Perstorp Holding AB Expanded Business in Asia to Meet the Demand of Butyric Acid

Published: 26 Nov 2024

Author: Precedence Research

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Perstorp Holding AB inaugurated a huge state-of-the-art facility in Sayakha, Bharuch in the Indian State of Gujarat. This facility is certified by ISCC Plus and will help meet the growing demand for chemicals. The location is also a strategic endeavor for Perstorp to expand their business in the Asia Pacific region with increased availability and reliability. Such expansionistic strategies by key companies will help accommodate the increasing demand for the butyric acid.

In countries like India and China, where more than 50% of population and 40% of the population respectively, works in the agricultural sector. The region of Asia Pacific is the biggest consumer of butyric acid. It is regularly used in animal feed. This region’s butyric acid market was valued at USD 171.9 million in 2023 and with prediction of 4.9% CAGR growth in the next few years. The growing use of butyric acid to manufacture biofuel will boost demand in North America and Europe and government regulations about antibiotics addition to animal feed.

The increasing demand for the food and beverage industry especially packaged food globally is helping the butyric acid market growth. This acid is added to meat and rising meat consumption directly related to rising butyric acid production. The pharmaceutical industry utilizes this acid to produce medications that help cancer treatment, weight management and irritable bowel syndromes. According to National Cancer Institute (US), estimated that 2,001,140 new cases of cancer will be diagnosed and 611,720 people will die in the United States from cancer in 2024. Such rising incidences globally of cancer will require butyric acid for treatment ultimately needing more production. 

The stringent rules by government regarding antibiotics in the animal feed will lead to many organizations opting for new approaches. In 2022, European Union banned the use of antibiotics in animal feed as it is dangerous for animals and humans; the overuse of antibiotics is causing roughly 3,500 human deaths on a daily basis. Butyric acid offers a safer alternative to antibiotics. The use for food flavoring, pharmaceuticals, agriculture, and chemical industries will be the biggest consumers of butyric acid market in the coming years.

Ongoing research about integration of Artificial Intelligence (AI) and Machine Learning (ML) for microbiological processes is under research by many well-known institutes and key players. With ML and AI large number of genetic combinations can be studied in a shorter time span. Such specific studies are used to create and zone in on sequences that would work. For example, an AI approach of feature engineering and ensemble method was used to show the importance of rumen microbiome contribution to feed efficiency in dairy cows.

Butyric Acid Market Size and Forecast 2023 to 2032

The global butyric acid market size was reached at USD 374.2 million in 2022 and it is projected to hit around USD 578.3 million by 2032 with a noteworthy CAGR of 4.5% from 2023 to 2032.

Butyric Acid Market Companies:

• Eastman Chemical Company
• Blue Marble Biomaterials LLC
• Oxea GmbH
• Tokyo Chemical Industry Co. Ltd.
• Perstorp Holding AB
• Snowco Industrial Co. Ltd
• Beijing Huamaoyuan Fragrance Flavor Co. Ltd.

Recent News from Butyric Acid Companies

• In May 2024, OQ Chemicals (previously known as Oxea), lifted its force majeure declaration for all products from their plants at Oberhausen and Marl in Germany. The operations and productions have resumed with strategic enhancements made by OQ Chemicals during the break that will help optimize production. 
• In 2022, an agreement between METEX NVIST and ALINOVA states that they will market in France the first 100% bio-based animal feed that is also produced in France. This will help ALINOVA meet demands for natural and sustainable ingredients that will enhance their product portfolio. 

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