Caproic Acid Market Forecast 2024-2028

The caproic acid market size is forecast to increase by USD 63.53 million, at a CAGR of  8.05% between 2023 and 2028. The growth of the market depends on several factors, including rising demand for personal care and food flavoring products, rising demand for processed food, and growing use of caproic acid in soaps and detergents. The market growth is significantly propelled by the increasing demand for processed food, particularly driven by the utilization of this formulation, also known as hexanoic acid, as a preservative in packaged and processed foods. Growing consumer preference for packaged food items in both developed and developing nations, spurred by improved economic conditions and rising disposable incomes, is further fueling this demand. Additionally, the past decade has witnessed a notable uptick in the demand for frozen foods and packaged goods.

What will be the Market Size During the Forecast Period?

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Market Dynamics

Caproic acid finds extensive applications across various industries, driving its market growth significantly. In the realm of chemical synthesis techniques, it plays a pivotal role, particularly in lubricant production, textile manufacturing, and adhesives and sealants. The rubber industry also benefits from this formulation, as do construction materials and wood preservation sectors. Challenges include sustainable sourcing to meet demand, while trends indicate its increasing use in health and wellness products like nutraceuticals, herbal supplements, and functional foods. However, ensuring quality and regulatory compliance remains a key challenge in the market.

Key Market Driver

Rising demand for processed food is notably driving the market growth. This is highly used in packaged and processed food as a preservative. Therefore, a rise in the demand for packaged food products among consumers across developed and developing countries has propelled the demand for this formulation also known as hexanoic acid. With improving economic conditions and increasing disposable income levels in developed and developing nations, the global demand for packaged food and processed food has been increasing. In addition, the demand for frozen foods and packaged products has been on the rise for the past decade. 

Moreover, an expanding global middle class and an increase in the number of working women contribute to the high demand for processed foods. A long shelf-life is a key marketing aspect for frozen foods. Frozen food manufacturers employ innovative ways to improve the shelf lives of frozen food products. There is an increase in the use of preservatives, including this formulation, in frozen food products. Such factors are expected to drive the market growth during the forecast period. 

Significant Market Trends

Shrinking arable land leading to increased demand for caproic acid for agriculture is an emerging trend shaping the market growth. Also known as hexanoic acid is used in agricultural products such as formulations for crop protection, such as agricultural pesticides. The global agricultural pesticide market is driven by the shrinking of arable land across the globe. The shrinking arable land associated with the declining total factor productivity (TFP) requires the application of agricultural pesticides to restrain the loss in the productivity of crops in the land available. Furthermore, the food preferences in APAC, especially in countries such as China and India, have shifted from a grain-based diet to a protein-rich diet. The proper use of agricultural pesticides can help produce high-quality grains with minimal yield loss.

For instance, in the US, soybeans, corn, and wheat farming will face 70%-75% yield loss without the use of pesticides; this has fueled the demand for agricultural pesticides that find applications in high-yield, protein-rich crops. Therefore, shrinking arable land is leading to the increased demand for this formulation, for agriculture, which in turn will drive the growth of the market during the forecast period.

Major Market Challenge

Stringent regulations and guidelines in the market are significant challenges hindering market growth. The market is influenced by a plethora of factors, including stringent regulations aimed at ensuring safety and quality standards for organic compounds like caproic acid. These regulations, while vital for consumer protection, pose significant challenges for manufacturers in terms of compliance and maintaining high-quality standards. Consequently, navigating through these regulatory frameworks becomes crucial for sustaining market growth in the sector.

Furthermore, chemical market trends indicate a rising demand for bio-based chemicals and animal feed additives, where caproic acid finds its application. However, the growth trajectory of the market can be hindered by the complexities arising from compliance with safety regulations and the associated costs. Market growth analysis and forecasting must consider these regulatory dynamics to provide accurate insights into the future of the market. Hence, such factors are hindering the market during the forecast period.

Market Segmentation by Application, Source and Geography

Caproic Acid finds versatile applications across various industries. In chemical synthesis techniques, it plays a pivotal role as a precursor in creating various compounds. Its use extends to lubricants production, where it acts as an essential ingredient in manufacturing lubricating oils and greases. In the textile manufacturing sector, Caproic Acid contributes to processes involving fabric treatment and dyeing. Additionally, it's utilized in the formulation of adhesives and sealants, providing strong bonding properties. In the rubber industry, Caproic Acid is used as a chemical intermediate for rubber additives, enhancing product durability and flexibility. It's also integral in the production of construction materials, contributing to the formulation of coatings and sealants. In wood preservation, Caproic Acid is effective in protecting wood from decay and pests. Furthermore, it plays a role in metalworking fluids, aiding in the cooling and lubrication of metal cutting processes.

