Levulinic Acid Market
Levulinic Acid Market - Global Industry Assessment & Forecast
- By Technology Biofine, Acid Hydrolysis
- By End User Agriculture, Food, Beverages, Pharmaceuticals, Cosmetics & Personal Care
- By Applications Food Additives, Pharmaceuticals, Agricultural Products, Personal Care Products, Plasticizers, Fuel Additives
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2021 - 2028|
|Historical Years:||2016 - 2020|
|Revenue 2021:||USD 25.5 Million|
|Revenue 2028:||USD 43.2 Million|
|Revenue CAGR (2021 - 2028):||9.2%|
|Fastest Growing Region (2021 - 2028)||Asia Pacific|
|Largest Region (2021):||Asia Pacific|
- Cross-segment Market Size and Analysis for Mentioned Segments
- Additional Company Profiles (Upto 5 With No Cost)
- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
- Go To Market Strategy
- Region Specific Market Dynamics
- Region Level Market Share
- Import Export Analysis
- Production Analysis
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Global Levulinic Acid Market is valued at in 2022 and is projected to reach a value of USD 43.2 Million by 2028 at a CAGR of 9.2% over the forecast period.
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This growth can be attributed to the increasing demand for levulinic acid in the manufacturing and textile industries. High-performance textiles resistant to water and other corrosive elements are gaining popularity, thereby requiring increased levulinic acid production. Levulinic acid is also an additive in polyurethane and polyester materials to improve their resistance to moisture and abrasion. The popularity of these applications is primarily due to their low environmental impact, which is attributed to the low carbon dioxide emissions generated from the production process. Moreover, levulinic acid offers high degradation resistance even at high temperatures, which makes it ideal for various industrial processes. Levulinic acid is a versatile agent and can be used in various industrial processes such as petroleum refining, food, and beverage processing, textile dyeing and printing, building & construction, and chemicals, and materials production. The demand for levulinic acid owing to its wide application range has led to increased investment by major companies in the market. Furthermore, the growing awareness about the benefits of levulinic acid among users is also driving the growth of the market. Apart from this, increasing efforts by players to develop levulinic acid-based products are also expected to propel growth in the market. This increasing demand for levulinic acid will be supported by rising awareness about its benefits among end users. Furthermore, the growing healthcare sector is boosting demand for levulinic acid owing to its antimicrobial properties. Apart from these factors, technological developments and increasing awareness about the benefits of healthy skin are also boosting the levulinic acid market. The levulinic acid market is witnessing an increasing demand from the manufacturing and textile industries owing to its high-performance properties. Levulinic acid is produced as a by-product during the production of other chemicals such as benzene, toluene, xylene, and ammonia. It can also be generated during the dry distillation of crude oil into petrochemical products such as gasoline, jet fuel, diesel fuel, etc. Growing awareness about environmental benefits along with stringent regulations is hampering the growth of this downstream market. However, there are Several recent innovations in chem synthesis that could help regain market share for levulinic acid manufacturers. Apart from textiles and fabrics, other applications of levulinic acid include Cosmetics & Toiletry, Pharmaceuticals & Biotechnology, Food & Beverages, and Agricultural chemicals. North America is expected to witness the highest growth in the levulinic acid market due to increasing demand for synthetics in the green technologies sector.
Levulinic Acid Market Size, 2021 To 2028 (USD Million)
Water-repellent and water-resistant textiles are gradually gaining popularity owing to their numerous benefits. Another reason for this is that these fabrics offer improved performance in harsh environments. They can also resist bacterial and fungal growth, reducing the need for additional treatments. Additionally, new applications such as adhesives and sealants are increasing demand for these fabrics. Low environmental impact is another important factor driving the levulinic acid market. These textiles do not release harmful fumes or contain volatile organic compounds (VOCs), which makes them ideal for industries that require a high level of environmental compliance. Furthermore, due to their resistance to different types of weather conditions, these fabrics can be used in a variety of industrial applications, such as military clothing and construction sites. The healthcare sector is one of the fastest-growing segments of the global economy, and this growth is projected to continue through 2028. There are several key drivers of the levulinic acid market: rising population levels and aging populations, increasing demand for natural supplements and medications, and aggressive promotion by pharmaceutical companies. In addition, there is growing interest in alternative therapies that use levulinic acid as a main component. One of the primary benefits of using levulinic acid in the healthcare sector is its ability to improve cardiovascular health. Levulinic acid has been shown to help lower blood pressure and reduce blood clotting. It also has anti-inflammatory properties, which can help treat conditions such as arthritis and asthma. Additionally, levulinic acid can be used to treat cancerous cells and stop their growth. The investigations conducted on the feasibility of new methods for levulinic acid production have led to an increase in the demand for this molecule. Apart from this, countries such as China and India are witnessing high growth rates in their industries owing to increasing consumer preference for premium products. This is also fuelling the growth of the levulinic acid market.
