Glycolic Acid Market Outlook 2031
The global glycolic acid market size was valued at around USD 427.88 million in 2022 and is estimated to reach USD 813.51 million by 2031, expanding at a CAGR of around 7.4% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising demand for glycolic acids across the diverse end-user industry.
Glycolic acid is a type of alpha hydroxy acid with the chemical formula C2H4O3. It is the smallest alpha hydroxy acid. Glycolic acid is a colorless, odorless, and hygroscopic crystalline solid. Naturally, it is derived and extracted from plants such as grapes, sugar beets, and pineapple. Glycolic acid is prepared through the reaction of formaldehyde with synthesis gas in the presence of a catalyst for commercial purposes.
They are highly soluble in water, solvents, and surfactants. Glycolic acid, also known as hydroxy acetic acid, is stronger than acetic acid, having the great electron-withdrawing power of the terminal OH group. Its demand is high in the global market, as it is extensively consumed for various applications in diverse industrial formulations and operations.
These chemical compounds are frequently utilized as dyeing and tanning agent, cleaning agent, preservative and flavoring agents, and skin care agents. They act as an important intermediate for organic synthesis in a range of reactions including, esterification, long chain polymerization, and oxidation-reduction formulations. Glycolic acid offers a low level of toxicity and hence, it is often employed in the food & beverage industry as a cleaning product.
Glycolic acid is used as a monomer in the production of polyglycolic acid and other biocompatible copolymers. It is utilized in the personal care and healthcare sectors, as it exhibits potential for cell recovery and exfoliation. The global glycolic acid market is estimated to expand at a robust pace due to intense demand for glycolic-based products. It is widely used in the production of various consumer products leading to a rise in the revenue.
Other factors such as rising per capita disposable incomes, changing standard lifestyles, and growing number of women in the workforce are fueling the global glycolic acid market. Moreover, major market players are increasingly investing in research and development activities to enhance product efficacy and effectiveness. This is projected to increase the application of glycolic acid in the preparation of biomedical devices, such as sutures, meshes, and implants.
COVID-19 Impact
The recent Covid-19 outbreak around the world impeded the global glycolic acid market. The pandemic has brought drastic changes across the global market economies with rapid increases in positive cases across the globe. The situation imposed several restrictions and regulations adopted by many governments that result in a halt in various economic operations.
Loss of many sources of income among the population and uncertainties amid the pandemic has led to disruption of the demand-supply chain, which is a major factor hampering the glycolic market. Subsequent lockdowns imposed by the Covid-19 situation had a huge impact on each end-users that employ glycolic acid thus, reducing the demand for glycolic acid.
During the pandemic, the demand for essential items was high, while that for the non-essential products declined with reducing spending on luxury and comfort goods. The cosmetic market, for instance, was severely hampered by the pandemic, due to decline in the demand for cosmetic products. This, in turn, is hindered the glycolic acid market.
Glycolic Acid Market Dynamics
The global glycolic acid market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, and emerging challenges that can shape the outcome or overall performance of the market during the forecast period, 2023 to 2031.
Major Trends:
Adoption of glycolic acid in the food & beverage industry
Increasing demand for glycolic acid in the food & beverages industry and is an important future market trend, which is fueling the global glycolic acid market. Glycolic acid is a cost-effective flavoring and preservative agent, which in turn, is projected to create opportunities in the food and beverages sector.
It is used as an adhesive in packaging products. This, in turn, fuels the global glycolic acid market. In the oil and refining sector, as a cost-effective cleaning solution. The glycolic acid, as a preservative, extends the shelf life so that the content products remains unspoiled and safe. Rapidly growing demand for packaged and convenience food items across the globe is projected to fuel the market.
Rapid increase in the e-commerce economy
The boom in the e-commerce sector drives the glycolic acid market. With the advent of social media, e-commerce online shopping has surged due to high consumer demand for unique, high, and novel cosmetics emerging. Glycolic acid is an important ingredient while manufacturing goods, thus driving the market growth. Increasing online shopping through e-commerce retails has an indirect positive influence on glycolic acid market sales.
