Market Challenges And Opportunities

Market Dynamics

Organic acids such as lactic acid is produced by fermentation process of several microorganisms (lactic acid bacteria) and is used in the food and beverages industry. Lactic acid is approved as a food additive in the EU, U.S., Australia, and New Zealand. Lactic acid is found in koumiss, laban, yogurt, kefir, some cottage cheeses, and beers. Therefore, increasing use of lactic acid in the food and beverages industry is expected to boost growth of the global organic acids market over the forecast period. Organic acids also find application in the petrochemicals, pharmaceuticals, oil and gas, textile, and adhesives industries. Formic acid is used for oil and gas well stimulation treatments.

However, several synthetic organic acids are produced using nonrenewable sources, which adversely impacts the environment. This in turn is expected to hinder the market growth.

Increasing research and development activities focused on the production of organic acids from bio-based sources is expected to offer lucrative growth opportunities for the market players.