Published: July 2020 | Report Code: CM10120 | Available Format: PDF | Pages: 132
The global levulinic acid market size stood at $27.2 million in 2019, and it is expected to demonstrate a CAGR of 8.8% during the forecast period (2020–2030). The increase in the commercialization of bio-based production methods, along with the rising demand for the derivates of the compound in end-use industries, is the major factor driving the levulinic acid industry.
Countries including China, India, the U.S., Japan, and Germany, which have a significant production capacity of levulinic acid, have witnessed an economic slowdown, triggered by the COVID-19 pandemic. More than 60% of the global production is attributed to these five countries, which have been severely hit by the pandemic, owing to which the levulinic acid market has also had a negative impact.
The Biofine category is expected to showcase the higher CAGR during the forecast period, on the basis of technology, in the levulinic acid market. The Biofine process is majorly adopted for the production of levulinic acid, since there is no usage of microorganisms for the fermentation of monomers, unlike in the hydrolysis process, owing to which the Biofine process has gained a higher adoption. With the increasing awareness regarding the benefits of the process, its adoption is expected increase at a rapid pace in the coming years.
The fuel additives category is expected to account for the largest share throughout the forecast period, on the basis of application. Levulinic acid derivatives are vastly used in fuel additives, in order to enhance the fuels’ properties. Ethyl levulinate, an ester of levulinic acid, holds a high potential to be used as a blend component in diesel formulations. In addition, the usage of ethyl levulinate in diesel results in lower sulfur emissions than those caused by traditional diesel. Owing to such factors, the fuel additives application is expected to witness a strong product demand throughout the forecast period.
Geographically, North America held the largest share in 2019, which is majorly ascribed to the high demand for levulinic acid for the production of the fuel additive n-butyl levulinate, in the region. The demand for the compound is also witnessing strong growth from the personal care and agriculture sectors of the U.S. and Canada; It is widely gaining usage as an additive for environment-friendly herbicides. With the increasing adoption of herbicides with renewable chemicals, the consumption of the compound is expected to further ramp up in the coming times.
Moreover, the depleting fossil fuel reserves and increasing environmental concerns have led to an increased focus on the conversion of biomass into fuels, in the region.
The APAC region is expected to demonstrate the fastest-growing consumption of the compound, on account of its increasing demand from the agriculture and personal care sectors of emerging economies, such as China, India, Thailand, and Indonesia. Ethyl levulinate, a primary derivative of levulinic acid, is widely used as an ingredient in fragrances and perfumes in this industry. In addition, the derivatives of the compound are used as ingredients in cosmetic products, such as makeup removers and lipsticks.
The growth of the personal care sector in the region, along with an increase in the disposable income in these countries, is expected to further propel the consumption of the compound in the coming years, in turn, driving the levulinic acid market.
The levulinic acid market is presently at a nascent stage, with a limited number of players. Owing to this, the market holds immense potential for commercialization, in turn, driving down the production costs and achieving economies of scale. This is likely to attract more manufacturers to the industry. In addition, in order to harness the untapped potential of the market, manufacturers are likely to make hefty investments, which, in turn, is projected to benefit the levulinic acid market in the coming years.
Derivatives of the compound, including ethyl levulinate, hydroxymethylfurfural (HMF), methyltetrahydrofuran (MTHF), sodium levulinate, succinic acid, and diphenolic acid, witness a high-volume consumption owing to their application as additives in fuel, personal care products, and food and beverages. With the increasing investments in research & development, in order to find new applications for these products, the market is projected to witness profound growth.
For instance, the consumption of sodium levulinate is garnering pace, owing to its usage as a skin conditioning agent in cosmetics as well as preservatives in food items, in order to increase their shelf life. With the projected increase in the demand for the compound from end-use industries, the levulinic acid market is expected to witness strong growth during the forecast period.
|Base Year (2019) Market Size||$27.2 Million|
|Forecast Period (2020-2030) CAGR||8.8%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Product Benchmarking, Company Profiling|
|Market Size by Segments||Technology, Application, Geography|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., China, India, Japan, South Korea, Brazil, Mexico|
|Secondary Sources and References (Partial List)||American Chemical Society, Energy Information Administration, Environmental Working Group, European Chemical Industry Council, European Chemicals Agency, Food and Agriculture Organization of the United Nations, Institute for the Analysis of Global Security, International Council of Chemical Associations|
The levulinic acid market is consolidated in nature, with the presence of few players, including GFBiochemicals Ltd., Hefei TNJ Chemical Industry Co. Ltd., Heroy Chemical Industry Co. Ltd., and Haihang Industry Co. Ltd.
In recent years, players in the industry have entered into joint ventures and agreements, in order to expand their market share and geographical coverage. For instance:
The levulinic acid market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
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