Glycolic Acid Market Size 2024-2028

The global glycolic acid market size is estimated to grow by USD 186.6 million between 2023 and 2028, exhibiting a CAGR of 8.77%. Glycolic acid is an alpha-hydroxy acid (AHA), which is colorless, odorless, and highly soluble in alcohol. It is also derived from fruit and milk sugars. It is synthesized from ethylene glycol-oxidizing microorganisms. Due to its distinctive properties, it is used in various applications, such as in textiles as a dyeing and tanning agent, in food processing as a flavoring agent and as a preservative, and in personal care and cosmetics. The growth of the market depends on several factors such as the growing demand from the cosmetics industry, the rising demand from the polyglycolic acid industry, and the growing demand in oil and refining industries.

What will be the Size of the Glycolic Acid Market During the Forecast Period?

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Glycolic Acid Market Dynamics

In the context of global development, two significant trends have emerged: rapid urbanization in emerging economies and the increasing demand for energy efficiency to reduce greenhouse gas emissions and carbon footprint. These trends have led to a heightened focus on cost-effective solutions in various sectors, including manufacturing technologies, materials, and energy-efficient buildings. One such material gaining attention is glycolic acid. This organic compound, derived from renewable sources, is widely used in the chemical and petrochemical industry for various applications. In power generation, glycolic acid is used as a de-icing agent in cooling systems, such as HVAC systems, to improve energy efficiency and reduce the use of fossil fuels.

Moreover, glycolic acid is used in the production of tube inserts for shell and plate frame products, as well as air-cooled products, in the manufacturing sector. Its use in these applications results in improved energy efficiency and reduced carbon footprint. Furthermore, glycolic acid is used as an intermediate in the production of alloy materials, such as steel, aluminum, and copper, which are essential in various industries, including power generation and petroleum. The adoption of glycolic acid in these applications is expected to contribute to the reduction of fluorinated gases, which have a high global warming potential. In conclusion, glycolic acid is an essential material in various industries, playing a crucial role in reducing greenhouse gas emissions and improving energy efficiency. Its use in manufacturing technologies, materials, energy-efficient buildings, and power generation is expected to continue growing in the coming years. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rising demand from the polyglycolic acid industry is driving growth in the market. In the case of polyglycolic acid production, glycolic acid is primarily used as an input for synthesis via polycondensation or ring-opening polymerization. Polycondensation of glycolic acid is one of the simplest methods, yet it yields low molecular polyglycolic acid, which is widely used in the extraction process of shale gas. The demand for polyglycolic acid from a variety of applications, especially in the field of health care, packaging, shale gas extraction, municipal engineering resins, agriculture, and filtration is expected to increase over the forecast period.

The increase in packaging demand, the rising use of polyglycolic acid, increased demand for shale gas extraction, technological progress, and increasing demand from emerging countries such as China and India are the major factors driving polyglycolic acid, which, in turn, will generate the demand for glycolic acid and thus will contribute to the growth of the global market during the forecast period.

Significant Market Trends

The rising demand for biodegradable polymers is a primary trend in the market. With the ability to break down in a short period of time, bioabsorbable polymers are used for supporting the body temporarily. The most common biodegradable polymer used in the medical business is polyglycolic acid, made by ring polymerization of glycolide, a diester of glycolic acid. Excellent degradation properties and minimal toxicity are some of the principal factors that make it an appealing biodegradable polymer for medical devices and tissue engineering applications.

Moreover, glycolic acid makers will benefit greatly from the predicted high demand for polyglycolic acid-based biodegradable polymers, particularly in resorbable sutures, surgical fixation devices, and drug administration devices during the forecast period. Opportunities for glycolic acid producers are expected to be generated by the growing demand for polyglycolic acid-based biodegradative polymers, particularly in surgery and drug delivery devices. Thus, the rising demand for biodegradable polymers will augment the growth of the global market during the forecast period.

Major Market Challenge

The negative effects of glycolic acid on the skin are a primary challenge in the market challenge. Cosmetics and personal care products use glycolic acid in great quantities. Increased exposure to glycolic acid is associated with serious irritation, inflammation, itchiness, and skin disorders. It may also worsen skin conditions and may lead to the removal of the top layer of skin. The major danger of using glycolic acid is that it causes burning of the skin. In rare cases, it may lead to a change in skin tone.

