Malic Acid Market Size, Share & Trends Report

Malic Acid Market Size, Share & Trends Analysis Report By End-use (Beverage, Confectionery, Personal Care & Cosmetics), By Region, Competitive Landscape, And Segment Forecasts, 2018 - 2024

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-371-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 99

Industry Insights

The global malic acid market size was valued over USD 159 million in 2016. Increasing global food pH regulators requirement coupled with a high demand for naturally or synthetically derived flavoring agents and acidulants for several food and beverage applications is anticipated to drive the malic acid market growth over the forecast period. 

U.S. malic acid market

The introduction of new products, such as nutritional bars and protein drinks, is further expected to drive malic acid demand over the long term. Surging demand for healthier functional beverages coupled with the increasing ability of companies to provide these products with enhanced nutrient flavors and innovative packaging is expected to fuel market growth over the forecast period. 

The U.S. malic acid market is estimated to witness moderate growth on account of increasing demand in ciders & wines, frozen desserts, and innovations in doughnut processing, which includes exotic fruit fillings, chocolate variants, and savory flavors has created new avenues for future investments in the industry. Approval of the product as GRAS by the U.S. FDA has further promoted commercialization of food grade product and requires R&D spending in this sector.

Approval from other regulatory bodies such as Food Safety and Standards Authority of India (FSSAI) and European Food Safety Authority (EFSA) is expected to increase malic acid market penetration in Asia Pacific and Europe over the forecast period. The EPA and European Commission implemented regulations to fuel the production and consumption of natural based ingredients.

The basic raw materials used in the production of malic acid include maleic anhydride and fumaric acid, which are petroleum derivatives. The synthetic method of malic acid production from maleic acid and fumaric acid creates an undesired racemic mixture for food purpose and causes problems in the polymerization processes.

As a result, food & beverage manufacturers are focusing toward fortification of naturally derived additives in product offerings to guarantee raw material availability in future and earn carbon benefits, by reducing reliance on synthetic-based chemicals. It is majorly used in acidulants and flavoring agents in food processing industry.

Higher investment and significant growth of food & beverage industry, particularly in BRICS and the Middle East are anticipated to remain a major factor driving food acids demand. Rising consumption of food & beverage products at domestic level in light of the new product launches and expansion of the retail network is anticipated to promote industry growth in BRICS.

Major raw material suppliers include maleic anhydride and fumaric acid manufacturers. Most of these companies have forward integrated their operations to manufacture malic acid on account of similar business operations and low operating costs. This has led to increasing the overall profitability of these companies. Some of the independent maleic anhydride and fumaric acid manufacturers include Huntsman and Lanxess.

Relatively stable malic acid market prices over the last few years owing to proper supply and demand management enhanced the product usage in finished products over the past five years. Average spot prices in the period of 2008 to 2014 were as high as USD 2,415 per ton and as low as USD 1,768 per ton. North American average spot price was USD 1,790.0 per ton in 2010 and witnessed a steep increase during 2013 to 2014 owing to high crude oil prices and low malic acid production capacity utilization. A similar trend was observed in other regions as well.

End-use Insights

Beverages sector dominated the overall end-use industry for malic acid. This segment includes both carbonated and non-carbonated beverages including flavored drinks as well as alcoholic ciders. Increasing liquid and powdered beverage consumption along with surging artificial flavoring agents demand in carbonated drinks are estimated to drive malic acid demand in beverages over the next few years.

Global malic acid market

Regional preferences in confectioneries and beverages play a considerable role in the malic acid market growth of specific flavor blends such as ethnic and exotic varieties. Increasing processed food demand globally along with rising pH regulators demand in bakery products, and confectioneries such as chocolate and hard candies are expected to augment the demand growth over the next six years. The confectionery & food sector is anticipated to account for over 41% of the total demand by 2024.

Young consumers looking for new product recipes and flavors in confectionery are expected to drive innovation in product manufacturing over the long term. The global increase in cosmetics product demand is expected to augment malic acid market growth over the forecast period. The product also finds significant application in various skin care products which improve appearance and rejuvenates facial skin.

Regional Insights

Asia Pacific emerged as the leading regional segment and dominated the global malic acid demand in 2015. The regional market is estimated to grow at a CAGR of over 6% over the forecast period. Growing processed food and ready-to-drink beverage segments in economies of India, China, and Japan are anticipated to steer product demand over the forecast period.

The growth of the Indian malic acid market can be attributed to various factors including the evolving consumer preference towards processed food and flavored beverages. This trend is providing scope for differentiation and ample opportunities for industry penetration in both urban and semi-urban sectors. This is anticipated to increase R&D investment for innovations in product formulations and enhance competition among manufacturers over the next few years.

North America accounted for a share of 25.3% of the total revenue in 2015. Rising confectionery and bakery products demand along with shifting consumer trend towards specialty personal care and cosmetic products in the region especially in the U.S. and Mexico is anticipated to drive the malic acid demand over the forecast period.

A rising trend in consumption of beverages such as ready to drink tea, energy drinks, carbonated refreshment, and sports drinks is witnessed across various consumer demographic in the region. The introduction of low-calorie beverages in the market is also expected to augment North American demand over the next eight years. Central & South America is estimated to witness sluggish growth owing to the insignificant regulatory scenario. Brazil was the frontrunner in the region with a net worth exceeding USD 2.85 million in 2015.

Malic Acid Market Share Insights

The global malic acid industry is moderately fragmented owing to the presence of various small and medium scale industry participants. Some of the key manufacturers include Bartek Ingredients, Thirumalai Chemicals, Polynt, Lonza, and Fuso Chemicals.

The global malic acid industry is marked with the presence of significant number of multinational and domestic players. The leading players are investing in R&D and are focusing on increasing application scope as their main strategy to tap the local markets. Innovative product development to cater the specific client requirements for different product grades are expected to drive industry competitiveness.

Microbial biosynthesis of malic acid is expected to create immense opportunities for market participants over the next six years owing to the associated drawback of the petrochemical manufacturing process. Lower crude oil and petrochemical spot prices may also prove to be lucrative opportunities for malic acid market expansion over the foreseeable future.

Some of the companies have expanded their production capacities and distribution network. The multinational players are also focusing on acquisitions and mergers as the most important strategy in expanding their global customer base. For example, Fuso Chemicals Co. Ltd and Mitsui Chemicals entered into an agreement where they later decided to transfer the organic acids division to Fuso.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2016 - 2024

Market representation

Volume in Kilo Tons, Revenue in USD Million & CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, CSA, MEA

Country Scope

U.S., Canada, Mexico, France, UK, Germany, China, India, Japan, Brazil

Report coverage

Volume forecast, revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global malic acid market report on the basis of end-use, and region:

  • End-use Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2024)

    • Beverage

    • Confectionery

    • Personal Care

  • Regional Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2024)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • France

      • UK

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America (CSA)

      • Brazil

    • Middle East & Africa

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