The market for ethyl levulinate is expected to register a CAGR of more than 3% globally during the forecast period. Ethyl levulinate is derived from the esterification of ethanol with levulinic acid, which is a versatile building block for various chemical manufacturing. The growing demand from the fragrances and perfume segment has been driving the market growth.
- However, the health hazard related to ethyl levulinate like prolonged exposure to ethyl levulinate may cause lung damage, eye irritation, coma, narcosis, dizziness, behavioral changes, and the outbreak of coronavirus across the globe are likely to hinder the growth of the studied market.
- The research and technological advancements show that ethyl levulinate can also be produced directly from furfuryl alcohol derived from biomass using eco-friendly solid catalysts are likely to provide opportunities for the ethyl levulinate market over the next five years.
- The Asia-Pacific region dominated across the world with increasing consumption from countries, like China and India.
Key Market Trends
Fragrances Segment to Dominate the Market
- The fragrances segment stands to be the dominating segment, owing to the rising fashion industry across the world.
- Ethyl levulinate imparts fragrance to perfumes and spray, which forms a vital part of a personal grooming kit. Expansion in the perfume industry is anticipated to propel the market growth over the forecast period.
- Rise in perfumes and body spray demand among the young generation, owing to the growing significance of individual style statement and increasing personal grooming awareness across the world, which may propel perfume industry growth.
- In addition, ethyl levulinate applications as food flavors have witnessed a positive trend in the recent past and are projected to continue over the next few years.
- All the aforementioned factors are expected to drive the ethyl levulinate market during the forecast period.
- However, ethyl levulinate has been considered a hazardous substance under OSHA 29 CFR 1910.1200. Such regulations are presumed to negatively impact the market demand for ethyl levulinate over the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific market is expected to be the largest and fastest-growing market over the forecast period owing to robust demand from food additive and fragrance industries, particularly in emerging countries, such as India, China, and ASEAN Countries.
- Levulinic acid used for producing ethyl levulinate has been recently adopted by the agricultural industry, owing to applications in pesticides coupled with fertilizers.
- Ethyl levulinate finds application in biodiesel and diesel to improve engine fuel conversion capacity. Eco-friendly fuel increases machine life and minimizes air emission, thereby adhering to strict air pollution regulations. Expanding interest for bio-based solvents is anticipated to augment the degree for the ethyl levulinate market.
- Ethyl levulinate is used as a food additive to enhance the taste and fragrance of the food item. Increasing the convenience of food, cakes, snack demand may boost product demand as a food additive. Food additives are essential ingredients in the food industry and added to maintain the taste, smell, and color of foodstuffs.
- The food and beverage industry has been witnessing strong growth in the Asia-Pacific region. Rising income and increasing population are the primary factors driving the growth of the food and beverage industry in these regions.
- In addition, the processed food industry in the region is growing at a healthy pace, as a result of an increasing market for ready-to-eat meals, processed meat, frozen food, beverages, and dairy products. All these trends in these regions have also led to increased investment in the food processing industry.
- Hence, all such market trends are expected to drive the demand for the ethyl levulinate market in the region during the forecast period.
The global ethyl levulinate market is fragmented in nature with a few major players dominating a significant portion of the market. Some of the major companies are GFBiochemicals Ltd, Vigon International Inc., Ernesto Ventós, SA, Oakwood Products Inc., Alfa Aesar, and Thermo Fisher Scientific, among others.
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