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Malic acid is a dicarboxylic acid organic compound made by the living organisms that gives a tart and sour taste to the fruits. Malic acid is naturally found in fruits such as grapes, apple, watermelon, and cherries and is widely used as a flavouring agent or acidulant in the food and beverage industry following their extraction from the fruits. It is used in various fruit and vegetable juices, jams, wines, soft drinks, and candies to improve its tartness and sweetness. Malic acid is obtained by hydration process of maleic anhydride under high pressure and temperature to produce a racemic mix of D and L malic acid. Further, the rising demand from food and beverage industry for flavour enhancers and increase in incorporation of specialty ingredients is expected to drive its global malic acid market growth.
The malic acid is extensively used in various baking and confectionery items due to its antimicrobial properties and pH controlling abilities. It is also incorporated in various convenience and packaged food as a preservative to increase its shelf life and storage stability. Along with this, the rise in working population has led to their increased reliability on convenience and ready-to-eat food products, which has contributed in fuelling its malic acid market growth.
The rising consumers demand for natural food additives owing to their increasing awareness about the detrimental effects, such as skin allergies and asthma due to synthetic chemical additives, has driven the global malic acid market growth. The increasing demand for functional beverages and nutritional bars, owing to the shifting preferences of consumers towards healthier food products has supported its market growth. Along with this, the booming food processing industry has also benefitted the malic acid industry.
Fluctuating raw material prices for the production of malic acid such as biomass, fruits, eggshells, and others along with high initial investments for establishing manufacturing plants are hampering the malic acid market growth. According to United States Department of Agriculture (USDA) the production of apple during 2019/20, increased by 6.7%. Whereas, in Europe there was a significant 3% decline in the supply of apples in the region. The fluctuations in the raw material costs is mainly depend on the source, its availability, and production.
Key Market Driver -
Growing Demand for Natural Food Additives
Key Market Restraint -
Fluctuating Raw Material Prices
The DL malic acid solution segment is anticipated to hold the major share in the malic acid market, owing to its ease of application and high dissolvability in the food products. The utilization of liquid malic acid in bakery and confectionery items improves its aftertaste, increases bursts, and aroma of certain flavours, which results in rich and flavourful end result. Further, the increase in consumption of confectionery items such as candies, jellies, and jams positively aids in its malic acid market growth.
Food and beverage segment is likely to hold the larger share due to the wide applications of malic acid as a flavour enhancer and blending agent. It is extensively incorporated in carbonated, non-carbonated, and all the other beverage variants, due to its balancing and blending abilities along with imparting fruity notes into these products. Moreover, the increase in demand for functional and fortified beverages due to the growing inclination of consumers towards health beneficial products has aided its malic acid market performance.
North America is anticipated to witness significant growth in the sector due to the increase in consumption of functional beverages by the consumers. According to United States Department of Labor, the employment ratio in the U.S. rose by 4.9 million to reach 142.2 million in 2019, which is expected to ensure the increased demand for aforementioned RTD and RTE food products in the upcoming years.
Asia Pacific is projected to observe the fastest growth in the malic acid industry due to its increasing population and growing preference towards natural flavouring agents. The presence of various small and large scale industries in countries such as India, Japan, and China that supply the raw material for malic acid production, aids in its market growth. Further, the growing popularity of ready-to-drink beverages due to its functionality and convenience has also supported the regional market growth.
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