Market Definition
Levulinic Acid is a versatile & sustainable chemical produced from an extensive range of carbohydrates with biomass like food waste & agricultural residues. These acids are used in different applications like pharmaceuticals, agriculture, polymers, solvents, fuels, etc., and with continuous research, their usage is likely to widen in the coming years.
Market Insights
The Global Levulinic Acid Market is projected to grow at a CAGR of around 6% during the forecast period, i.e., 2021-26. The market is driven primarily by the increasing demand for Levulinic Acid due to its versatile properties & extensive applications like food additives, fertilizers, resins, fuel additives & biofuels, coating, cosmetics, & medical drugs, among others.
In addition, the potential for low-cost production of Levulinic Acid from biomass is swiftly gaining the attention of several manufacturers, who are actively seeking ways to enhance effectiveness in bringing technological advancements in their products. In the fuel & chemical sector, leading players are adopting new techniques for the direct production of Levulinic acid from biomass using furfuryl alcohol.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 6% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy | |
| Asia-Pacific: China, India, Japan, South Korea | |
| South America: Brazil | |
| Middle East & Africa: GCC, South Africa | |
| Key Companies Profiled | Segetis, Biofine Technology LLC, DuPont, Hefei TNJ Chemical Industry Co. Ltd., Haihang Industry Co. Ltd., Heroy Chemical Industry Co. Ltd., GFBiochemicals Ltd., Vigon International Inc. |
| Unit Denominations | USD Million/Billion |
Moreover, with the swiftly expanding agriculture sector, the demand for Levulinic Acid as fertilizers to enhance crop production & remove the population of unwanted pests shall also boost the market across several regions. Besides, the mounting prevalence of skincare products and the growing adoption of Levulinic acids in eye & hair care products are other crucial aspects expected to fuel the overall market growth during the forecast period.
Impact of Covid-19 on the Global Levulinic Acid Market
Most industries worldwide observed negative effects of the Covid-19 pandemic in 2020, and the Global Levulinic Acid Market was no exception. In response to the dreadful situation, the governments of different countries had to impose stringent movement restrictions & frequent lockdowns to curb the spread of this virus.
Consequently, the market observed a temporary halt due to a disrupted supply chain that hampered the distribution of Levulinic acid. The market also faced other challenges like cut-short production, shortage of workforce, etc., as a result of business limitations. Besides, the personal care & cosmetics industry's growth severely declined, which directly impacted the levulinic acid market since it lost several investors amidst the crisis.
However, with the gradually improving pandemic situation, the governments swiftly uplifted the limitations and allowed the recommencement of business operations. Several leading players are now seeking ways to expand their scalability & sustain themselves that shall enable the market to recover from losses & regain its usual pace in the coming years.
Market Segmentation
Based on Technology:
Of them all, the demand for Acid Hydrolysis technology displays considerable growth. It owes to the rising demand for this technology to derive Levulinic acid from biomass & rice husk entwined with the swiftly increasing number of researches on acid hydrolysis of cellulose to make Levulinic Acid. The technology adds a specified concentration of acid catalyst to the biomass by hydrothermal heating at a set temperature & duration. Acid Hydrolysis is amongst the most common thermochemical penetration in the production of Levulinic Acid and is widely adopted owing to its simplicity & low cost.
Based on Application:
Of them all, the Cosmetic sector is anticipated to display the fastest market growth and generate remunerative opportunities for the leading players during the forecast period. It owes to the increasing awareness about personal & skincare and the availability of cosmetic products with Levulinic Acid & its derivate like Sodium Levulinates.
The use of Levulinic acids in cosmetics has been approved by the US Food & Drug Association (FDA) & associations in the European Union that govern cosmetic products. Besides skincare, these acids are also used in several eye products, lotions, & hair care products.
On the other hand, the demand for Levulinic Acid in Pharmaceutical applications is projected to demonstrate a rapid growth during the forecast period. It owes principally to the potential of the Levulinic Acids across the healthcare sector due to the advantages of microalgae commercially used for the production of phycocolloids, nutraceuticals, & pharmaceutical products.
Nonetheless, the Agriculture sector dominated the market with the largest share & is expected to prevail the same trend during the forecast period. It owes to the exponentially growing population & the mounting need to suffice their food requirements and the surging inclination toward organic fertilizers & eliminating dependencies on chemicals. It, in turn, is soaring the demand for bio-based Levulinic acid to enhance crop production & prevent unwanted pests.
Regional Landscape
Geographically, the Global Levulinic Acid Market expands across:
Of them all, Asia-Pacific is projected to display the fastest market growth during the forecast period. In the region, China, India, & Japan dominate the market. Since Asia-Pacific has an exponentially growing population, its agriculture sector is rapidly expanding to suffice food requirements. It, in turn, is soaring the demand for Levulinic acids for their use as fertilizers & bio-based pesticides to enhance the soil quality & eliminate the presence of unwanted pests.
Besides, the need for the by-products of Levulinic acid, a suitable alternative to phthalate plasticizers, is also rising. Countries like China & India, the largest consumers of fertilizers, are contributing substantially to the regional market growth.
Moreover, the rising penetration of personal & skincare products is also fueling the demand for Levulinic acid in cosmetic applications. Furthermore, with improving purchasing power and growing awareness & availability of products, the market is projected to grow substantially across Asia-Pacific during the forecast period.
On the other hand, North America dominated the market with the largest share in the recent years & is anticipated to prevail the same trend during the forecast period. It owes to the increasing demand for Levulinic acid, especially from the agriculture & cosmetic sectors across countries like the US & Canada.
Recent Developments by Leading Companies
Market Dynamics:
Key Driver & Opportunity: Rapidly Expanding Agriculture Sector to Drive the Market
Since Levulinic acid is a versatile chemical, its application is extensive across different verticals with potential uses as resins, textiles, plasticizers, coatings, antifreeze, etc. Of all industries, the automotive & construction sectors are projected to become prominent end-users of Levulinic Acid in the coming years.
Moreover, the agriculture sector shall also observe a burgeoning demand for Levulinic acid for fertilizers to enhance crop production & suffice the food requirements of the mounting population. Furthermore, Levulinic acid is also used in food additives & cigarettes to maximize the nicotine content.
Competitive Landscape
According to MarkNtel Advisors, the major leading players in the global Levulinic Acid market are Segetis, Biofine Technology LLC, DuPont, Hefei TNJ Chemical Industry Co. Ltd., Haihang Industry Co. Ltd., Heroy Chemical Industry Co. Ltd., GFBiochemicals Ltd., Vigon International Inc., etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The Global Levulinic Acid Market is projected to grow at a CAGR of around 6% during 2021-26.
A. Cosmetic Application is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The swiftly increasing application of Levulinic Acid across the agriculture sector as fertilizers to enhance crop production & suffice the mounting feed requirements is anticipated to drive the Global Levulinic Acid Market during the forecast period.
A. Numerous leading players are anticipated to bring various strategies to sustain in the market & are likely to introduce new products in the coming years. In fact, these market giants intend to expand their geographic scalability post the Covid-19 pandemic and boost the global market during the forecast period.
