Levulinic Acid Market

Levulinic Acid Market Size 2023-2028

The levulinic acid market was anticipated to reach $ 28.3 million in 2022 and is anticipated to grow at a CAGR of 8.9% over the forecast period 2023-2028

Levulinic acid, also known as 4-oxopentaenoic acid, is an organic compound classified as a keto acid. In recent years, the need for sustainability has constantly led the chemical industry to explore renewable chemistry and biotechnology to develop products from biological sources. These products are being developed for the purpose of being used as "platforms" for the manufacture of a number of industrial and specialty chemicals to replace their synthetic counterparts. Levulinic acid has long been identified as a chemical platform.

The agricultural applications segment occupied a significant share of the levulinic acid market in 2018. Levulinic acid is a bio-based additive and can be used in herbicides and insecticides or agricultural products, due to its ability to improve plant production and prevent parasitic infection. The demand for levulinic acid is expected to increase worldwide in the near future, due to an increased preference for organic products in the global agricultural sector. Levulinic acid metal plasticizers are widely used in phthalate plasticizers because they exhibit excellent compatibility with hydrophilic biopolymers, such as polylactic acid. The Biofin category is expected to show the highest CAGR during the forecast period, based on technology, in the Levulinic Acid market. The Biofin process is mainly adopted for the production of levulinic acid because no microorganism is used for the fermentation of monomers, unlike the hydrolysis process, so the Biofin process has gained more adoption. With growing awareness of the benefits of the process, its adoption is expected to increase at an accelerated rate in the coming years. The fuel additives category is expected to account for the largest share over the forecast period, depending on the application. Levulinic acid derivatives are widely used in fuel additives to improve fuel properties. In addition, the use of ethyl levulinate in diesel produces fewer sulfur emissions than those caused by conventional diesel. Due to these factors, the application of fuel additives is expected to experience high demand for the product during the forecast period.

LEVULINIC ACID MARKET REPORT COVERAGE:

Levulinic Acid Recent Developments:

• In December 2020, Elementis enters into a commercial agreement with Nxtlevvel Biochem. Nxtlevvel and Elementis plan to release the 2 latest bio-based solvents for the industrial paints and coatings sector in early 2022. Elementis is a listed distributor of naturally occurring additives for paints and coatings, personal care, and applications energetic. Elementis is also a leading provider of water-based systems and solutions that replace traditional solvent-based formulas while maintaining application performance.

Drivers in the Levulinic Acid Market:

The excellent versatility and high potential for low-cost production of levulinic acid from biomass have caught the attention of manufacturers. Therefore, manufacturers in the levulinic acid market are aware of this technological gap and thereby increase their efficiency in technological innovations related to production. In order to meet the expectations of end-users in the chemical and fuel industries, companies are adopting new production techniques using furfuryl alcohol for the direct production of levulinic acid from biomass. Ongoing developments are emerging to reduce production costs, which will ultimately help create increased demand for levulinic acid in the years to come. Potential derivatives such as levulin esters and oligomers for transportation fuels are likely to drive market growth.

Levulinic acid is widely used to make PVC, which is a better alternative to phthalate plasticizers; this factor should stimulate the market. PVC is widely used in the manufacture of various products in various industries such as packaging, healthcare, automotive, and others. It is used as a pesticide and additive in biofuel production and pharmaceutical manufacturing. Levulinic acid is also used in cigarettes to improve nicotine content. The production of levulinic acid of biological origin is huge because there is a big difference in price, so its production quantity is much higher. The increased spending on R&D in manufacturing technology is expected to open up new growth opportunities in the years to come.

Restraints in the Levulinic Acid Market:

However, replacing the synthetic chemical Levulinic Acid with alternatives is the main challenge in the Levulinic Acid market. The lack of technological development in line with market demand has become a challenge for manufacturers in the levulinic acid market. For example, there is a need for technological innovation for the low-cost direct production of levulinic acid from biomass.

MARKET SEGMENTATION

Levulinic Acid Market - By Application:

• Pharmaceuticals

• Agriculture

• Food Additives

• Cosmetics

Agricultural products are the main users of levulinic acid. One of the major factors influencing the growth of the market is the increasing demand for fertilizers for high crop yield. Fertilizers allow farmers to increase crop yields by increasing the productivity of farmland, and they can also cause land that would otherwise be less productive to produce substantial yields. Fertilizers are formulated to support the performance of certain plants by allowing plants to easily absorb essential macro and micronutrients. In addition, the rate of growth of the world's population is likely to stimulate the demand for agricultural products such as fertilizers for higher yields. Currently, the world's population is growing at a rate of about 1.05% per year, and an average population increase of 81 million people per year is expected.

Levulinic Acid Market - By Potential Downstream:

• Delta aminolevulinic acid (DALA)

• Diphenolic Acid

• Methyltetrahydrofuran (MTHF)

• Others

The commercial-scale application of levulinic acid has recently been associated with automotive fuel thinners, primarily MTHF, which is miscible with gasoline in all proportions and exhibits oxygenation and pressure properties of favorable vapor. Intermediates in the conversion of levulinic acid to MTHF include γ-valero lactone (GVL) and 1,4-pentanediol, which are also attractants in themselves.

Levulinic Acid Market - By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Geographically, North America held the largest share in 2020, which is mainly attributed to the high demand for levulinic acid for the production of the fuel additive n-butyl levulinate, in the region. Demand for the compound is also experiencing strong growth in the agriculture and personal care industries in the United States and Canada; It is increasingly used as an additive for environmentally friendly herbicides. With the increasing adoption of herbicides containing renewable chemicals, the consumption of the compound is expected to increase even more in the times to come.

The APAC region is expected to show the consumption of this fastest-growing compound, due to its increasing demand from the agriculture and personal care sectors of emerging economies such as China, India, Thailand, and the 'Indonesia. Ethyl levulinate, a primary derivative of levulinic acid, is widely used as an ingredient in perfumes and fragrances in this industry. In addition, derivatives of the compound are used as ingredients in cosmetic products, such as makeup removers and lipsticks. The growth of the personal care sector in the region, as well as an increase in disposable income in these countries, is expected to further stimulate the consumption of the compound in the coming years, in turn boosting the levulinic acid market.

The European Levulinic Acid market is expected to grow at the highest CAGR between 2021 and 2026. Germany is expected to dominate the European Levulinic Acid market, in terms of consumption, during the forecast period.

Major Key Players:

1. Biofine International Inc. (U.S.)

2. Avantium (Netherlands)

3. GF Biochemicals Ltd. (Italy)

4. Langfang Triple Well Chemicals Co. Ltd (China)

5. Simagchem Corporation (China)

6. Hefei TNJ Chemical Industry Co., Ltd. (China)

7. Great Chemicals Co. Ltd. (China)

8. Anhui Herman Impex Co Ltd (China)

9. DuPont (U.S.)

10. CSPC Pharmaceutical Group (China)