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Bio-based Succinic Acid Market - Forecast(2023 - 2028)
Bio-based Succinic Acid Market Overview
The Bio-based Succinic Acid Market size is forecast
to reach US$82.3 million by 2027 after growing at a CAGR of 7.3% during the
forecast period 2022-2027. Bio-based Succinic Acid plays an important role
in the production of biodegradable plastics and it also acts as a substitute
of numerous chemicals such as Adipic Acid, Butanediol, Tetrahydrofuran,
Polybutylene Succinate, and more. Moreover, Bio-based Succinic Acid is a type of
carboxylic acid that is used for a wide range of applications such as
pharmaceuticals, industrial, packaging, cosmetics & personal care, paints
& coatings, and more. An increase in demand for bio-based succinic acid
from the pharmaceuticals along with an increase in demand from the cosmetics
& personal care industry acts as major drivers for the market. On the other
hand, health hazards associated with the prolonged use of Succinic Acid may
act as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has impacted the Bio-based Succinic Acid Industry. Strict lockdowns all over
the world interrupted the entire supply and trade of raw materials from
manufacturing hubs like China, and India. This, in turn, resulted in slow
developments and manufacturing of drugs along with severely affecting multiple
companies that primarily depended on outsourcing. However, the Bio-based
Succinic Acid Industry started gaining momentum during the end of 2020 due to increasing demand for vaccines and drugs such as Hydroxychloroquine and
Remdesivir that were used to fight against COVID-19. For instance, according to
a research report published on PLOS medicine, the cumulative volume of
antibiotics that were sold in 2020 was about 16,290 million doses. Likewise,
Gilead Sciences reported that its total revenue increased by 17% after
incorporating the sales of coronavirus treatment Remdesivir. The increasing
demand for drugs required for the treatment of COVID-19 along with increasing
demand for vaccines to be manufactured in bulk in many countries across the
world resulted in the growth of the Bio-based Succinic Acid Market as it is
generally used as a starting material for active pharmaceutical ingredients
(API) along with being used as an additive in drug formulation. All of these
factors have eventually led to the growth of the Bio-based Succinic Acid Market and
it is expected to rise in the upcoming years as well.
Bio-based Succinic Acid Market Report Coverage
The report: “Bio-based Succinic Acid Market –
Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the
following segments of the Bio-based
Succinic Acid Industry.
By Application: Industrial, Pharmaceutical,
Packaging, Cosmetics & Personal Care, Food & Beverages, Paints &
Coatings, Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- Industrial Application in Bio-based Succinic Acid Market is expected to see the fastest growth, owing to the increasing demand for Bio-based Succinic Acid for production of Polyester Polyols, Polybutylene Succinate, Solvent and Lubricants, Polymers, Paints and Coatings, and other industrial applications.
- Bio-based Succinic Acid is generally used as an intermediate during the manufacturing process of several chemicals, such as surfactants, emollients, and emulsifiers, which makes it ideal for use in the cosmetic and personal care industry.
- Asia-Pacific dominated the Bio-based Succinic Acid Market in 2021, with China most likely to drive the market growth. The major reason behind this is the increasing demand for biodegradable plastics from the packaging industry, along with an increasing demand for food additives from the food and beverages industry, thus, boosting the market growth.
Figure: Asia-Pacific Bio-based Succinic Acid Market Revenue, 2021-2027 (US$ Million)
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Bio-based Succinic Acid Market Segment Analysis – By Application
The Industrial application held the largest
share in the Bio-Based Succinic Acid Market in 2021 and is expected to grow at
a CAGR of 6.8% between 2022 and 2027, owing to the increasing demand for
Bio-based succinic acid as an intermediate in a wide range of industrial
applications such as the production of biodegradable plastics, polyurethanes,
polyester polyols, solvents, coating, lubricants and a range of other
industrial products. For instance, according to Volvo
CE, the construction sector saw an increase in the production and manufacturing
of construction materials across multiple regions since the fourth quarter of
2020. South America saw an increase of 12%, Asia by 39%, Europe by 20%, and
China by 28% in 2020. All of these factors increased the demand for industrial
materials like paints, coatings, plasticizers, solvents, lubricants for
construction machinery and equipment along with other industrial materials
across the globe. Since Bio-Based Succinic Acid is used as a primary component
for the production of these industrial materials, it is most likely to boost
the market growth in the upcoming years.
