Succinic Acid Market

The global Succinic Acid Market is valued at USD 190.2 Million in 2023 and is projected to reach a value of USD 358.6 Million by 2032 at a CAGR (Compound Annual Growth Rate) of 7.3% between 2024 and 2032.

Key Highlights

• In 2023, Europe led the market, capturing 36.2% market share due to its advanced industrial infrastructure, strong focus on sustainability, and rigorous environmental regulations promoting the use of bio-based chemicals
• The Asia Pacific region is expected to grow at significant CAGR projected throughout the forecast period
• By Type, Petro-based dominated the market in 2023 with market share of 52.2% because of its established production processes and lower cost compared to bio-based alternatives
• Among various End Use Industry, Industrial segment accounted for the largest market share of 40.1% in the market for 2023 owing to its extensive application in the production of various chemicals and materials

Regional Overview

Europe Dominated Sales with a 36.2% share in 2023. Europe's dominance is attributed to its advanced industrial infrastructure and strong emphasis on sustainability, which drives the adoption of bio-based and eco-friendly chemicals. The strong market presence in Europe is also supported by the concentration of major bio-based succinic acid producers and the region's robust research and development capabilities.

Europe's focus on reducing carbon footprints and promoting sustainable practices continues to position it as a leading player in the global market. Succinic acid is well-known for being a crucial component in the production of more than 30 industrial and commercial products, but in order to comply with regulations, greener substitutes like bio-succinic acid are gradually replacing the place of succinic acid. For instance, a report by PlasticsEurope (PEMRG) in 2022 revealed that the European Union (EU 27), along with Norway, Switzerland, and the United Kingdom, collected approximately 29.5 million metric tons of consumer plastic waste, with 35% being recycled. The majority of post-consumer plastic waste was treated through energy recovery, with nearly a quarter ending up in landfills.

This growth is driven by the expanding healthcare and agricultural sectors in the region. However, Europe is anticipated to experience stagnant demand for succinic acid due to the increasing consumer preference for bio-based products as drop-in replacements.

In Europe, succinic acid plays a significant role in the personal care and cosmetics industry. The presence of major cosmetic brands like Unilever and P&G in the region is a key factor contributing to the growth of the succinic acid market. Additionally, the robust aerospace sector, supported by the strong presence of aircraft manufacturers in Germany and the U.K., further fuels market expansion.

Type Overview

In 2023, the Petro-based segment dominated the market with the largest share of 52.2%. The market is segmented by the Type, includes Petro-based and Bio-based.

Petro-based succinic acid benefits from well-developed infrastructure and economies of scale, making it a cost-effective choice compared to bio-based alternatives. This segment remains widely used in the production of various chemicals, including plastics, solvents, and resins, owing to its reliability and lower production costs.

This dominance is due to the use of petro-based succinic acid as a substitute for adipic acid in the production of polyurethanes. Petro-based succinic acid is derived from the oxidation of butane methyl groups into carboxyl groups. It is widely utilized in various applications, including the production of plasticizers and flavor enhancers for packaged foods. The growing demand from industrial sectors, personal care products, and the food and beverage industry are anticipated to drive further growth in this segment.

Top Trends

• There's a significant shift towards bio-based succinic acid due to its sustainability and reduced environmental impact compared to petrochemical-based succinic acid. This trend is driven by increasing environmental regulations and consumer preference for eco-friendly products
• Innovations in production technologies, such as fermentation processes using renewable feedstocks, are enhancing the efficiency and cost-effectiveness of succinic acid production. This is leading to a broader adoption of succinic acid in various industries
• Companies are investing in sustainable practices and greener production methods to align with global sustainability goals. This includes efforts to reduce carbon emissions and improve resource efficiency in succinic acid production

Premium Insights

Succinic acid is a versatile organic acid used as a precursor in the production of a wide range of chemicals, including solvents, fragrances, lacquers, plasticizers, dyes, and photographic chemicals across the food, chemical, and pharmaceutical industries.

