acids market is categorized into biomass, corn, maze, and sugar. Among these, biomass held a significant share in the market during historical period, owing to its high availability across several countries. Moreover, many countries are encouraging the use of biomass over corn, maze, and sugarcane to produce organic acids, as these crops are mostly used as food products.
On the basis of product, the bio-based organic acids market is classified into acetic acid, formic acid, citric acid, lactic acid, succinic acid, ascorbic acid, fumaric acid, and gluconic acid. Among these products, bio-lactic acid holds a significant share in the market, owing to its wide usage in the production of polylactic acid, which experiences a high demand in industries such as packaging, pharmaceuticals, and textile for production purposes.
Based on application, the bio-based organic acids market is categorized into petrochemicals, polymers, pharmaceuticals, dyes, coatings, food products, and others. Of these, petrochemicals constitute the largest application area of bio-organic acids across the world, due to their high dependency on organic acids in the production process. Besides, the food industry is one of the fastest-growing markets for bio-organic acids, owing to the increasing demand witnessed globally for preserved food with high shelf life. Bio-organic acids are primarily used to enhance the flavor of food products in addition to regulating their acidic content.
Geographically, the bio-based organic acids market is categorized into North America, Europe, Latin America, Asia-Pacific (APAC), and the Middle East and Africa. Globally, Europe is the largest market for bio-organic acids. This can be attributed to the increasing focus of various industries toward bio-based products on account of the stringent regulations laid down by the government authorities to encourage the use of environment-friendly products. During the forecast period, the market is expected to witness promising growth in the APAC region, owing to the increasing demand for bio-organic products in the pharmaceuticals, food and beverages, and textile industries of emerging countries, particularly India, China, Thailand, and South Korea.
Bio-Based Organic Acids Market Dynamics
The growth of the bio-based organic acids market is primarily driven by the increasing consumer preference for bio-based products and the growing industrial compliance toward environmental regulations imposed by regulatory bodies of various countries to curb the use of conventional organic acids. The drawbacks and environmental concerns associated with conventional organic acids are, thus, encouraging the use of bio-based products and increasing the consumer base for these products in several countries.
Bio-based organic acids are made using crops such as sugarcane, corn, and maize. However, the growing concerns and regulations imposed by certain countries on the use of these crops for the production of bio-organic acids are restricting the growth of the bio-based organic acids market to some extent. Besides, the high cost associated with the production of bio-organic acids is hindering the market growth.
Bio-Based Organic Acids Market Competitive Landscape
Some of the major players operating in the global bio-based organic acids market are Abengoa, BASF SE, BioAmber Inc., Cargill, Corbion NV, Methanex, Mitsubishi Chemical Corporation, Mitsui & Co. Ltd., Novozymes A/S, Zhejiang Hisun Biomaterials Co. Ltd.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.