Bio-based Succinic Acid Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Bio-Based Succinic Acid Market in 2021 up to 30%, owing to the increasing
demand for biodegradable plastics and food additives from the packaging and
food & beverage industry. For instance, China holds the largest market
share around the world when it comes to food packaging. According to a recent
study published on Interpack, the consumption of food packaging is expected to
increase to 447,066 million in 2023. Likewise, it also states that the Chinese
packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of
around $5.88 billion with end packaging.
Likewise, Bio-Based Succinic Acid is primarily used as a food additive in order to enhance the taste of the food and regulate the acidity in beverages. According to a recent study published on Agri Exchange, the Indian Food Industry uses more than 3,000 types of food additives in order to enhance the flavor, freshness, texture, and shelf life of food items. Likewise, China's National Health Commission organized recently approved 9 varieties of food additives that can be used by the food industry in 2021. Since Bio-Based Succinic Acid is the primary component required in the production of packaging materials and food additives, it is expected to lead the growth of the Bio-Based Succinic Acid Market in the upcoming years.
Bio-based Succinic Acid Market Drivers
An increase in demand from the pharmaceuticals industry is most likely to increase demand for the product
Bio-based Succinic Acid Market is generally used as a starting material for active pharmaceutical ingredients (API) along with being used as an additive in drug formulation. According to a report published by IMS Institute for Healthcare Informatics, the overall volume of medicines usage across the globe reached around 4.5 trillion doses in 2020 with an approximate cost of around $1.4 trillion. Likewise, according to the data on therapeutic drug use in the U.S. published by National Centre for Health Statistics, the number of drugs that were ordered and provided through physician office visits reached around 2.9 billion, and the number of drugs that were given or prescribed through hospital emergency department visits reached around 336 million in 2020. Furthermore, recent reports published by Kaiser Family Foundation (KFF) show that over 90 million of 246 million U.S. adults fall at a higher risk of serious illness if infected with the coronavirus. Thus, an increased risk of people falling sick or suffering from certain medical illnesses will also increase the demand for medicines or drug production required for the treatment, which can lead to an increase in demand for Bio-based Succinic Acid required for the production of these medical drugs. This, in turn, will play a major role in leading market growth in the upcoming years.
An increase in demand for cosmetics and personal care products is most likely to increase demand for the product
Bio-based Succinic Acid is generally used as
an intermediate in order to manufacture several chemicals, for the cosmetic and personal care industry, such as surfactants, emollients, and emulsifiers. For
instance, recent insights from World’s Top Exports stated that European
countries sold the highest amount of exported beauty and skincare, and personal
care goods during 2020 with shipments valued at $26.7 billion, which indicates around
44% of the global total. This is followed by Asian exporters with related
shipments at 43%, and North America by 10.7%. Likewise, according to a recent
article published on the Vouge in 2021, 10 new beauty products are to be
launched from multiple leading brands across the world such as Becca, Indya,
Forrest Essentials, Jimmy Coo, Colorbar, Wow Skin, Clinique, MyGlamm, and more.
Hence, increased demand for cosmetics and personal care products also
increases the demand for Bio-based Succinic Acid required during their
production, thus, resulting in the growth of the market in the upcoming years.
Bio-based Succinic Acid Market Challenges
Health hazards associated with the prolonged use of Succinic Acid can cause an obstruction to the market growth
According to recent research, the prolonged
use of Succinic Acid may cause eye irritation, skin irritation, and
gastrointestinal irritation. Side effects of excessive exposure to Succinic
Acid include nausea, vomiting, and diarrhea in mild cases. In severe cases, it
may also cause respiratory tract irritation in case of inhalation. Hence,
health hazards and risks associated with the prolonged use of Succinic Acid may
confine the market growth.
Bio-based Succinic Acid Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in this market. Bio-based Succinic Acid top 10 companies include:
- BASF SE
- Roquette Freres
- Kawasaki Kasei Chemicals
- DSM N.V
- BioAmber
- Myriant
- Nippon Shokubai
- Succinity
- Mitsubishi Chemical Holdings
- Anhui Sunsing Chemicals
Acquisitions/Technology Launches
- In February 2019, Roquette, a DSM
and plant-based ingredients provider and Roquette, decided to dissolve their
bio-succinic acid manufacturing joint venture Reverdia. This decision facilitated the massive success of Biosuccinium technology.
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