Key Drivers:
Growing usage of glycolic acid in various industrial operations
Glycolic acid is widely utilized for various industrial purposes. It is often used for cleaning operations such as concrete truck and tool cleaning, metal cleaning & finishing, water treatment plants, and dairy cleaning owing to its excellent properties including low toxicity, corrosiveness, cleaning capability, and volatility. It is applied for cleaning copper substrates across electronics products in the food and beverage industry.
This acid acts as a preservative and flavoring agent. The chemical compound in the textile industry is used as a dyeing and tanning agent. Glycolic acid is further used in plastics, solvents, adhesives, additives of ink and paint, solvents, and emulsion polymers. Additionally, glycolic acid is adopted as an important intermediate agent for organic synthesis and various reactions such as esterification, long chain polymerization, and oxidation-reduction.
It is an ideal solution for preparing copolymers such as polyglycolic acid. Therefore, increase in sales of glycolic acid and growth in its demand across various industrial operations aids in market growth for the global glycolic acid market during the forecast period.
Rising demand across the oil and refining sector
In oil and refining industrial operations, glycolic acid is highly used as a cleaning and descaling agent. These hydroxy acetic acids are economical cleaning solution, as they offer inexpensive metal complexing. They enhance the effects of scraping and cleaning procedures in refining operations. These chemical compounds are non-volatile and do not cause stress-cracking of stainless steel with hydrochloric acid.
Additionally, glycolic acid is an ideal ingredient used for cleaning household goods. These facilitate the usage of glycolic acid leading to an increase in its demand in the oil and refining industry, which in turn, drives the global glycolic acid market to expand to some extent.
Existing Challenges:
Side effects of glycolic acid to pose challenges
Glycolic acid is formed through the method of carbonylation of formaldehyde or by glycol nitrile as a prime material. Both these procedures produce formaldehyde as an end residual, which is a harmful substance to human health. It can damage the user’s immunity severely when exposed internally. Formaldehyde can cause eye irritation and skin complications.
Moreover, this substance has a serious impact on health and cause cancer in humans. This end product, when accidentally mixed with glycolic acid has severe consequences and hence, the extraction of glycolic acid needs proper safety measures and advanced technology, which poses great challenges for major market players in expanding the market.
Regulatory restriction challenges limit the glycolic acid market
The glycolic acid manufacturing industry is one of the most regulated industries. Many governments have imposed several stringent regulations regarding the usage of this chemical compound which differs for different applications. For instance, companies must comply to register with the Center for Food Safety and Applied Nutrition (CFSAN), a branch of the US Food & Drug Administration, in order to use chemical compounds in cosmetic and personal care products.
For different industrial and household applications, registration with Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the US Environmental Protection Agency (EPA) is mandatory. Additionally, this glycolic acid, also known as alpha hydroxy acid has to comply with European Chemical Authority (ECHA) to be utilized in veterinary hygiene disinfectants and food & feed area disinfectant applications.
To meet the compliance requirement of all stringent regulations, the production process of glycolic acid involves additional time. These factors are major challenges that limit the glycolic acid manufacturers’ operation and their end-users.
Emerging Opportunities:
High demand for biodegradable polymers
Polyglycolic acid, the a common biodegradable polymer that is widely used in the medical industry. It is formulated through the polymerization of glycolide, a diester of glycolic acid. These biodegradable polymers are high degradability within a limited period. They are ideal for tissue engineering applications and biomedical devices as they provide low toxicity in nature.
Polyglycolic acid-based biodegradable polymers are used in surgical fixation devices, resorbable sutures, and drug delivery devices. The bio-absorbable surgical sutures are gaining significant demand, as they are used in various surgical procedures related to the respiratory, cardiovascular, and nervous systems.
