Global Succinic Acid Market

Global Succinic Acid Market: Insights

The succinic acid market is estimated to be valued at USD 161.34 Million in 2021 and is projected to reach USD 226.29 Million by 2026 at a CAGR of 7%. One of the primary drivers propelling the market is its use as a core component for polyurethanes, polybutylene succinate (PBS), and plasticizers, as well as a substrate for compounds including 1,4 butanediol (BDO). The expansion of the succinic acid market share has been accelerated by expanding demand for bio-based compounds, increased usage of succinic acid as a core ingredient for the manufacturing of chemical substances & consumer goods, and technological advancements for bio-based succinic acid manufacturing. The predilection for succinic acid over butane-based maleic anhydride in the production of chemicals including succinic anhydride, fumaric acid, diethylmaleate, glyoxylic acid, and other plastics, as well as its use in the production of polymers that are traditionally made from butane, all have an impact on the market. Furthermore, rising requirements for ecological integrity, the rise of industrial businesses, ecological considerations, and a spike in manufacturing expenditure have all increased the succinic acid market size. Moreover, in the forecast period, expanding prospective succinic acid market applications, as well as research and development efforts, provide lucrative prospects for market participants.

Succinic acid is extensively utilised in the pharmaceutical, chemical, and food sectors. The majority of succinic acid now comes from petroleum feedstock. The fermentation process produces a little proportion of succinic acid. One of the most important raw materials utilised in the synthesis of succinic acid is N-butane. Because traditional succinic acid is reliant on petroleum sources for manufacturing, petroleum prices have a significant impact on its pricing. Succinic acid generated from plants must also be manufactured at a low cost. In order to compete with its alternatives, it must also adhere to enhanced fermentation procedures. This leads to a surge in demand for succinic acid.

Covid 19 impact on the succinic acid market has been significant because of the volatility in crude oil prices which stymie overall expansion. In the forecast period, the rising manufacturing of bio-succinic acid attributable to the growing acceptance of sustainable practices amongst chemical producers is foreseen to pose a threat to the market. Nevertheless, in food and drinks, succinic acid is commonly used as a flavouring ingredient. It's used to make chemical substances, fragrances, coatings, photographic compounds, adhesive polymers, emulsifiers, metallic processing solvents and paints, among others. It's also used to make opioids, antispasmers, antiplegm, antiphlogistic, anrhoeic, and contraceptive medications. The overall food succinic acid market is expected to increase primarily due to rising requirements in the food and beverage sector. Government regulations in developed countries that encourage growth in the overall market are a major factor. The notion of green chemicals has been supported by the government. Thus, the overall market could expand significantly, attributable to the approval from numerous regulatory organisations.

Global Succinic Acid Market: By Type

Depending on the type, the market is categorized as petro-based and bio-based. Throughout the forecast period, the petro-based category is presumed to contribute the most to market growth. The chemical industry's requirement for PBS/PBST and polyurethane is primarily responsible for the segment's rise. In comparison to bio-based succinic acid, petro-based succinic acid is more cost-effective and efficient. It's also commonly utilised as a flavour booster in the food and beverage sector, as well as in the chemical sector for the production of PBS.

Bio-based succinic acid, manufactured through fermentation of sugars, is progressively replacing phthalic anhydride and maleic anhydride (including crude-oil based products) as a cost-competitive alternative. As a consequence, producers are switching to bio-based succinic acid, which performs similarly to phthalic anhydride in compositions. Companies like Myriant, for example, have produced bio-based succinic acid with structural similarities to maleic anhydride and phthalic anhydride, thereby improving efficiency and reducing productivity fluctuations. As a result, the bio-based chemical section of the market analysed has grown.

Global Succinic Acid Market: By Application

Depending on the application, the market is categorized as food & beverages, pharmaceuticals, personal care, coatings, industrials, and others. Industrial application is foreseen to predominate. The usage of succinic acid for industrial purposes drives this segment. Novel uses including 1,4-Butanediol (BDO), PBS, plasticizers, and polyester polyols will fuel the market's growth prospects. Reduced crude oil prices, more green chemical manufacturing, the need for sustainable chemicals, and higher government support will all contribute to the market's expansion.

PBS, polyester polyols, resins, plasticizers, coatings, and pigments, alkyd resins, solvents & lubricants, BDO, and deicer solutions are all key growth catalysts in the industrial application market. The highest revenue was generated by the demand for resins, coatings, and pigments. The largest application group is projected to be BDO. These are mostly owing to the growing usage of succinic acid as a substitute for maleic anhydride in BDO synthesis.

Global Succinic Acid Market: By Region

As per the geographical analysis, the market can be classified into North America (the United States, Canada, and Mexico), Asia Pacific (India, China, Japan, Malaysia, Singapore, and Rest of Asia Pacific), Europe (Germany, United Kingdom, Italy, France, Spain, Netherlands, and Rest of Europe), Middle East & Africa (Saudi Arabia, United Arab Emirates, and Rest of the Middle East & Africa) and Central South America (Brazil, Argentina, and Rest of Central and South America). The Asia Pacific is foreseen to predominate. The market is driven by industrial development, flexible investment regulations, rising per capita spending, and inexpensive manufacturing. Furthermore, the provision of low-cost labour is encouraging manufacturing facilities in the Asia-Pacific, with China, amongst all economies in the area, having the biggest manufacturing capability. The spike in demand for polyurethane-based goods, as well as expansion in the construction and automotive sectors, are expected to increase the market's profitability in the Asia Pacific. In the area, China is the leading producer and user of succinic acid. Moreover, the APAC market is predicted to grow due to increased demand for cosmetic products, plasticizers, foodstuffs, and medicines.

Due to the extreme involvement of large end-use sectors, including food & beverages, pharmaceuticals, petrochemicals, and cosmetics, North America and Europe are also prominent markets for succinic acid. Environmental rules are having a beneficial impact on the demand for bio-based succinic acid in certain countries in these areas. Europe is the major revenue-generating market for succinic acid, owing to stringent regulations prohibiting the employment of some dangerous chemicals that endanger the ecosystem and humans. As a result, producers are switching to greener equivalents, such as bio-succinic acid, to meet the standards. Throughout the forecast period, the strict regulatory environment in the EU, as a result of the activation of the REACH law, is likely to favour bio-based replacements.

Global Succinic Acid Market Share and Competitor Analysis

Mitsubishi Chemical Holdings, Kawasaki Kasei Chemicals Ltd., BioAmber, GC Innovation America, Anqing Hexing Chemical Co. Ltd., Reverdia, Gadiv Petrochemical Industries Ltd., Myriant Corporation, Showa Denko K.K., Succinity GmbH, and Nippon Shokubai Co., Ltd., among others are the core players in the market.

Please note: This is not an exhaustive list of companies profiled in the report.