Many industries are transforming from petro-based materials to environmentally sustainable materials. Hence, bio succinic acid is emerging as one of the most competitive chemicals among other bio-based chemicals. Bio succinic acid finds wide applications in various forms; it is mainly being utilized as a useful raw material for polyurethanes, coatings, adhesives, sealants, and personal care ingredients. As a preservative and acidulant made from plant based feedstock, Bio succinic acid offers multiple uses.
Experts say that bio succinic acid market has a brighter future. Its multi-functionality and environmental friendliness may attract investors in long run. Bio Succinic acid is used as a popular intermediate chemical in cosmetic industries, food industries, pharmaceutical industries and varied industrial applications. Latest market research report by Allied market research on bio succinic acid concurs with the growing market.
According to the report, revenue for bio succinic acid market is expected to reach $1.1 billion by 2020, growing at a CAGR of 45.6% from 2013 to 2020. In terms of quantity, bio succinic acid would reach 710 kilo tons. Among many applications of bio succinic acid, 1, 4-butanediol (BDO) remains the major industrial application area.
Why BDO is one of the major contributor of Bio Succinic Acid Market?
BDO finds higher application as intermediate chemical in producing PBT (polybutylene terephtalate), polyurethanes and THF (tetrahydrofuran). Further, larger volumes of bio succinic acid consumed over maleic anhydride to produce BDO will also contribute to the growth of bio succinic acid market.
Factors favorable for the growth of Bio Succinic Acid Market:-
Rising demand for bio based chemicals
Rising crude oil prices
Higher adoption of industrial applications like plasticizers, polyester polyols (polyurethane),1,4-Butanediol (BDO) and PBS.
Increasing environmental awareness
Stringent government regulations globally
At present, higher cost of bio succinic acid and lengthy extraction process is the market hindrance. However, with improved production mechanism and economies of scale, these issues can be addressed.
Let’s know how the Bio Succinic Acid Market is segmented by the report
As per Application, bio succinic acid is further segmented in industrial application, food application, Pharma application, cosmetic application and others.
Under industrial application we have following:-
Solvents & lubricants
Resins, coatings, pigments
As per geographical segmentation, bio succinic acid consist of North America, Europe, Asia Pacific, RoW. Europe is expected to remain the largest revenue generator for bio succinic acid market, while Asia Pacific is expected to have the highest growth with the CAGR of 49.5% between 2013 and 2020.
Research Analyst at Allied Market Research
Eswar has more than six years of experience in market research and consulting in chemical and energy domains. He is actively involved in analyzing markets for specialty chemicals, commodity chemicals, bulk chemicals, materials, oil & gas equipment, petrochemicals, power industry, renewable & non-renewable energy and others. He is a part of multiple consult projects, syndicate and customized studies, with active involvement in providing critical business research insights to clients with his industry expertize. He is experienced in planning, commissioning, multi-tasking, and executing projects to attain specific client needs. His strength lies in trend analysis, data forecast, procurement analysis, building analytical models, business consulting and so on.