The Chemours Company, for instance, caters to the market demand for biodegradable polymers by launching glycolic acid ‘Glypure’. The demand for biodegradable polymers, as a sustainable solution, is rapidly growing across diverse end-user, thus creating opportunities in the future
Scope of The Glycolic Acid Market Report
The global glycolic acid market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Glycolic Acid Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Concentration Levels (30% Purity, 60% Purity, 70% Purity, 99% Purity, and Others), Grade Types (Cosmetic, Technical, Industrial, and Medical), Applications (Personal care & Dermatology, Skin Care & Facial Rejuvenation, Industrial Cleaners, Household Cleaners, Oil Field and Petroleum Refining, Plant Growth Stimulation, Medical, Electropolishing, Food Flavoring & preservation, PGA Manufacturing, Textile Dyeing & Finishing, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key players Covered in the Report
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Avid Organics Pvt. Ltd.; CABB Group GmbH; China Petrochemical Corporation; Jiaxing Jilat Chemical Co., Ltd; CrossChem Limited; Water Chemical Co., Ltd; Mehul Dye Chem Industries; Skinceuticals; Merck KGaA; Zhonglan Industry Co., Ltd; Parchem fine and specialty chemicals; The Chemours Company; Tokyo Chemical Industry Co. Ltd; Shandong Xinhua Pharmaceutical; Phibro Animal Health Corporation; and others
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Glycolic Acid Market Segment Insights
Glycolic acid with a 99% purity concentration level segment to generate high revenue
On the basis of concentration levels, the global glycolic acid market is categorized as 30% purity, 60% purity, 70% purity, 99% purity, and others. The 99% purity segment is likely to generate high revenue, owing to its growing usage in various applications. It is widely applied in household items, pharmaceutical products, cosmetic items, textiles, and factories.
Cosmetic grade glycolic acid segment to register significant market share
Based on the grade types, the market is segmented into cosmetic, technical, industrial, and medical grades. The cosmetic grade segment is likely to hold significant market share and is anticipated to expand at a high CAGR during the forecasted period, from 2022 to 2030. Cosmetic grade glycolic acid is an aqueous solution or crystalline powder with a 70% concentration purity level.
It is majorly used in the cosmetic industry as it enhances the texture and appearance of the skin health through the chemical peel process. An increase in the number of women in the workforce and rising disposable income are expected to motivate them to look presentable, thus resulting in the growing adoption of cosmetic and skin care products with high protection against anti-pollution and anti-aging regimens. Cosmetic grade glycolic acid is widely utilized in skin care creams and lotions.
Personal care & dermatology segment remained to dominate the global market
Based on the applications, the global glycolic acid is fragmented into personal care & dermatology, skincare & facial rejuvenation, industrial cleaners, household cleaners, oil field, and petroleum refining, plant growth stimulation, medical, electropolishing, food flavoring & preservation, PGA manufacturing, textile dyeing & finishing, and others.
The personal care & dermatology segment is anticipated to continue to dominate the global market, in terms of volume and value. It is expected to expand at a high CAGR during the forecasted period. Rising health concern population and increasing disposable sources of income are fueling the personal care segment.
The anti-aging, exfoliating, moisturizing, and hydration properties of glycolic acid are booting the usage of glycolic acid in various personal care & dermatology applications. Glycolic acid is an ideal ingredient for chemical peels. Moreover, it is used in skin care products including acne removal creams, hyperpigmentation creams, toner, serum, and hair care products.
These chemical compounds offer unique benefits in skin treatments including breakouts, clogged pores, and others contributing to influencing the sales of glycolic acid products. Additionally, glycolic acids are important compounds used in dental absorbable surgical sutures. The rapid growth in the demand for bio-absorbable surgical sutures in various surgeries is projected to drive the market. Increasing usage of glycolic-based polyglycolic acid in many biomedical applications has further led to the expansion of revenue.
The household application segment is projected to register considerable growth during the forecast period, owing to the increasing use of glycolic acid in products such as bathroom and kitchen cleaners, which is increasing in demand to maintain bathroom and kitchen hygiene.
