Bio-based Organic Acids Market Size (2023 -2030)

In 2022, the Global Bio-based Organic Acids Market was estimated to be USD 8.53 Billion and is projected to reach a value of USD 19.94 Billion by the end of 2030, growing at a fast CAGR of 11.2% during the outlook period 2023-2030.

The market for organic acids that are produced, sold, and distributed using sustainable biomass sources is known as the "bio-based organic acids market." A category of substances known as organic acids is distinguished by the presence of one or more carboxyl (-COOH) functional groups. They are used in a variety of sectors, including agriculture, medicines, chemicals, and food & beverage. In the past, petroleum-based feedstocks were predominantly used to create organic acids by chemical synthesis. However, there has been an increase in interest in bio-based organic acids made from renewable resources including biomass, agricultural wastes, and waste streams as a result of the focus on sustainability and the need for eco-friendly substitutes. Bio-based organic acids are created by microorganisms like bacteria and fungi fermenting biomass feedstocks. Sugars, starches, lignocellulosic materials, and other organic waste are examples of potential feedstocks. These feedstocks are transformed into organic acids during the fermentation process, which may subsequently be separated, purified, and utilized in a variety of ways. The market for bio-based organic acids is propelled by reasons such as rising consumer demand for environmentally friendly and sustainable goods, the need to lessen reliance on fossil fuels, and government programs encouraging the use of renewable resources. As more industries use bio-based organic acids as substitutes for petroleum-based ones as a result of their advantages, the market is anticipated to keep expanding.

Global Bio-based Organic Acids Market Drivers:

Government Support and Industry Demand Drive Growth of Bio-based Organic Acids Market:

A greater emphasis is being placed on sustainable alternatives to petroleum-based goods as a result of rising environmental consciousness and worries about climate change. Compared to its equivalents made from fossil fuels, bio-based organic acids provide a more ecologically responsible alternative. Demand for greener solutions that minimize carbon emissions, lessen reliance on non-renewable resources, and support a circular economy is what propels the industry. Governments all across the globe are putting rules and guidelines into place to encourage the use of bio-based goods. These policies cover incentives, tax breaks, subsidies, and requirements for renewable energy. Supportive laws and regulations promote the creation and application of bio-based organic acids, hence promoting market expansion. Many sectors of the economy, including food and beverage, medicines, chemicals, and agriculture, are looking for environmentally friendly substitutes for conventional chemical compounds. Applications for bio-based organic acids include taste enhancers, pH regulators, preservatives, and building blocks for biodegradable chemicals and polymers. The market for bio-based organic acids is expanding in response to customer desire for natural and environmentally friendly goods, which is driving demand from these sectors.

Collaborative Partnerships Propel Development and Commercialization of Bio-based Organic Acids:

The efficacy and economy of bio-based organic acid generation have increased thanks to developments in biotechnology, fermentation techniques, and metabolic engineering. With the help of these developments, it is now feasible to extract organic acids from a variety of feedstocks, improve the fermentation process, and raise production yields. The feasibility of bio-based organic acids improves as technology advances, lowering manufacturing costs and boosting market growth. The development and commercialization of bio-based organic acids are accelerated through cooperation between stakeholders in the industry, academic institutions, and governmental organizations. Partnerships facilitate the pooling of information, skills, and assets, which improves manufacturing techniques, market penetration, and product innovation. Collaboration creates a climate that is conducive to the market expansion for bio-based organic acids.

Global Bio-based Organic Acids Market Challenges:

It might be difficult to find biomass feedstocks that are both affordable and sustainable for the manufacture of bio-based organic acids. Feedstock resources are subject to competition from a variety of businesses, including animal feed and biofuels, which can increase costs and reduce the supply of acceptable feedstocks. For the market to expand sustainably, there must be a reliable and inexpensive supply of feedstocks. The manufacture of bio-based organic acids is now more efficient because of developments in biotechnology and fermentation techniques, but there are still technological hurdles to be solved. The manufacture of some organic acids can be difficult and complex because they may need particular bacteria or fermentation conditions. To improve manufacturing methods and get over technological obstacles, further study and development are required. For bio-based organic acids, scaling up production from laboratory to commercial levels can be quite difficult. It is challenging to scale up manufacturing procedures and keep costs low and product quality high. It necessitates large expenditures on equipment, infrastructure, and process improvement. Regarding process stability, cost-effectiveness, and market competitiveness, the move from pilot projects to large-scale commercial production may present difficulties.

