H1 2023: In H1 2023, prices of Sodium Benzoate fluctuated in the Asia Pacific region. In the first quarter of 2023, the price of Sodium Benzoate experienced a significant decline in the APAC region, primarily attributed to a decrease in consumer demand from downstream industries such as food, pharmaceutical, and nutraceutical. During this period, the market observed widespread demand from the downstream sector, leading to a low and stable price for Sodium Benzoate. Notably, the sodium benzoate price trajectory was predominantly influenced by weak consolidation operations, aligning with the fluctuating downstream market demand. Furthermore, the prices of the raw material, benzoic acid, remained stable, contributing to the overall downward trend. The initial upward trend in Q2 was fueled by increased demand from end-use industries, particularly the food and beverage sectors. Factors such as rising raw material prices for Benzoic acid, heightened production rates to replenish inventories, and a positive market outlook rebounding China demand contributed to the market's strength. However, as the quarter progressed, Sodium Benzoate prices in the Chinese market faced a downward momentum, influenced by the relapsing trajectory of feedstock benzoic acid prices. Uncertain downstream inquiries, economic uncertainties, and an increasing inflation rate led to a decline in demand from downstream industries such as food and beverages, cosmetics, and preservatives. Consequently, the inventory levels of Sodium Benzoate surged as production rates increased, while feedstock suppliers offered benzoic acid at a lower price in the spot market, reducing cost support for Sodium Benzoate. Buyers were cautious and refrained from placing large orders, anticipating a further decline in prices.
H2 2023: In H2 2023, Sodium Benzoate prices observed a significant upturn in Asia. This trend reflected a clear inclination towards higher prices. During this period, China faced a growth slowdown, which began in the first half of 2023 and persisted into the second half. Factors contributing to this included worsening deflation, and weakened foreign demand, casting a shadow over the early part of the third quarter. Several factors fueled the price surge of Sodium Benzoate in China during this quarter, with the most influential being the strengthening of the Chinese Yuan (RMB) against the US dollar and heightened local demand from end-user businesses. Simultaneously, the prices of the raw material, Benzoic acid, in the Chinese market experienced an uptick driven by escalating energy costs. Market dynamics indicated supply constraints as acid factories maintained low inventories. Despite the gradual resumption of production by maintenance companies, demand did not witness significant improvement, creating substantial market pressure. Market players kept their supplies relatively low, and manufacturing production remained steady throughout the period. The heightened demand, coupled with supply chain disruptions, created an imbalance, leading to upward pressure on prices. In the September, there was a slight surge in both freight and manufacturing due to increased demand and inquiries. Another contributing factor to the price surge was strategic bulk ordering by market participants aiming to replenish their inventories.
The global Sodium Benzoate market stood at approximately 440 thousand tonnes in 2023 and is anticipated to grow at a CAGR of 5.05% during the forecast period until 2033.
Sodium Benzoate, having the chemical formula C₆H₅COONa, is a crystalline white powder with water-soluble properties, predominantly serving as a preservative. Its production involves the reaction of benzoic acid with a sodium hydroxide aqueous solution. The substance comes in various grades, including food grade, industrial grade, and pharma grade. It is extensively utilized in the food and beverage industry for enhancing flavor and adjusting pH in items like soft drinks, beers, packaged juices, jams, and pickles. Beyond the food sector, Sodium Benzoate finds application in pharmaceuticals, paints, coatings, stabilizers, and other chemical industries. In pharmaceuticals, it is employed in IM & IV injections, oral syrups, topical creams, vaginal preparations, and tablets. Sodium benzoate hinders the proliferation of potentially harmful bacteria, mold, and other microorganisms in food, preventing spoilage. It exhibits notable efficacy in acidic foods, making it a frequent ingredient in various products like soda, bottled lemon juice, pickles, jelly, salad dressing, and other condiments. Sodium Benzoate serves as a frequently employed preservative in cosmetics and personal care items. Derived from benzoic acid, it exists as the sodium salt. Sodium Benzoate leverages its antimicrobial characteristics to hinder the proliferation of bacteria, fungi, and yeast. This capability plays a crucial role in prolonging the shelf life of cosmetic products.
