Levulinic Acid Demand Expected to Shoot Up in Asia-Pacific in Future

From $27.2 million in 2019, the global levulinic acid market is predicted to grow to $60.2 million in 2030, with a CAGR of 8.8% from 2020 to 2030, as per the calculations of the market research company, P&S Intelligence. The main factors driving the advancement of the market are the increasing commercialization of various bio-based production processes and the soaring requirement of levulinic acid compounds in multiple end-use industries.

The various derivatives of levulinic acid such as ethyl levulinate, methyltetrahydrofuran (MTHF), diphenolic acid, succinic acid, sodium levulinate, and hydroxymethylfurfural (HMF) are heavily used as additives in personal care items, food and beverages, and fuels. Furthermore, huge investments are being made in R&D (research and development) activities associated with levulinic acid by many private and public organizations for finding more applications for its derivatives, which is, in turn, fueling the growth of the market.

The other major factor propelling the advancement of the market is the increasing commercialization of the bio-based production processes. Currently, the market is at a very nascent stage, with only a few players operating in it. As a result, the market has a huge potential for commercialization. The commercialization of the market and the bio-based production processes will lead to a sharp decline in the production cost of the compound.

Between the biofine and acid hydrolysis categories present under the technology segmentation of the market, the biofine division will demonstrate a higher CAGR during the forthcoming years. This is ascribed to the fact that unlike the acid hydrolysis process, there is no utilization of microorganisms for fermenting monomers in the biofine method and it is therefore majorly used for producing levulinic acid. Furthermore, the rising awareness of the advantages of this method over the hydrolysis process will boost the advancement of the category in the future years.

When application is taken into consideration, the levulinic acid market is classified into fuel additives, food additives, plasticizers, agricultural products, personal care products, and pharmaceuticals. Amongst these, the fuel additives division is predicted to hold the highest market share over the next few years. This is credited to the large-scale usage of the derivatives of levulinic acid in fuel additives for enhancing the properties of the fuels. Ethyl levulinate, which is a levulinic acid ester, has the potential to be utilized in diesel formulations as a blend component.

In the coming years, the Asia-Pacific levulinic acid market is predicted to exhibit the fastest growth in the world, primarily on account of the rising requirement of the product in the agriculture and personal care sectors in the various countries of APAC. The increasing disposable income of people, especially in the developing nations such as India, Thailand, and China, is boosting the usage of various personal care items such as makeup removers and perfumes, which is, in turn, causing rapid expansion of the market in the region.

Therefore, due to the increasing usage of the derivatives of levulinic acid in various applications and the growing personal care sector in several countries, the market will exhibit substantial growth in the years ahead.