The rapid increase in the demand for the derivatives of levulinic acid, owing to their Increasing application base, along with the commercialization of bio-based production methods, is the major driving force for the market for the base chemical. Owing to such factors, the levulinic acid market is expected to reach $60.2 million by 2030, demonstrating a CAGR of 8.8% during the forecast period (2020–2030).
The coronavirus pandemic has created a significant impact on the levulinic acid market, at the global level. Since this market is at a nascent stage and highly dependent on heavy investments in research and development (R&D) activities for levulinic acid and its derivatives, the pandemic is likely to hit the industry hard, owing to a reduction in the R&D investments. Moreover, the shutting down of manufacturing facilities is expected to further worsen the impact.
Fuel Additives To Witness Highest Demand
On the basis of application, the levulinic acid market is categorized into food additives, pharmaceuticals, agricultural products, personal care products, plasticizers, fuel additives, and others. Among these, the fuel additives category witnessed the highest levulinic acid consumption in 2019. In recent years, the esters of the compound have shown a strong potential to be used as a blend component in diesel formulations, owing to their ability to lower the greenhouse gas emissions. Moreover, with the shift toward the adoption of bio-based fuel additives, the consumption of levulinic acid is expected to further rise.
Additionally, based on technology, the market is classified into Biofine and acid hydrolysis, of which the Biofine process is expected to demonstrate the faster growth during the forecast period. This is majorly attributed to the increasing awareness regarding the advantageous properties of the process. For instance, the Biofine process allows for the usage of a wide range of heterogeneous lignocellulosic resources, which results in the production of several derivatives of the compound, including ethyl levulinate and methyl levulinate (fuel esters), diphenolic acid (used as an additive in lubricants, adhesives, and paints), and succinic acid (food additive),allowing these compounds to be used in a wide range of applications. These derivatives of the compound witness a strong demand from end-use industries, in turn, contributing to the revenue of manufacturers and propelling the adoption of the Biofine process.
The market in the Asia-Pacific (APAC) region is projected to demonstrate the highest CAGR during the forecast period, on account of the rapid surge in the product demand from the personal care and agriculture sectors in the region. In recent years, the personal care sector in developing economies, such as China, India, Indonesia, and Thailand, has showcase profound growth, on account of the rise in the disposable income, which, in turn, is creating a significant demand for products such as perfumes, lipsticks, and makeup removers. Levulinic acid derivatives are widely used as ingredients in such products, owing to which the demand for the chemical in the region is expected to grow, in turn, boosting the industry in the coming years.
Joint Ventures Being Adopted as Strategic Measure
Players involved in the levulinic acid market are entering into agreements and joint ventures, in order to collectively gain a larger share in the overall market. For instance, in February 2020, Towell Engineering Group and GFBiochemicals Ltd. announced the setting up of NextLevvel Biochem, a joint venture, for the production of bio-solvents and bio-plasticizers based on levulinic acid.
Browse report overview with detailed TOC on "Levulinic Acid Market Research Report: By Technology (Biofine, Acid Hydrolysis), Application (Food Additives, Pharmaceuticals, Agricultural Products, Personal Care Products, Plasticizers, Fuel Additives) - Global Industry Analysis and Demand Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/levulinic-acid-market
GFBiochemicals Ltd., Haihang Industry Co. Ltd., Tokyo Chemical Industry Co. Ltd., Heroy Chemical Industry Co. Ltd., Técnicas Reunidas S.A. (WALEVA Pilot Plant), Avantium N.V., Simagchem Corporation, Hefei TNJ Chemical Industry Co. Ltd., Vigon International Inc., and Shandong Xinhua Pharmaceutical I&E Co. Ltd. are some of the key players operating in the global levulinic acid market.