by Cinnamic acid is an organic compound obtained from cinnamon and is widely used as a flavoring agent and preservative in various food products and beverages. It possesses antioxidant and antimicrobial properties which makes it suitable for use as a preservative in food products. Cinnamic acid imparts a sweet aromatic cinnamon-like flavor and is commonly used to enhance or modify sweet and fruity flavors in snacks, bakery products and beverages. It is also widely utilized in the fragrance industry for manufacturing perfumes, cosmetics and personal care products owing to its pleasant cinnamon aroma. The increasing demand for packaged and processed food & beverages coupled with the rising consumption of fragrance products is driving 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. The flavoring and fragrance industries account for a major share of the cinnamic acid demand. In the food industry, cinnamic acid serves as a natural preservative and flavor enhancer in snacks, baked goods, breakfast cereals, dairy products, syrups and flavored beverages. In the fragrance segment, it is utilized in perfumes, soaps, creams and cosmetics to impart pleasant cinnamon notes. The growing health awareness and clean label trend has increased the preference for natural ingredients in food products, which is fueling the demand for cinnamic acid.
Market key trends:
One of the key trends witnessed in the cinnamic acid market is the replacement of synthetic preservatives and flavors with natural alternatives like cinnamic acid. There is a rising consumer demand forclean label food productswith no added artificial ingredients. This has compelled manufacturers to replace synthetic flavors and preservatives such as benzoates, sulfites and nitrites with organic alternatives in order to meet consumer expectations. The clean label trend coupled with growing health and environmental consciousness is expected to boost the demand for cinnamic acid over the forecast period.”
Porter’s Analysis
Threat of new entrants: The threat for new entrants to enter the cinnamic acid market is low to moderate. The market involves high initial capital investments and stringent regulations.
Bargaining power of buyers: The bargaining power of buyers in the cinnamic acid market is moderate. Buyers have a reasonable choice of suppliers and negotiate pricing and delivery terms.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw material suppliers hold influence over pricing, but switching costs are low.
Threat of new substitutes: The threat of substitutes is moderate. Some synthetic substitutes are available but do not provide the same functional benefits as natural cinnamic acid.
Competitive rivalry: Competition in the cinnamic acid market is high among major players. Price competition and new product development drive the market.
Key Takeaways
The global cinnamic acid market is expected to witness high growth.
Regional analysis: The Asia Pacific region is currently the largest as well as the fastest growing market for cinnamic acid. Countries such as China, India, and Japan are the major consumers as well as producers. Growth in industrialization, health awareness, and per capita incomes in these countries provides lucrative growth opportunities.
Key players operating in the cinnamic acid market are 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. These players focus on new product development and capacity expansion strategies to gain competitive advantage.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
