Succinic Acid Market - Forecast(2021 - 2026)

 

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. 
Location: United States

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