Succinic acid market growth, size, future analysis-2020

Posted by rohan on November 27th, 2020

succinic acid market Overview:

The succinic acid market size is expected to grow from $ 142.8 million in 2020 to $ 194.4 million in 2025, with a CAGR of 6.9%. Improved construction and infrastructure in emerging Asia-Pacific economies is expected to boost demand for resins, coatings and polyurethanes, which in turn is expected to drive growth in the sector. The product is utilized as a building block in the production of polyurethanes, resins, polybutylene succinate (PBS) and plasticizers, as well as a precursor for chemicals such as 1, 4-butanediol (BDO). However, the volatility of the price of crude will affect the prices of the product, thus restricting demand. Moreover, the sturdy development in the production of bio-succinic acid because of the escalating popularity of green products among chemical manufacturers is anticipated to challenge demand over the next seven years.

Market drivers and restraints:

APAC is the fastest developing market for succinic acid. Due to the growing economy and increasing consumer awareness, the region's market is developing rapidly. This region is also expected to dominate the succinic acid market by 2023 due to the growing industrial base of polyurethane, pharmaceuticals, 1,4-BDO, and food and beverage as well as the availability of a cheap labor and low manufacturing costs. In addition, the increasing demand for succinic acid derivatives from China has spurred the growth of succinic acid market in APAC region. Over the past decade, the succinic acid market in China has experienced steady growth due to the development of downstream industries and the improvement in the technology of producing succinic acid. In the pharmaceutical industry, it is used as the raw material of ferrous succinate, succinimide and N-bromosuccinimide (NBS), while in the food and beverage industry, succinic acid is used in the production of disodium succinate, which acts as an aroma food enhancer. Thus, the use of succinic acid for the production of various derivatives in the above-mentioned industries in China increases the demand for succinic acid in the country.

The succinic acid market is a capital intensive market, and the downtime associated with the penetration of succinic acid as an intermediary for the existing material / application also results in significant losses for end-use industries. The failure of bio-based succinic acid due to lack of cost competitiveness and performance issues as a substitute for petroleum-based succinic acid has increased the demand for succinic acid based of oil. Setting up plants to manufacture succinic acid for renewable chemicals and petroleum products requires a large capital investment, competent technology and adequate supply of raw materials, as well as rigorous R&D at the micro level to provide a quality product. The manufacturer must also achieve economies of scale by achieving large-scale production and maintaining regular wholesale purchases of its products to ensure continuous cash flow for operations. These factors had a significant impact on the cost of trade preparation. These factors are holding back the growth of the succinic acid market.

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