The market for bio-based succinic acid is expected to grow at a CAGR of less than 2% during the forecast period. However, recent close down in major production capacities across the world due to low consumer base is affecting the market very drastically. On a brighter note, the decision of the OPEC and other countries to limit the supply of crude oil till 2022 is likely to be a great opportunity for the bio-based succinic acid.
Key Market Trends
Industrial Segment Dominated the Market
- Bio-based succinic acid is used as an intermediate in a wide range of industrial applications in order to make plastics, polyurethanes, solvents, coating, lubricants and a variety of other things.
- The traditional process for extracting succinic acid is costlier and is harmful to nature since it is extracted from the petroleum-derived feedstock.
- The key industrial product of succinic acid is BDO. BDO and its derivatives made from bio-based succinic acid are the most used products in the industries. It is used as an intermediate in engineering plastics, polyurethane systems, etc.
- The plasticizers made from bio-based succinic acid are used in flooring and general-purpose usage to provide heat resistance, food packaging, etc. Moreover, this eco-friendly succinic acid is also widely used in making resins, coatings, and ink that is used for a number of industrial purposes.
- Such factors had a positive impact on the market studied.
Asia-Pacific to Witness fastest Growth Rate
North America dominated the global bio-based succinic acid market, however, Asia-Pacific is expected to expand at the fastest growth rate. Moreover, the stringent environmental regulations in the region also help the product market and since the development of any economy largely depends on the industries, it provides a huge growth prospect for bio-based succinic acid. It is known to be a key compound, which helps in making more than 30 products used in industrial and commercial purposes. Countries like China, India, Thailand, and Korea, where the industries are growing at a very fast pace, provides an opportunity for the bio-based succinic acid market.
The market studied is highly consolidated among the limited players. The recent shutdowns of various producers has further intensified the competition.
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