Succinic Acid Market
Succinic Acid Market (Application: 1,4-Butanediol, Resins, Coatings, and Dyes & Inks, Pharmaceuticals, Polyurethanes, Food, Plasticizers, Cosmetics, Solvents & Lubricants, and De-icing Solutions) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 - 2027
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Global Succinic Acid Market: Overview
- Succinic acid is widely used in various industries such as pharmaceuticals, chemical, and food. Currently, major proportion of succinic acid is derived from petroleum feedstock. A small amount of succinic acid is produced through the fermentation process. N-butane is one of the key raw materials used in the production of succinic acid.
- High cost of production associated with the petroleum-based process is the major challenge facing the succinic acid market. However, the cost of production is expected to decline with the advent of bio-derived succinic acid. This is expected to propel the demand for succinic acid across the globe. Bio-based succinic acid is gaining popularity due to high degree of government intervention to reduce industrial waste and air pollutants.
- Conventional succinic acid is dependent on petroleum resources for its production; therefore, it is highly affected by petroleum prices. Bio-derived succinic acid also needs to be developed at a low cost. Furthermore, it needs to adhere to improved fermentation processes to compete with its substitutes.
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Rise in Demand for Plasticizers and Polyurethanes Drives Succinic Acid Market
- Rise in demand for Polyurethanes on a global scale is expected to positively impact the demand for succinic acid in the near future. Elastomers, sealants, coatings, and adhesives are major applications driving the demand for polyurethanes. Increase in demand for flexible and rigid Polyurethanes is a prominent factor boosting the demand for polyurethanes.
- Increase in the demand for plasticizers is expected to propel the global demand for succinic acid. Plasticizers are primarily employed as additives in the production of polyvinyl chloride (PVC). PVC is used in various industries. This is driving the plasticizers market. Plasticizers are used for the production of PVC pipes, polyvinyl butyral (PVB), and other products due to its low viscosity and low volatility.
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Regulatory and Environmental Constraints Related to Succinic Acid May Hamper Overall Demand
- Succinic acid is used in various applications such as ester for perfumes and neutralizing agents. Thus, it is released into the environment through waste streams. The conventional production method of succinic acid is also susceptible to fluctuations caused by unpredictable regulatory and environmental constraints around the world. Enactment of stringent government regulations and environmental considerations to reduce greenhouse gasses has been adversely affecting the succinic acid market.
- The Department of Energy (DOE) and Food and Drug Administration (FDA) are some of the U.S. government regulatory standards that control the enactment of regulatory and environmental laws. Several other nations have also introduced numerous acts to protect the environment such as Control of Pollution Act 1974 and Food and Environmental Protection Act in the U.K. India introduced the AIR (Prevention and Control of Pollution) Act in 1981, while Japan introduced Waste Management and Public Cleansing Law in 1970. Various other international acts and policies such as Kyoto Protocol, UN Framework Convention on Climate Change (UNFCCC), and Montreal Protocol also help protect the environment.
- This is anticipated to hamper the global succinic acid market. Furthermore, bio-based succinic acid has been gaining popularity due to the rise in need for bio-degradable and green substitutes to their conventional counterparts.
Volatility in Prices of Raw Materials and High Production Cost
- Price instability of raw materials and high cost of production are major factors influencing the global succinic acid market. Crude oil is used as raw material in petroleum-based succinic acid. Fluctuation in oil prices leads to an increase in the cost of succinic acid. Constant fluctuation in prices of non-renewable resources and environmental issues associated with it are also key factor restraining the production of petroleum-based succinic acid.
Increase in Need for Bio-derived Succinic Acid
- Bio-based succinic acid is derived from natural resources such as animals and plants sources. It acts as a substitute for conventional petroleum-based succinic acid. Bio-derived succinic acid is used in various applications such as solvents, plasticizers, polyurethanes, and resins coatings.
- In addition to cutting down the cost of production of succinic acid, bio-based succinic acid is considered an environment-friendly alternative for petroleum-based succinic acid. Fluctuation in prices of crude oil has adversely affected the production of succinic acid. Hence, manufacturers are likely to focus more on green alternative sources of succinic acid. Several companies have already shifted toward the production of bio-based succinic acid.
