The demand within the global market for carboxylic acids has been escalating on account of advancements in the chemical industry, finds Transparency Market Research (TMR). The market vendors in the global carboxylic acids market have been focusing on expanding their geographical as well as industrial reach by entering into alliances and partnerships. Furthermore, these market vendors are projected to stay relevant amidst the ever-changing trends in the market by conducting rigorous research and analysis. It is anticipated that mergers and acquisitions would become the watchword for the global market for carboxylic acids over the forthcoming years.
The competitive landscape of the global carboxylic acids market is highly fragmented due to the presence of a large number of market players. Around 22% of the total market share is held by the top five market players, and this is reflective of the progressive fragmentation within the market. The small market vendors are projected to deploy financial analysis techniques in order to meet their break-even points. Furthermore, the profit margins for the small and medium-sized players are narrow due to the presence of a large number of market vendors. Some of the key vendors in the global carboxylic acids market are BASF SE, Celanese Corporation, Eastman Chemical Company, and The Dow Chemical Company.
The global market for carboxylic acids is expected to expand at a moderate CAGR of 4.9% over the period between 2015 and 2023. Furthermore, the market was valued at US$12.14 bn in 2014 and is expected to touch a value of US$18.49 bn by 2023-end. Geographically, the demand within the market for carboxylic acids in Asia Pacific is expected to outdo other regional segments. Based on end-use industry, the chemical industry has been a major consumer of carboxylic acids over the past decades.
Utility of Carboxylic Acid to Drive Demand
The demand within the global market for carboxylic acid has been rising on account of the multi-industry usage of this acid. Primarily, carboxylic acid is a key ingredient for several processes and testing methods in the food and beverages industry. Furthermore, the use of carboxylic acid for the manufacture of dyes, shampoos, and other beauty products in the cosmetics industry has also led to an increased demand within the global market. The demand for animal feeds has escalated in recent times, and hence, the use of carboxylic acid for manufacturing animal feeds has enhanced the growth prospects of the global market. Furthermore, the consumer goods and agriculture sectors are amongst other key consumers of carboxylic acids.
Strict Manufacturing Laws to Hamper Market Growth
Despite the boisterous growth rate of the global carboxylic acids market, the demand is restrained by the high cost of these acids. Furthermore, the strict regulations with regards to the manufacture of petro-based carboxylic acids have also posed threats to the growth of the global market. Substitutes of carboxylic acids are easily available in the market in the contemporary times. This factor is also expected to play a major role in restraining the growth of the global carboxylic acids market.