Butyric Acid Market By Type, Application, Source, & Region for 2024-2031

Butyric Acid Market Valuation - 2024-2031

The butyric acid market, valued at USD 363.3 Million in 2024, is projected to reachUSD 928.01 Million by 2031, with a growth rate of 14.6% from 2024 to 2031.

This growth is primarily driven by escalating demand for renewable butyric acid across the food & flavor & pharmaceutical sectors. The increasing consumption of meat by a growing number of consumers and the implementation of bans on antibiotic usage in animal feed within certain countries contributed significantly to market expansion.

Butyric Acid Market: Definition/Overview

Derived primarily from animal fats, butyric acid is a fatty acid extensively employed in the production of esters utilized across various applications. This colorless carboxylic acid is formed through bacterial fermentation of carbohydrates and dietary fiber. It occurs naturally in cheese, butter, milk, vegetable oils, and animal fats. Despite its wide-ranging industrial utility, butyric acid is characterized by an unpleasant odor and acrid taste.

Furthermore, the multifaceted applications of butyric acid underscore its indispensability across various sectors, including the food and pharmaceutical industries. In food applications, it contributes to flavor enhancement and acts as a preservative, extending shelf life. Moreover, its use in pharmaceuticals encompasses its therapeutic properties, particularly in treating gastrointestinal disorders. Despite its pungent odor and taste, innovative approaches such as encapsulation techniques aim to mitigate these sensory attributes, broadening their applicability.

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What Factors are Driving the Growth of the Butyric Acid Market?

Butyric acid is increasingly being used as a feed additive to promote intestinal health and performance in livestock. According to the Food and Agriculture Organization (FAO) of the United Nations, worldwide meat output is expected to rise by 13% between 2020 and 2029, reaching 366 million tons by 2029. This increase in meat production is likely to boost demand for feed additives such as butyric acid.

Butyric acid and its derivatives are being investigated for potential medicinal applications, particularly in the treatment of gastrointestinal problems. The World Health Organization (WHO) estimates that gastrointestinal ailments impact up to 35% of the world's population at any given moment. The increasing frequency of gastrointestinal illnesses is likely to increase research and development activities employing butyric acid in the pharmaceutical industry.

Furthermore, butyric acid is used to flavor and preserve a variety of food goods. The global food flavors market, which includes butyric acid, is expanding rapidly. According to Verified Market Research, the global food flavors market was valued at USD 25.89 Billion in 2023 and is predicted to rise at a compound annual growth rate (CAGR) of 11.35% between 2024 and 2031, owing to rising consumer desire for new and exotic flavors.

What Factors are Plummeting Sales of the Butyric Acid Market?

Increasing scrutiny from regulatory bodies and consumers toward the use of certain chemicals in food production presents a concern. Stricter regulations or bans on butyric acid's use in certain food applications arise due to its strong odor and potential health concerns if excessively used. Price fluctuations and disruptions in the supply chain pose additional challenges. Dependency on raw material costs and production processes leads to volatility in butyric acid prices. Supply chain disruptions, exemplified by those witnessed during the COVID-19 pandemic, further exacerbate market instability.

Furthermore, competition from alternative feed additives poses a threat. As the animal feed industry continually explores new gut health promoters and flavoring agents, the emergence of cost-effective alternatives dampens the demand for butyric acid. Limited consumer awareness of butyric acid's benefits outside the animal feed industry presents an obstacle. Applications in pharmaceuticals and food flavorings remain relatively unknown to consumers, constraining market growth in these sectors. Technical challenges persist in large-scale renewable production. While interest in renewable butyric acid is growing, optimizing fermentation processes and reducing production costs are essential for competitiveness against synthetic options. Overcoming these hurdles is crucial for the sustained growth and stability of the butyric acid market.

Category-Wise Acumens

Which Product Segment Holds the Dominant Market Share in the Butyric Acid Market?

The normal butyric acid segment is estimated to dominate the market during the forecast period, which is the most commonly produced and utilized form of butyric acid. A straight-chain carboxylic acid with four carbon atoms, it is widely employed across various industries due to its versatility and applicability. In the food and beverage industry, normal butyric acid is utilized as a flavoring agent, preservative, and additive, contributing to its significant market share. Its characteristic odor and taste are leveraged to enhance the flavor of various food products such as dairy, confectionery, snacks, and baked goods.

