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The global succinic acid market is projected to reach US$701.0M at a CAGR of 28.0%, according to a report from MarketsandMarkets. It is projected to reach 251.3 kilotons by 2021, registering a CAGR of 27.2%. This growth is fuelled by the increasing production capacities, rising development strategies, growing shift toward bio-based renewable substitutes in the plastics industry and growing application sectors globally.
Bio-based is the largest segment of the succinic acid market based on type. Owing to their ability to reduce the emission of greenhouse gases, less volatility and provide longer shelf life to food & beverage, they are used in manufacturing of non-toxic pharmaceuticals, polymers, phthalate free plasticisers, resins, coatings & pigments, among others. The increasing demand for non-degradable, durable, and high-performance products in the automotive, packaging and furniture & construction industries has fuelled the growth of bio-based succinic acid.
Polyurethane: The largest application market for succinic acid
Polyurethane is the largest application segment for succinic acid owing to the increasing demand from plasticisers, coatings and polymer applications in Western Europe, North America and Asia Pacific, as bio-based succinic acid has the ability to reduce 94.0% greenhouse gas emissions in comparison to that of petro-based. Polyurethanes are used in thermoplastics, artificial leather and alkyd resins for coating to sustain the performance and quality of the coated materials in extreme climate conditions and UV radiation exposures, provide weathering resistivity, resist abrasion and chemicals. The cost-effective solutions with long-term durability are the major factors driving the demand for succinic acid in the polyurethane application segment.
Western Europe: The largest market for succinic acid
Western Europe is estimated to be the largest market for succinic acid globally. This is mainly attributed to the presence of a large number of succinic acid manufacturers, increasing government support, rising foreign investments and growing demand for bio-based succinic acid from the plastics, polymers, food & beverage, and personal care industries. Germany dominates the market owing to growth of succinic acid in applications, such as polyurethanes, resins, coatings & pigments, pharmaceuticals, PBS/PBST, food & beverage, plasticisers, personal care and others and numerous developmental strategies adopted by the manufacturers.
The global succinic acid market is fragmented owing to the presence of a large number of buyers and suppliers worldwide. Increasing rivalry among the players to obtain majority of the patents for succinic acid used in applications, such as packaging, coatings and stabilisation of engineering plastics has played a major role in intensifying the level of competition. Major players such as BioAmber (Canada), Myriant (USA), Succinity (Germany), Reverdia (Netherlands) and Mitsubishi Chemical Holdings (Tokyo) have adopted organic and inorganic developmental strategies.