Succinic acid (chemical formula: C4H6O4) is a water-soluble, crystalline, four-carbon di-carboxylic acid. It can be produced from petroleum feedstock or from bio based resources. Generally, succinic acid is produced from maleic anhydride, whereas, synthetically succinic acid is produced from butane via maleic anhydride. Furthermore, succinic acid is used as a chemical intermediate in the manufacturing of lacquers and perfume esters, in pharmaceutical products. Also, succinic acid is used in foods as a sequestrant, a neutralizing and buffering agent. Being a chemical intermediate, succinic acid is used for the production of polymers such as 1,4-butanediol (BDO) and is used in the production of resins and solvents.
Global Succinic Acid Market: Dynamics
Rising demand for 1,4-butanediol, which is the building block for polyurethanes and for resins & plasticizers, in turn is expected to result in increasing demand for succinic acid. Further, succinic acid is used as a sequestrant in food industry, which helps to improve the stability and quality of food products. Thus, with the growing concern over food quality, the demand for succinic acid is also expected to increase. Moreover, increasing demand for succinic acid in the production of medicines for arthritis, pain, menopause, etc. is expected to drive the growth of succinic acid market. Also, government initiatives in the developed regions such as in North America and Europe towards adoption of bio-based chemicals in order to support the sustainable development have propelled the demand for the bio-based succinic acid. Moreover, increasing use of bio-based succinic acid for the manufacture of polyurethanes instead of adipic acid is projected to bolster the succinic acid market growth. However, the fluctuating prices of crude oil are expected to affect the prices of succinic acid as well. Along with this, relatively higher manufacturing cost for bio-based succinic acid is expected to restrict growth of the market during forecast period. Thus, the development of cost effective manufacturing techniques for bio-based succinic acid will create new opportunities for the growth of succinic acid market.
Global Succinic Acid Market Segmentation
On the basis of source, global succinic acid market is segmented into;
- Bio based
On the basis of grade, global succinic acid market is segmented into;
- Food grade
- Pharmaceutical grade
- Industrial grade
On the basis of application, global succinic acid market is segmented into;
- Chemical intermediate
- Plastics & Polymers
- Food & Beverages
Global Succinic Acid Market: Regional Outlook
Global succinic acid market is mainly dominated by Europe in terms of value and volume, owing to the stringent regulations coupled with initiatives for the use of bio-based chemicals. In Europe, manufacturers are focusing on the development and use of bio-based succinic acid. The region is expected to register healthy CAGR over the forecast period. Asia Pacific is a significant market for succinic acid in terms of consumption and production. Growth in industries such as pharmaceuticals, chemicals and food & beverages, among others, in emerging economics such as in India and China are expected to boost the demand for succinic acid. The region is thus, projected to register healthy CAGR over the forecast period. Succinic acid market in Latin America and Middle East & Africa regions are expected to register relatively slower growth during the forecast period.
Global Succinic Acid Market: Market Participants
Examples of some of the market participants in the global succinic acid market, identified across the value chain, include BASF SE, BioAmber Inc., MITSUI & CO., LTD., Myriant Corporation, Koninklijke DSM N.V, Anqing Hexing Chemical Co. Ltd., Yantai Shanshui Chemical Technology Co., Ltd., Astatech (Chengdu) Biopharmaceutical Corp., New Japan Chemical Co., Ltd., Kawasaki Kasei Chemicals, TCI Chemicals (India) Pvt Ltd., and Thirumalai Chemicals Ltd., among others. Some of the companies are focusing on the development of bio-based succinic acid in order to cater to the growing demand in developed regions and thus increasing their respective market shares.