Market Application Analysis 

The market share growth by the personal care segment will be significant during the forecast period. Caproic acid also known as hexanoic acid and its derivatives find applications in the personal care product industry due to their unique properties. Some of the uses of caproic acid in the personal care industry such as emollients in skin care where caproic acid esters can act as emollients, helping to soften and smooth the skin. They are often included in lotions, creams, and moisturizers to enhance the texture and feel of the product on the skin.

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The personal care segment was the largest and was valued at USD 38.77 million in 2018. Similarly, the fragrance component in which caproic acid and its esters contribute to the aroma profile of personal care products such as perfumes, colognes, and scented lotions. These compounds are utilized to create specific scents or enhance the overall fragrance of the product. Also, hair care products where the caproic acid derivatives can be incorporated into hair care formulations, including shampoos and conditioners, to provide conditioning properties and improve the texture of hair. All these uses and advantages in the personal care industry will further drive the growth of the personal care segment of the market during the forecast period.

Market Source Analysis 

Based on the source, the market has been segmented into plant and animal. The plant segment will account for the largest share of this segment.?Plant-based caproic acid can be sourced from coconut and palm oil through a process called saponification or hydrolysis. In these processes, triglycerides (fats) present in the oils are broken down into glycerol and fatty acids. The advantages of obtaining caproic acid from plant-based sources like coconut and palm oil include renewable resources where the coconut and palm oil are derived from plants, making them renewable and sustainable sources of caproic acid. All these benefits related to plant-based will further drive the growth of the plant segment of the market during the forecast period.

Market Region Analysis

APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region is a major producer of palm and coconut oil, which are primary sources of caproic acid. Countries such as Indonesia, the Philippines, and Malaysia are among the world's largest producers of these oils. These raw materials provide a strategic advantage for caproic acid production in the region. Since access to raw materials is easy in APAC, the production costs for caproic acid are also comparatively lower in the region. The established manufacturing infrastructure and lower production costs help manufacturers of caproic acid to offer competitive pricing, attracting domestic, and international demand. The region has also witnessed rapid industrialization and growth in manufacturing sectors. This growth has provided opportunities for the utilization of caproic acid in various end-user industries, such as personal care, pharmaceuticals, food and beverage, fertilizers, and chemicals.

Furthermore, the rising preference of consumers for natural and organic products aligns with the natural origin and potential health benefits. The demand for products containing caproic acid has increased as consumers in APAC have become more health-conscious and environmentally aware. Such factors are expected to drive the regional growth of the market during the forecast period. 

Key Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

AVRIL SCA - The company offers caproic acids such as Hexanoic acid, C6 fatty acid, and short-chain fatty acids feed grade.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including AVRIL SCA, Central Drug House Pvt. Ltd., IOI Corp. Berhad, JNC Corp., Junsei Chemical Co. Ltd., KLK Oleo, KUNSHAN ODOWELL CO. LTD., Loba Chemie Pvt. Ltd., Merck KGaA, Metadynea Austria GmbH, MOSSELMAN S.A., Nacalai Tesque Inc., Novaphene Specialities Pvt. Ltd., Proto Chemicals Industries, PTT Global Chemical Public Co. Ltd., RGE Pte Ltd., Sisco Research Laboratories Pvt. Ltd., Spectrum Laboratory Products Inc., The Procter and Gamble Co., and Zhengzhou Yibang Industry and Commerce Co., Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Personal care
  • Food and beverage
  • Pharmaceuticals
  • Others

• Source Outlook
  • Plant
  • Animal

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market encompasses a wide range of industrial applications across sectors such as the food industry, pharmaceutical sector, cosmetic industry, and more. Chemical formulation and synthesis techniques play a crucial role in its production, supporting perfume manufacturing, cleaning products, lubricants, paints and coatings, and biotechnology. Its use extends to fuel additives, polymer production, resin manufacturing, and water treatment chemicals. With a focus on sustainable chemistry, it's also utilized in renewable energy and green technologies, aligning with environmental remediation efforts.

Moreover, the market outlook for Caproic Acid involves analyzing economic, political, and social scenarios, considering consumer buying behavior, and understanding end application industries. Key players and commercial development strategies are vital aspects, along with market segments and pricing analysis. Insights from subject matter experts, primary and secondary research, company reports, and market reports contribute to understanding growth drivers and restraints. Porter's 5 Force's Framework, value chain analysis, and market evolution further enhance market understanding, guiding pharmaceutical packaging, drug distribution, and regulatory affairs within the Caproic Acid landscape.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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