There are no side effects associated with the use of glycolic concentration acid at a reduced concentration as it is a naturally occurring product and biodegradable. Nevertheless, skin diseases pose a risk to applications with high concentrations. If glycolic acid is used properly, with adequate care and precaution, it provides a satisfactory result for skin problems such as oily skin, acne, and dry skin. These side effects act as a barrier to glycolic acid use. Such factors are expected to hamper the growth of the global market during the forecast period.

Glycolic Acid Market Segmentation

By Application 

The cosmetic grade segments are estimated to witness significant growth during the forecast period. This segment is becoming inferable from the rising reception of personal care and cosmetics products. In addition, it also acts as an impermeable substrate for keratin-based cosmetic products thanks to a feature such as the tiny molecular structure of glycol acid that contributes to improving product performance. Cosmetic-grade glycolic acid is also used in various skincare applications. 

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The cosmetic grade segment was the largest segment and was valued at  USD 195 million in 2018.  In order to maintain a youthful appearance and avoid early signs of aging like dark blotches, wrinkles, or dried skin, young and older people are increasingly turning to products dedicated to preventing the effects of age. Various vendors in the market in focus are providing cosmetic-grade glycolic acid. All such factors are propelling the growth of the cosmetic grade segment of the market in focus during the forecast period.

By Region

APAC is estimated to contribute 38% 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 growing applications of glycolic acid across a variety of end-user sectors, including personal care, cosmetics, and industrial will increase the market in APAC during the forecast period. Another factor that will increase the market growth is the increase in demand for glycolic acid in different applications, it has seen a significant increase in investment across all main segments, mainly manufacturing and consumer goods. The rising demand from personal care and cosmetics, household cleaner and industrial applications, emulsion polymers, and the ink and paint industries are driving the growth of the market in APAC during the forecast period.

Glycolic Acid Market Customer Landscape

The Glycolic Acid market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Glycolic Acid market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Key Glycolic Acid Market Companies

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

Avid Organics - The company offers glycolic acid such as Aviga T and Aviga HP.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Acuro Organics Ltd., Avid Organics, CABB Group GmbH, China Petrochemical Corp., CrossChem Ltd., DuPont de Nemours Inc., Glentham Life Sciences Ltd., Hefei TNJ Chemical Industry Co. Ltd., Jiaxing Jlight Chemicals Co. Ltd., Kumar Industries, Kureha Corp., Mehul Dye Chem Industries, Merck KGaA, Phibro Animal Health Corp., RXChemicals, Saanvi Corp., Shandong Xinhua Pharmaceutical I and E Co. Ltd., The Chemours Co., Water Chemical Co. Ltd., and Zhonglan Industry 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 Glycolic Acid market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Grade Type Outlook 
  • Cosmetic grade
  • Technical grade
• Application Outlook 
  • Personal care and cosmetics
  • Household cleaners
  • Industrial
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • 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
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The Glycolic Acid market is experiencing significant growth driven by several factors, including the rising awareness of energy efficiency and the need for cost-effective solutions. With increasing concerns about greenhouse gas emissions, rapid urbanization, and the push for sustainable low energy consumption in emerging economies, there is a growing demand for materials and manufacturing technologies that can help reduce the carbon footprint. In the context of energy-efficient buildings, glycolic acid plays a crucial role in improving the performance of HVAC systems and chemical manufacturing processes. The market landscape depends on Chemical demand, Nuclear, power plant projects, Steel, aluminum, copper. The demand for high-performance materials like stainless steel, aluminum, and copper—known for their corrosion resistance, durability, and high heat transfer efficiency—is increasing in the production of shell and tube heat exchangers and plate frame heat exchangers. Companies like Danfoss, Mersen, API Heat Transfer, Johnson Controls, Spirax Sarco, and Xylem are leading the way with innovative products such as the AlfaNova GL50 heat exchanger.

In the chemical and petrochemical industries, glycolic acid is essential for temperature control and enhancing the efficiency of chemical manufacturing processes. The World Nuclear Association highlights the importance of materials in nuclear power reactors and power plants. The World Green Building Council promotes the use of energy-efficient measures to reduce fossil fuels and fluorinated gases emissions. Additionally, glycolic acid is vital in the production of renewable energy sources such as fuel cell systems and renewable power generation. The capital-intensive nature of these projects requires specialized machinery, technologies, and skilled labor.

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What are the Key Data Covered in this Glycolic Acid Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028.
• Precise estimation of the size 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 and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market companies

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