Isobutyric Acid Market by Type (Synthetic, Renewable), End-Use (Animal Feed, Chemical Intermediates, Food & Flavors, Pharmaceuticals), and Region (Asia Pacific, Europe, North America, Rest of the World) - Global Forecast to 2028
Updated on : April 23, 2024
Isobutyric Acid Market
The global isobutyric acid market was valued at USD 180 million in 2023 and is projected to reach USD 269 million by 2028, growing at 8.3% cagr from 2023 to 2028. The demand for isobutyric acid is closely related to its applications in different industries. Industries such as food & flavors, pharmaceuticals, animal feed, chemicals, polymers, and agriculture utilize isobutyric acid in their processes.
Attractive Opportunities in the Isobutyric Acid Market
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Isobutyric Acid Market Dynamics
Driver: Use of isobutyric acid in food & flavor industry
Isobutyric acid is an intermediate which is utilized as a solvent in processes that produce pleasant aromas and flavors. According to EFFA, the flavoring industry, a relatively dynamic sector of the economy, spends about 10% of its annual revenue on research and development (R&D). At present, manufacturers aim at creating inventive organic flavors as a result of technological advancements addressing shifting consumer tastes and needs. Thus, the use of isobutyric acid in the growing food & flavor industry is a major driver for the Isobutyric Acid Industry.
Restraint: Health concerns associated with handling and storage of isobutyric acid
The market is expected to experience restraints due to health risks related to handling isobutyric acid. The effects of isobutyric acid inhalation include coughing, throat pain, and respiratory issues. Consuming isobutyric acid may cause a person to collapse or stomach pain. Isoutyric acid can irritate the skin, burn, cause blisters, and continuous exposure can impair vision. Thus, such health concerns restrain the growth of the market.
Opportunity: Growing demand for bio-based isobutric acid
Isobutyric acid can be produced from renewable feedstocks, making it a potential bio-based alternative to petroleum-based chemicals. The use of bio-based chemicals is being encouraged by governmental legislation and policies that support sustainability and the use of renewable resources. The discovery and manufacture of bio-based compounds such as isobutyric acid are encouraged by incentives, R&D, and renewable energy programmers, which creates opportunity for market demand.
Challenge: Price volatility of raw materials
The price volatility of raw materials for isobutyric acid can be attributed to fluctuations in the prices of various feedstocks, which can be impacted by variables such as supply-demand dynamics, geopolitical events, and changes in production capabilities. Also, as isobutyric acid can be derived from petroleum-based feedstocks, the prices of crude oil and its derivatives can have a significant impact on the raw material costs for isobutyric acid. Crude oil prices have been constantly fluctuating since the drop in 2014. The prices again dipped in 2019 and 2020, with a steady increase from Jan 2021 to March 2022. Thus, such fluctuation of crude oil prices poses a challenge for the market.
ISOBUTYRIC ACID MARKET: VALUE CHAIN
Prominent companies in this market include well-established, financially stable isobutyric acid manufacturers. These companies have been operating in the market for several years and possess a strong product portfolio and strong global sales and marketing networks. Prominent companies in this market include OQ Chemicals GmbH (Germany), Eastman Chemical Company (US), Tokyo Chemical Industry Co., Ltd. (Japan), Snowco (China), Shanghai Aladdin Biochemical Technology Co., Ltd. (China).
Based on type, the synthetic isobutyric acid segment is estimated to have the larger market share during the forecast period.
The synthetic isobutyric acid segment is projected to have the larger share of the isobutyric acid market during 2023 to 2028. Isobutyric acid is synthesized chemically with petroleum feedstocks as raw materials, or it can be biosynthesized with sugar or starch. Synthetic isobutyric acid is used in various end-uses such as agricultural intermediates, food & flavors, chemical intermediates, protective coatings, pharmaceutical chemicals, and fragrance ingredients. Thus, the growth of synthetic isobutyric acid segment can be attributed to the cost effectiveness and easy accessibility of raw materials which include petroleum feedstocks.
Based on end-use, the animal feed segment is estimated to have the largest market share during the forecast period.
