Market Trends of Succinic Acid Industry
This section covers the major market trends shaping the Succinic Acid Market according to our research experts:
Increase in Demand for a Bioplastics Using Succinic Acid
- Succinic acid derived from carbohydrates is gaining more acknowledgment as a renewable biochemical for producing various sustainable value-added goods, including bio-plastics. A bioplastic alternative to petroleum-based synthetic polymers like polyethylene and polypropylene is polybutylene succinate (PBS).
- The global bioplastics production capacity is expected to rise from roughly 2.42 million tonnes in 2021 to roughly 7.59 million tonnes in 2026, according to the most recent market data provided by European Bioplastics in partnership with the nova-Institute. As a result, the proportion of bioplastics in the world's plastic output will surpass the two percent level for the first time.
- Bioplastics are being used in various industries, including packaging, food service, consumer electronics, automotive, agriculture/horticulture, toys, and several other sectors. According to European Bioplastics, with 48% (1.15 million tonnes) of the global market for bioplastics in 2021, packaging will continue to be the leading market category for these materials.
- The variety of applications in the portfolio is still growing, though. Due to the expanding capabilities of functional polymers, certain industries, like automotive and transportation or building and construction, continue to grow, creating opportunities for the succinic acid market across the globe.
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Asia-Pacific is the Fastest-Growing Market
- The succinic acid market is segmented into North America, South America, Asia-Pacific, Europe, the Middle East, and Africa. A significant development in application drives the market in the Asia-Pacific region. Moreover, the availability of low-cost labor is boosting production plants in Asia-Pacific, with China holding the highest production capacity among all the other countries in the region.
- Europe is the leading revenue-generating market for succinic acid, mainly due to the strict regulatory imposition on using certain hazardous chemicals that threaten the environment and human beings. A substantial potential opportunity exists for bio-based succinic acid due to the region's strict environmental rules and the fact that industries play a significant role in the development of any economy. It is well known to be a crucial ingredient used in the production of more than 30 goods used for industrial and commercial reasons. Hence, manufacturers are shifting to greener substitutes (bio-succinic acid) to comply with the requirements.
- Additionally, according to a report published by PlasticsEurope (PEMRG) in 2022, the European Union (EU 27), Norway, Switzerland, and the United Kingdom collected an estimated 29.5 million metric tons of consumer plastic garbage from posters. 35% of this total was recycled. Most post-consumer treatments comprised energy recovery, with landfilling making up nearly a quarter. Such problems have created opportunities for the succinic acid market as it is used to manufacture bioplastics.
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