Global Salicylic Acid Market Size (2024 - 2030)

The Global Salicylic Acid Market was valued at USD 389.61 Million in 2023 and is projected to reach a market size of USD 559.28 Million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.3%. The growing demand for salicylic acid in cosmetics, increasing prevalence of skin conditions, and increased demand for salicylic acid from the preserved food & beverage industry and pharmaceutical industry are some factors majorly driving the market growth.

Industry Overview:

Salicylic acid has the chemical formula C7H6O3 and is a lipophilic monohydroxybenzoic acid, a type of phenolic acid, and beta hydroxy acid. Physically, it is a crystalline organic acid that is odorless and colorless. In the pharmaceutical and personal care industries, salicylic acid is used as an intermediary. A rise in the prevalence of chronic acne vulgaris in adults and teenagers, owing to sedentary lifestyles and increased fast-food intake, is likely to boost salicylic acid demand. Anti-inflammatory and antibacterial effects have also been discovered in salicylic acid. It possesses fungicidal effects when combined with benzoic acid in an ointment. Salicylic acid is used in the cosmetics, healthcare, and pharmaceutical industries owing to its fungicidal, anti-microbial, keratolytic, anti-inflammatory, and comedolytic qualities. Salicylic acid is also utilized in cosmetics as it aids in moisturizing and dissolving the material that binds the skin layers together. The increased demand for aspirin and pain relievers for various disorders is driving the market demand for salicylic acid. The market is being driven by rising health awareness in emerging countries, which is driving up demand for skin care and hair products. Furthermore, a sedentary lifestyle has increased the consumption of preservative-laden foods and beverages. Salicylic acid aids in the prevention of rotting and fermentation of packaged foods which has increased its demand in the food and beverage industry. However, strict regulations in the food and beverage industry, as well as the cosmetics industry, present a challenge for the salicylic acid market. With the boom in demand for salicylic acid from the pharmaceutical and cosmetics sectors for shampoos, lotions, creams, moisturizers, and oral care treatments, Asia-Pacific is the fastest expanding region across the globe. The global salicylic acid market is highly fragmented, with only a few producers offering various pricing structures based on the end-use application.

COVID-19 pandemic impact on Salicylic Acid Market

The demand and manufacturing activities of salicylic acid have been affected during the Covid-19 pandemic. Manufacturing facilities were forced to close as a result of the lockout. Furthermore, supply and distribution for application sectors were halted owing to supply chain disruptions. Application industries faced issues like labor shortages, a lack of raw supplies, and manufacturing operations disruptions, among others. As a result, there was less need for salicylic acid. The pandemic had a significant influence on research and development since corporations were discouraged from investing in any newer aspects of research or product creation. The demand for salicylic acid fell dramatically in the first half of 2020, as the great majority of customers focused on stocking up on basic home items, resulting in lower sales of cosmetics and personal care products. As the pandemic proceeded, natural and organic personal care products witnessed widespread appeal, with many people focusing on restoring their skin and hair health despite the lockdown and social limitations. Furthermore, throughout the pandemic, steady demand for medications has given salicylic acid suppliers ongoing prospects. Improving sales of beauty and cosmetic items, as well as the progressive relaxation of lockup limitations, could ensure the salicylic acid industry's attractive growth possibilities in the approaching years. Furthermore, salicylic acid's widespread use in the pharmaceutical business to make acetylsalicylic acid, phenyl salicylate, sodium salicylate, methyl salicylate, and methyl salicylate may support market expansion.

MARKET DRIVERS:

The growing demand for salicylic acid in cosmetics is driving the market growth

In the prevention of acne and related cosmetics, the use of salicylic acid, a multifunctional chemical that targets many of the systemic causes of blemishes, is on the rise. Salicylic acid is becoming more popular, with experts citing its development as a substitute for glycolic acid as a crucial growth agent. With the rise in adult acne sufferers, cosmetics with acne-fighting characteristics are currently experiencing a surge in popularity. Beauty manufacturers are introducing acne-fighting ingredients into their color cosmetic lines, and names such as Almay, Neutrogena, and Lancome are now offering acne-fighting foundations. Salicylic acid has been shown to exfoliate, degrease the skin, reduce inflammation, and improve the appearance of pores, making it a popular ingredient in acne-related skincare products.

Increased demand for salicylic acid from the preserved food & beverage industry and pharmaceutical industry is driving the growth of the market

Salicylic acid is widely utilized in the pharmaceutical industry to make a variety of drugs, including acetylsalicylic acid (aspirin), phenyl salicylate, salicylic acid amine, methyl salicylate, and sodium salicylate. The increase in the number of human infectious disorders has grown the need for these treatments, creating a lucrative market for salicylic acid. Furthermore, rising demand for salicylic acid derivatives such as chlorine salicylate and methyl salicylate as a liniment for muscle and joint discomfort is likely to drive demand. The increasing usage of salicylic acid in preserved food & beverages industry is also driving the market growth.