The growth of the succinic acid market is driven by its rising application in the pharmaceutical industry and its role in construction and infrastructure projects. Succinic acid is derived from both petroleum and bio-based sources. Additionally, the growing preference for succinic acid over butane-based maleic anhydride in the production of chemicals—including succinic anhydride, plastics, diethylmaleate, polymers, fumaric acid, and glyoxylic acid—traditionally made from butane, is expected to positively impact market expansion.

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Market Dynamics

The shift towards sustainable and eco-friendly products is driving the demand for bio-based succinic acid

Consumers and industries alike are becoming more environmentally conscious, seeking alternatives to petroleum-based products that have a lower carbon footprint and are derived from renewable resources. Bio-based succinic acid fits this demand perfectly as it is produced from renewable feedstocks such as glucose, derived from agricultural sources like corn, wheat, or sugarcane. This trend is further supported by regulatory frameworks and policies promoting sustainability and reducing greenhouse gas emissions, compelling manufacturers to adopt bio-based production methods.

The production of bio-based succinic acid is often more expensive compared to its petroleum-based counterpart restraints the market growth

This is primarily due to the costs associated with the biotechnological processes involved, including the fermentation process, purification, and the raw materials required. While advancements in biotechnology and process optimization have reduced costs over time, they still remain relatively high. Additionally, the production scale for bio-based succinic acid is not as large as that for petroleum-based succinic acid, leading to higher per-unit costs.

The versatility of succinic acid presents numerous opportunities for expanding its market applications

Succinic acid has long been utilized in the food and beverage, pharmaceutical, and agricultural industries, but its value is now being acknowledged in new and developing sectors. For example, it is used in the polymer industry for manufacturing biodegradable plastics, along with polybutylene succinate (PBS), which are becoming an increasing number of popular as environmentally friendly substitutes for traditional plastics. Succinic acid is likewise getting used in the construction and automotive industries to make environmentally friendly coatings and materials. The market ability of succinic acid is in addition improved with the aid of the expanding R&D efforts to find new applications and enhance existing ones, offering significant growth possibilities for producers in the industry.

Competitive Landscape

The competitive landscape of the Succinic Acid market is characterized by the presence of both established chemical manufacturers and innovative startups, each striving to capture market share through advancements in bio-based production methods and sustainable practices. Key players, including Succinity GmbH (a subsidiary of BASF SE) and BioAmber Inc., dominate the market with extensive product portfolios and strong distribution networks. The market is also witnessing increased collaboration and strategic partnerships aimed at enhancing production capabilities and expanding global reach.

The key players in the global Succinic Acid market include - BioAmber Inc., Succinity GmbH (a subsidiary of BASF SE), Anhui Sunsing Chemicals Co., Ltd., Reverdia (a joint venture between DSM and Roquette Frères), Nippon Shokubai Co., Ltd., Mitsubishi Chemical Corporation, Thyssenkrupp AG, Merck KGaA, R-Biopharm AG among others.

Recent Market Developments

Technip Energies Acquires Biosuccinium Technology from DSM to Enhance Sustainable Chemical Portfolio

• In August 2022, Technip Energies has expanded its portfolio of sustainable chemicals by acquiring Biosuccinium technology from DSM. This newly acquired method, commercially referenced, enables the production of bio-based succinic acid (bio-SAc), which serves as a feedstock for manufacturing polybutylene succinate

Beauty Brand BYOMA Launches New Body Line Featuring Nine Innovative Products

• In March 2024, the popular beauty brand BYOMA has expanded its product lineup with the introduction of the new BYOMA Body line. This collection includes nine new offerings: Nourishing Body Oil, Smoothing Body Serum, Smoothing Body Polish, Brightening Body Wash, Brightening Body Lotion, Hydrating Body Wash, Hydrating Body Lotion, and Sensitive Skin Body Wash

Researchers Develop Cross linked Succinic Acid-Based Non-Isocyanate Polyurethanes for Enhanced Corrosion-Resistant Coatings

• In 2023, Researchers have developed crosslinked succinic acid-based non-isocyanate polyurethanes (NIPUs) for use in corrosion-resistant protective coatings. They discovered that formulating solvent-based, cross-linkable NIPU coatings with non-toxic solvents such as diethylene glycol diethyl ether significantly improves the water resistance of the coatings

The global Succinic Acid market can be categorized as Type, End Use Industry and Region.