The animal feed segment is projected to have the largest market share during 2023 to 2028. Isobutyric acid is used as a feed additive to enhance nutritional benefits and act as a growth promoter. It can also contribute to the feed flavor increasing its intake while boosting animal health. Thus, such factors will propel the growth of this segment.
Based on region, Asia Pacific is projected to account for the largest market share during the forecast period.
Increasing demand for isobutyric acid from the animal feed industry is leading to the growth of the Asia Pacific market. Also, the rising population aided with urbanization in emerging economies such as China, India, Japan, and South Korea are increasing the demand for processed food items. Isobutyric acid being used as a feed additive and a flavoring agent in food & flavor is driving the Asia Pacific market.
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Isobutyric Acid Market Players
OQ Chemicals GmbH (Germany), Eastman Chemical Company (US), Tokyo Chemical Industry Co., Ltd. (Japan), Snowco (China), Shanghai Aladdin Biochemical Technology Co., Ltd. (China), Afyren (France), Lygos, Inc. (US), Dow Inc. (US), Jiangsu Dynamic Chemical Co., Ltd. (China), Weifang Qiyi Chemical Co., Ltd. (China), Yufeng International Group Co., Ltd. (China), Nanjing Chemical Material Corp. (China), FUJIFILM Wako Pure Chemical Corporation (Japan), Hubei Jusheng Technology Co., Ltd. (China) are among the major players leading the market through their geographical presence, enhanced production capacities, and efficient distribution channels.
Isobutyric Acid Market Report Scope
Report Metric |
Details |
Market Size Value in 2023 |
USD 180 million |
Revenue Forecast in 2028 |
USD 269 million |
CAGR |
8.3% |
Market Size Available for Years |
2018 to 2028 |
Base Year Considered |
2022 |
Forecast Period |
2023–2028 |
Forecast Units |
Value (USD Million), Volume (KiloTons) |
Segments Covered |
Grade, Purity, Type, End-Use, and Region |
Geographies Covered |
Europe, Asia Pacific, North America, and RoW. |
Companies Covered |
The major market players include are OQ Chemicals GmbH (Germany), Eastman Chemical Company (US), Tokyo Chemical Industry Co., Ltd. (Japan), Snowco (China), Shanghai Aladdin Biochemical Technology Co., Ltd. (China), Afyren (France), Lygos, Inc. (US), Dow Inc. (US), Jiangsu Dynamic Chemical Co., Ltd. (China), Weifang Qiyi Chemical Co., Ltd. (China), Yufeng International Group Co., Ltd. (China), Nanjing Chemical Material Corp. (China), FUJIFILM Wako Pure Chemical Corporation (Japan), Hubei Jusheng Technology Co., Ltd. (China), and others |
This research report categorizes the isobutyric acid market based on grade, purity, type, end-use, and region.
Based on grade, the isobutyric acid market has been segmented as follows:
- Reagent Grade
- Industrial Grade
Based on purity, the isobutyric acid market has been segmented as follows:
- More than 98%
- Less than 98%
Based on type, the isobutyric acid market has been segmented as follows:
- Synthetic Isobutyric Acid
- Renewable Isobutyric Acid
Based on end-use, the isobutyric acid market has been segmented as follows:
- Animal Feed
- Food & Flavor
- Chemical Intermediate
- Pharmaceutical
- Others
Based on the region, the isobutyric acid market has been segmented as follows:
-
Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
-
Europe
- Germany
- France
- UK
- Italy
- Rest of Europe
-
North America
- US
- Canada
- Mexico
-
Rest of the World (RoW)
- Middle East & Africa
- South America
Recent Developments
- In January 2023, OQ Chemicals expanded its manufacturing capacity for carboxylic acids. The company invested in a debottlenecking and optimization project for precursors at its facilities in Germany.
- In January 2023, Afyren and Mitr Phol, a manufacturer of cane sugar and its derivatives, signed a Letter Agreement to establish a biorefinery in Thailand. As per the agreement, the second bio-based organic acid production facility for the Afyren Group would be built. It is consistent with Afyren’s build and operate development strategy, which aims at reaching markets where it sources its raw materials and its customers, with a focus on Asia and North America.
