Asia-Pacific Bio-Based Organic Acids Market Size (2024-2030)

The Asia-Pacific Bio-Based Organic Acids Market was valued at $ 4.92 billion in 2023 and is projected to reach a market size of $ 7.72 billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.7%.

The bio-based organic acids market is expected to be dominated by the Asia-Pacific region. A few things come together to fuel this expansion. There is an increasing demand from sectors such as medicines, food & beverage, and textiles. The usage of alternatives based on petroleum is decreasing due to stronger regulations. More and more customers are looking for environmentally friendly and sustainable items. India and China, with their sizable and expanding populations, provide enormous market potential. Big businesses like DuPont, BASF, and Cargill are putting a lot of money into R&D to produce novel bio-based organic acids and are also increasing their manufacturing capacity to keep up with demand. Some of the most widely manufactured bio-based organic acids in the area include succinic acid, citric acid, and lactic acid. There is no denying the promising future of the Asia-Pacific bio-based organic acids market, provided governments and industry continue to support it.

Key Market Insights:

The market for bio-based organic acids is expected to be led by the Asia-Pacific area. more than 3.7 million hectares of organic farming in the region in 2021—a substantial 26.4% of the world's organic acreage. The broad base of organic agriculture increases demand for bio-based acids as substitutes for traditional ones.

In the Asia-Pacific area, the food and beverage sector is anticipated to be the biggest user of bio-based organic acids. China, which has a big food and beverage sector, saw revenue for businesses with annual turnovers of more than USD 2.8 million surpass USD 1.53 trillion in 2022. This significant expansion suggests that the market for bio-based acids in food and beverage applications is growing.

Asia-Pacific consumers are giving more importance to environmentally friendly items. In 2021, the region's per capita spending on organic products was USD 85.1, with Australia leading the way at USD 58.3. The growing market for bio-based organic acids is a result of the growing need for sustainable substitutes.

Growing governmental restrictions on the use of organic acids derived from petroleum are driving the bio-based industry. It is anticipated that lax regulatory rules pertaining to bio-based acids would further promote market expansion. The producers are encouraged to use bio-based solutions by this change in laws.

Asia-Pacific Bio-Based Organic Acids Market Drivers:

Demand for Bio-Based Organic Acids in Booming Asia-Pacific Industries is Driven by Diversifying Applications

The food and beverage sector in the Asia-Pacific area is a major user of bio-based organic acids. These acids are needed for a few applications in this booming industry, which is expected to generate over USD 1.53 trillion in revenue for big companies in China alone in 2022. As natural preservatives, bio-based acids increase food's shelf life and prevent it from spoiling. Additionally, they are essential for acidification, which gives many well-known foods and beverages their acidic flavour characteristics. Bio-based acids could improve flavours, making eating more enjoyable. There is more to this urge than just food and drink. Bio-based acids are used in a variety of pharmaceutical products by the region's expanding pharmaceutical industry, which is driven by an ageing population and rising health consciousness. Bio-based acids are essential for the vibrant textile sector in Asia-Pacific for processes like fabric finishing and dyeing. In a market that is increasingly focused on environmentally friendly methods, these acids are becoming more and more appealing since they provide a softer and sustainable substitute for traditional choices.

Governments in Asia-Pacific Use Regulations to Fuel the Growth of the Bio-Based Organic Acids Market

Regulations are being used by governments in the Asia-Pacific area as a potent weapon to tackle environmental problems and promote sustainability. Stricter laws designed to reduce the usage of organic acids derived from petroleum are one way that this is being demonstrated. These conventional acids frequently have a heavy environmental cost because of their dependence on non-renewable resources and the possibility of contamination during the manufacturing process. Governments are pressuring firms to switch to bio-based substitutes by enforcing more stringent rules. These bio-based solutions have a far smaller environmental impact since they are made from renewable biomass sources like crops. Tighter rules not only encourage this change but also level the playing field so that bio-based goods may compete more successfully. Government support has been a major factor in the Asia-Pacific bio-based organic acids market's expansion.

 Asia-Pacific Bio-Based Organic Acids Market Restraints and Challenges:

Although promising, the Asia-Pacific bio-based organic acids market has several obstacles. The main obstacle is cost competitiveness. Nowadays, it is frequently more expensive to produce bio-based acids than conventional petroleum-based alternatives. In cost-sensitive market groups, bio-based alternatives may find it difficult to acquire momentum due to this price difference. Technological developments are also required to optimise production processes for price and efficiency. To ensure that bio-based acids can completely meet the capabilities of current alternatives, research and development are also essential to expanding the range and functionality of these products. Securing a consistent source of sustainable feedstock for large-scale manufacturing is another difficulty. This calls for locating trustworthy raw material suppliers without endangering the safety of the food supply or the environment. Furthermore, certain areas of the region lack the infrastructure necessary to produce acid based on biotechnology. This may limit manufacturing capacity and prevent these sustainable alternatives from being widely adopted. Even though consumers are favouring sustainable products, more knowledge regarding organic acids derived from biomass is still required. Informing customers about these items' advantages can greatly accelerate market expansion.