Impact of COVID-19 on the Global Bio-based Organic Acids Market:

Global supply networks, particularly the accessibility and movement of raw materials and completed goods, have been disrupted by the epidemic. The manufacturing and delivery of bio-based organic acids have been disrupted by mobility restrictions, lockdowns, and decreased personnel. This has made it difficult to fulfill market demand and maintain a stable supply. Several end-use sectors, including food and beverage, medicines, and chemicals, have been impacted by the epidemic. These sectors have seen changes in the demand for bio-based organic acids. While certain industries, including food and medicines, have remained resilient, others, like non-essential chemicals, have been negatively impacted by decreased demand and operational disruptions. Consumer tastes have changed as a result of the pandemic, with a stronger emphasis now being placed on hygiene, sustainability, and good health. Because they are in line with changing consumer expectations, bio-based organic acids may benefit from this change. The use of bio-based organic acids in a variety of applications may be influenced by rising consumer demand for natural and environmentally friendly goods. Government Support and Stimulus Packages: To lessen the effects of the epidemic, governments throughout the globe have put in place support programs and stimulus packages. By offering financial assistance, supporting environmentally friendly and sustainable efforts, and encouraging investment in the economy, these initiatives can improve the market for bio-based organic acids.

Global Bio-based Organic Acids Market Recent Developments:

• In May 2022, a leading chemical firm BASF announced the extension of its line of bio-based organic acids. A novel biodegradable and compostable polymer based on bio-based succinic acid was created by the business. The polymer is more environmentally friendly and has uses in textiles, agriculture, and packaging.

• In October 2022, the Production of bio-based lactic acid has advanced due to Corbion, a pioneer in sustainable ingredients and solutions. To fulfill the rising demand for environmentally friendly solutions in the Asia-Pacific region, the firm revealed its plans to build a new lactic acid facility in Thailand. The company's dedication to supplying bio-based organic acids to a larger market is demonstrated by its expansion.
• Organic acids are among the bio-based chemicals produced by Myriant, a division of the global corporation Rennovia. In December 2021, the business declared that its bio-based succinic acid manufacturing technology has successfully been scaled up.

BIO-BASED ORGANIC ACIDS  MARKET REPORT COVERAGE:

Global Bio-based Organic Acids Market Segmentation: By Type

• Citric Acid

• Lactic Acid

• Succinic Acid

• Acetic Acid

• Others

One of the most frequently generated and used organic acids is citric acid. It is used as a flavor enhancer, acidulant, and preservative in the food and beverage sector. In addition, it is utilized in home cleansers, personal care items, and medications. The rising preference for natural and clean-label components in various consumer products is what is driving the need for bio-based citric acid. Numerous industries, including those in the food and beverage, pharmaceutical, personal care, and industrial sectors, use lactic acid. It serves as a pH regulator, preservative, and flavoring ingredient in the food sector. Additionally gaining favor as eco-friendly packaging materials are biopolymers based on lactic acid. The market for bio-based lactic acid is expanding as a result of rising consumer demand for environmentally friendly and biodegradable goods. Applications for succinic acid are many and include bioplastics, polymers, resins, solvents, and medicines. It is a crucial component in the creation of biodegradable polybutylene succinate (PBS) and polybutylene succinate adipate (PBSA), which may find use in the packaging, textile, and automotive sectors. The desire for environmentally friendly substitutes for chemicals derived from petroleum is what drives the market for bio-based succinic acid.

Global Bio-based Organic Acids Market Segmentation: By End-User

• Food and Beverages

• Pharmaceuticals

• Chemicals

• Agriculture

• Others

The business of food and drink consumes a lot of bio-based organic acids. Numerous food and beverage items use organic acids such as citric acid, lactic acid, and malic acid as acidulants, preservatives, taste enhancers, and pH regulators. The introduction of bio-based organic acids in this business is being driven by the rising customer desire for natural and nutritious food items. Bio-based organic acids are used in a variety of therapeutic applications. In medicine formulations, organic acids like succinic and gluconic acids are employed as excipients, pH regulators, and in the manufacture of active pharmaceutical ingredients (APIs). The need for bio-based organic acids in pharmaceutical applications is being driven by the industry's growing emphasis on sustainability and green chemistry. Bio-based organic acids are consumed widely by the chemical industry. As components and intermediates, organic acids are used in the manufacture of specialized chemicals, biodegradable polymers, solvents, and resins. The plastics, coatings, adhesives, and personal care goods sectors all utilize them. The demand for bio-based organic acids in this business is being driven by the trend toward environmentally friendly and biologically derived compounds.

Global Bio-based Organic Acids Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Canada and the United States are two of the nations that make up the majority of the market area in North America. Bio-based organic acids have a large market in North America due to the region's propensity for buying environmentally friendly and durable goods. The region's leading companies' presence and technical improvements support market expansion. As a result of the region's strict environmental laws and emphasis on sustainability, bio-based goods are becoming more popular. Innovative product creation and a significant focus on circular economy concepts are characteristics of the European market. The region's market is expanding as a result of quick industrialization, rising population, and rising consumer concern for sustainability. The growth of the market is aided by the availability of plentiful biomass feedstocks and government programs to encourage bio-based goods. The area has ideal biomass production conditions, making it a desirable market for bio-based goods. The expansion of the market in Latin America is being fueled by rising government backing and investments in R&D.

Global Bio-based Organic Acids Market Key Players:

1. BASF SE

2. Cargill, Incorporated

3. DSM

4. Archer Daniels Midland Company

5. Corbion

6. Myriant Corporation

7. Novozymes A/S

8. Tate & Lyle PLC

9. BioAmber Inc.

10. Genomatica, Inc.