MARKET RESTRAINTS:

The negative impacts of hydroxyacetic acid on human health and the environment are likely to hinder the growth of the salicylic acid industry

The increasing use of hydroxyacetic acid in cosmetic and personal care can be harmful to the skin. If used in excess, it can irritate the eyes, and cause itching, swelling, and inflammation of the skin. Consumer awareness of salicylic acid's negative effects is likely to drive them to naturally derived goods such as grape juice, thyme, rosemary, and tea tree oil, which can be used as a substitute for salicylic acid. People all around the world are focused on the organically derived alternative as they become more aware of the effects of salicylic acid on human health, which could lead to a decrease in demand. The product has negative environmental effects as phosgene gas is released in manufacturing. Stringent environmental regulations imposed by the government over phosgene gas are restraining factors for market growth.

The stringent regulations concerning the permit limitation for salicylic acid in various products are likely to hinder the profit boundaries

The European Commission issued a Corrigendum to its revision to Cosmetics Regulation in March 2020. Salicylic acid, a well-known cosmetic component recognized for its anti-dandruff, hair and skin conditioning, and keratolytic qualities, has received an upgrade. The Corrigendum addresses the usage of salicylic acid for uses other than preserving cosmetics. The public has become more aware of the dangers of excessive salicylic acid consumption, and regulatory bodies such as the Food and Drug Administration (FDA) are enforcing stricter regulations on the maximum permissible limit for salicylic acid in various products, limiting the compound's growth over the years.

SALICYLIC ACID MARKET REPORT COVERAGE:

This research report on the global salicylic acid market has been segmented and sub-segmented based on application, and region.

Salicylic Acid Market – By Application

• Cosmetics
• Pharmaceutical
• Food Preservatives
• Others

Based on Application, the Salicylic Acid Market is bifurcated into Cosmetics, Pharmaceuticals, Food Preservatives, and Others. In terms of volume, the pharmaceutical segment held the largest market share in 2021. In terms of volume, it has a 59.8 percent share in 2021. Salicylic acid has anti-inflammatory effects, thus it is used in medicines. It's a vital component in the production of aspirin and combines with acetic acid to create the drug. Aspirin is anti-inflammatory medicine and a pain reliever that is commonly used in treating fever, colds, and cough. Furthermore, it is one of the most widely prescribed pharmaceutical drugs in the world, and its use is on the rise due to its exceptional pain-relieving properties. 

The market was dominated by pharmaceutical applications owing to the increasing use of salicylic acid-based drugs for the treatment of various skin-related disorders and cardiovascular diseases and Hughes syndrome. The advancement in the medical industry in terms of research activity led to innovations coupled with technological enhancements, which has led to a rise in the application scope of salicylic acid to treat various diseases. The increased usage of salicylic acid-based medications for the treatment of various skin conditions, cardiovascular diseases, and Hughes syndrome, is driving the segment growth. Salicylic acid's application scope has expanded as the medical business has progressed in terms of research activities, resulting in discoveries and technological advancements.

The Food and Preservatives segment is predicted to register a significant growth rate during the forecast period. Salicylic acid and its derivatives are increasingly being utilized in the food and beverage industry to prevent spoilage and fermentation, which is likely to drive up market demand. Furthermore, the increased usage of salicylic acid as a preservative to extend the shelf life of products such as sauces, beer, and wine is predicted to boost salicylic acid demand. The rise of retail shopping in sophisticated nations around the world has influenced food manufacturing industries to extend the shelf-life of their products, which is anticipated to fuel salicylic acid growth.

The Cosmetics segment is anticipated to register a high growth rate during the forecast period. The strong demand for facial creams and acne control preparations is fuelling the demand for salicylic acid products. The salicylic acid market is predicted to witness an increase in demand for shampoos and conditioners that are used to treat a variety of hair problems. Furthermore, rising incidences of skin problems such as zits, warts, and pimples are likely to fuel growth for salicylic acid-based solutions. Over the projected period, growth is likely to be aided by rising demand for cosmetic items in Europe, North America, and the Asia Pacific, as well as increased self-prescription of these products for the treatment of minor skin ailments.

