Butyric Acid Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, India, Germany, Brazil - Size and Forecast 2024-2028

Butyric Acid Market Forecast 2024-2028

The butyric acid market size is forecast to increase by USD 221.59 million, at a CAGR of 9.7% between 2023 and 2028. Market growth hinges on various factors, notably the rising incidence of gastrointestinal diseases, driving the need for effective solutions like butyric acid in animal feed applications. Additionally, there's a surge in demand for food flavoring substances in processed foods, reflecting evolving consumer preferences for enhanced taste profiles. These trends collectively contribute to the market's expansion, presenting opportunities for stakeholders to cater to the growing demand for gastrointestinal health products, animal feed additives, and food flavoring agents, thereby driving overall market growth and development. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the  Market Size During the Forecast Period?

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Market Definition 

Butyric acid, also known as butanoic acid, is a straight-chain, saturated fatty acid, which is a colorless liquid used in various applications, including animal feed, pharmaceuticals, chemical intermediaries, and flavoring substances, along with human diet supplements as an essential acid for improving gut health, manufacturing gas treatment drugs, and food additive.

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Market Dynamics

Butyric acid, a type of short-chain fatty acid, plays a crucial role in nutrient digestion within the microbiota of various animals, particularly swine. It serves as a natural alternative to antibiotics in promoting gut health and aiding digestive enzyme function. Beyond its biological applications, butyric acid finds utility in chemical production for food additives & flavoring, plasticizers, and leather tanning. Additionally, it serves as a vital ingredient in human dietary supplements and feed premixes, benefiting cattle, poultry, and aquaculture industries while addressing animal diseases and supporting drug & pharmaceutical sectors. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

Increasing demand for food flavoring substances in processed foods is the key factor driving the market. Processed foods are manufactured using a number of chemical or mechanical processes to ensure their proper preservation. Almost all processed foods contain some amount of natural or artificial flavors. The demand for processed foods is high in comparison to whole foods because of their taste, appearance, and texture, which attract a large number of consumers. Consequently, with the increase in demand for processed foods, the demand for different varieties of food flavor additives is expected to increase during the forecast period. As a result, the demand for butyric acid is expected to increase during the forecast period. 

Moreover, the growth of the food and beverage sector, including the food processing industry, in developed economies has further increased the production of processed foods, which is increasing the demand for food flavors as an additive. Further, the a growing demand for processed foods that contain some amount of natural or artificial flavors. The growth in demand for processed foods has, in turn, increased the demand for different varieties of food flavors. Thus, such factors will drive market growth during the forecast period.

Significant Market Trends 

An increasing number of M&A among companies is the major challenge that affects the market growth. Prominent players in the market are focusing on various growth strategies, such as acquisitions, partnerships, and collaborations, to broaden their product portfolios and garner large market shares. The market has the presence of several international and local players. The prominent players in the market in focus strategically focus on acquisitions to expand their business operations in the market.

Additionally, acquisitions help companies strengthen their product offerings and enhance diversification in supporting end-user industries, like animal feed, chemical intermediates, and food and flavors, among others. For instance, in October 2022, PETRONAS Chemicals Group Berhad, Malaysias integrated chemicals provider, announced that it had acquired Perstorp, a company that provides butyric acid. Moreover, companies are focusing on expansions to establish strong geographic footprints in the market. Such factors will contribute to the market growth during the forecast period.

Major Challenge

Fluctuations in the supply of organic raw materials is the major challenge that affects the market expansion. Butyric acid is produced as an end product from butter, cheeses, milk, yogurt, and cream, which comprise the major raw materials in the market in focus. As the raw material is highly dependent on global dairy industry, the fluctuations have direct implications on the market growth. The availability of all the related raw materials such as butter, cheeses, milk, yogurt, and cream will also affect the growth of the market in focus, as the dairy industry depends highly on livestock availability and the absence of any disease in livestock animals.

Furthermore, bad weather conditions can reduce the production of milk. For example, cattle need to be kept in colder locations in warm or hot climatic conditions, as when there is a rise in temperature, the cattle begin to gain weight slowly and yield less milk. This, in turn, will negatively affect the production of products like butter, cheese, and cream, among others, which are the source of raw materials needed to manufacture butyric acid. Any sudden changes in climatic conditions can negatively affect the volume and quality of production of dairy products, thus restricting the growth of the market during the forecast period.

Segmentation by Application, Type, and Geography 

Butyric acid, a short-chain fatty acid, aids nutrient digestion by supporting the microbiota in swine and other animals. It replaces antibiotics in promoting gut health and is vital in chemical production for food additives & flavoring, plasticizers, and leather tanning. Essential in human dietary supplements and feed premixes, it addresses animal diseases and finds applications in drug & pharmaceutical sectors, supporting cattle, poultry, and aquaculture industries.

Application Analysis 

The market share by the animal feed segment will be significant during the forecast years. Animal feed is an essential component of the livestock industry, as it provides all the necessary nutrients for the growth and development of farm and livestock animals and, ultimately, leads to the production of high-quality meat, dairy, and other animal products. The animal feed segment of the market has been growing steadily over the years, driven by increasing demand for meat and dairy products, along with population growth and rising income levels in developing countries.

