Sodium Benzoate Market

Market Overview

The global sodium benzoate market size was valued at USD 1.22 billion in 2022 and is projected to reach USD 2.11 billion by 2031, registering a CAGR of 6.28% during the forecast period (2023-2031). Due to changing lifestyles and the search for quick and convenient meal options, the increased demand for processed and packaged foods and beverages stimulates global sodium benzoate market growth.

Sodium benzoate is a common food preservative and a chemical molecule with the formula C7H5NaO2. It is the sodium salt of benzoic acid and is frequently used in the food and beverage industries to increase the shelf life of products by suppressing the growth of bacteria, molds, and yeast. When used within defined limitations, regulatory bodies such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) declare sodium benzoate safe for ingestion. In many European countries, the popularity of missing meals such as breakfast has increased customer desire for processed and packaged food and beverage commodities. Preservatives like sodium benzoate are vital in processed foods and beverages, driving the industry.

Market Dynamics

Market Drivers

Increasing Demand for Processed Foods

Individuals' lifestyles have become increasingly hectic in many parts of the world, with individuals looking for quick and convenient meal options. This has increased the use of processed foods that are quick to make and need little cooking time. Frozen entrees, microwaveable snacks, and canned soups are all examples. More people live in cities, with less time to prepare from scratch. As a result, there is a rising reliance on pre-packaged and processed foods. Since urban regions have a higher concentration of supermarkets, convenience stores, and fast-food restaurants, processed meals are readily available.

The sodium benzoate market trend is expected to evolve tremendously with a shift in food habits among consumers. The snack food market exemplifies the need for processed and convenient food products, many containing sodium benzoate, to preserve freshness and extend shelf life. This market's expansion reflects consumers' desires for on-the-go snacks and quick meal solutions, emphasizing the relevance of food preservatives in addressing these expectations.

Market Restraints

Health and Safety Concerns

Consumers are becoming more aware of the substances in their food products, thanks to increased access to information and a greater emphasis on healthy eating. This increased understanding has raised questions regarding the safety of synthetic food additives. The Food and Drug Administration (FDA) of the United States conducted research in 2006 that discovered low quantities of benzene in various soft drinks containing sodium benzoate and ascorbic acid. Following these findings, the FDA recommended reducing benzene generation in the beverage sector.

Due to its possible carcinogenicity, the World Health Organization (WHO) has set a guideline threshold for benzene in drinking water at ten micrograms per liter (g/L). While the levels of benzene identified in soft drinks were generally modest and within regulatory limits, the chemical prompted beverage producers to reformulate to lessen or remove the risk. Some soft drink producers have investigated alternate preservatives and antioxidants to replace or reduce the usage of sodium benzoate and ascorbic acid in response to consumer concerns and regulatory recommendations.

Market Opportunity

Innovative Formulation

Ongoing research and development activities may result in novel sodium benzoate compositions. Food science and technology advances have created new opportunities for sodium benzoate to improve its performance and stability in various food and beverage applications. Microencapsulation techniques, for example, can increase sodium benzoate's stability and performance in various food and beverage applications, alleviating worries about interactions with other components. Sodium benzoate microencapsulation can be used in the manufacturing of powdered drink mixes. The microencapsulated sodium benzoate is kept safe within the capsules until required.

When the powdered mix is mixed with water, the capsules disintegrate, releasing sodium benzoate to preserve the beverage. This guarantees that the preservative remains effective throughout storage and does not deteriorate. Microencapsulation is used in the food and beverage industry for preservatives and flavor encapsulation, controlled release of nutrients, and the development of functional food items. Sodium benzoate market insight shows that Manufacturers of sodium benzoate can address concerns about its interaction with other ingredients, improve its stability, and widen its potential applications in the food and beverage industry by experimenting with novel formulations such as microencapsulation. These advances align with the industry's goal of providing consumers with safe and high-quality products.

Regional Analysis

The global sodium benzoate market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe holds a sizeable global market share during the forecast period. The spread of animal diseases such as "African swine fever" in Germany decreased EU compound feed production throughout the region. European customers are becoming more health-conscious and want products with fewer synthetic ingredients. Sodium benzoate, generally considered safe (GRAS), corresponds to consumer preferences for cleaner labeling. It has worldwide approval as a food additive and has been issued the identifier 211. In European food goods, for example, it is designated as E211. In addition, Europe is one of the world's major car production regions. In automotive and other vehicle anti-freeze fluids, sodium benzoate is utilized as a corrosion inhibitor or rust prevention agent. European agricultural production has expanded in recent years, with nations such as France, Italy, Turkey, and Germany playing a vital part in the agriculture sector's contribution to Europe's GDP. The sodium benzoate market in Europe benefits from high demand in the food and beverage, pharmaceutical, and personal care industries.