One of the key restraints of the levulinic acid market is its limited availability as a chemical feedstock. Levulinic acid can be produced from petroleum-based sources, but these are not always affordable or accessible. Additionally, the high volatility of levulinic acid stocks limits its use in a number of industrial applications. These factors have resulted in slow growth in the levulinic acid market. However, developments in technology and downstream industries may help to address some of these restraints over time. Another restraint on the levulinic acid market is its price. Levulinic acid is expensive compared to other chemicals, which has limited its uptake by manufacturers. In addition, levulinic acid is sensitive to variations in supply and demand, which results in price fluctuations. This makes it difficult for companies to plan long-term investments in this sector. Furthermore, higher processing costs limit the competitiveness of levulinic acid products among manufacturers in some markets. The final constraint on the growth of the levulinic acid market is its susceptibility to environmental damage. Levulinic acids are highly corrosive and can damage infrastructure when released into the environment. This bottleneck may hinder adoption by manufacturers who require reliable resources for their operations.
Top Market Trends
- The discovery of a novel way to produce levulinic acid using light energy. With this advancement, companies can generate levulinic acid more cheaply and easily, bypassing some of the traditional challenges associated with the production process.
- The development of new methods for extracting levulinic acid from biomass sources, such as switchgrass. These advances could lead to greater opportunities for producers and downstream customers alike.
- The growing popularity of levulinic acid as a potential substitute for conventional chemicals. Levulinic Acid has exhibited a wide range of characteristics that make it an ideal choice for certain applications, such as corrosion inhibitors and pesticides.
- Another such advancement is the development of low-cost synthesized levulinic acid molecules that can be produced on an industrial scale. This has made it possible to generate large quantities of levulinic acid at a low cost, which is expected to drive further market growth.
- Other recently developing technologies that are expected to bolster the levulinic acid market include the discovery of new uses for levulinic acids, such as its potential use as a sustainable sweetener and food additive.
The market is segmented based on Technology, End User, Application, and Region. Based on Technology, the market is segmented into Biofine and Acid hydrolysis. Based on End User, the market is segmented into Agriculture, Food, Beverages, Pharmaceuticals, Cosmetics, and Personal Care. Based on Application, the market is segmented into Food additives, Pharmaceuticals, Agricultural products, Personal care products, Plasticizers and Fuel additives.
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Based on Technology
The acid hydrolysis segment dominates the market owing to its high-cost benefit. This is primarily because the process is more efficient than other technologies and thus results in lower costs. Levulinic acid produced using this method can be sold at lower prices as it does not require any additional purification steps. Over 60% of total sales in 2021 came from acid hydrolysis. This may be owing to the fact that the technique is widely used for the synthesis of levulinic acid and its derivatives, and that the process enables the use of a greater variety of heterogeneous lignocellulosic feedstock. In addition, as more people learn about the process's advantages, its use is likely to increase rapidly over the next few years. Acid hydrolysis technology, in which activities are carried out in a continuous way at high pressures and temperatures, is also the foundation of many ideas for the industrial manufacture of levulinic acid. Further driving up demand for acid hydrolysis technology is the growing trend of deriving this acid from biomass and rice husk. The widespread investigation into acid hydrolysis of cellulose for the production of levulinic acid is also contributing to its widespread acceptance. Furthermore, levulinic acid is produced via the Biofine process rather than the more conventional hydrolysis method because no microbes are used in the fermentation of monomers in the Biofine method. Adoption of the method is therefore anticipated to expand rapidly over the next few years as more people learn about its advantages.
Based on End User
The Personal Care segment accounted for more than two-thirds of the total revenue in 2021. This is mainly due to the booming cosmetics industry, which is rapidly growing owing to the increasing awareness about skin beautification and prevention of age-related skin conditions. Various brands are focusing on levulinic acid as a key ingredient for their products to retain their edge in the market. Levulinic acid finds application in various personal care products such as skincare, hair care, body care, mouthwash, toothpaste, and other oral hygiene products. Levulinic acid can also be used as an additive in detergents and colorants used in many industries such as agriculture and textiles. The pharmaceuticals segment is expected to lead the levulinic acid market with a share of more than two-thirds in terms of revenue. The utilization of levulinic acid in pharmaceuticals for treating rare skin diseases such as epidermolysis bullosa and dermatitis herpetiformis is anticipated to drive the demand for this compound. The textile segment is projected to be the fastest growing sub-segment of the levulinic acid market due to its premium value addition applications in fabrics that get better stiffness, softness, heat resistance, water repellency, wrinkle resistance, and other benefits. Other end users such as the agricultural/food industry are also estimated to witness significant growth in their levulinic acid markets owing to its cellulosic bioplastic properties which can be used for various packaging applications.