Asia Pacific held a major share of the market in 2021
In terms of regions, the global glycolic acid market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held 32.5% share of the global market, in terms of revenue, in 2021. Revenue growth in the region is fueled by the high consumption of glycolic acid across the diverse industry. Expansion of cosmetics and textile industries in China, India, Japan, and South Korea is propelling the glycolic acid market.
The growth of the market in the region is driven by rising disposable income and improvements in the standard of living, which is boosting the demand for beauty and healthcare products. High consumption of skin care products such as anti-aging products, facewashes, cleansers, toners, sun care creams, lotions, and hair care products that use glycolic acid as a key ingredient is increasing the sale of glycolic acid.
Additionally, surging usage of industrial cleaning products is creating lucrative growth opportunities for market players in the region. North America accounts for a key share of the global glycolic acid market. The remarkably lucrative growth in this emerging market is influenced by the utilization of glycolic acid products in industrial cleaning applications and massive usage in cosmetics formulations.
The market in North America is expected to expand at a CAGR of 6.35% during the forecast period. Rapid advancements in the pharmaceutical industry in the region is a key factor fueling the glycolic acid market, as it is majorly used in manufacturing of bio-absorbable suture material. Increasing demand for medical supplies including absorbable staples and stents is further propelling the glycolic acid market in North America.
The market in Europe and the Middle East & Africa market is anticipated to expand at a significant CAGR during the forecast period.
Latest Development
In January 2022, Skinceuticals launched a Glycol Renewal Serum. This serum is a scientifically approved product that helps combat dull skin issues.
In November 2021, Chemours Company introduced the Glyclean D brand, a unique glycolic acid that is used as a sanitizer for domestic and commercial cleaning purposes.
In February 2021, Neostrata company, Inc launched the Neo Strata Glycolic Renewal Serum, composed of glycolic acid, 10% alpha hydroxy acid, lactobionic acid, and green tea antioxidants. This combination helps in preventing enlarged pores, uneven skin, and acne scars.
Segments
The global glycolic acid market has been segmented on the basis of
Concentration Levels
- 30% Purity
- 60% Purity
- 70% Purity
- 99% Purity
Grade Types
- Cosmetic
- Technical
- Industrial
- Medical
Applications
- Personal care & Dermatology
- Skin Care & Facial Rejuvenation
- Industrial Cleaners
- Household Cleaners
- Oil Field and Petroleum Refining
- Plant Growth Stimulation
- Medical
- Electropolishing
- Food Flavoring & preservation
- PGA Manufacturing
- Textile Dyeing & Finishing
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Avid Organics Pvt. Ltd.
- CABB Group GmbH
- China Petrochemical Corporation
- Jiaxing Jilat Chemical Co., Ltd
- CrossChem Limited
- Water Chemical Co., Ltd
- Mehul Dye Chem Industries
- Skinceuticals
- Merck KGaA
- Zhonglan Industry Co., Ltd
- Parchem fine and specialty chemicals
- The Chemours Company
- Tokyo Chemical Industry Co. Ltd,
- Shandong Xinhua Pharmaceutical
- Phibro Animal Health Corporation
Competitive Landscape
Key players competing in the global glycolic acid market are Avid Organics Pvt. Ltd.; CABB Group GmbH; China Petrochemical Corporation; Jiaxing Jilat Chemical Co., Ltd; CrossChem Limited; Water Chemical Co., Ltd; Mehul Dye Chem Industries; Skinceuticals; Merck KGaA; Zhonglan Industry Co., Ltd; Parchem fine and specialty chemicals; The Chemours Company; Tokyo Chemical Industry Co. Ltd; Shandong Xinhua Pharmaceutical; Phibro Animal Health Corporation; and others.
Some of these players have adopted a series of business development strategies including merger and acquisition, entering into partnerships and collaboration, product launches, pricing analysis, and production capacity expansion to expand their consumer base and enhance their market share.
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