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The animal feed segment accounted for USD 96.43 million in 2018. The rise in global meat consumption is one of the major factors driving the animal feed segment. Consequently, the growing focus on providing animal feed additives that improve gut health in livestock, along with the increasing demand for high-quality meat, dairy, and other animal products, is expected to increase the demand for butyric acid in animal feed applications, which in turn, is anticipated to drive the growth of the animal feed segment of the market during the forecast period.

Type Analysis 

The synthetic segment will account for the largest share of this segment. Butyric acid is produced at an industrial scale, mainly through chemical synthesis. This involves the oxidation which is obtained from propylene that is derived from crude oil through oxo synthesis. Chemical synthesis is preferred mainly because of its lower production costs and the easy availability of raw materials. A majority of synthetic butyric acid is obtained from fossil fuels, with propene as the initial raw material. Further, butyric acid is mostly used as a synthetic flavoring substance and adjuvant in animal drugs, feed, and related products and is generally recognized as safe when used in accordance with good manufacturing or feeding practices. Consequently, such factors are anticipated to propel the growth of the market during the forecast period.

Region Analysis

APAC is estimated to contribute 33% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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The growth of the market in APAC is primarily attributed to the rising demand for animal feed in the region, particularly in countries such as India, China, Indonesia, Australia, and Japan. Owing to their hectic lifestyles, consumers in this region are increasingly inclined toward easily available and ready-to-eat processed foods, such as pasta, pizzas, burgers, and various types of snacks. The increasing number of working professionals, along with the growing number of nuclear families, has further raised the demand for processed foods in the region.

Furthermore, APAC is one of the leading revenue generators, in terms of geography, in the food and beverage industry.  The increasing production of beef, veal, and chicken/poultry meat in APAC is also one of the factors that will drive market growth. Companies in the animal feed industry are increasing their production to meet the rising demand for poultry products. The increasing production of meat will, in turn, increase the demand for animal products in APAC. Thus, such factors are expected to increase the demand and drive the growth of the regional market during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

• AFYREN: The company offers butyric acid such as Butyric acid which is a four-carbon saturated monocarboxylic acid, used for food additive, feedstock for synthesis of cosmetic ingredients, and pharmaceuticals.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

ARVESTA BV, Central Drug House, Eastman Chemical Co., Ennore India Chemical International, Hefei TNJ Chemical Industry Co. Ltd., Kemin Industries Inc., KUNSHAN ODOWELL CO. LTD., Merck KGaA, METabolic EXplorer SA, Muby Chemicals, National Analytical Corp., OQ SAOC, Payal Impex, PEEKAY AGENCIES PVT. LTD., PETRONAS Chemicals Group Berhad, Shri Rajaram Chemicals and Engg, Tokyo Chemical Industry Co. Ltd., Vizag Chemical International, and Yufeng International Group Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028. 

• Application Outlook 
  • Animal feed
  • Food and flavors
  • Pharmaceuticals
  • Chemical intermediates
  • Others

• Type Outlook
  • Synthetic
  • Renewable

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

Butyric acid, a type of short-chain fatty acids, plays a pivotal role in various biological processes. It is produced through the action of enzymes and butyraldehyde conversion. Known for its anti-inflammatory properties, butyric acid promotes protein synthesis and cell proliferation while enhancing mucosal immune response and intestinal integrity in animals like pigs. With applications in renewable based feed and plasticizers, it finds use in diverse sectors including biofuels, pet food, and food & beverage production. As concerns over petroleum prices and greenhouse gas emissions rise, the renewable segment of the market gains traction for its sustainable solutions.

Additionally, butyric acid holds a pivotal role in various industries due to its diverse applications. It contributes to the maturation and health of mucosal cells in the gastrointestinal tract and is widely used in renewable based feed formulations, serving as a valuable nutritional supplement for livestock. Additionally, it serves as a plasticizer in manufacturing processes, offering eco-friendly alternatives. Research indicates its potential benefits for immune systems and its influence on morphological and biochemical differentiation, while its role in mitigating greenhouse gases emissions aligns with environmental sustainability efforts. In the food & beverage segment, it enhances food and flavor, while in feed production within feed mills, it ensures optimal nutrition for animals.

Market Scope
Report Coverage	Details
Page number	169
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 9.7%
Market Growth 2024-2028	USD 221.59 million
Market structure	Fragmented
YoY growth 2023-2024(%)	8.8
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 33%
Key countries	US, China, India, Germany, and Brazil
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AFYREN, ARVESTA BV, Central Drug House, Eastman Chemical Co., Ennore India Chemical International, Hefei TNJ Chemical Industry Co. Ltd., Kemin Industries Inc., KUNSHAN ODOWELL CO. LTD., Merck KGaA, METabolic EXplorer SA, Muby Chemicals, National Analytical Corp., OQ SAOC, Payal Impex, PEEKAY AGENCIES PVT. LTD., PETRONAS Chemicals Group Berhad, Shri Rajaram Chemicals and Engg, Tokyo Chemical Industry Co. Ltd., Vizag Chemical International, and Yufeng International Group Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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