Tartaric Acid Market: Drivers, Restraints, Opportunities, and Challenges

Northbrook, USA, 2020-Feb-05 — /EPR Network/ — The global tartaric acid market is projected to reach USD 285.6 million by 2022, at a CAGR of 5.77%; in terms of volume, it is projected to reach 91.2 KT by 2022, at a CAGR of 4.50% during the forecast period. The major driver of the tartaric acid industry is its multifunctionality across different industries such as food & beverages, pharmaceutical, and cosmetics. Tartaric acid, as an ingredient, has immense usage in the pharmaceutical industry, especially after technological innovations such as micro-encapsulation.

Multiple functionalities of tartaric acid across different industries is acting as a catalyst to stimulate the demand to cross the mark of USD 285.6 million by 2022

Tartaric acid is an odourless white crystalline powder, and can be extracted from fruits such as grapes, bananas, apricots, and tamarind. The major applications of tartaric acid include wine, fruit juices, baked food, pharmaceutical, which has garnered significant attention in the last few years. Tartaric acid is largely used in the wine industry to maintain the pH level in wines; and in bakery industry as a raw material for the manufacturing of food emulsifiers used for bread improvement. Tartaric acid also finds application as a food preservatives and flavor enhancer in the food & beverage industry.

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Restricted use of synthetic tartaric acid by government in various countries, act as the major restraining factor for the market

Governments in various countries have framed regulations related to the use of synthetic tartaric acid in food-grade and pharmaceutical applications in order to eliminate its side effects. The excessive use of tartaric acid in food-grade applications is harmful; hence, the government restricts the use of synthetic tartaric acid to eliminate side effects such as vomiting, diarrhea, abdominal pain, increased thirst, and gastrointestinal inflammation. The increase in government regulations in various countries may restrict the market growth of tartaric acid.

Key challenges faced by the tartaric acid industry is the availability and rising prices of raw material such as fruits; this eventually lead to high production costs, particularly for producing natural tartaric acid. According to the United States Department of Agriculture (USDA), EU’s total grape production in 2016–17 is projected to fall by 3.5%, which will have a direct impact on the tartaric acid industry. The same applies for all the other sources of tartaric acid.

To grow in this industry, leading companies adopted strategies such as rebranding, expansions, and acquisitions. Acquisitions was the key strategy adopted by players in the tartaric acid market to expand their geographical reach.

The key players who adopted these strategies are Caviro Group (Italy), ATP Group (US), Merck (Germany), Omkar Specialty Chemicals (India), Changmao Biochemical Engineering (China), Tarac Technologies (Australia), PAHI (Spain), Distillerie Mazzari (Italy), Distillerie Bonollo (Italy), Derivados Vinicos (Argentina), Industrias Vinicas (US), and Tártaros Gonzalo Castelló (Spain).

ADM (US)

Archer Daniels Midland Company (ADM) is a key player in the agriculture and food processing industries. It is engaged in the production of food ingredients, feed & feed ingredients, and biofuels. Its three business segments include oilseed processing, corn processing, and agricultural services.

The company aims to attain growth by investing in acquisitions and expansions of facilities that will enhance its efficiency. For instance, in 2014, ADM completed its acquisition of Specialty Commodities Inc. (US), a leading originator, processor, and distributor of healthy ingredients, including nuts, fruits, seeds, legumes, and ancient grains, for USD 191 million. The acquisition is expected to expand ADM’s specialty ingredients portfolio to serve its customers better.

Merck (Germany)

Merck is one of the leading manufacturers of pharmaceuticals and chemicals across the globe. The company is engaged in the development of biochemical and organic chemical products, instruments, kits, and services that are used in scientific research, including pharmaceutical development, industrial microbiology, and life sciences. The company operates through various business segments, namely, analytics and sample preparation, biopharmaceutical manufacturing, microbial testing solutions, IVD/OEM material & reagents, life sciences, reagents, chemicals, lab ware, small molecule pharmaceuticals, and water purification. As of November 2015, Merck acquired Sigma-Aldrich, Inc. (US) for USD 17 billion. This helped the company enhance its product range, capabilities, and geographic reach, thereby establishing it as one of the leading players in the life sciences industry.

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