Phenylacetic Acid Market

The global phenylacetic acid market is forecasted to grow in both volume and value terms, with a projected CAGR of +1.7% for consumption and +3.3% for market value from 2022 to 2030. China is the largest consumer and producer of phenylacetic acid, with India showing the highest growth rate in market size. The average import price and export price have both seen growth over the years, with varying trends amongst different countries. Overall, the market is expected to continue growing in the coming years.

Market Forecast

Driven by rising demand for phenylacetic acid worldwide, the market is expected to start an upward consumption trend over the next eight years. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +1.7% for the period from 2022 to 2030, which is projected to bring the market volume to 207K tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.3% for the period from 2022 to 2030, which is projected to bring the market value to $3.7B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Phenylacetic Acid, Its Salts And Esters And Aromatic Monocarboxylic Acids

In 2022, consumption of phenylacetic acid, its salts and esters was finally on the rise to reach 181K tons after seven years of decline. In general, consumption, however, saw a slight reduction. Over the period under review, global consumption hit record highs at 247K tons in 2014; however, from 2015 to 2022, consumption failed to regain momentum.

The global phenylacetic acid market value amounted to $2.9B in 2022, with an increase of 11% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption recorded a relatively flat trend pattern. Global consumption peaked at $3.3B in 2019; however, from 2020 to 2022, consumption failed to regain momentum.

Consumption By Country

The country with the largest volume of phenylacetic acid consumption was China (55K tons), accounting for 31% of total volume. Moreover, phenylacetic acid consumption in China exceeded the figures recorded by the second-largest consumer, India (21K tons), threefold. The third position in this ranking was taken by the United States (20K tons), with an 11% share.

In China, phenylacetic acid consumption remained relatively stable over the period from 2012-2022. In the other countries, the average annual rates were as follows: India (+1.2% per year) and the United States (-0.0% per year).

In value terms, China ($576M), Canada ($497M) and the United States ($296M) appeared to be the countries with the highest levels of market value in 2022, with a combined 48% share of the global market. India, Indonesia, Japan, Italy, Brazil, South Korea and Turkey lagged somewhat behind, together comprising a further 21%.

India, with a CAGR of +4.9%, saw the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of phenylacetic acid per capita consumption in 2022 were Canada (80 kg per 1000 persons), Italy (77 kg per 1000 persons) and the United States (60 kg per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for Canada (with a CAGR of +3.1%), while consumption for the other global leaders experienced mixed trends in the per capita consumption figures.

Production

World Production of Phenylacetic Acid, Its Salts And Esters And Aromatic Monocarboxylic Acids

In 2022, production of phenylacetic acid, its salts and esters was finally on the rise to reach 178K tons for the first time since 2017, thus ending a four-year declining trend. In general, production, however, showed a mild descent. The most prominent rate of growth was recorded in 2013 when the production volume increased by 12% against the previous year. Over the period under review, global production hit record highs at 244K tons in 2014; however, from 2015 to 2022, production remained at a lower figure.

In value terms, phenylacetic acid production rose markedly to $2.6B in 2022 estimated in export price. Over the period under review, production recorded a relatively flat trend pattern. The growth pace was the most rapid in 2014 with an increase of 12% against the previous year. As a result, production reached the peak level of $3.1B. From 2015 to 2022, global production growth failed to regain momentum.

Production By Country

The country with the largest volume of phenylacetic acid production was China (92K tons), comprising approx. 52% of total volume. Moreover, phenylacetic acid production in China exceeded the figures recorded by the second-largest producer, the United States (16K tons), sixfold. The third position in this ranking was taken by India (16K tons), with an 8.8% share.

In China, phenylacetic acid production remained relatively stable over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United States (-1.8% per year) and India (-0.8% per year).

Imports

World Imports of Phenylacetic Acid, Its Salts And Esters And Aromatic Monocarboxylic Acids

In 2022, global imports of phenylacetic acid, its salts and esters expanded slightly to 66K tons, rising by 4% compared with the previous year. Overall, imports saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2018 with an increase of 8% against the previous year. Over the period under review, global imports attained the maximum at 68K tons in 2014; however, from 2015 to 2022, imports remained at a lower figure.

