Global Succinic Acid Market Size, Share, Growth Analysis, By Type(Petro-based and Bio-based), By End-user(Food & Beverages, Pharmaceutical) - Industry Forecast 2023-2030

Global Succinic Acid Market size was valued at USD 244.52 Million in 2022 and is poised to grow from USD 268.24 Million in 2023 to USD 562.57 Million by 2031, at a CAGR of 9.7% during the forecast period (2024-2031).

The surge in Succinic Acid (SA) usage in pharmaceutical manufacturing and infrastructure development is driven by its derivation from both petroleum and bio-based sources. Its growing preference over butane-based compounds for chemical production, including succinic anhydride, plastic bottles, and polymer compounds, is expected to fuel market expansion. Bio-succinic acid, produced through carbohydrate fermentation, aligns with the increasing consumer preference for environmentally friendly products amidst concerns over CO2 emissions. Despite the competitive global market, marked by multinational firms vying for dominance through diverse strategies like product enhancement and capacity expansions, notable initiatives such as Myriant Company's new production facility in Germany reflect industry momentum. The COVID-19 pandemic disrupted industries worldwide, leading to temporary shutdowns and supply chain interruptions, impacting demand particularly in key markets like France, Italy, Spain, India, and the United Kingdom. However, as economies gradually recover and industries reopen, a steady rise in succinic acid demand is anticipated.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Succinic Acid Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Global Succinic Acid Market Segmental Analysis

The global succinic acid market is segmented on the basis of type, end user, and region. Based on type, the market is segmented into Petro-based and bio-based. With respect to categorization by end-use, the market is segmented into food & beverages, pharmaceutical, coatings, industrial, personal care & cosmetics, and others. Based on region, the global succinic acid Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Succinic Acid Market

Succinic acid, sourced from renewable raw materials like corn, sugarcane, and wheat, is a bio-based chemical. With the increasing need for environmentally sustainable chemicals, the succinic acid market is expanding. Its utilization spans across diverse sectors including polymers, resins, coatings, and pharmaceuticals.

The chemical industry has embraced succinic acid for its versatility and advantageous characteristics, leading to considerable popularity. It serves as a foundational component in the manufacturing of diverse chemicals like 1,4-butanediol (BDO), polybutylene succinate (PBS), and solvents. The escalating adoption of succinic acid as a primary ingredient in chemical synthesis is propelling its market expansion.

Restraints in the Global Succinic Acid Market

A significant challenge facing the succinic acid market is its comparatively higher production expenses in contrast to conventional petrochemical-derived substitutes. The manufacturing procedure for succinic acid entails utilizing renewable feedstocks, fermentation, and downstream purification, all of which contribute to increased costs. These elevated production expenses have the potential to restrict its broad-scale acceptance and impede market expansion.

The fermentation-based production of succinic acid necessitates intricate bioengineering and metabolic engineering methods. Achieving optimal yields and enhancing production efficiency through research and development demands substantial investments. Technological hurdles and the imperative for ongoing innovation present a barrier to market expansion.

Market Trends of the Global Succinic Acid Market

The escalating global demand for bio-based chemicals and materials, fueled by environmental consciousness and the quest for sustainable substitutes, is a notable trend. Succinic acid, sourced from renewable raw materials, is emerging as a pivotal bio-based chemical. This shift towards bio-based products is propelling the expansion of the succinic acid market.

Succinic acid is increasingly utilized across diverse sectors, encompassing chemicals, pharmaceuticals, food and beverages, and cosmetics. Within the chemical industry, it serves as a fundamental element for producing polymers, resins, and solvents. In pharmaceuticals, succinic acid is employed in drug formulations and as an intermediary in synthesizing active pharmaceutical ingredients. The broadening range of applications across various industries is driving market expansion.

Innovations in fermentation and purification methodologies are bolstering the efficacy of succinic acid production. Progress in genetically modified organisms (GMOs) and metabolic engineering strategies has resulted in increased yields and enhanced economics in succinic acid manufacturing. These technological breakthroughs empower manufacturers to expand production capacities and satisfy the rising need for succinic acid.

The growing emphasis on sustainable packaging materials is fueling the desire for bio-based polymers. Polymers derived from succinic acid, like polybutylene succinate (PBS), are being recognized as environmentally friendly substitutes for conventional petroleum-based plastics. This adoption of sustainable materials within the packaging sector presents a substantial market potential for succinic acid.