HEPTANOIC ACID MARKET ANALYSIS

Enanthic acid, also called heptanoic acid, is an organic compound composed of a seven-carbon chain terminating in a carboxylic acid functional group. It is an oily liquid with an unpleasant, rancid odor. It contributes to the odor for some of the rancid oils. It is slightly soluble in water, but very soluble in ethanol and ether. Salts and esters of enanthic acid are called enanthates or heptanoates. Heptanoic Acid is one of the components of vanilla and cheese. The primary use of caproic acid is in the manufacture of esters for artificial flavors, and in the manufacture of hexyl derivatives, such as hexylphenols. Salts and esters of caproic acid are known as caproates or hexanoates.

The global heptanoic acid market is expected to surpass US$ 4,626.80 million by the end of 2030 in terms of revenue, exhibiting a CAGR of 5.1% during the forecast period (2022 to 2030).

Drivers

The heptanoic acid market is majorly driven by the increasing applications in the automobile industry. The rise in demand for heptanoic acid such as lubricant in the automotive industry is expected to drive the global heptanoic acid market in the upcoming years. Heptanoic acid is used as a synthetic flavoring ingredient in the production of special lubricants for brake fluids. The growing usage of heptanoic acid as a lubricant in car motor oils, metalworking fluids, plasticizers, etc., is driving the global heptanoic acid market.

Heptanoic acid has good corrosion properties at both low as well as high temperatures. It also finds application as an industrial lubricant on the account of its corrosion inhibition properties, lower volatility at higher temperatures, and lower viscosity at lower temperatures. Thus, the adoption of heptanoic acid is increasing in various industries such as aerospace, refrigeration, and air conditioning.

Among region, Asia Pacific held dominant position in the global heptanoic acid market in 2021, accounting for 36.8% market share, in terms of revenue, followed by North America and Europe. Asia Pacific is the largest consumer of heptanoic acid. Countries such as China and India are the largest consumers of heptanoic acid which is used in cosmetics, perfumes, and scents, owing to their rapidly growing population. For instance, in October 2021, Indian-origin foreign direct investment (FDI) into the United States was valued at $12.7 billion in 2020, China is one of the most rapidly emerging economies in Asia. . As the government focuses on replacing old vehicles, the demand for upgraded and high-performance lubricants will rise. India, on the other hand, is the region's second-largest lubricant consumer, owning to constant growth in two-wheeler production. As a result of these factors, the demand for heptanoic acid is expected to increase in the region over the forecast period.

Figure 1. Global Heptanoic Acid Market Revenue Share (%), By Region, 2021

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Market Restraints

Heptanoic acid as a chemical intermediate has several disadvantages. For instance, over-exposure or direct contact of heptanoic acid with human body may lead to irritation in the respiratory system. Thus, several rules and regulations have been set by statutory governing bodies for its usage. These factors are expected to hinder the demand for heptanoic acid to some extent. In December 2019, Governing authorities such as the EU (European Union) have recommended a set of regulations for the effective usage of heptanoic acid. For instance, the European regulations act REGULATION (EC) No 1272/2008 describes heptanoic acid as acutely toxic and harmful, if inhaled. Moreover, as per the same source, direct contact of heptanoic acid with human body may lead to skin burns and severe eye damage.

Market Trends

Heptanoic acid acts as an effective chemical intermediate in the synthesis of natural and bio-based skin conditioning and viscosity controlling agents. Moreover, properties of heptanoic acid like higher thermal stability and bio-based nature are triggering its demand as an effective raw material in the production of cosmetic and personal care products. Moreover, rising demand for organic and natural personal care and cosmetic products is expected to positively influence the production of bio-based chemicals such as heptanoic acid thus, contributing to the market growth over the forecast period. For instance, according to data published by Shop Association in 2017, a global trade organization, the total global cosmetic products market was valued at US$ 532.4 billion in 2017. As per the same source, the market is expected to reach a market value of US$ 805.6 billion by 2023.

Figure 2. Global Heptanoic Acid Market Revenue Share (%), By Applications, 2021

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On the basis of Applications, in 2021, lubricant segment held largest revenue share of 34.0% in global heptanoic acid market. Owing to the properties of heptanoic acid such as low viscosity at low temperatures and low volatility at high temperatures, heptanoic acid can be used as an industrial lubricant in the fields of aviation, refrigeration, and automotive. It can also be applied to metal surfaces such as engine parts to minimize friction. Automobile manufacturers are concentrating their efforts on boosting vehicle production around the world. Since heptanoic acid is used as a lubricant in cars, the heptanoic acid market is also expected to grow due to increasing demand for passenger and commercial vehicle around the world. For instance, annual vehicle miles traveled in the U.S. were 2.11 trillion miles in 2017, according to data from the US Energy Information Administration. As the number of miles travelled increased, so did the amount of wear and tear on car parts, thus driving up the need for lubricants. As a result, an increase in lubricant demand is expected to drive the global heptanoic acid market growth.

Global Heptanoic Acid Market - Impact of Coronavirus (Covid-19) Pandemic

Many countries had imposed lockdowns to lower the spread of the COVID-19. The lockdown in various countries had resulted in the shutting down of businesses and almost all economic activities. For instance, according to the International Monetary Fund, the global economy had declined sharply by -3.0% in 2020, which was much worse than the 2008-09 financial crisis. The COVID-19 pandemic had impacted major producers of fine chemicals such as heptanoic acid and the entire ecosystem of the chemical industry including raw material suppliers, formulators, distributors, and retailers.

Competitive Section

Key players operating in the global heptanoic acid market include Acme synthetic chemicals, Akshay Chemicals, Alfa Aesar,Arkema, Cayman Chemical, Handanshi Kenzcheng Chemical Co., Ltd, Intellichemie Industries, Jinan Chenghui Shuangda Chemical Co., Ltd, Kalpasutra Chemical Pvt. Ltd., Merck KGaA, National Analytical Corporation, Neuchatel Chemie Specialties, OQ Chemical GmbH, Parchem Fine & Specialty Chemicals, Spectrum Chemical, Synerzine, Inc., Tokyo Chemical Industries Co., Ltd, VWR International, LLC, and Wujiang New Sunlion Chemical Co., Ltd.