 Asia-Pacific Bio-Based Organic Acids Market Opportunities:

The market for bio-based organic acids in Asia-Pacific is booming. Novel bio-based acids with broader functions might be made possible by continuing research, which also promises to lower manufacturing costs and pave the way for new applications in sectors like bioplastics and personal care. It is anticipated that government assistance in the form of incentives and laws would help the market advance even further, maybe in tandem with industry consolidation through mergers and acquisitions. In the end, the surge in consumer demand for environmentally friendly goods sets up bio-based organic acids for explosive expansion in the future.

ASIA-PACIFIC BIO-BASED ORGANIC ACIDS MARKET REPORT COVERAGE:

 Asia-Pacific Bio-Based Organic Acids Market Segmentation:

 Asia-Pacific Bio-Based Organic Acids Market Segmentation: By Raw Material:

• Biomass
• Corn, maize, sugar
• Other raw materials

The largest and fastest-growing raw material category in the Asia-Pacific bio-based organic acids market is biomass. Its supremacy is due to its accessibility throughout the region, which makes it an affordable and long-lasting choice. Government incentives further consolidate biomass's leadership position in this industry, and the increased emphasis on environmental responsibility complements biomass use nicely.

 Asia-Pacific Bio-Based Organic Acids Market Segmentation: By Product:

• Lactic acid
• Citric acid
• Succinic acid
• Ascorbic acid
• Fumaric acid
• Gluconic acid

It might be difficult to identify which bio-based organic acid is the biggest and fastest-growing in the Asia-Pacific market. Strong candidates include citric acid, which is well-known from its usage in food and drink, succinic acid, a bio-based platform chemical with enormous potential for application in bioplastics and solvents, and lactic acid, a versatile bio-acid utilised in many sectors. For the most accurate view of this dynamic segmentation, it is advised to refer to latest market reports.

 Asia-Pacific Bio-Based Organic Acids Market Segmentation: By Application:

• Food & beverages
• Pharmaceuticals
• Textiles
• Polymers
• Coatings
• Personal care products
• Others

Because there is a large demand for food and drinks in the Asia-Pacific bio-based organic acids market, the food and beverage sector dominate the market. Bio-based acids serve as adaptable flavourings, acidulants, and preservatives that precisely match customer demands for sustainable and healthful goods. The food and beverage industry is without a doubt the leader in the use of bio-based organic acids due to its sheer scale and demand, even if the pharmaceutical and textile industries also exhibit potential.

 Asia-Pacific Bio-Based Organic Acids Market Segmentation: By Region:

• China
• Japan
• Australia & New Zealand
• South Korea
• India
• Rest of Asia-Pacific

China dominates the Asia-Pacific market for bio-based organic acids due to its large population and rapidly expanding textile and food and beverage sectors. Policies of the government that support a robust economy and sustainability strengthen China's position. The Asia-Pacific area presents a more comprehensive image, though, with Southeast Asia's growing potential, South Korea's government backing, India's explosive expansion, and Japan's established industry all pointing to a bright future for bio-based organic acids.

COVID-19 Impact Analysis on the Asia-Pacific Bio-Based Organic Acids Market:

Unquestionably, the COVID-19 pandemic influenced the market for bio-based organic acids in Asia-Pacific. The first interruptions were caused by regulations slowing down the supply chain, which resulted in short-term shortages and price swings. In addition, there was probably a brief drop in demand due to industrial site closures and consumer attention to necessities. The long-term picture, though, may be more complex. The pandemic's focus on hygiene may increase consumer demand for cleaning solutions that include bio-based acids. Furthermore, prospects for development in the future are presented by the e-commerce boom and a possible increase in government funding for sustainability efforts. The Asia-Pacific bio-based organic acids market's long-term trajectory will depend on its capacity to adjust to the changing environment, even if the pandemic created a brief delay.

Recent Trends and Developments in the Asia-Pacific Bio-Based Organic Acids Market:

The market for bio-based organic acids in Asia-Pacific is changing. With businesses extensively investing in R&D to produce more effective and affordable bio-based acids with a larger range of functions, innovation is at the forefront. This is closely related to the investigation of novel uses outside of established industries; bioplastics, personal hygiene, and even agriculture are showing promise. Governments are also important players in the sustainability movement; they do this by enforcing stronger laws and providing incentives for bio-based substitutes. The market's position is being strengthened by the favourable legislative environment and industry consolidation brought about by mergers and acquisitions. Finally, as more people become aware of the advantages of bio-based goods, demand is being driven by an increasingly ecologically concerned customer base. These patterns show a dynamic market that is expanding and expected to play a significant role in a more sustainable future.

Key Players:

1. BASF SE
2. Cargill
3. CJ CheilJedang Corporation
4. Corbion
5. DuPont
6. Evonik Industries
7. Koninklijke DSM N.V.
8. Mitsubishi Chemical Corporation
9. Zhejiang Hisun Biomaterials Co. Ltd.