Isobutyric Acid Market

Updated on : October 25, 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

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.

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