Salicylic Acid Market - By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World

Geographically, the North American Salicylic Acid Market accounts for a significant share of the global market owing to the owing to shelf-life extension solutions in food and beverages applications, increasing use of preservatives by key food and beverage manufacturers such as Cargill Foods, Tyson, and Heinz located in the U.S. North America and Europe are leading markets for salicylic acid offering huge growth opportunities. The pharmaceutical sector in these regions is growing, which is helping the salicylic acid industry. The improved consumer awareness of pharmaceuticals and increased consumerization of health are driving the market growth. The pharmaceutical sector in these regions, and hence the salicylic market, is also benefiting from the aging populations in North America and Europe. Additionally, the growing consumer health care market in the North American and European regions owing to better access to public and private health insurance is also aiding the salicylic industry.

The European Salicylic Acid Market is poised to account for a significant market share during the forecast period, owing to a burgeoning skincare and haircare industry fueled by rising health and hygiene awareness in the region. Additionally, the rising use of aspirin to treat and prevent disorders like strokes and dementia among the elderly population is likely to fuel market expansion over the forecast period. The European Commission's strict limits on the use of salicylic acid, on the other hand, are likely to stifle growth.

Asia-Pacific Salicylic Acid Market is predicted to expand at a high CAGR over the projection period. Consumer markets such as personal care and pharmaceuticals are fast expanding in China and Japan. The region includes large industrial players, particularly in China. Furthermore, the low cost of Chinese salicylic acid firms is a significant competitive advantage. With changing lifestyles and regional consumer reliance on medications for health-related ailments, Asia Pacific has seen a boom in salicylic acid demand. Over the forecast period, a positive prognosis for the food and pharmaceutical industries in China, India, Japan, and South Korea is predicted to boost demand. Furthermore, the growing fashion industry may result in increased demand for skin care products, which may fuel salicylic acid demand and act as a major driving factor for the market during the projection period.

The salicylic acid market in Latin America is predicted to grow at a high rate during the forecast period. The chemical is a prominent element in preservatives, which are in high demand owing to the rising demand for packaged food products. In addition, rising demand for medicated cosmetics, as well as increased use of salicylic acid-based pharmaceutical treatments for conditions like Hughes syndrome and dementia, is likely to boost market expansion over the forecast period. Manufacturers are focusing their efforts on this promising region, investing substantially to bring the latest technology and expand production capacity to meet the region's growing demand. Furthermore, the growing fashion industries in countries such as Brazil and Argentina may contribute to an increase in demand for skin care products, which could lead to an increase in prices.

Major Key Players in the Market

1.  Alfa Aesar
2. J.M. Loveridge Ltd.
3. Alta Laboratories
4. Siddharth Carbochem Products Ltd.
5.  Hebei Jingye Group
6. Zhenjiang Gaopeng Pharmaceutical Co. Ltd
7. Shandong Xinhua Longxin Chemical Co. Ltd.
8. Loveridge Ltd.
9. Novocap
10. Simco Chemicals.

Pharmaceutical firms like Bayer, haircare, and skincare companies like Neutrogena, Clean & Clear, and St. Ives, and food and preservatives companies like Tyson, Heinz, and Mondelez are among the top buyers of salicylic acid products.

The number of domestic participants is significant, with the majority of them working on smaller stages. In addition, the leading salicylic acid producers are executing a global market development plan and embracing international advanced quality management and certification standards such as GMP, ISO9001, ISO14001, ISO 10012, and ISO22000. Domestic manufacturers are increasingly focusing on forming strategic alliances with a variety of multinational firms to expand their product offerings internationally. Mergers and acquisitions are common tactics for gaining market share in the market.

Notable happenings in the Global Salicylic Acid Market in the recent past:

• Product Launch -  In January 2022, one of the Ordinary's most popular product lines, the Salicylic Acid 2 percent Solution, called the most sought-after acne-fighting ingredient, has made a comeback on deciem.com and in the Ordinary's stores. Salicylic Acid 2 percent Anhydrous Solution and Salicylic Acid 2 percent Masque is included in the newly relaunched goods, which will appeal to skin-care fans.
• Product Launch- In February 2022, Sweet Chef released pimple patches with decongesting salicylic acid resurfacing carrot, and brightening ginger, which works on inflamed skin while reducing the risk of post-acne hyperpigmentation.
• Product Launch- In May 2021, Kiehl’s, a cosmetics and personal care company launched Breakout Control Blemish Treatment Facial Lotion, which is moisturized and enriched with salicylic acid. The lotion is formulated to reduce blemishes and soothe skin.
• Product Launch- In January 2020, Boots UK Limited, a health and beauty retailer and pharmacy business, unveiled a completely new type of ingredient-led collection intended to compete with The Ordinary. The salicylic acid serum aids in the removal of oil from the skin, resulting in a less greasy appearance.
• Product Launch- In May 2019, The Ordinary, a skincare line, released a new face mask called Salicylic Acid 2 percent Masque, which retailed for EUR 9.90. Salicylic acid is a crucial element in the treatment, and it's complemented with charcoal and clays, which help to deep cleanse the face.