by Cinnamic acid is an organic compound that is derived from cinnamon bark. It is an oil that occurs naturally and has a pleasant smell. Cinnamic acid finds wide application in flavor and fragrance industries. It is used as a flavoring agent in food products such as snacks, bakery items etc. to impart sweet aroma. It is also used in perfumes, cosmetics, detergents and other personal care products due to its cinnamon-like scent. Cinnamic acid helps balance and enhance other fragrances when combined.
The Cinnamic Acid Market is estimated to be valued at US$ 24.33 Bn or Mn 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 Dynamics:
The rising demand for natural ingredients in food and beverages is a key driver for cinnamic acid market growth. Consumers are increasingly preferring food products with natural flavors and less artificial ingredients. This is boosting the adoption of cinnamic acid as a natural flavoring agent. Additionally, the personal care industry is growing steadily which is fuelling the consumption of cinnamic acid in various cosmetic products such as perfumes, lotions, creams etc. due to its skin conditioning properties. Furthermore, increasing spending on premium products is also propelling the market forward. However, availability of alternative artificial flavoring agents at lower costs may hinder the market growth.
Segment Analysis
The cinnamic acid market is dominated by the flavor and fragrance segment. This segment accounts for over 60% of the total market share owing to the wide application of cinnamic acid in the food and beverages industry as a flavoring agent. Cinnamic acid is commonly used to enhance flavors in cinnamon, chocolate, and citrus flavors. The demand for these flavored products is high thereby driving the consumption of cinnamic acid in the flavor and fragrance segment.
PEST Analysis
Political: There are no significant political risks affecting the cinnamic acid market globally.
Economic: The growth of major end-use industries such as food and beverages, personal care, and pharmaceuticals is driving the demand for cinnamic acid.
Social: Changing lifestyle and consumer preference for natural and organic personal care products are expected to increase the demand for plant-based ingredients like cinnamic acid.
Technological: Production technologies are optimized to reduce manufacturing costs and enhance product quality. Continuous investment in R&D is helping discover new applications of cinnamic acid.
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 and beverage industry.
Regional analysis: Asia Pacific dominates the global cinnamic acid market and is expected to grow at the fastest rate during the forecast period. This can be attributed to rising food processing industries and expanding personal care sectors in China, India, and other Asian countries.
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. BASF and DSM are prominent manufacturers with significant market shares.
