Published: October 2022 | Report Code: 10120 | Available Format: PDF | Pages: 170
The global levulinic acid market size in 2021 was $26.35 million, and it is expected to advance at a CAGR of 9.78% during 2021–2030, to reach $61.04 million by 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 industry.
In addition, R&D in the personal care industry is expected to result in the development of organic cosmetics and fragrances. Levulinic acid has a creamy whisky fragrance, owing to which it is used in perfumes, in addition to being used in cosmetics for pH regulation and skin conditioning. With the projected growth in this industry, complemented by the increase in demand for organic products, the levulinic acid market demand is expected to witness significant growth in the near future.
The industry is consolidated, with the presence of a few major companies. The players are concentrating their efforts on increasing R&D, in order to improve productivity and minimize the expenses connected with the manufacture of levulinic acid. Some of the competitors are focusing on expanding efforts to innovate in the process of manufacturing. Companies are concentrating their efforts on developing economically and environmentally viable methods for biomass conversion, to enhance the availability of alternatives to fossil fuels. They are using microwave radiation to extract and purify this acid from softwood and hardwood waste in a cost-effective manner.
Additionally, the industry is currently in a promising stage, with players investing heavily in this field. Despite being new to the market, these items have enormous potential for large-scale commercialization. This would also result in low production costs and a high degree of value chain integration. As a result, the increasing investment in product development and commercialization is likely to foster the levulinic acid market growth and make it more profitable for participants in the future years.
The acid hydrolysis category held a larger revenue share, of more than 60%, in 2021. This can be due to the wide usage of this technology for the production of levulinic acid and its derivatives, and this process allows for a wider range of heterogeneous lignocellulosic feedstock utilization. Also, with the increasing awareness regarding the benefits of the process, its adoption is expected to rise at a rapid pace in the coming years.
Moreover, many concepts for the commercial production of levulinic acid are based on acid hydrolysis technology, wherein the processes are conducted in a continuous manner at high pressures and temperatures. Also, the increasing inclination to derive this acid from biomass and rice husk is surging the need for acid hydrolysis technology. Moreover, the extensive research on the acid hydrolysis of cellulose to make levulinic acid is further propelling the adoption of this approach.
In addition, the Biofine process is 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 popularity. Thus, with the increasing awareness regarding the benefits of the process, its adoption is expected to increase at a rapid pace in the coming years.
Market Size in 2021
Revenue Forecast in 2030
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Technology; By Application; By Region
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The fuel additives application category is expected to witness the fastest growth, advancing at a CAGR of more than 10%, in the market during the forecast period. This can be mainly attributed to the surging usage of levulinic acid and its derivatives in fuel additives, on account of their functionally viable properties, such as low toxicity, high lubricity, stable flash point, and appreciable flow attributes, which make them a suitable additive for gasoline and diesel fuels.
Moreover, such acid derivatives are used 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. This is attributed to the high lubricity of ethyl levulinate blends. Moreover, with the shift toward organic and bio-based fuel additives in view of the growing environmental concerns, the levulinic acid demand will rise in the coming years.
APAC is the largest and fastest-growing market, advancing at a CAGR of more than 10% during the forecast period. This is mainly attributed to the high demand for levulinic acid for the production of fuel additives such as n-butyl levulinate; the high-volumetric adoption of bio-based products for various applications, including agricultural products, drugs, and personal care products, in countries such as China, India, Thailand, and Indonesia; and the surge in disposable income in the region.
Moreover, the demand for the compound is also witnessing strong growth in the agriculture sector in the region. 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. Furthermore, the depleting fossil fuel reserves and the rising environmental concerns have led to an increased focus on the conversion of biomass into fuels in the region, which, in turn, drives the growth of the market.
China leads the APAC market. This is ascribed to the potential demand for levulinic acid from the personal care and agriculture industries in the country. Agriculture is one of the largest industries in China. Owing to the large-scale agricultural production in the nation, pesticides and herbicides are required in high volumes for the protection of crops. Thus, with the projected growth in the agriculture industry, the demand is expected to increase for its use as an additive in herbicides and pesticides in the country.
The levulinic acid market is also expected to grow on account of the increasing demand for this chemical from the pharmaceutical industry for the preparation of pharmaceutical products such as antidotes, vitamin A, pills, capsules, and toothpaste. Levulinic acid is mainly used in this industry for the preparation of drugs, on account of the surging number of chronic diseases and the growing healthcare industry across the world. Moreover, the massive unexplored markets would create ample opportunities for manufacturers of this material.
Countries such as China and India have a large population, and their healthcare infrastructure is improving, thus illustrating an immense potential for the production of pharmaceuticals. Also, manufacturing pharmaceutical products in developing regions tends to decrease the overall cost of products without altering the quality. In addition, with the increasing prevalence of diseases and demand for high-quality drugs, the consumption of levulinic acid is expected to rise in these countries, which, in turn, boosts the market growth.
The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.
Based on Technology
Based on Application
The levulinic acid market size stood at $26.35 million in 2021.
During 2021–2030, the growth rate of the levulinic acid market will be around 9.78%.
Agricultural products is the largest application area in the levulinic acid market.
The major driver of the levulinic acid market includes the increasing adoption of levulinic acid and its derivatives in various sectors, including fuel additives, personal care, pharmaceutical, food additives, and agriculture.
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