Global Levulinic Acid Market Revenue To Reach $60.2 Million by 2030by Vijay K. Web Marketing
Factors, such as the increasing commercialization of bio-based production methods and burgeoning demand for levulinic acid derivatives in various end-use industries, are expected to propel the levulinic acid market at a CAGR of 8.8% during the forecast period (2020–2030). According to P&S Intelligence, the market was valued at $27.2 million in 2019, and it will generate $60.2 million revenue by 2030. As the market is still at a nascent stage, it holds immense potential for commercialization, owing to which the production cost will reduce significantly.
The surging consumption of levulinic acid derivatives in end-use industries is one of the major growth drivers of the market. High volumes of derivatives, such as diphenolic acid, ethyl levulinate, hydroxymethylfurfural (HMF), succinic acid, sodium levulinate, and methyltetrahydrofuran (MTHF), are being used as additives in food and beverages, fuel, and personal care products. Further, the mounting investments being made in research and development (R&D) projects to discover new application areas of these derivatives will also propel the demand for levulinic acid.
The technology segment of the levulinic acid market is divided into biofine and acid hydrolysis. Of these, the biofine category is expected to demonstrate faster growth during the forecast period because of the eco-friendly nature of biofine process. Unlike the hydrolysis process, the biofine process uses microorganisms to ferment monomers, which are used to produce levulinic acid. The increasing awareness about the advantages of this process will, therefore, help the category grow at a rapid pace in the coming years.
Presently, the levulinic acid market is consolidated due to the presence of very few players, such as Avantium N.V., Heroy Chemical Industry Co. Ltd., GFBiochemicals Ltd., Vigon International Inc., Técnicas Reunidas S.A. (WALEVA Pilot Plant), Hefei TNJ Chemical Industry Co. Ltd., Simagchem Corporation, Shandong Xinhua Pharmaceutical I&E Co. Ltd., Tokyo Chemical Industry Co. Ltd., and Haihang Industry Co. Ltd. Currently, the market players are entering into agreements and joint ventures to gain a competitive edge.
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Globally, the North American levulinic acid market generated the highest revenue in 2019 due to the high-volume requirement for levulinic acid in the production of fuel additive n-butyl levulinate in the region. Additionally, the increasing adoption of the compound as an additive for eco-friendly herbicides in the U.S. and Canada is a key contributor to the market growth. Moreover, the burgeoning demand for personal care products will also fuel the demand for levulinic acid in the region.
Whereas, the Asia-Pacific levulinic acid market is projected to exhibit the fastest growth throughout the forecast period, primarily on account of the booming agriculture and personal care sectors in China, India, Indonesia, and Thailand. Personal care product manufacturers use ethyl levulinate, a primary derivative of levulinic acid, to produce fragrances and perfumes. In addition, the acid also serves as an important ingredient in cosmetic products, such as makeup removers and lipsticks.
Therefore, the expanding application base of derivatives and increasing commercialization of bio-based production methods are the major catalysts of the market growth worldwide.
Created on Jan 31st 2022 02:27. Viewed 182 times.
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