Succinic Acid Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Succinic Acid Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The succinic acid market is projected to witness a CAGR of 7.2% during the forecast period (2022-2027).

It is clearly evident that the COVID-19 outbreak disrupted the supply chain of succinic acid, and it negatively impacted the growth of the industry during the past two years. The consumers opted for substitute products in the skincare industry and in the food and beverage industry as well. This resulted in innovation and launches of new products to attract the customer's attention.

Succinic acid, an approved additive, which is also known as E363, is a bulk chemical with a global production of 16,000–30,000 tons, and it recorded an annual growth of 12% in 2021. Succinic acid can be used as an acidifier and taste enhancer in food like relishes, beverages, and sausages.

The increase in demand for a bio-based chemical. The potential use of succinic acid as starting feedstock for the production of industrial chemicals and consumer products with large markets was the main driver that launched the development of technology for bio-based succinic acid production.

Key Market TrendsIncrease in Demand for a Bio-based Chemical

Bio-based succinic acid, derived from the fermentation of sugars, is gradually becoming a replacement for phthalic anhydride and maleic anhydride (both crude-oil-based products), thereby becoming a cost-competitive replacement for the aforementioned. As a result, with increasing demand for bio-based chemicals, manufacturers are adopting bio-based succinic acid, as they perform in a similar way in formulations that use phthalic anhydride. For instance, companies, such as Myriant, have developed bio-based succinic acid, which possesses structural similarity to maleic anhydride and phthalic anhydride, in turn enhancing the performance and minimizing the performance changes and boosting the bio-based chemical segment in the market studied.

Asia-Pacific is the Fastest-growing Market

The succinic acid market is segmented into North America, South America, Asia-Pacific, Europe, and Middle-East and Africa. A significant development in application drives the market in the Asia-Pacific region. Moreover, the availability of low-cost labor is boosting production plants in Asia-Pacific, with China holding the highest production capacity, among all the other countries in the region. Europe is the leading revenue-generating market for succinic acid, which is mainly due to the strict regulatory imposition on the use of certain hazardous chemicals that pose a threat to the environment and human beings. Hence, to comply with the requirements, manufacturers are shifting to greener substitutes (bio-succinic acid).

Competitive Landscape

Some of the major players in the succinic acid market include Myriant, Succinity, Reverdia, Gadiv Petrochemical Industries Ltd, Purac, Nippon Shokubai, Mitsubishi Chemical Holdings, Kawasaki Kasei Chemicals Ltd, Linyi Lixing Chemical Co. Ltd, Anhui Sunsing Chemicals, and BASF. A diversified product portfolio, high depth in application reach, and technical assistance to customers are the factors responsible for strengthening the position of these companies in the succinic acid market. They have also been adopting various organic and inorganic growth strategies such as partnership, agreement, and expansion, to enhance their current position in the succinic acid market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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