Succinic Acid Market

Succinic Acid Market Size (2024-2029):

The Global Succinic Acid Market was worth USD 172 million in 2023 and is anticipated to reach a valuation of USD 291 million by 2029 and is predicted to register a CAGR of 9.1% during 2024-2029.

Market Overview:

Succinic acid is an organic acid that has been labelled by the US Department of Energy as one of the top 12 platform chemicals from biomass. It is widely used in the food & beverages, chemical, manufacturing, and pharmaceutical industries. It is used as a flavour enhancer, food additive, and a precursor to many organic molecules including many polymers. It can either be obtained from bio-based sources or from the refining of petroleum.

Market Drivers and Restraints:

The global Succinic acid market is expected to go through transformations during the foreseen period of 2023 to 2028 as the demand for natural and synthetic products is increasing around the world. Succinic acids provide benefits such as high performance, better efficiency, etc., for the market players in the chemical industry, which has increased its usage in the painting and coatings industry as well. Succinic acids are extensively used in the PBS/PBST for food packaging because of their non-toxicity and biodegradability. In addition to this, it also has higher heat resistance as compared to other biopolymers.

The amino Succinic acid is the fastest-growing segment in terms of value. They are finding huge demand in end-user industries like packaging, powder, metal, and industrial coatings. The surge in food deliveries during the coronavirus period has promoted the packaging industry drastically, which is directly reflecting the growth in the succinic acid business.

On the flip side, the succinic acid market is facing stiff competition. These competitors are proving to be a very feasible substitute for Succinic acid and thus hinder the growth of the former. Rising energy prices are another barrier thwarting business expansion. The uniform blending with polyethylene beds leads to an uneven distribution of linking agents. This is a drawback associated with Succinic acids and thus brings down the growth opportunities. Moreover, the market is capital intensive, and thus many investors think critically before investing in this market.

Market Opportunities:

Increased growth in industries such as chemical, food packaging pharmaceuticals etc., that have a high demand for Succinic acids has presented the market a glowing opportunity to register high growth rates. PBS is used as a biodegradable drug encapsulation system. It is also being investigated for application in medical implants. Therefore, the increasing potential applications of PBS in a variety of industries are expected to drive the demand for succinic acid and its derivatives in the coming years.

Market Challenges:

The major challenges for the proliferation of succinic acid as a fundamental block include the development of low-cost fermentation alternatives. To ensure the competitiveness of bio-based-succinic acid in comparison to petroleum-based products, there is a need for the development of a cost-effective sugar fermentation process. In addition, the green credentials of bio-based processes are often challenged, since these processes require considerable land and water to grow their feedstock. Further, the process used for the making of these acids is very convoluted, which limits the use of succinic acid as a chemical building block.

SUCCINIC ACID MARKET REPORT COVERAGE

Market Segmentation:

Succinic Acid Market  - By Origin:

• Petro-Based Succinic Acid
• Bio-Based Succinic Acid

Petro-based succinic Acid was the largest market segment for succinic acid due to the large-scale production of crude and the many levels of purification it needs to undergo. This Petro-Based succinic acid is widely used in chemical and manufacturing industries to produce many end products. Petro-Based Succinic Acid was the largest segment and is projected to retain the lead during 2020-2025

Succinic Acid Market - By End-User:

• Food & Beverages
• Industrial
• Pharmaceutical sectors

Industrial usage of succinic acid as a precursor for many chemicals was greater than its use for any other purpose as of 2018. This is expected to remain unchanged in the near future as other uses of the compound, like food additives or acidity regulatory functions, do not demand it in such huge quantities. The consumption of Succinic Acid by Chemical and Automotive industries was larger than any other sector and these sectors are anticipated to remain the top consumers of Succinic acid in the forecast period.

Market Regional Analysis:

The Global Succinic Acid Market Report includes the segmentation of regions:

• North America 
• Europe
• Asia Pacific 
• Latin America 
• Middle East and Africa 

Due to its huge population and extremely high industrial consumption the Asia Pacific was the largest market for Succinic Acid. With rising levels of urbanization and industrialization across countries like India, Malaysia, and Indonesia this market is also projected to grow faster than other regions. The Asia Pacific was the largest market for succinic acid and is anticipated to grow with the highest CAGR during 2020-2025.

Market Key Players:

1. Nippon Shokubai (Japan),
2. Kawasaki Kasei Chemicals (Japan),
3. Shandong Lixing Chemical (China),
4. Anhui Sensing Chemicals (China)
5. Gadiv Petrochemical Industries (Israel)
6. Anqing Hexing Chemical (China)
7. Reverdia (Netherlands)
8. Succinity GmbH (Germany)
9. BioAmber (Canada)
10. GC Innovation America (US).