The Global Carboxylic Acids Market is expected to grow at a high CAGR of 3.7% during the forecasting period (2022-2029).
Increasing use of Carboxylic Acids in personal care products, rising applications of Carboxylic acid in animal feed and the rise of the global food and beverage industry are the major factors driving the global Carboxylic Acid market.
The increasing demand for animal feed globally is a major factor driving the global carboxylic acid market owing to the increasing applications of carboxylic acids in animal feeds. Animal feeds provide essential protein, fiber, and energy to the livestock, which results in increased yield and also helps save costs incurred on adding additional protein and supplement additives. According to the statistics published by the US Department of Agriculture, global beef and veal production increased from 59,710 tons in 2015 to 60,478 tons in 2016. This value increased to 61,624 tons in 2017, finally reaching 62,878 tons in 2018. Owing to these factors, the global carboxylic acid market is expected to rise in the forecast period.
However, stringent regulations imposed by various organizations such as the FDA and the high cost of carboxylic acid are the crucial factors that might impede the growth of the market in the forecast period.
Based on the application, the global Carboxylic Acids market is segmented into Food and Beverages, Animal Feed, Personal care and Cosmetics, Lubricants, Consumer Goods and others.
According to the statistics by the World Bank, the World population increased from 7.46 billion in 2016 to 7.55 billion in 2017, reaching 7.63 billion in 2017. According to the Food and agricultural organization, the projected global economic growth of about 2.9% annually would lead to a significant reduction or near elimination of absolute poverty in the world's developing countries. Due to this increase in the population and demand for food production requirements, the market is expected to witness high growth rates in the forecast period.
The increasing applications of carboxylic acids in the food and beverages segment are major factors driving this segment to dominate the global carboxylic acid market in the forecast period.
The Global Carboxylic Acids Market is segmented into North America, Europe, Asia Pacific, South America and the Middle East and Africa.
With the increase in demand for personal care products due to the rise in urbanization and increase in disposable income, it is expected that demand for Carboxylic Acids will increase during the forecast period.
Aggressive marketing by the industry players and numerous brand improvement efforts by local manufacturers is attracting more consumers towards Carboxylic Acids and other Carboxylic Acids-based products. Introduction of the different variants of Carboxylic Acids products and numerous health benefits associated with their daily consummation, coupled with increasing popularity among the geriatric population, is expected to boost the sales of the Carboxylic Acids products thus leading to the growth of the Carboxylic Acids market over the forecast period.
In APAC, cosmetics is one of the largest application segments for limonene. In 2018, APAC was the largest and fastest-growing market globally for the beauty and personal care industry. The region will be a driving force in establishing trends during the forecast period. According to a report by Loreal, a global cosmetic brand, the APAC region currently holds ~32% of the global beauty and personal care marketplace.
Vendors in the market are sensitive to local trends and competition. For example, Indonesia, representing the largest Muslim population globally, passed a regulation in 2015 that by 2020 all cosmetics products will have to be labeled as Halal. Whereas in China and India, there is a strong interest in local ingredients and herbal traditions and the properties that these essential oils and other products can bring to personal care products and cosmetics. Asian consumers are also somewhat discerning in terms of packaging. Therefore, with the advent of natural and organic personal care products among consumers in the region, the Carboxylic Acids market in the region is expected to grow significantly during the forecast period.
New product launches, expansion of facilities, mergers and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the company's growth and improve their market growth rate.
For instance, in July 2019, to meet rising demand, the global chemical company Oxea has decided to build a new world-scale production plant for carboxylic acids in Oberhausen, Germany.
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