Furthermore, the raw ingredient sodium bicarbonate prices showed a downward trend, reinforcing the depreciating trend. In addition, due to seasonal changes, merchants destroy their stocks to avoid harm. These businesses have been obliged to sell Sodium benzoate at lower costs, but customers are still waiting to see if prices will fall further. Although import offers have climbed this week, they remain much lower than local pricing. European importers of sodium benzoate are delaying replenishing due to a lack of end-user demand, and prices are expected to fall. Furthermore, an increase in awareness about the hazardous effects of synthetic preservatives can be a major factor impeding market growth.

Asia-Pacific is predicted to rise at a substantial CAGR throughout the forecast period. Prices for sodium benzoate in Asia-Pacific climbed in the first month of 2022, owing to higher demand from end-user industries and lower feedstock prices. The Asia-Pacific market is a significant component of the worldwide chemical industry, owing to its applications in food and beverage preservation, medicines, and personal care products. The demand for sodium benzoate in the food and cosmetics industries has expanded because of rising disposable income and a growing population.

Additionally, several Asian countries, particularly India and China, are major actors in the global pharmaceutical sector. Sodium Benzoate is used in pharmaceutical formulations, contributing to the market's growth. Asia-Pacific Manufacturers of sodium benzoate can take advantage of export prospects to sell preservatives to regions with expanding food and pharmaceutical industries, such as Africa and the Middle East. As a result, sodium benzoate prices increased in the domestic market.

North America holds a significant share. The market for sodium benzoate in North America is predicted to grow significantly during the forecast period. North America has a sizable food and beverage business, with a consistently high demand for preservatives. For example, the food and beverage industry in the United States contributes considerably to the economy and has shown consistent development throughout the years. According to Statista, revenue in the food and beverage business in the United States is predicted to reach USD 34.1 billion in 2023.

Furthermore, the pharmaceutical business in North America is substantial. The pharmaceutical sector in the United States, in particular, is thriving, with total pharmaceutical sales expected to exceed 600 billion US dollars by 2024, according to Statista. Sodium benzoate is critical to the efficacy and safety of several drugs. Sodium benzoate has also acquired regulatory clearances from the United States Food and Drug Administration (FDA) and other relevant North American authorities for its safe usage in food and medicinal applications. Sodium benzoate as a preservative is critical in ensuring product quality and safety in the region.

The demand for food and beverages in the Middle East and Africa region is rapidly increasing, and this trend is projected to continue during the forecasted period. This demand and other government initiatives in the food and beverage industry will likely drive up sodium benzoate demand throughout the forecast period.

Segmental Analysis

The global sodium benzoate market is segmented based on form, application, and region.

The form is further segmented into Powder, granule, and others.

Powder Sodium benzoate holds the major market share. Sodium benzoate that has been finely ground into a dry, freely flowing Powder is called powdered sodium benzoate. Because of its tiny particle size, this form can be evenly dispersed in formulations for dry foods and beverages. Granular sodium benzoate comprises small, coarsely granulated particles of sodium benzoate. A granular texture distinguishes this shape between crystal and powder forms.

The segment can be bifurcated by application into food and beverages, cosmetics, Pharmaceuticals, and Others.

Food and beverages influenced the market growth. In the food and beverage business, sodium benzoate is used as a preservative to prolong product shelf life, prevent microbiological development, and preserve product quality. Sodium benzoate is a substance that is used in pharmaceutical formulations or as a preservative to preserve the stability and safety of specific drugs. They are used in syrups and suspensions, among other pharmaceutical preparations.

Recent Developments

• August 2023- The specialty chemicals business LANXESS is selling another "Scopeblue" product. The COSMOS-standard authorized Neolone BioG Preservative for use in cosmetic and personal care products, and it meets the ISO 16128 criteria of a naturally derived substance.
• August 2023- Pacur sterile barrier medical device packaging now uses Eastman Eastar™ Renew 6763 copolyester.