Furthermore, in the pharmaceutical industry, applications of normal butyric acid are found in drug formulations and supplements, wherein it is utilized for its therapeutic properties, particularly in medications aimed at treating gastrointestinal disorders such as irritable bowel syndrome. The reliance of the pharmaceutical sector on normal butyric acid further contributes to its market share. Throughout various industries, normal butyric acid is employed extensively due to its myriad applications and effectiveness. Its dominance in the market is sustained by its widespread use as well as its indispensable role in enhancing flavor, promoting animal health, and aiding in therapeutic formulations.

Will the Renewable Segment Turn into an Epicenter of Growth in the Butyric Acid Market?

The renewable segment is estimated to dominate the market during the forecast period driven by several factors that underscore the increasing demand for sustainable and environmentally friendly solutions across industries. Butyric acid, being a versatile compound with diverse applications, is seen to hold immense potential in renewable forms, thereby catalyzing its emergence as a focal point for market expansion. As environmental concerns are being intensified and regulatory pressures are being mounted, businesses are increasingly inclined towards adopting renewable resources to reduce their carbon footprint and mitigate environmental impact.

Furthermore, the growing consumer preference for natural and organic products is driving the demand for renewable butyric acid in sectors such as food and beverages, cosmetics, and pharmaceuticals. With consumers increasingly seeking sustainable and ethically sourced ingredients, manufacturers are under pressure to incorporate renewable alternatives into their product formulations, thus driving the adoption of renewable butyric acid. Significant investment and research initiatives are being witnessed in the renewable segment of the butyric acid market, aimed at enhancing production efficiency, scalability, and cost-effectiveness. The segment is poised for rapid expansion, attracting interest from investors, stakeholders, and industry players alike.

Country/Region Wise Acumens

Could Asia Pacific Drive an Increase in Sales within the Butyric Acid Market?

The Asia Pacific region is estimated to dominate the market during the forecast period. The Asia Pacific region is experiencing rapid expansion in livestock production, which is boosting demand for feed additives such as butyric acid. According to the Food and Agriculture Organization (FAO), Asian meat output is expected to rise by 19% between 2021 and 2030, reaching 144 million tons by 2030. This significant increase in meat production is predicted to drive up demand for feed additives such as butyric acid, which promotes animal health and productivity.

Furthermore, the food and beverage industry in the Asia Pacific is quickly expanding, increasing demand for flavoring agents and preservatives such as butyric acid. According to an Asia Pacific Food Industry report, the region's food and beverage market was valued at USD 3.23 trillion in 2020 and is expected to reach USD 5.77 Trillion by 2030, rising at a 6.8% CAGR. This large market expansion is expected to increase demand for food additives and flavoring agents, including butyric acid.

How Does the Booming Food and Beverages Industry Drive the Sales of Butyric Acid in North America?

North America is estimated to exhibit substantial growth within the market during the forecast period. The North American food and beverage sector is increasingly using natural preservatives and taste enhancers, such as butyric acid. According to a report released by the United States Department of Agriculture (USDA), the food and beverage manufacturing sector accounts for 15.8% of the value of shipments from all U.S. manufacturing units. In 2019, it employed over 1.7 million individuals, accounting for roughly 1.1% of total nonfarm employment in the United States. The large scale and continued growth of this business are projected to stimulate demand for food additives such as butyric acid.

Furthermore, the rising prevalence of gastrointestinal illnesses in North America is prompting research into new therapies, including butyric acid. According to the Centers for Disease Control and Prevention (CDC), an estimated 3 million persons in the United States were diagnosed with inflammatory bowel disease (IBD) in 2015, up from 2 million in 1999. This expanding patient population is projected to drive pharmaceutical industry research and development activities employing butyric acid.

Competitive Landscape

Examining the competitive landscape of the butyric acid market is essential for understanding the industry's dynamics. This research aims to analyze the competitive landscape, highlighting key players, market trends, innovations, and strategies. Understanding the competitive landscape will empower stakeholders to make informed decisions, adapt to market trends, and develop strategies to enhance their market position and competitiveness in the butyric acid market.

Some of the prominent players operating in the butyric acid market include:

Eastman Chemical Company

Oxea GmbH

Blue Marble Biomaterials LLC

Tokyo Chemical Industry Co. Ltd.

Perstorp Holding AB

Snowco Industrial Co. Ltd.

Beijing Huamaoyuan Fragrance Flavor Co. Ltd.

Latest Developments

In November 2021, plans were announced by Eastman Chemical Company to expand its butyric acid manufacturing capacity at its Longview, Texas facility. This expansion is aimed at meeting the growing demand for butyric acid across various industries, including food and beverages, pharmaceuticals, and animal feed.