Isatoic Acid Anhydride Market Share

Isatoic Acid Anhydride Market Overview

The global isatoic acid anhydride market was valued at USD 47,951.43 thousand in 2021 and is expected to register a CAGR of 2.93% to reach USD 62,624.07 thousand by the end of 2030.

Isatoic acid anhydride, also known as o-amino-benzoic acid, 2-aminobenzoic acid, N-carboxylic acid anhydride, and anthranilic acid, is the organic compound with the linear formula C6H4(NH2) CO2H. In appearance, isatoic acid anhydride industry is a white solid when pure, although commercial samples may appear yellow. It is widely used as a starting material for the production of a wide range of end-use compounds.

COVID-19 Impact on the Isatoic Acid Anhydride Market:

The outbreak of COVID-19 has significantly impacted the chemicals & materials supply chains, international trade, and manufacturing operations across the world. As a result of a lockdown across geographies, the production facilities have faced disruptions. The market players have had to shut production facilities or operate the facilities below the optimal production capacities to avoid the spread of COVID-19. All this has caused severe disruptions in production and trade restrictions, significantly affecting the supply of isatoic acid anhydride market. According to the United Nations, the global economy is projected to contract by around 3% or more instead of registering the 2.5% growth projected by the World Economic Situation and Prospects report 2020. The world economy contraction rate is expected to be more than 1% or possibly more than what was experienced in the global financial crisis in 2009 (i.e., ~2.5%) if the governments (in the developing as well as developed countries) fail to provide the necessary income support and help lift consumer spending. According to the International Monetary Fund, economic uncertainty due to the COVID-19 outbreak is much higher than the past outbreaks, such as the severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and uncertainty about when the crisis is likely to come to an end. If the pandemic uncertainty lasts longer, then the world merchandise trade is likely to decline steeply initially, with a more prolonged recovery period, which is expected to affect households and businesses severely.

The global isatoic acid anhydride market is facing a deep recession caused by the effects of lockdowns in most regions to slow down the spread of COVID-19. As a result, the demand has virtually dampened for the period and is unlikely to be revived until governments around the world lift their restrictive policies. The major consumers of isatoic acid anhydride, such as pharmaceuticals and agrochemicals, have also shut down their production facilities resulting in a decline in demand for isatoic acid anhydride globally. The individual companies have showcased different trends due to their segment and regional mix and acquisition activities.

However, with the lift of lockdown measures and trade restrictions, the demand for isatoic acid anhydride is expected to gain pace and drive market growth.

Market Dynamics

• High demand from the pharmaceuticals industry : Isatoic anhydride has attracted a lot of attention in the last decades. Isatoic anhydrides are reacted with nitrogen nucleophiles followed by cyclo-condensation by electrophiles to produce several quinazolines and quinazolinone derivatives. These compounds are used in a variety of medical and pharmacological products.The pharmaceutical industry is expected to be driven by the presence of the established pharmaceutical industry, the rising geriatric population, and an increase in the number of people with chronic diseases such as heart disease, cancer, respiratory diseases, diabetes, and kidney diseases. The increasing investments in R&D in the pharmaceutical industry globally are further expected to drive the global market growth.


• Growth of the agriculture industry: Isatoic acid anhydride is widely used as an intermediate for active agricultural ingredients. It is used in the production of major raw materials such as Bentazone, which is commonly used in the production of pesticides, including herbicides, insecticides, nematicides, and fungicides. Bentazone is used in agriculture to control broadleaf weeds in crops such as soybeans, rice, corn, peanuts, and lima beans. Thus, the growth of the agricultural industry globally and the increasing need for attaining high agricultural yield are factors likely to boost the demand for isatoic acid anhydride in the production of pesticides and fuel the global market growth during the forecast period.

• Availability of substitutes: Isatoic acid anhydride is a derivative of anthranilic acid. There are various other anthranilic acid derivatives, such as anthranilamide, methyl anthranilate, and anthranilonitrile, which are used as a starting material in numerous synthetic procedures for pharmaceuticals and other products. Furthermore, isatoic acid anhydride is widely used as a key ingredient in the manufacturing of various compounds such as quinazoline, quinazolinone, bentazone, and various performance products. For instance, Quinazolinone can also be produced by acylation of anthranilic acid with acyl chloride. Furthermore, other than anthranilic acid and derivatives, quinazolinone derivatives can also be produced by coupling o-aminobenzamides with methanol, coupling of N-substituted o-bromobenzamides with formamide, cross-coupling/cyclocondensation reaction between 2-isocyanobenzoates and amines, methylation/amination/oxidation reaction via cascade reaction, and other procedures. Bentazone, an agricultural derivative of isatoic anhydride, also has an alternative production process. It can be prepared by reacting methyl o-aminobenzoate, and isopropylamino sulphuryl chloride, then obtaining bentazone with sodium methylate pass ring. Hence, the availability of substitutes is likely to dampen the growth of the global isatoic acid anhydride market.