In value terms, phenylacetic acid imports amounted to $930M in 2022. The total import value increased at an average annual rate of +2.6% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 when imports increased by 23%. Global imports peaked at $936M in 2019; however, from 2020 to 2022, imports failed to regain momentum.

Imports By Country

India (13K tons) and the United States (9.6K tons) were the largest importers of phenylacetic acid, its salts and esters in 2022, accounting for approx. 20% and 15% of total imports, respectively. Italy (5K tons) ranks next in terms of the total imports with a 7.6% share, followed by Germany (6.2%) and South Korea (5%). Japan (2.9K tons), Belgium (2.9K tons), Spain (1.9K tons), Malaysia (1.9K tons), Brazil (1.5K tons), Switzerland (1.2K tons), Taiwan (Chinese) (1.2K tons) and Mexico (1.1K tons) held a minor share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by India (with a CAGR of +11.5%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest phenylacetic acid importing markets worldwide were India ($175M), the United States ($115M) and Italy ($83M), with a combined 40% share of global imports.

India, with a CAGR of +16.8%, saw the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average phenylacetic acid import price stood at $14,168 per ton in 2022, with an increase of 2.7% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.9%. The pace of growth was the most pronounced in 2019 an increase of 22%. As a result, import price reached the peak level of $15,287 per ton. From 2020 to 2022, the average import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Switzerland ($20,384 per ton), while Malaysia ($5,164 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+7.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Phenylacetic Acid, Its Salts And Esters And Aromatic Monocarboxylic Acids

For the third consecutive year, the global market recorded growth in shipments abroad of phenylacetic acid, its salts and esters, which increased by 2.1% to 63K tons in 2022. In general, exports recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 with an increase of 11% against the previous year. The global exports peaked at 65K tons in 2014; however, from 2015 to 2022, the exports stood at a somewhat lower figure.

In value terms, phenylacetic acid exports expanded rapidly to $884M in 2022. The total export value increased at an average annual rate of +3.3% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2018 with an increase of 17%. The global exports peaked in 2022 and are expected to retain growth in years to come.

Exports By Country

In 2022, China (38K tons) represented the main exporter of phenylacetic acid, its salts and esters, achieving 60% of total exports. India (8K tons) took the second position in the ranking, followed by the United States (5.5K tons) and Germany (3.5K tons). All these countries together took near 27% share of total exports. Belgium (1.7K tons) and Japan (1.3K tons) followed a long way behind the leaders.

China experienced a relatively flat trend pattern with regard to volume of exports of phenylacetic acid, its salts and esters. At the same time, India (+10.3%) displayed positive paces of growth. Moreover, India emerged as the fastest-growing exporter exported in the world, with a CAGR of +10.3% from 2012-2022. By contrast, Germany (-2.3%), the United States (-4.0%), Belgium (-4.8%) and Japan (-6.4%) illustrated a downward trend over the same period. While the share of India (+7.8 p.p.) and China (+2.9 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Germany (-1.7 p.p.), Belgium (-1.9 p.p.), Japan (-2.2 p.p.) and the United States (-4.9 p.p.) displayed negative dynamics.

In value terms, China ($443M) remains the largest phenylacetic acid supplier worldwide, comprising 50% of global exports. The second position in the ranking was held by India ($114M), with a 13% share of global exports. It was followed by the United States, with a 9.2% share.

In China, phenylacetic acid exports expanded at an average annual rate of +3.7% over the period from 2012-2022. In the other countries, the average annual rates were as follows: India (+13.6% per year) and the United States (-0.5% per year).

Export Prices By Country

The average phenylacetic acid export price stood at $14,135 per ton in 2022, with an increase of 11% against the previous year. Over the last decade, it increased at an average annual rate of +2.9%. The growth pace was the most rapid in 2016 an increase of 16% against the previous year. Over the period under review, the average export prices hit record highs in 2022 and is likely to see gradual growth in the near future.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($19,165 per ton), while Japan ($8,531 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+4.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform