The tartaric acid market is estimated to foresee a significant growth with a CAGR of 5.81%, and is anticipated to grow from a market size of US$256.721 million in 2019 to reach a market size of US$360.265 million in 2025. Tartaric acid is an organic acid that occurs naturally in many fruits, particularly in grapes, but also in bananas, tamarinds, and citrus.
Tartaric acid is used in wine manufacturing and is also gaining a rise in demand, for its application in the food and beverage industry, due to its antioxidant properties. It is also used in the pharmaceutical industry for medicine preparation and improving the taste of oral medicines. Furthermore, taking into consideration the rising living standard and health care concerns, there is a growth in the consumption of sports & protein drinks, and nutritional bars; which also aids demand for tartaric acid, for its application as food preservatives and flavor enhancer. It also finds its use in the cement and construction industry, because of the anti-solidifying and set-retardant agent characteristics. These factors show the tartaric acid industry to grow at a steady pace. The other uses include the use of the acid as pH adjusters in the cosmetics and personal care industry, and as a chelating agent in the soil, fertilizers and metal cleaning.
However, the increase in government regulations related to the use of synthetic tartaric acid in the food and pharmaceutical industry is expected to impede the market growth in the forecast period. Industry players are adopting strategies for increasing their market share in the global tartaric acid market. Acquisitions act as the key strategy adopted by players in the tartaric acid market to expand their geographical outreach.
On the basis of type, the market is segmented into the natural and synthetic tartaric acid market. Natural tartaric acid is expected to hold a significant market share with stringent government regulations against the use of synthetic tartaric acid.
On the basis of application, the market is segmented into wine, food & beverages, excipient, antacids, and others. The wine segment is expected to hold a significant share with wine consumption on a large scale where major markets are lying in the United States, France, Italy, and Germany. Additionally, the food & beverage section is estimated to have a significantly high impact on the market growth with the changing living conditions and adoption of modern dietary consumption where people prefer to buy packaged food and beverages without compromising with the food health benefits. Hence, manufacturers of the food & beverage industry find the market quite lucrative for investment and generating high revenues.
On the basis of geography, the market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. Europe is expected to hold a significant market share with the highest production and consumption of wine in the region. According to the OIV (International Organisation of Vine and Wine), in 2018, Europe was the dominant producer of wine in the world, accounting for a share of around 70% in the global total. The leading countries from the European region include Italy, France, Spain, and Germany.
The augmenting cosmetics & personal care industry worldwide is propelling the market growth in the forecast period.
The global tartaric acid industry is expected to surge with a significant CAGR over the next five years with the rising adoption of cosmetic and personal care products at the global level. Tartaric acid is used as pH adjusters in these products so as to control the pH of the finished beauty products. With growing interests for cosmetics among many women at the international level, the market is further poised to grow at a significant pace in the forecast period. This is majorly attributed to the fact that these women are highly interested in the exploration of a wide range of beauty products available in the market, further leading to the high market demand for cosmetics and personal care commodities. Additionally, with the introduction of many independent brands along with the new and innovative ideas in the field of cosmetics so as to remain beautiful or become beautiful is adding to industrial growth. The increasing craze of cosmetics is not limited to the younger population only, but it is being widely experienced among older adults as well. Hence, the vendors or suppliers in the cosmetic industry are been provided with immense opportunities to produce a variety of cosmetic goods for this group of society as well. Furthermore, big brands are adopting certain strategies where these are involved in the acquisition of smaller brands in order to enhance their product outreach and bolstering their brand value. The main reason being that young companies with innovative products are known to cause threat to the bigger brands, hence, through acquisition at high valuation big companies are able to expand their product portfolio as per the consumers’ demands and are capable of providing huge range of cosmetic products coupled with unique and appealing packaging, triggering the impulse buying behavior of these customers.
The growing middle-class population is contributing to boosting the cosmetic sales, especially from the emerging economies of the world, providing a huge consumer base. According to the OECD stats, the global middle class is projected to increase from the size of 1.8 billion in 2009 to achieve a size of 4.9 billion in 2030.
By the end of 2030, the Asian region is estimated to hold the maximum middle-class population, where it is expected to represent more than 60% share in the global middle-class population and over 50% share on the basis of middle-class consumption. China and India are expected to account for the maximum share in the middle-class population and consumption in the forecast period. According to the National Bureau of Statistics, China, by the end of 2020, the middle-class population in the country is projected to grow at an rapid rate especially in the big cities and at the same time is expected to contain the most active consumer group for the purchase of cosmetic products, further creating a high market demand for tartaric acid during manufacturing process.
Furthermore, with the increasing consciousness for personal grooming among males around the globe, the cosmetic & personal care industry is projected to fuel in the upcoming years. This is because of the fact that these men are investing more money in personal grooming cosmetic products as the per capita income increases, thus, providing a huge market opportunity for the tartaric acid market to thrive in the future.
With the growing e-commerce industry and the growing online purchases, the sales of cosmetics and personal care products are further poised to boost the market demand for tartaric acid in the forecast period.
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