Resins, Coatings, and Dyes & Inks Application Segment Led Global Succinic Acid Market in 2018
- Based on application, resins, coatings, and dyes & inks segment accounted for major share of the global succinic acid market in 2018. This can be ascribed to the application of these in industries such as infrastructure and automotive, which are expanding significantly in Asia Pacific. In terms of value, the global succinic acid market is expected to expand at a CAGR of more than 7.0% between 2019 and 2027.
- The pharmaceuticals segment is likely to expand moderately during the forecast period, owing to the increase in R&D activities in pharmaceuticals, wherein succinic acid is used as a starting material for active pharmaceuticals ingredients (APIs) and cross-linker in drug control release polymers
- Besides these applications, the 1,4-Butanediol (1,4-BDO) segment is expected to exhibit significant CAGR during the forecast period, followed by polyurethanes. 1,-4-BDO is primarily used in production of tetrahydrofuran (THF), which is used extensively as high performance copolyester ether elastomers, etc.
Key Regional Highlights
- Asia Pacific is anticipated to be a highly lucrative region of the global succinic acid market during the forecast period. Rise in demand for polyurethanes-based products and growth in construction and automotive industries are key factors estimated to boost the lucrativeness of the market in Asia Pacific. China is the key manufacturer and consumer of succinic acid in the region. The succinic acid market in the country is estimated to expand at a rapid pace during the forecast period. It is expected to remain dominant region between 2018 to 2027
- Europe constituted moderate share of the global succinic acid market in 2018. The market in the region is expected to expand at a moderate pace during the forecast period. Shift towards bio-based products is the major factor driving the market in Europe. Similarly, the market in North America is likely expand at a moderate pace in the near future. The market in Rest of World (RoW), including Latin America and Middle East & Africa, is estimated to expand at a sluggish pace during the forecast period.
Succinic Acid Market: Competition Landscape
- Major players operating in the global succinic acid market are
- Anqing Hexing Chemical Co., Ltd.
- BASF SE
- Gadiv Petrochemical Industries Limited
- Mitsui & Co.Ltd.
- In 2019, Royal DSM and Roquette dissolved their joint venture company Reverdia, which had been producing bio-succinic acid with trademark name Biosuccinium. Thus, Reverdia was dissolved in April 2019 and its rights were transferred to France-based Roquette.
Succinic Acid Market – Scope of the Report
Transparency Market Research’s recent report on the global succinic acid market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the global succinic acid market analyzes the market scenario for the period from 2019 to 2027, wherein 2018 is the base year. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the global succinic acid market also provides data on developments made by important players and stakeholders operating in the market, along with competition analysis. The report also provides an understanding of strengths, weaknesses, threats, and opportunities, along with market trends and restraints in the competition landscape section.
This study also discusses the underlying trends and the impact of various factors on the global succinic acid market along with their influence on the evolution of the market.
This study also offers Porter’s Five Forces analysis, value chain analysis, pricing analysis, production output, and regulatory scenario of the global succinic acid market in order to elaborate crucial growth strategies of and opportunities for players operating in the market.
Key Questions Answered in Succinic Acid Market Report
- How much revenue is the global succinic acid market expected to generate by the end of the forecast period?
- Which regions currently account for the maximum share of the global succinic acid market?
- What are the key factors expected to drive the global succinic acid market?
- Which region is likely to be a lucrative market for succinic acid during the forecast period?
- What are the essential strategies adopted by key players operating in the global succinic acid market to expand their geographical presence?
- What are major advancements in the global succinic acid market?
This report answers these questions about the global succinic acid market, aiding major stakeholders and key players in making the right decisions and strategizing for growth of their business.
Succinic Acid Market: Research Methodology
This TMR report on the global succinic acid market is based on a complete and comprehensive evaluation of the market, supported by secondary and primary sources. The competition scenario of the global succinic acid market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and the current trends, researchers of the global succinic acid market arrived at predictions and estimations, and calculated the market forecast.
This report adopts the analytical triangulation method to estimate the numbers of the global succinic acid market, by using both bottom-up and top-down approaches.
This detailed assessment of the global succinic acid market, along with an overview of the market, is provided based on a careful examination of avenues related to the market. Analysts’ conclusions on how the global succinic acid market is set to expand are based on carefully vetted primary and secondary sources.
Succinic Acid Market: Segmentation
This report on the global succinic acid market provides segmentation of the market based on application, and region