by Cinnamic acid is an aromatic organic acid that naturally occurs in cinnamon and aromatic plants. It is an intermediate in the biosynthesis of numerous natural products including lignins, flavonoids, hydroxycinnamic acid amides and hydroxlcoumarins. Cinnamic acid is used as a flavoring agent and preservative in food and beverages industry due to its pleasant aroma. Its antibacterial and antioxidant properties also makes it ideal for use as active ingredients in skin care, hair care and oral care products. The growing demand from food & beverages, personal care and other industrial applications is fueling the growth of cinnamic acid market.
The global Cinnamic Acid Market is estimated to be valued at US$ 24.33 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the cinnamic acid market is increasing adoption in cosmetic and personal care products owing to its anti-aging properties. Cinnamic acid helps reduce signs of skin aging like wrinkles and dark spots as it boosts collagen production in skin cells. This is driving its use in various anti-aging creams, serums and face masks. Additionally, rising consumer awareness regarding organic and natural ingredients is propelling the demand for plant-derived cinnamic acid over petrochemical alternatives. Furthermore, shifting focus towards natural preservation is augmenting the application of cinnamic acid as a natural substitute to synthetic preservatives like parabens in food products.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cinnamic acid market is moderate as manufacturing cinnamic acid requires significant capital investment and technological expertise. However, being a commodity chemical, threat looms for established players.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as cinnamic acid has few application areas and is majorly used by food, cosmetics, and pharmaceutical sectors. Buyers can negotiate on price and exert pressure given fragmented supply presence.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for producing cinnamic acid including benzaldehyde and styrene are produced by few manufacturers globally. Suppliers can negotiate price to an extent based on supply contracts.
Threat of new substitutes: The threat of substitutes is low as cinnamic acid has specific properties like stability, solubility, and functionality making it difficult to replace in end-use applications. However, alternates can be considered based on price fluctuations.
Competitive rivalry: The global cinnamic acid market comprises numerous international and regional players intensifying the competition.
Key Takeaways
The global cinnamic acid market is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing demand from the food & beverage industry. Cinnamic acid finds wide application in flavoring agents, preservation, and sweeteners.
Regional analysis – Asia Pacific dominates the global cinnamic acid market and is expected to grow at a high CAGR during the forecast period. China represents the largest producer and exporter due to availability of raw materials along with cheap labor cost. North America and Europe are other major markets globally.
Key players operating in the cinnamic acid market include BASF, Guangzhou Shiny Co. Ltd., BestAroma Biotech, Daurala Organics, Yuancheng Saichuang Technology, Wuhan Organic Material, Omega Ingredients, Elan Chemical Company, DSM, King-Pharm, Kay Fries, Juhua Group, and Bayer ltd. amongst others. The market is competitive in nature with these players focusing on production capacity expansion and strategic joint ventures to strengthen their global presence
