Tartaric Acid Market

Market Overview

The global tartaric acid market size was valued at USD 0.8 billion in 2022 and is projected to reach USD 1.41 billion by 2031, registering a CAGR of 6.5% during the forecast period (2023-2031). The increased use of tartaric acid in wine worldwide and a wide range of tartaric acid applications in the food industry are the primary market drivers boosting market growth.

Tartaric acid is a naturally occurring organic acid found in various plants, the most common source being grapes. It is an essential component in the fermentation of grapes and the manufacture of wine. The rise in tartaric acid market share can be ascribed to rising wine and food and beverage consumption. Global population growth has resulted in a significant increase in global demand for food and beverages.

Tartaric acid is a crystalline white organic acid. It can be found in grapes, apples, apricots, tamarind, and bananas, among other things. The product's primary natural source is grapes. The acid is contained in the leaves and grapes as potassium salt. The product is used in various industries; however, food, drinks, and pharmaceuticals are some of the most popular end-use industries.

Market Dynamics

Global Tartaric Acid Market Drivers

Growing Wine Industry

Tartaric acid is widely used in the wine business. As the global demand for wine rises, particularly with the growing popularity of wine consumption in various locations, so does the demand for tartaric acid, a natural component of grapes. The global wine production in 2020 is expected to be around 258 million hectoliters, demonstrating the size of the wine business. Italy, France, and Spain are among the main wine-producing countries, accounting for a sizable portion of global wine output. As tartaric acid is a naturally occurring component of grapes, the increase in wine output directly impacts the demand for tartaric acid in winemaking processes.

In addition, the wine industry's rise, driven by changing customer preferences, rising disposable income, and a burgeoning wine culture, demonstrates tartaric acid's long-term demand. Tartaric acid is essential for wine acidity management, taste stability, and preventing the crystallization of potassium bitartrate (wine diamonds). Winemakers use tartaric acid to improve the quality and stability of their goods. Tartaric acid is widely consumed in wine-producing regions such as Europe, the Americas, and Asia-Pacific. 

Furthermore, the natural origin of tartaric acid from grapes corresponds with the movement toward sustainable and organic winemaking processes, making it a preferred choice for ecologically aware winemakers. The relationship between the growth of the wine sector and tartaric acid demand underscores the significance of this factor in defining the global tartaric acid market trend. Winemaking is a significant use, and tartaric acid will continue to be an important ingredient in ensuring the quality and characteristics of wines as the wine industry evolves.

Global Tartaric Acid Market Restraints

Fluctuation in Raw Material

Variations in grape harvesting and wine production can substantially impact raw material availability for tartaric acid manufacture. This is visible in years when grape crops are harmed by bad weather conditions such as frosts, hailstorms, or extreme rainfall. Unfavorable weather conditions can affect grape production in some years. Grapevines can be damaged by frost during the budding season or hailstorms during the growth season, resulting in diminished grape output. Data from wine-producing countries frequently indicate seasonal fluctuations in harvest output. Unpredictable weather events can jeopardize the reliable supply of grapes required for tartaric acid manufacturing.

The International Organization of Vine and Wine (OIV) distributes data on global wine output regularly. When this data is examined over time, it exposes fluctuations in wine production that reflect the impact of meteorological conditions on grape harvests. For example, a year with unfavorable weather conditions may result in lesser wine output, reducing the availability of grape-derived byproducts for tartaric acid manufacturing. When grape harvests are severely disrupted, tartaric acid makers may experience difficulties getting raw materials. The scarcity of grape-derived byproducts such as lees (sediment) can stymie tartaric acid production. During years with unexpected harvests, manufacturers may need to manage inventory levels carefully, invest in storage facilities, or investigate other raw material sources.

Global Tartaric Acid Market Opportunity

Expanding Application in the Food and Beverage Industry

Tartaric acid's role as an acidulant and stabilizing agent in the food and beverage industries represents a considerable market expansion opportunity. Naturally generated from grapes, Tartaric acid is well-positioned to address the growing demand for natural and clean-label products. It is a flexible component for various food and beverage formulations because of its numerous applications in boosting acidity, stability, and flavor. Tartaric acid is increasingly used in beverage formulation, such as soft drinks, fruit juices, and sports drinks. Its capacity to increase tartness while acting as a buffering agent makes it vital in creating well-balanced and appealing beverage products. In India, the food and beverage business accounts for 3% of the country's GDP and almost two-thirds of the total retail market. With a CAGR of 11.05%, the Indian Food and Beverage Market is expected to reach nearly USD 504.92 Bn by 2027.

The possibility of expanding applications in the food and beverage industries presents tartaric acid as a versatile ingredient capable of catering to a wide range of product compositions. Tartaric acid's natural origin and functionality make it a viable choice for businesses trying to meet these objectives as customer preferences shift toward clean labels and natural products.

Regional Analysis

The global tartaric acid market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe Dominates the Global Market

Europe is the most significant global tartaric acid market shareholder and is estimated to grow at a CAGR of 6.6% over the forecast period. The European market holds the biggest market share, owing to a rise in wine production, the use of natural tartaric acids in food, and increased regional exports. The European Union (EU-28), which produces around 60% of the world's wine by volume, is the world leader in wine production, according to the Foreign Agricultural Service of the United States Department of Agriculture (USDA). 

