Company Acquisition and Strategic Partnerships by Market Players such as Evonik Industries and Others to Foster the Growth of the Global Brassylic Acid Market

Brassylic acid is a versatile chemical intermediate that is primarily used for the synthesis of fragrances and a potential alternative for polycyclic acid as it is an easily degradable chemical compound. Polycyclic mush like Phantolide faces few challenges as they are not environmentally friendly. Therefore, brassylic acid is used for synthesis of macrocyclic musk.

Growth of perfume and fragrance industry, emerging applications of brassylic acid such as PVC & plasticizers, and increasing use of renewable feedstock is expected to boost the growth of the brasssylic acid market. Therefore, increasing applications of brassylic acid in plastics, lubricants and adhesive industry, is expected to fuel the demand of brassylic acid throughout the forecast period.

COVID-19 Impact on Brassylic Acid Market

The outbreak of COVID-19 across the globe has unfavorably impacted the global brassylic acid market growth. The negative impact on the market is mainly owing to the lockdown imposed by governments across the globe, leading to the shutting down of many industries like automobile, fragrance & perfume, cosmetic, automobile, and chemical industries. Thus, the demand for brassylic acid decreased tremendously as brassylic acid is majorly used in polymer and fragrance industries. Besides, the restrictions on import & export and the closing down of national borders highly hampered the supply and demand for brassylic acid.

Brassylic Acid Market Trends and Developments

The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global brassylic acid market growth in the upcoming years.

For instance, in February 2020, Evonik Industries, the leading specialty chemicals company, completed the acquisition of the US company, ‘PeroxyChem’ for around USD 640 million after the Washington D.C.’s responsible court dismissed the lawsuit filed by the FTC (Federal Trade Commission) to block the acquisition. According to Evonik, this acquisition unlocks additional growth opportunities for the company, especially in the market for environmentally friendly disinfectants.

In July 2020, an ABF ingredients company, ABITEC Corporation completed the acquisition of Larodon AB, a Sweden-based brassylic acid market player and the manufacturer of high-purity research grade lipids. The aim behind this acquisition is to strengthen the presence of ABITEC in the market with the help of Larodan’s advanced technologies & innovative breakthroughs.

Forecast Analysis of Global Market

The global brassylic acid market is projected to witness an exponential growth over the forecast period, owing to the wide usage of brassylic acid in the manufacturing of lubricants & adhesives along with the rapid expansion of automobile and other industries across the globe. Conversely, the high cost of brassylic acid is expected to hamper the market growth in the projected timeframe.

The shifting preferences from using polycyclic acid towards using brassylic acid for synthesis of perfumes and the rising application of brassylic acid in several fields like nylon and fragrance manufacturing industries are the significant factors and brassylic acid market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global brassylic acid market is expected to garner $90.4 million during the forecast period (2022-2030). Geographically, the Europe region of the brassylic acid market is estimated to be most dominant by 2030, owing to the rising demand for brassylic acid from perfume and fragrance manufacturers and the presence of well-established fragrance industries in the countries like Spain and France. In addition, the consumption of brassylic acid is highest in Europe owing to increasing availability of renewable raw material sources such as vegetable oil.

The key players functioning in the global market include Cathay Industrial Biotech, Unisource Chemicals Pvt. Ltd., Palmary Chemical, Zibo Guangtong Chemical Co., Ltd., Larodan Ab, Beyo Chemical Co., Ltd, Evonik Industries, Shanghai Kaleys Holding Co., Ltd., and Nantong Senos Biotechnology Co., Ltd.