South America Isoamyl Acetate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, growing demand for flavouring products from the food and beverage industry and increasing isoamyl acetate consumption as a solvent from the cosmetic industry is expected to drive the isoamyl acetate market’s growth in South America.
• On the other hand, the availability of several flavouring substitutes is hindering its market expansion.
• However, the growing consumption of alcoholic and non-alcoholic beverages is likely to act as an opportunity for the isoamyl acetate market in South America.
• Brazil is expected to dominate the isoamyl acetate market in South America and is also likely to witness the highest CAGR during the forecast period.

South America Isoamyl Acetate Market Trends

Rising Demand for Isoamyl Acetate from Food and Beverage Segment

• Isoamyl Acetate is a colourless liquid that is slightly water soluble and compatible with most organic compounds. It is primarily used in the food industry as a synthetic flavour with over 40 flavours ranging from pia colada to apple and coffee. It is used to package ready-to-eat foods to keep their flavours fresh over time.
• Isoamyl acetate is used as an artificial flavouring additive in the brewing industry for all types of beers (around 0.6 to 1.1 parts per million) to create a fruity-fresh banana flavour and a long-lasting fragrance.
• Due to changing lifestyles and dietary choices, food demand increased significantly in South American countries such as Brazil, Argentina, Colombia, and others. As a result, it promotes the expansion of the acetyl acetate market within the food industry of South America.
• In April 2022, Heineken N.V. announced an investment of USD 360.73 million in a new brewery production facility in Minas Gerais state in southeast Brazil. Because isoamyl acetate is used in all types of beers, it predicts the future growth of isoamyl acetate in South America.
• Therefore, considering the abovementioned factors, the demand for Isoamyl acetate in South America is expected to rise significantly in the food and beverage segment shortly.

Brazil is Expected to Hold Significant Market Share

• Brazil is expected to dominate the market for isoamyl acetate in South America during the forecast period owing to the demand from major end-user industries such as food and beverage and cosmetics, pharmaceuticals, and others.
• Brazil includes the world's fifth-biggest economy and the largest in South America. It is the largest country in South America, with the highest population, the biggest GDP, and the most significant number of trades. As a result, it offers an excellent opportunity for isoamyl manufacturers to provide their products in-country and develop a solid consumer base in the Brazilian market.
• According to the Brazilian Food Industry Association (ABIA), the Brazilian food and beverages industry accounted for BRL 922.6 billion (USD 172 billion) in 2021, witnessing a growth rate of 16.9% compared to the previous year. Such trends are expected to support the market studied.
• According to the Associaço Brasileira do Indstria de Higiene Pessoal, Perfumaria e Cosméticos, Brazil spent on import of about USD 700 million on beauty and hygiene goods from other countries. Furthermore, isoamyl acetate is a flavoring component in beauty products for fine fragrances, which presents a potential opportunity for the market studied within the region.
• The excessive growth of e-commerce platforms that support sales and distribution of different textile industry products manufactured largely propelled the demand for textile-related products, thereby augmenting the market's growth.
• All factors above are likely to fuel the growth of the South America Isoamyl Acetate Market over the forecast period.

South America Isoamyl Acetate Market Competitor Analysis

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