The global bio-succinic acid market size was valued at USD 137.0 million in 2013 and is expected to register a CAGR of 29.0% from 2014 to 2020. The product is being increasingly used in a wide range of applications including BDO, PBS/PBST, and polyester polyols. Increasing demand for BDO and its derivatives including Tetrahydrofuran (THF), Gamma-Butyrolactone (GBL), and Polybutylene Terephthalate (PBT) in various applications, such as pharmaceuticals and engineering plastics, is likely to stimulate the market growth.
In addition, growing scope of application in lubricants, pigments, personal care products, and food colorants will drive the market further. Growing awareness regarding the benefits of using bio-based chemicals in packaging and food industry is also expected to drive the demand. Extensive use of bio-succinic to reduce carbon footprints along with favorable regulatory support to increase the awareness about hazards associated with the usage of petroleum-based chemicals is expected to augment market growth further.
Bio-succinic acid can be used as a replacement to phthalic anhydride in manufacturing alkyd resins and is cost-effective, which in turn will propel its growth over the next six years. Asia Pacific is expected to witness substantial growth on account of increasing number of manufacturing plants in Thailand, China, and South Korea.
Rising awareness regarding depleting crude oil reserves and hazards of excessive CO2 in air is expected to drive the bio-based chemicals demand. High product costs along with insufficient feedstock are expected to restrain market growth in future. On the other hand, extensive R&D in manufacturing process by various companies, in terms of reducing production cost and increasing efficiency, is expected to offer new growth opportunities over the forecast period.
BDO led the global bio succinic acid market accounting for over 35% of the overall demand in 2013. Rising demand for BDO in engineering plastics, cleaning products, pharmaceuticals, coatings, and adhesives and sealants is further expected to fuel segment growth. Replacement of MAN by bio-succinic acid is expected to drive its demand tremendously in BDO over the forecast period.
Polyester polyols also accounted for a significant revenue share on account of increased demand for polyurethanes. In addition, its usage in molded foams, footwear soles, automotive interiors, and as adhesive and sealant is likely to boost the segment’s market share. PBS is expected to register the fastest CAGR of 38.9% from 2014 to 2020 owing to excellent growth potential in packaging coupled with increasing demand for bioplastics.
PBS can be blended with other compounds, such as thermoplastic starch and adipate copolymers (to form PBSA) to make its use more economical. It is estimated that by 2014, bio-succinic acid would entirely substitute petroleum-based succinic acid in the manufacturing of PBS/PBST.
Increasing awareness regarding the hazards of synthetically-derived PET in developed economies of North America and Europe is expected to result in an increased demand. Europe accounted for over 45% of the global volume share in 2013. Strict regulations aimed at reducing Greenhouse Gas (GHG) emissions by 20% by 2020 is expected result in augmenting market growth over the forecast period as this is expected to drive companies to look for bio alternatives with low CO2 emissions than petroleum-based chemicals.
It is estimated that by 2020, Europe would have bio-succinic acid manufacturing capacity in excess of 300,000 tons. The market in Asia Pacific will witness the fastest CAGR on account of rapid industrialization along with rising product demand in plasticizers, BDO, polyester polyols, and alkyd resins. Brazil and Chile are expected to witness significant growth as a result of extensive product demand in plasticizers and BDO applications. Growing preference coupled with favorable regulatory scenario for the development of bio-based products is further expected boost the market.
Global bio succinic acid market was led by three companies, Succinity GmbH, BioAmber Inc., and Reverdia. BioAmber and Succinity accounted for over 55% of the market share in 2013. BioAmber Inc. offers Bio-SA, which is used in various applications including lubricants, solvents, heat transfer fluids, food ingredients, personal care products, resins, and coatings.
Manufacturers focus on achieving higher participation in the value chain to gain competitive advantage in terms of production capacity. Increasing investment in R&D activities by industry participants for the development of cost-effective production techniques and raw material procurement is projected to play a vital role in providing a competitive edge.
In June 2013, Myriant Corp. along with Johnson Matthey-Davy Process Technologies introduced a carbon-efficient and cost-competitive process for the production of BDO and Tetrahydrofuran (THF). In May 2013, Myriant commenced commercial production of bio-succinic acid at its new plant in Leuna, Germany with an annual capacity of 3 million pounds.
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