• Positive outlook of pharmaceutical industry in south asia: Over the next five years, the Southeast Asian pharmaceutical market is expected to increase at an annual rate of more than 11%, with sales reaching USD 40 billion in 2021. As a result, it has become one of the world's fastest expanding pharmaceutical markets. The region provides lucrative opportunities for pharmaceutical companies that can effectively synergize good manufacturing practices (GMP) standards, competitive pricing, and an export strategy. Pharmaceutical companies in South Asia will profit from rising healthcare spending, an aging population, greater incidence of lifestyle-related diseases coupled with a rising GDP per capita. Thailand has one of the fastest aging populations in the world. According to the World Health Organization (WHO), 13% of the population (10.3 million people) is currently above the age of 60. By 2025, the elderly will account for 25% of the population. Indonesian and Malaysian demographics are following a similar trend. Thus, the growing pharmaceutical industry in South Asia, coupled with increased foreign investments and association with global regulatory bodies, is likely to create a lucrative opportunity for the global isatoic acid anhydride market in the forecast period.

• Low production facilities: Currently, there are a limited number of manufacturers globally that produce isatoic acid anhydride on a large scale. Some of these major manufacturers include BASF SE, The Dow Chemical Company, Alfa Aesar, Thermo Fisher Scientific, Cryopak, and Merck KGaA. The limited manufacturing capabilities and inadequate focus on the development and advancement of isatoic acid anhydride products limit the market growth. The high price is also associated with high production cost, which is dependent on factors such as scalability of the producer, techniques used to produce the material, and availability of raw material, which affects the company’s profitability and thus, the manufacturer increases the overall supply cost to sustain in the business. Cost issues also limit the growth of emerging markets. Thus, limited production capacity is likely to challenge the growth of the global isatoic acid anhydride market.

Segmentation

By Application

• Dyes & Pigments


• Pesticides


• Herbicides


• Saccharin


• Flavors


• Others

By End-use

• Pharmaceuticals


• Agrochemicals


• Perfume


• Food & Beverages


• Others

By Region

• North America


• Europe


• Asia-Pacific


• South America


• Middle East


• Africa

Regional Analysis

The Asia-Pacific market dominated the global trifluoroacetic acid market with a share of 29.45% by value in 2021 and is expected to register the highest CAGR of 3.27% during the forecast period. The market growth in Asia-Pacific is driven by various factors, including rising industrialization and urbanization, increased foreign investments, government subsidies, and rising demand from South Asian countries such as India, Thailand, and Indonesia.

North America held the second-largest market share of 21.50% in 2021 due to the growth of the major end-use industries in the region. The US segment accounted for the largest market share of 64.58% in 2021, with a market value of USD 6,657.9 thousand; it is expected to register a CAGR of 2.58% during the forecast period.The growth in the market is attributed to growth in the agriculture industry.

The European is largely attributed to the pharmaceutical industry in the region. The France segment accounted for the largest market share of 19.30% in 2021, with a market value of USD 1,564.0 thousand; it is expected to register a CAGR of 2.69% during the forecast period.

The Latin American market is divided into Brazil, Peru, and Argentina are the major contributors in the region. The growth in the market is attributed to the growing demand for pesticides in the agriculture industry.

IN Middle East & Africa UAE is the leading country in the region followed by Turkey and Egypt. The Pharmaceuticals segment in the region dominated the market with a share of 39.41 in 2021.The Agrochemicals segment was the second-largest with a share of 28.21% in 2021.

Competitive Landscape

In developing markets such as India and China, the global market for agrochemicals is highly fragmented. The industry is likely to become more competitive as partnerships, mergers, and acquisitions increase. Furthermore, a growing number of players will enter the market within the estimated assessment period, boosting competition in the market. The major players in the market include BASF SE (Ludwigshafen, Germany), The Dow Chemical Company (Michigan, US), Alfa Aesar, Thermo Fisher Scientific (Massachusetts, US), Wujiang New Sunlion Chemical Co., Ltd.(Jiangsu, China), Otto Chemie Pvt. Ltd (Maharashtra, India), Muby Chemicals (Maharashtra, India), TCI (Shanghai) Development Co., Ltd.(Shanghai, China), Salvi Chemical Industries Ltd. (Maharashtra, India), Anmol Chemicals (Maharashtra, India), and Merck KGaA (Darmstadt, Germany).

Report Overview:

The Isatoic Acid Anhydride market is segmented by fabric, product and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Isatoic Acid Anhydride emerging and fast-growing segments, regions, and countries.

Objectives of the Study

• To get a comprehensive overview of the global Isatoic Acid Anhydride market


• To get wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Industrial sector


• Broadcast sector


• Enterprise sector


• digital communication


• Pharmaceutical industries