Based on Application
It is anticipated that the fuel additives application category would experience the highest growth rate in the market over the course of the time covered by the forecast, with a CAGR that is higher than 10%. Because of their functionally useful properties, such as low toxicity, high lubricity, stable flash point, and appreciable flow attributes, levulinic acid, and its derivatives are increasingly being used as fuel additives. These properties enable them to be a suitable additive for gasoline and diesel fuels. This can be primarily attributed to the increasing use of levulinic acid in fuel additives. In addition, acid derivatives of this kind are utilized to improve the characteristics of the fuels. The ester of levulinic acid known as ethyl levulinate has a significant amount of untapped potential for application in diesel fuel compositions as a blend component. Additionally, the utilization of ethyl levulinate in diesel production results in sulfur emissions that are lower than those produced by conventional diesel production. This is because ethyl levulinate mixes have a high lubricity, which is why it happened. In addition, the demand for levulinic acid is expected to increase over the next few years as a result of the movement toward organic and bio-based gasoline additives in response to growing concerns about the environment.
Based on Region
The Asia-Pacific regional market is projected to dominate the levulinic acid market during the forecast period owing to various factors such as the increasing application of levulinic acid in various industrial applications, the rapid growth of the organic food and beverage industry, and stringent environmental regulations. The major players in the Asia-Pacific region are focused on enhancing product capabilities, expanding distribution channels, and increasing R&D investments to stay ahead of the competition. North America is expected to be the second-largest market for levulinic acid during the forecast period owing to increasing demand from the pharmaceutical sector. Europe is projected to witness modest growth in levulinic acid sales due to growing demand from small and medium-sized businesses (SMBs) and end users in the renewable chemicals and petrochemical industries. Latin America is expected to grow at a slower pace than other regions due to the high cost of raw materials and infrastructure constraints.
The key players in the Global Levulinic Acid market include- G.F. Biochemicals Ltd. (Italy), Langfang Triple Well Chemicals Co. Ltd. (China), Biofine International Inc. (U.S.), Avantium (Netherlands), Simagchem Corporation (China), Hefei TNJ Chemical Industry Co. Ltd. (China), CSPC Pharmaceutical Group (China), Great Chemicals Co. Ltd. (China), Anhui Herman Impex Co Ltd (China), DuPont (US), The Valspar Corporation (US), KCC Corporation (South Korea), Sherwin-Williams (US), AkzoNobel (Netherlands), Jotun A/S (Norway) and others.
Recent Market Developments
● GF Towell Engineering Group and GF Biochemicals Ltd. formed a partnership in February 2020 with the goal of increasing GF Towell's presence in the levulinic acid market. Companies' positions in the bio-solvents and bio-plasticizers markets were bolstered as a result of the change. A broader clientele in the commercial cleaning, coatings, household, and personal care, and farming industries might be served.
● To expand its expanding Household, Industrial, and Institution (HI&I) portfolio in supplying sustainable biobased solvents in the North American region, industry leader Brenntag signed a distribution arrangement with NXTLEVVEL Biochem in 2021. Contract items include levulinates and levulinate ketals, with brand names as shown below. Products are solvents made from renewable resources that improve safety and efficiency without sacrificing environmental friendliness.
● In May of 2022, BTC Europe GmbH and NXTLEVVEL Biochem formed a partnership to distribute levulinic acid-based biobased and biodegradable solvents across Europe. This expansion is made with the intention of bolstering the company's position in the European market. High solubility, low volatility, and biodegradability make levulinic acid useful in many contexts.
Segmentation of the Global Levulinic Acid Market:
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
What is the global demand for Levulinic Acid in terms of revenue?
The global Levulinic Acid valued at in 2020 and is expected to reach in 2028 growing at a CAGR of 9.2%.
Which are the prominent players in the market?
The prominent players in the market are G.F. Biochemicals Ltd. (Italy), Langfang Triple Well Chemicals Co. Ltd. (China), Biofine International Inc. (U.S.), Avantium (Netherlands), Simagchem Corporation (China), Hefei TNJ Chemical Industry Co. Ltd. (China), CSPC Pharmaceutical Group (China), Great Chemicals Co. Ltd. (China), Anhui Herman Impex Co Ltd (China), DuPont (US), The Valspar Corporation (US), KCC Corporation (South Korea), Sherwin-Williams (US), AkzoNobel (Netherlands), Jotun A/S (Norway).
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 9.2% between 2021 and 2028.
What are the driving factors fueling the growth of the market.
The driving factors of the Levulinic Acid include
- Growing pharmaceutical industry
Which region accounted for the largest share in the market?
Asia Pacific was the leading regional segment of the Levulinic Acid in 2020.