Succinic Acid Market - Forecast(2020 - 2025)
Succinic Acid Market Overview:
According to the Food and Agriculture Organization (FAO), the food and beverages industry will play an important role in the United Nation’s Agenda for Sustainable Development as 580 million people are undernourished today. The need for proper nourishment will be coupled with the growing population and its food requirement which will lead to an astounding 30% increase in global food production by 2030[1]. Apparently, the succinic acid market is going to gain a lot of traction due to this upsurge in food production as the chemical is used as an acidity regulator in various food items. The market worth of succinic acid was gauged to be around $125 million in 2018, and the demand for the same is projected to increase with a healthy compound annual growth rate (CAGR) of 7% during the forecast period of 2019 to 2025.
There is a significant growth in the pharmaceutical sector in APAC with developing economies such as India getting heavy investment from countries across the globe, and evidentially so when Invest India documents that India has the third largest pharmaceutical industry in the world. Furthermore, there is a discernible surge in the food and beverages sector in APAC countries which is coupled with the growing chemical industries. Owing to these reasons, APAC bears a lucrative succinic acid marketplace, and the region held the maximum regional market share of 41% in 2018.
Succinic Acid Market Outlook:
Succinic acid, also known asuccin, butanedioic acid, dihydrofumaric acid or amber acid is a dicarboxylic acid with the chemical formula (CH2)2(CO2H)2 or C4H6O4. Succinic acid finds applications in various sectors such as food and beverages as mentioned above and others such as chemical industries and personal care. The key application of succinic acid is found to be in the pharmaceutical industry where it is used as an ingredient.
According to the International Federation of Pharmaceutical Manufacturers & Association, the global pharmaceutical market will reach nearly $1,430 billion by 2020[2], and further progress is projected during the forecast period of 2019 to 2025. This attributes to the application of succinic acid in the pharmaceutical sector to observe a steady CAGR of 6% to 7% through to 2025.
Succinic Acid Market Growth Drivers:
- The Growth of Paints & Coating Industry –
The sudden surge in the number of industrial and residential construction projects is catapulting the demand for paints and coatings, and succinic acid is used as an intermediate in the manufacturing of the same. According to a business intelligence report by IndustryARC, paints and coatings market was valued to be $127.855 billion in 2018. Furthermore, the demand for paints and coatings is poised to observe a CAGR of 4.9% which is opening up the opportunities for the vendors in the succinic acid market. Apart from paints and coatings, succinic acid is also used in the manufacturing process of dyes as an intermediate that further boosts its demand.
- The Enhanced Application of Succinic Acid in Personal Care –
Conventionally, succinic acid was manufactured synthetically or by distillation of amber which made it exorbitant. So, its usage in the personal care sector was limited. However, with the advent of 100% natural succinic acid, it has become affordable and has gained prominence in the personal care industry – an industry that is showing an impressive growth due to a gamut of factors that include aging population, millennial lifestyle, and increase in disposable income that particularly enables people to spend on personal care products. Considering that there is a growing awareness about the usage of organic or natural products, succinic acid will further penetrate in the personal care market. This will create a myriad of opportunities for the vendors in the succinic acid market to capitalize on the demand.
- The Trend of Using Renewable Chemicals –
Due to the shortage of resource which is becoming a growing concern in the world, renewable chemicals are gaining traction in various industries. This is largely supported by the governments across the globe and the United Nations for sustainable development. Succinic acid is found to be a renewable chemical, and it has been used prevalently now. Moreover, there is also a perceptible demand for organic chemicals, and it is translating to an increased demand for bio-succinic. It is made by the fermentation of renewable feedstock of sugars and is found to be a greener alternative to the fossil-based material, and that is further flourishing the succinic acid market.
Succinic Acid Market Trends:
- Latest Development – In June 2017, BioAmber Inc. (BIOA) had launched BIO-SA pharmaceutical grade bio-succinic acid which is manufactured under the US Food and Drug Administration (FDA) good manufacturing practices (GMP) applicable to food and excipients.
- In February 2019, DSM and plant-based ingredients provider Roquette decided to dissolve their bio-succinic acid manufacturing joint venture Reverdia. This decision attributes to the massive success of Biosuccinium technology.
Succinic Acid Market Challenges:
The major challenge dwarfing the succinic acid market size is the availability of a gamut of alternatives such as citric acid and malic acid. Both of these chemicals occur naturally which is the reason some of the application segments prefer to use them, thereby leading to a competitive challenge. However, owing to the diverse applications of succinic acid, there is always a sustainable marketplace for the same.
Succinic Acid Market Key Players Perspective:
The market leader manufacturing succinic acid is BioAmber – a company that announced record revenue of $5.4 million in its March 2018 annual report. The revenue observed 755% increase compared to the previous year. This is attributable to the increasing demand for succinic acid produced by the company.
Other key players striving to capitalize on the demand influx in the succinic acid market are GC Innovation America, Succinity GmbH, Reverdia, Nippon Shokubai, Shandong Lixing Chemical, Kawasaki Kasei Chemicals, Anqing Hexing Chemical, and Anhui Sunsing.
Succinic Acid Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the succinic acid market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of succinic acid market, and their specific applications in food and beverages, pharmaceutical, personal care, and chemical industry.
Succinic Acid Market Report: Industry Coverage
The report analyses the product demands by grade as succinic acid is of three types – food grade, pharmaceutical grade, and industrial grade.
The succinic acid market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Succinic Acid Market Report
Is the market demand for succinic acid growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for succinic acid market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global succinic acid market during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures
Reference:
[1]http://pubdocs.worldbank.org/en/862271433768092396/Holger-Kray-RO-SustainableAg-hkray-ENG.pdf
[2]https://www.ifpma.org/wp-content/uploads/2017/02/IFPMA-Facts-And-Figures-2017.pdf
- We also publish more than 100 reports every month in “Chemicals and Materials”, Go through the Domain if there are any other areas for which you would like to get a market research study.
Comments
Post a Comment