The cinnamic acid market has experienced significant growth in recent years owing to its wide applications in industries such as flavors and fragrances, plasticizers, food and beverages and agrochemicals. Cinnamic acid is a pale yellow crystalline organic compound which has a strong odor of spice and wine.
It possesses properties such as Cinnamic Acid Market Demand absorption and antimicrobial effects which make it suitable for use in various applications. In the flavors and fragrances industry, cinnamic acid is used as a key ingredient in the production of cinnamon flavor formulations. The burgeoning demand for naturally derived flavors and fragrances from the food and beverage sector has resulted in the increased commercial application of cinnamic acid. It is also utilized to manufacture the synthetic sweetener neotame.
The Global Cinnamic Acid Market is estimated to be valued at US$ 123.84 Bn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cinnamic acid market are Polymedco Inc., Eiken Chemical Co. Ltd., Sysmex Corporation, Siemens Healthineers AG, Quidel Corporation, Novigenix SA, Hemosure Inc., Exact Sciences Corp., Epigenomics Inc., Olympus Corporation, and Clinical Genomics Technologies Pty Ltd., among others.
The demand for Cinnamic Acid Companies is growing rapidly due to the expanding food flavoring industry globally. It is widely used in the production of various food flavors including cinnamon, yogurt, chocolate and others. The acidulants market in food and beverages is projected to reach $4.4 billion by 2027, thereby driving the consumption of cinnamic acid.
The cinnamic acid market is expanding globally with Asia Pacific representing the major share. Rising disposable income and growing health awareness among consumers have been augmenting the demand for natural food ingredients including cinnamic acid in the Asia Pacific region. In addition, the steadily growing pharmaceutical industry in Asia Pacific and Latin America is boosting the applications of cinnamic acid in medicines.
Market Key Trends
One of the key trends witnessed in the cinnamic acid market is the increasing use of plant-based extracts for food flavorings and natural medicine. With consumers preferring clean label and natural products, the demand for natural source-based extracts like cinnamic acid is growing. Manufacturers are focusing on offering innovative food flavors developed from plant-based sources like cinnamon to cater to this trend. Rapid innovation and new product development leveraging cinnamic acid's functional properties is fueling market growth.
Porter's Analysis
Threat of new entrants: New players find it difficult to establish themselves in the market due increased capital requirement and established supply networks of existing players.
Bargaining power of buyers: Buyers have medium bargaining power due to availability of substitutes and undifferentiated products offered by existing players.
Bargaining power of suppliers: A few players dominate the supply side giving them higher bargaining power over buyers.
Threat of new substitutes: Substitutes present lower threat as cinnamic acid has application across industries like flavoring agents, preservatives, fragrance etc.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through product differentiation and expansion into application segments.
Geographical Regions with Highest Value concentration
North America accounts for the largest share in global cinnamic acid market value due to strong demand from food, fragrance and pharmaceutical industries in the US and Canada. Growth is driven by increasing health-conscious population preferring natural ingredients.
Fastest Growing Geographical Region
Asia Pacific region is projected to be the fastest growing market during the forecast period. Expanding fragrance and flavor industry along with rising income levels in India and China is auguring well for cinnamic acid demand growth in personal care and food applications.
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