- In April 2021, Eastman Chemical Company acquired 3F Feed & Food, a European pioneer in the technological and commercial advancement of additives for animal feed and human food. Spain-based 3F's operations and assets joined Eastman's additives & functional products segment and enabled it to improve and assist the animal nutrition company's ongoing global expansion.
Frequently Asked Questions (FAQ):
What is the current size of the isobutyric acid market?
The isobutyric acid market is projected to grow from USD 180 million in 2023 to USD 269 million by 2028, at a CAGR of 8.3% from 2023 to 2028.
Which region is expected to hold the highest market share in the isobutyric acid market?
The isobutyric acid market in Asia Pacific is estimated to hold the highest market share, owing to the increase in demand for high-quality meat products which has led to the high demand for feed additives.
Which is the major end-use industry of isobutyric acid?
The animal feed segment is the major end-use industry of isobutyric acid.
Who are the major players operating in the isobutyric acid market?
The major players operating in the market include OQ Chemicals GmbH (Germany), Eastman Chemical Company (US), Tokyo Chemical Industry Co., Ltd. (Japan), Snowco (China), Shanghai Aladdin Biochemical Technology Co., Ltd. (China).
What is the total CAGR expected to record for the isobutyric acid market during 2023-2028?
The market is expected to record a CAGR of 8.3% from 2023-2028. .
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14 ADJACENT AND RELATED MARKETS (Page No. - 175)
The study involved four major activities in estimating the current market size of isobutyric acid. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizes with industry experts across the value chain of isobutyric acid through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the size of the segments and sub-segments of the market.
Secondary Research
The research methodology used to estimate and forecast the access control market begins with capturing data on revenues of key vendors in the market through secondary research. In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, Factiva, World Bank, and Industry Journals, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; notifications by regulatory bodies; trade directories; and databases. Vendor offerings have also been taken into consideration to determine market segmentation.
Primary Research
The Isobutyric Acid Industry comprises several stakeholders, such as raw material suppliers, isobutyric acid manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the isobutyric acid market. Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries.
Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the isobutyric acid market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the isobutyric acid market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
Global Isobutyric Acid Market Size: Bottom-Up Approach
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Global Isobutyric Acid Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the isobutyric acid sources.
Market definition
According to Afyren, a global biotech company, isobutyric acid is an isomer of butyric acid, consisting of four-carbon saturated monocarboxylic acid. Isobutyric acid is a branched fatty acid and has the appearance of a colorless liquid with a faint unpleasant butter odor. Isobutyric acid esters are utilized as solvents in a variety of applications where flavor and aroma quality is crucial. Isobutyric acid is available in two grades, namely reagent grade and industrial grade and can be used as a flavoring agent, feed additive, chemical intermediate or as a raw material in the synthesis of certain Active Pharmaceutical Ingredients (APIs).
Key Stakeholders
- Manufacturers of isobutyric acids
- Manufacturers in end-use industries
- Traders, distributors, and suppliers of isobutyric acids
- Regional manufacturers and chemical associations
- Contract manufacturing organizations (CMOs)
- Market research and consulting firms
- NGOs, governments, investment banks, venture capitalists, and private equity firms
- Environmental support agencies
Report Objectives:
- To analyze and forecast the market size of isobutyric acid in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global isobutyric acid market on the basis of type, end-use and region.
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders.
- To strategically analyze the micromarkets with respect to individual growth trends, growth prospects, and their contribution to the overall market
- To forecast the size of various market segments based on four major regions: North America, Europe, Asia Pacific, and Rest of the World (RoW), and along with their respective key countries.
- To track and analyze competitive developments, such as mergers, investments, acquisitions, expansions, partnerships, contracts, agreements, and joint ventures, in the market.
- To strategically profile the key players and comprehensively analyze their market shares and core competencies.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the isobutyric acid market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Growth opportunities and latent adjacency in Isobutyric Acid Market