Furthermore, due to the booming demand for this product from the nation's food and beverage industry, the market in Germany is anticipated to expand rapidly throughout the projected period. The beverage sector in Germany is the main user of the product. The food business follows it closely. The expanding population in Germany is expected to enhance demand for various foods and beverages, which is expected to have a favorable effect on the industry's growth. For example, French global chemical distributor Nordmann stated on July 28, 2021, that it now sells Tartric Med tartaric acid products and has started marketing them in Germany for the building industry. The company's product portfolio includes tartaric acid and salts, like potassium bitartrate (cream of tartar) and Rochelle salt, often known as Seignette salt. Products are available in food- and pharmaceutical-grade variations and can be purchased in powder or granule form for technical applications.

North America is anticipated to exhibit a CAGR of 6.9% over the forecast period. North America's pharmaceutical sector, which uses tartaric acids as excipients to increase medication solubility, accounts for the second-largest market share in the world. Additionally, the US market for tartaric acid retained the most market share due to the region's growing demand for food, beverages, animal feed, and personal care goods. The growing number of regulatory approvals for tartaric acid's usage as an acidifier for processed food products in the United States, the product's growing demand, and significant market players are all credited with this. The U.S. Food and Drug Administration (FDA) regulates the use of L (+) tartaric acid as a natural preservation agent to counteract the natural acidity of the fruit juice constituent in fruit jellies, jams, preserves, butter, or similar commodities.

Furthermore, by 21 CFR 120, 150.141, and 150.161 standards, the amount of tartaric acid utilized in these products must be fairly proportionate to the product's overall acidity. As a result, tartaric acid is being used more often in the market, greatly boosting the industry's revenue growth.

The Asia-Pacific region moderately dominates the market for tartaric acid, according to Tartaric Acid Market insights. The consumption of tartaric acid in foods and beverages is anticipated to rise in developing economies with the rising demand for processed foods and beverages. The presence of the two biggest consumers of tartaric acid, China and India, is driving up demand for the substance in the region. One of the main reasons propelling the market expansion is the increasing use of tartaric acid in the pharmaceutical sector. India is a major player in the world's pharmaceutical industry. The world's biggest manufacturer of generic medications is India. Over half of the world's demand for different vaccinations is met by the Indian pharmaceutical sector; in the US, generic drugs account for 40% of all sales, while in the UK, pharmaceuticals make up 25% of total sales.

Moreover, the pharmaceutical sector in Japan is among the biggest globally, with only the US and China surpassing it. In 2021, the value of medical medication manufacturing in Japan was roughly JPY 9.2 trillion (USD 87 billion), a decline from the previous year's value of around JPY 9.3 trillion (USD 88 billion). 

Segmental Analysis

The global tartaric acid market is segmented based on type, application, and region.

By Type, the market is further segmented into Natural and synthetic.

Natural occupies the largest share of the market. Tartaric acid is derived from natural sources, particularly grapes and certain plants. In 2022, the natural segment will dominate most of the market revenue. It is an organic acid derived from fruits utilized in the wine and culinary industries. Tartaric acid's many characteristics make it useful in the food, cosmetics, and pharmaceutical industries. Natural tartaric acid is chemically identical to grape tartaric acid. It is regarded as a natural acidulant and is frequently utilized in the food and beverage industries because of its natural origin and properties. Furthermore, it is used in winemaking to reduce acidity and avoid potassium bitartrate crystallization. In businesses where laws promote natural or particular sourcing, segmentation aids in regulatory compliance.

They are created in a laboratory or industrial setting using chemical techniques. Synthetic tartaric acid that is chemically equivalent to natural tartaric acid. It may provide cost savings and constant quality compared to the natural counterpart. Tartaric acid is used in various industrial applications in a controlled and standardized form.

The segment can be bifurcated by application into Food and Beverages, pharmaceuticals and nutraceuticals.

Food and beverages influenced the market growth. As tartaric acid's acidifier and food additive applications have grown in popularity among customers worldwide, the food beverages segment has dominated the market. Tartaric acid is used to adjust the acidity in winemaking and is effective in baking due to its leavening properties when combined with baking powder. It is used in the pharmaceutical industry to create antibiotics and tonics; it improves the flavor of the drug and is also used to modify the pH of items such as soaps and creams. Tartaric acid is often used in the food and beverage industries because of its acidulant and stabilizing characteristics. It is used in various culinary products to increase acidity, offer a sour flavor, and function as a stabilizer. Tartaric acid is commonly used to manufacture soft drinks, fruit juices, and wines. It aids in flavor balance and stability.

Tartaric acid is used in particular formulations in the pharmaceutical and nutraceutical industries. It is used in the manufacture of various pharmaceuticals and dietary supplements. Tartaric acid may be used in pharmaceutical formulations where its qualities add to the medication's stability and effectiveness. It may act as a stabilizer or aid in the solubility of certain chemicals in medicines. In contrast, it can add to the overall product formulation and serve functional functions in nutraceuticals.

Recent Developments

• July 2023- Genosa was acquired by Alvinesa to expand its line of naturally repurposed ingredients, including olive extract.