The World Health Organization (WHO) states that the per capita health expenditure of India increased from $69.32 in 2017 to $72.835 in 2018. Furthermore, the Australian Institute of Health and Welfare (AIHW) estimates that the total health spending of Australia surged from $183.2 billion in 2016â€“2017 to $185.4 billion in 2017â€“2018. The surging health expenditure in the Asia-Pacific (APAC) region will result in the high-volume consumption of pharmaceutical products, owing to which, the usage of sorbic acid will rise considerably as it is extensively used as an antimicrobial preservative by pharmaceutical companies.
Additionally, the changing food consumption patterns of people will also help the sorbic acid market progress at 4.7% CAGR during the forecast period (2020â€“2030). According to P&S Intelligence, the sorbic acid market was valued at $347,661.0 thousand in 2019, and it will generate $521,126.7 thousand revenue by 2030. Sorbic acid is largely used as a food preservative due to its high efficiency in inhibiting mold growth, which may spoil the food products. The addition of sorbic acid does not alter the flavor of final products, owing to which it is widely used in cheeses, wines, refrigerated meats, and fresh produce.
The form segment of the sorbic acid market is bifurcated into encapsulated and powdered. Under this segment, the powdered category held the larger market share in 2019 due to the simpler manufacturing process of powdered sorbic acid, as compared to the encapsulated form. The powdered form of this acid can be added to any type of processed food or drink. Whereas, the encapsulated category is expected to witness faster growth in the forecast years as encapsulated sorbic acid is directly added to food items in the dough form to preserve them without killing the yeast.
Globally, the APAC sorbic acid market generated the highest revenue during the historical period (2014â€“2019), and it is also projected to demonstrate the fastest growth during the forecast period. This can be owed to the presence of a strong food and beverage sector in Australia, Japan, and South Korea and the robust growth of the pharmaceutical industry in India and China. Moreover, the increasing consumption of processed food items, on account of the mounting disposable income of the people, will also contribute to the market growth in the region.
Thus, the booming pharmaceutical sector and rising shift toward processed food products will propel the consumption of sorbic acid in the foreseeable future.