Benzaldehyde Derivatives Market to Record an Exponential CAGR by 2024
Despite the copious number of local manufacturers thriving in the global benzaldehyde derivatives market, the competitive landscape is moderately consolidated, finds Transparency Market Research (TMR). In 2015, around 51.3% of the global share was held by the top three manufacturers—Haihang Industry Co., Ltd., Gujarat Alkalies and Chemicals Ltd., and Emerald Performance Materials.
Several top players are treading the path of aggressive expansion with a focus on emerging markets to consolidate their positions. They are bolstering their manufacturing and production capabilities to stay ahead of others. The vastly promising consumer base spanning almost regions across the globe has made the market increasingly lucrative for new entrants as well as emerging players. However, their steady growth may be constrained by the need for massive capital required for setting up the production units in order to get a firm foothold in the market. TMR observes that in the coming years, the market is expected to remain moderately competitive especially in various key regions.
The global benzaldehyde derivative market is projected to expand at a CAGR of 5.1 % during 2016–2024, vis-à-vis revenue. The market stood at US$1.43 billion in 2016 and is anticipated to witness to display opportunities worth US$2.14 billion by 2024 end.
The various product categories of benzaldehyde derivatives are cinnamic acid, benzoic acid, sodium benzoate, and benzyl alcohol. Of all the segments, benzoic acid led the pack in 2015 and its share in the global market is expected to augment further through 2024. A vast chunk of the demand is expected to come from the food and chemicals industries, especially for making aromatic products.
Regionally, Asia Pacific held the sway in 2015 holding the major volume share in the global market and is expected to retain its attractiveness through 2024. Its prominence can be attributed to the widespread demand of the products, thriving end-use industries, and a favorable regulatory framework.
Attractive Strides being made by Numerous End-use Industries fortify Demand
The steadily rising demand for benzaldehyde derivatives in various applications in the pharmaceutical, food and beverages, chemical industries is a key factor propelling the growth of the market. The burgeoning application is fueled by the bold strides that end-use industries are expected to experience, especially in emerging economies of the Middle East and Africa (MEA) and Asia Pacific. The substantially promising usage of various benzaldehyde derivatives in making
cosmetic products such as perfumes and dyes is accentuating the market revenue.
Rising Application in Food and Beverages and Chemicals Industries propel Growth
The demand for benzaldehyde derivatives in various applications in the food and beverages industry such as in stabilizers and artificial sweeteners is boosting the global market. The attractively rising demand for benzaldehyde derivatives in making agrochemicals, notably cinnamic acid, and its substantial usage as pesticides is fueling the market to expand over the assessment period. This can be attributed to the vast popularity that cinnamic acid has gained as pesticides for several crops world over.
A growing number of chemical manufacturers are reaping large gains from the extensive demand for solvents coming from the producers of nitrates, oils, resins, cellulose ethers, and cellulose acetates. The usage of benzaldehyde derivatives as solvents is imparting a marked fillip to the growth of the market.
Easy Availability of Substitutes Glaring Constraint
The market benzaldehyde derivative is facing serious setbacks from the advent of substitutes such as several sulfites, sodium nitrate, propionic acid, and sorbic acid. The easy availability of these substitutes is proving to be a compelling proposition for end-use industries, notably the food and beverages industry. Moreover, the market is facing downside from the marked health concerns due to overexposure of some benzaldehyde derivatives, particularly benzoic acid.
Nevertheless, manufacturers of benzaldehyde derivatives are exploring new revenue streams in the pharmaceutical industry. The promising demand will come from the application of benzaldehyde derivatives in making a variety of pharmaceutical products. Furthermore, the giant leaps being taken by the cosmetic and personal care industries in various parts of the world in rece