A pivotal factor propelling the Sodium Benzoate market's growth is its extensive utilization in the food industry as a synthetic preservative. Particularly renowned for its role in products with lower pH levels, it serves as an antimicrobial agent in an array of items, including carbonated drinks, jams, pickles, salad dressings, and various others. The popularity of Sodium Benzoate as a preservative in the food industry can be attributed to its affordability, ease of processing, making it a favoured choice among manufacturers. Furthermore, its significance extends to the pharmaceutical industry, where it is employed as a preservative in liquid pharmaceutical preparations. This dual application across both the food and pharmaceutical sectors underscores the versatility and demand for Sodium Benzoate in diverse industrial contexts. The growth of Sodium Benzoate is intricately linked with the expanding Pharmaceuticals and Food Industry, both of which are witnessing substantial growth owing to the rise in the global population. As these industries continue to flourish, they serve as major driving forces for the Sodium Benzoate Market, emphasizing its indispensable role in ensuring product longevity and safety across diverse sectors. The combination of cost-effectiveness, versatility, and applicability positions Sodium Benzoate as a crucial component in the growth trajectory of these key industries. The global Sodium Benzoate market is likely to reach approximately 720 thousand tonnes in 2033.
The forecast period anticipates a notable upswing in the Asia Pacific region in terms of demand, primarily attributed to the concentration of pivotal food and beverage industries in this area. The pharmaceutical sector in the Asia Pacific currently commands market dominance, offering a significant growth avenue for the sodium benzoate market. Furthermore, the substantial expansion of fast-food industries, particularly in countries like China and India, is poised to propel the sodium benzoate market's advancement. However, Europe presently is the largest market share for sodium benzoate. Key players in this region exhibit a consistent growth rate over an extended period, serving as a prominent factor for market expansion.
Based on the end-user industry, the global Sodium Benzoate market is divided into Food & Beverages, Cosmetics & Personal Care, Pharmaceuticals, and Others. Among these, Food & Beverages is the major segment and held about 42% of the global Sodium Benzoate market in 2023 and is anticipated to prevail the similar trend in the upcoming years. Sodium benzoate functions as a preservative in certain over the counter and prescribed medications, especially in liquid formulations such as cough syrup. Additionally, it serves as a lubricant during pill manufacturing, contributing to the smoothness of tablets, which aids in their quick breakdown after ingestion.
Major players in the Global Sodium Benzoate market are Ganesh Benzoplast Ltd., Foodchem International Corporation, Avantor Inc., Spectrum Chemicals, Wuhan Youji Industries Co. Ltd., FBC Industries, Inc., Tengzhou Tenglong Chemical Co., Ltd., CellMark AB, A.M. Food Chemical Co. Limited, Hugestone Enterprise Co. Ltd., Penta Chemicals, DuPont de Nemours, Inc., Tulstar Products, Inc., and Lanxess AG.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2023
Estimated Year: 2024
Forecast Period: 2025-2033
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Objective of the Study:
• To assess the demand-supply scenario of Sodium Benzoate which covers production, demand and supply of Sodium Benzoate market in the globe.
• To analyse and forecast the market size of Sodium Benzoate
• To classify and forecast Global Sodium Benzoate market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Sodium Benzoate market in the globe.
To extract data for Global Sodium Benzoate market, primary research surveys were conducted with Sodium Benzoate manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Sodium Benzoate market over the coming years.
ChemAnalyst calculated Sodium Benzoate demand across the globe by analyzing the volume of Sodium Benzoate consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Sodium Benzoate manufacturers and other stakeholders
• Organizations, forums and alliances related to Sodium Benzoate distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Sodium Benzoate manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Sodium Benzoate market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
440 thousand tonnes
Market size Volume in 2033
720 thousand tonnes
Growth Rate
CAGR of 5.05% from 2024 to 2033
Base year
2023
Estimated year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2033
Quantitative units
Demand in thousand tonnes and CAGR from 2024 to 2033
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process.
Segments covered
By End-Use: (Food & Beverages, Cosmetics & Personal Care, Pharmaceuticals, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What was the net market size of Sodium Benzoate in terms of volume in 2023?
Ans:
The global market size of Sodium Benzoate has reached approximately 440 thousand tonnes in 2023.
Q2.
Which industry is the leading consumer of Sodium Benzoate?
Ans:
Food & Beverages industry is the leading consumer of Sodium Benzoate globally.
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