Future Market Insights (FMI) estimates the global malonic acid market to reach a value of US$ 56,058.6 thousand by 2023. The report suggests that the sales prospects of the market are expected to expand at a CAGR of 5.7% surpassing US$ 97,277.2 thousand by 2033.

Malonic acid is dicarboxylic acid with chemical formula ‘C3H4O4’. It is a white crystalline solid that is soluble in polar and water organic solvents. The acid contains two carboxylic acid groups (-COOH) that are separated by a single methylene (-CH2-) group.

Malonic acid finds growing popular usage in industries such as pharmaceuticals, food and beverages, and agrochemicals. It is used in organic synthesis as a building block for the preparation of several chemicals, including polymers.

Malonic acid is an essential starting material in the synthesis of several medications and drug intermediates. This primes the pharmaceutical sector as the primary driver of growth in the malonic acid industry.

Malonic acid is also extensively employed as a flavoring ingredient and acidulant in the food and beverage sector, which is expected to further propel its demand over the forecast period.

Manufacturers may capitalize on rising demand by focusing on establishing environmentally friendly and sustainable production methods. However, the market is confronted with obstacles such as the lack of alternative beginning materials, environmental concerns, and unpredictable raw material prices.

The malonic acid industry is predicted to increase steadily, particularly in the Asia-Pacific region. This growth would primarily be commanded by rising usage of malonic acid derivatives.

Presence of large agrochemical establishments and several malonic acid manufacturers is likely to provide a cost advantage for this market in the region. Manufacturers and market participants must stay current on market trends and developments in order to remain competitive.

Key Trends in the Malonic Acid Market Listed by Future Market Insights (FMI)

  • Rising usage of malonic acid derivatives in the pharmaceutical sector as an essential starting material in the synthesis of several drugs is likely to continue pushing demand in the market.
  • Increasing use of malonic acid as a flavoring agent and acidulant in the food and beverage industry is likely to provide massive growth opportunities to manufacturers.
  • Growing demand for malonic acid derivatives in the agrochemical industry, driven by the need for sustainable crop protection solutions, will likely result in further popularity over the forecast period.
  • Shift towards developing sustainable and eco-friendly production methods to overcome environmental would be a key strategy for manufacturers to remain competitive in the market.
  • Asia-Pacific region expected to be the largest market for malonic acid due to increasing demand in emerging economies such as China and India from their domestic agrochemical industries.
  • Fluctuations in the prices of raw materials and availability of alternative starting materials could impact the market growth and production costs, which would likely push suppliers towards innovations and developments.

What are the Key Drivers Supporting the Growth of the Malonic Acid Market?

Booming Demand from the Agriculture Sector to Drive Traction for the Market

Malonic acid is a dicarboxylic acid that has applications in the agriculture industry. Its primary use of it in agriculture is as a precursor for the synthesis of several herbicides, insecticides, and fungicides. It is used as a pH adjuster and buffer in agricultural formulations.

The demand for malonic acid in the agriculture industry is driven by the need for effective and safe crop protection products. With the growing global population, there is a constant need to increase agricultural productivity and protect crops from pests and diseases. This has led to the development of new and improved crop protection products that use malonic acid as a key ingredient.

Malonic acid demand is high for the production of plant growth regulators, which are chemicals that can stimulate or inhibit plant growth.  These regulators are used to improve crop yield, quality, and resistance to environmental stressors.

Malonic acid formulations can help to increase the delivery of essential micronutrients to crops, such as iron, zinc, and manganese. This improves the overall health and growth of plants, leading to better yields. This helps increase food availability in the market.

The factors mentioned above outline how the agriculture industry plays a significant role in driving the demand for the malonic acid industry. As the demand for food security continues to rise, the agriculture industry will increasingly rely on malonic acid over the forecast period.

Demand for Bio-based Products to Supplement Market Growth

The demand for bio-based products is a key factor contributing to the growth of the market. The traditional method of producing malonic acid involves the use of petroleum-based chemicals, which has raised concerns over its environmental impact and sustainability.

To address sustainability concerns, there is an increasing demand for bio-based alternatives to petroleum-based chemicals. Malonic acid plays a key role as such an alternative.

Bio-based malonic acid is produced from renewable resources such as sugar, which are abundant and more sustainable than petroleum-based feedstock. It offers several advantages over its petroleum-based counterpart, including a lower carbon footprint, better biodegradability, and reduced toxicity.

Companies are looking for sustainable eco-friendly alternatives to traditional petroleum-based chemicals. This trend is projected to continue in the coming years as more consumers and companies prioritize sustainability in their purchasing decisions.

What are the Factors Restraining the Performance of the Malonic Acid Market?

Competition from Malonic Acid Derivatives and Other Substitutes to Hinder Market Growth

The market growth for malonic acid is greatly influenced by the prices of the raw materials used in their production, such as acetic acid and cyanide. The prices of these raw materials directly correlate to the production costs for malonic acid.

Resultant higher prices for the final product can lead to a decrease in competitiveness compared to alternative products, ultimately hindering the market’s growth.

The fluctuation of raw material prices can create market uncertainties, causing hesitation from both buyers and sellers. This hesitancy can, in turn, lead to a decrease in demand for malonic acid, further hindering its market growth.

Malonic acid is sometimes substituted by other malonates such as methyl malonate and dimethyl malonate in the pharmaceuticals sector. Similarly, citric and tartaric acid are common alternatives used in the food & beverages sector.

Country-wise Insights

What will be the Growth Outlook of the Market in North America?

Sustainable Malonic Acid Synthesis to Boost the North America Market

The United States is one of the prevalent markets for malonic acid globally. The demand for malonic acid is expected to surge due to the increasing demand from the pharmaceuticals, food additives, and cosmetics sectors.

In terms of market trends, there has been a growing interest in the use of renewable raw materials for the production of malonic acid. This has been in addition to an increasing focus on sustainability and eco-friendliness in the chemical industry.

This has led to the development of new production methods and technologies that are more efficient and less harmful to the environment. The United States market is expected to continue growing in the coming years, driven by the development of new production methods and technologies.

North America malonic acid industry is projected to rise at a CAGR of 5.2% through 2033.

Competitive Landscape

The market is fairly fragmented with leading manufacturers holding dominating shares in the market. Top-5 players identified in the report are anticipated to hold 40% to 45% of the global market share.

The remaining share is anticipated to be distributed along local and regional players. The key market participants are targeting emerging economies with higher growth potential to boost their revenue in the market.

With increasing awareness about the environmental impact of chemical production, several companies are adopting sustainable practices in malonic acid production.

For instance,

In 2019, BioAmber Inc. announced partnership with EcoMundo, a sustainability consulting firm, to assess and reduce the environmental impact of its malonic acid production process.

In November 2022, Lygos Inc. announced a research and development collaboration with Ginkgo Bioworks. The corporation comprises the work of two of its research and development programs over around two years to develop biodegradable polymer-based formulations and products.