Report Overview

The Saudi Arabia Butyric Acid market is gaining significant traction owing to the increasing demand from food processing and increasing usage of butyric acid as intermediates.

Saudi Arabia Butyric Acid Market - Industry Trends & Forecast Report, 2029

Saudi Arabia butyric acid market size was estimated to be worth USD 11.29 million in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia butyric acid market size is projected to grow at a CAGR of 13.38% reaching a value of USD 27.27 million by 2029. Increasing demand in the food and pharmaceutical industries is one of the main driving reasons for the Saudi Arabia butyric acid market. The growing demand for meat is boosting the growth of the animal husbandry industry on a regional scale, which is fueling the need for animal feed and driving the rise of the butyric acid market.

Saudi Arabia Butyric Acid Market – Overview

Butyric acid, along with acetic acid and propionic acid, is one of the three most prevalent short-chain fatty acids (SCFAs) in the stomach. Around 90–95% of the SCFAs in the gut, which are created when gut-friendly bacteria break down dietary fiber, are made up of these saturated fatty acids. Butyric acid is used to give buttery overtones to food tastes, and its esters are frequently used as food additives to boost fruit aroma. Butyric acid naturally exists in very small and inconsequential levels for gut health in butter, hard cheeses (like parmesan), milk (particularly goat's and sheep's), yogurts, cream, and some other fermented foods (including sauerkraut, pickled cucumbers, and fermented soy products).

Saudi Arabia Butyric Acid Market

Growth Drivers

Substantial Demand for Butyric Acid in Pharmaceutical Industry

As butyric acid induces morphological and biochemical differentiation in a variety of cells, which simultaneously reduces neoplastic tendencies, it is well recognized for its anticancer properties. The pharmaceutical industry in the Kingdom is anticipated to export more than SR 1.5 million per year and increase at a rate of 5% yearly with more than 40 recognized pharmaceutical firms in Saudi Arabia supply 36% of the country's medical needs, as reported by Arab News. As a result, the demand for butyric acid is projected to surge in the Saudi Arabia, propelling the market growth.

Restraints

Negative Effects of Butyric Acid on Human Health & Environment

Vaporized butyric acid can irritate the eyes, nose, and throat. One might get coughing fits and breathing difficulties if they breathe in substantial amounts. However, it may have long-term negative health impacts, including as risks for cancer and pregnancy. They may serve as a significant barrier to the expansion of the worldwide butyric acid market.

Impact of COVID-19 on Saudi Arabia Butyric Acid Market

The expansion of the butyric acid market in Saudi Arabia was negatively impacted by the unprecedented COVID-19 pandemic outbreak. The pandemic scenario's lockdown in several countries resulted in supply chain issues, employment reductions, and labor shortages. The pharmaceutical industry was severely harmed by the COVID-19 pandemic. Owing to issues with the unavailability of medications, such as shifts in drug usage habits, the industry's growth was hindered. In the early phases of the outbreak, COVID-19 reduced the availability of treatments in the healthcare sector and hampered the production of pharmaceuticals. As a result, the total demand for butyric acid has significantly decreased as well.

Saudi Arabia Butyric Acid Market

Segmental Coverage

Saudi Arabia Butyric Acid Market – By Type

Based on type, Saudi Arabia butyric acid market is divided into renewable butyric acid and synthetic butyric acid segments. The renewable butyric acid market holds a higher market share. Butyric acid is an important chemical produced nowadays from petrochemical raw materials. Its fermentation-based manufacture from easily available, affordable biomass has attracted a lot of interest in recent years. The estimated manufacturing costs for a 30% (w/v) sodium butyrate solution are USD 1,635/MT butyrate at 1,000 MT/y and USD 1,142/MT at 5000 MT/y, respectively. This is in contrast to the current market price for butyrate made from petroleum, which is 1800/MT, and the manufacturing costs for using dextrose or corn as the substrate in fermentation.

Saudi Arabia Butyric Acid Market – By End Use

Based on end use, Saudi Arabia butyric acid market is segmented into chemical intermediates, animal feed, pharmaceuticals, perfumes, food & flavors, and others. The animal feed segment accounts for the highest share in Saudi Arabia butyric acid market. Butyric acid is one of the most effective feed additives used in animal nutrition, because it enhances intestinal health and boosts nutrient absorption throughout the gastrointestinal tract. The expanding consumption of including dairy products, eggs, fish, poultry, and others, are flourishing the growth of the animal farming industry in the country, further boosting the demand for animal feed.

Competitive Landscape

Major players operating in Saudi Arabia butyric acid market include Beijing Huamaoyuan Fragrance Flavor Co., Ltd., Eastman Chemical Company, Merck KGaA, OQ Chemicals GmbH, Perstorp Holding AB, Saudi Kayan Petrochemical Company, and Reza Chemical Industries (RCI). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Renewable Butyric Acid

• Synthetic Butyric Acid

By End Use

• Chemical Intermediates

• Animal Feed

• Pharmaceuticals

• Perfumes

• Food & Flavors

• Others