Azelaic Acid Market is Estimated to Witness High Growth Owing to Opportunities in Medical Applications

Azelaic acid is an organic compound with antibacterial and anti-inflammatory properties. It is used as an active pharmaceutical ingredient (API) in medical preparations for treatment of various skin conditions such as acne vulgaris, melasma, and hyperpigmentation. Azelaic acid reduces inflammation, inhibits bacterial growth, and regulates skin cell growth. These advantages make it suitable for topical application in pharmaceutical creams and gels.

The Global Azelaic Acid Market Size is estimated to be valued at US$ 340.78 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Growing demand for dermatological products provides significant opportunities for market players in azelaic acid market. Azelaic acid is a prominent ingredient in acne treatments and pharmaceutical preparations to combat pigmentation disorders of skin. Increasing incidences of skin conditions like acne and melasma among young population around the world presents a lucrative market opportunity. Growing awareness regarding skin care and availability of azelaic acid based products through various distribution channels will further drive the market growth over the forecast period.

Porter's Analysis

Threat of new entrants: The threat of new entrants is moderate because the entry barriers are moderate as it requires capital investment and R&D efforts. However, the market is rapidly growing providing opportunities for new players.

Bargaining power of buyers: The bargaining power of buyers is moderate as the azelaic acid has many applications in various industries like pharmaceuticals, personal care etc. Buyers can negotiate on price if substitutes are available.

Bargaining power of suppliers: The bargaining power of suppliers is high due to supply constraints for raw materials required for manufacturing azelaic acid. Suppliers can influence pricing due to supply constraints.

Threat of new substitutes: The threat of substitutes is low as azelaic acid has unique properties and applications for pharmaceuticals, personal care products etc.

Competitive rivalry: The competitive rivalry is high as the key players are focusing on product innovations and expanding their production capacities globally to gain market share in this rapidly growing market.

SWOT Analysis

Strength: Azelaic acid has growing applications in pharmaceuticals and personal care products due to its suitability for dermatological conditions and anti-aging properties. It is a naturally occurring organic acid contributing to minimal environmental impact.

Weakness: Dependence on limited raw material suppliers can affect supply stability and pricing. Significant R&D investments are required to develop new applications and stay ahead of competition.

Opportunity: Rapid population growth and rising income levels in emerging economies of Asia Pacific and Latin America are fueling the demand for pharmaceutical and personal care products using azelaic acid. New application developments in cosmeceuticals and nutraceuticals present lucrative opportunities.

Threats: Stringent regulatory norms for chemicals used in pharmaceuticals and personal care products can increase compliance costs. Substitute developments pose competitive threats. Volatility in raw material prices impacts the overall production costs.

Key Takeaways

The global Azelaic Acid market is expected to witness high growth over the forecast period of 2024 to 2031 supported by increasing demand from pharmaceutical and personal care industries. The market size is projected to reach over US$ 500 Bn by 2031 at a CAGR of 7.9% over the forecast period.

Regional analysis indicates that Asia Pacific is expected to be the fastest growing as well as dominating regional market for Azelaic Acid. Expanding pharmaceutical manufacturing bases and rapid growth of cosmetics industry in China, India and other ASEAN countries are driving the demand growth. By 2031, Asia Pacific is projected to capture over 40% of the global market share.

Key players operating in the Azelaic Acid market are Kamstrup, Danfoss, Qundis, Itron, Zenner, Engelman, Ista, Landis+Gyr, Diehl, Sontex, Brunata, Apator, Techem, Techno-Trade, GWF MessSysteme, Weihai Ploumeter, Axioma Metering, Zhifang Huaxu, Sensus Metering Systems, Emerson.