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The Levulinic Acid Market is going through giant strides amidst factors like a rising need for sustainable and bio-based chemicals, a progressive enhancement in biorefinery technology as well as a continuous interest in renewable resources. For instance, levulinic acid (LA), an emerging platform chemical that uses biomass feedstock like sugars and agricultural waste, is appreciating in usage as a substitute to petroleum-based chemicals for different applications. A major trend is that of the pressing need for levulinic acid in the bioconversion of bio-based chemicals like plasticizers, solvents, and pharmaceutical intermediates. While the world is moving towards green alternatives by facilities to decrease environmental footprint and focusing on development of bio economy the levels of sales of Levulinic Acid are however growing.
The bio-plastic and plasticizer industry have a key role in the dynamics of the Levulinic Acid Market. Levulinic acid is a basic component of bio-based plasticizers made of which primarily improve the flexibility and resilience of eco-plastics. The considerable attention is paid to cutting down on dependence on fossil fuels and to control plastic pollution, there is a growing acceptance of levulinic acid in the production process of sustainable plastic substitutes.
Rise of biorefinery technologies is reshaping the market competition in the Levulinic Acid Market. The catalytic and enzymatic procedures with consequential biomass conversion into levulinic acid is one of the research and development areas. The production of levulinic acid in the biorefinery platforms with the integration of it, accelerates biomass added values, leading to the sustainable production of the wide spectrum of chemicals and materials.
Likewise, the pharma sector is contributing to the formation of market tendencies, especially when levulinic acid is utilized as an intermediate in the synthesis of pharmaceutical compounds. The fact that levulinic acid is bio-based illuminates the industry's drive toward sustainable sourcing and embedding green chemistry principles into the pharmaceutical sector. The multifunctionality of the levulinic acid in terms of chemical transformations makes it an integral part of the pharmaceutical synthesis.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Rising demand from the pharmaceutical industry Growing investment in the development of advanced and innovative products |
| Market Dynamics | Rise in initiatives taken by the government and assistance of public corporations. Increasing initiatives to decrease resource depletion and rising research activities |
Levulinic Acid Market Highlights:
Global Levulinic Acid Market Overview
The levulinic acid market size was valued at USD 0.08 billion in 2023. The levulinic acid industry is projected to grow from USD 0.09 billion in 2024 to USD 0.12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.17% during the forecast period (2024 - 2032). Rising demand from the pharmaceutical industry for the preparation of drugs and surging investment for the development of advanced and innovative products are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Levulinic Acid Market Trends
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The rise in government initiatives is driving the market growth
Market CAGR for levulinic acid is driven by the rise in initiatives taken by the government and the support of public corporations for rodent control. Government policies regarding the production of levulinic acid are favorable owing to the growing environmental problems and sustainable economic growth. These policies frequently reflect the strategies related to comparative benefits and the country's priorities. It aims to create a bioeconomy by promoting public procurement and job generation and bringing a transition from a linear to a circular economy.
Additionally, growing demand for levulinic acid in the manufacturing and textile industries. High-performance textiles resistant to water and other corrosive elements are gaining popularity, requiring increased its production. Levulinic acid is also an additive in polyurethane and polyester materials to improve their resistance to moisture and abrasion. The popularity of these applications is primarily due to their low environmental impact, which is attributed to the low carbon dioxide emissions generated from the production process.
Moreover, levulinic acid offers high degradation resistance even at high temperatures, which makes it ideal for various industrial processes. Levulinic acid is a versatile agent used in various industrial processes such as petroleum refining, food, and beverage processing, textile dyeing and printing, building & construction, and chemicals and materials production. The demand for levulinic acid, owing to its wide application range, has led to increased investment by major companies in the market.
The need for agrochemicals has increased. The demand for Levulinic Acid is rising due to the widespread usage of its delta-amino Levulinic Acid (DELTA) derivative in certain grain crops and lawns. Levulinic Acid also plays a significant role in fertilizers, which are extensively used in the agricultural sector. According to the International Fertilizer Association (IFA), the capacity for ammonia is expected to increase globally by 6% between 2019 and 2024, from 218 Mt. Additionally, a 9% rise in phosphate rock supply is anticipated globally, from 238 Mt in 2019 to 261 Mt in 2024 driving the levulinic acid market revenue.
Levulinic Acid Market Segment Insights
Levulinic Acid Technology Insights
The levulinic acid market segmentation, based on technology, includes the hydrolysis production process, biofine production process, and others. The biofine production process segment dominated the market, accounting for major market revenue over the forecast period. This is due to its potential to produce levulinic acid from a wide range of biomass feedstocks, including agricultural waste, forest residues, and energy crops. This process is also considered environmentally friendly, as it uses renewable resources and generates less waste than traditional chemical processes.
Figure 1: Levulinic Acid Market, by Technology, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Levulinic Acid Application Insights
The levulinic acid market segmentation, based on application, includes food additives, pharmaceuticals, cosmetic & personal care, agriculture, plasticizer, and others. The cosmetic & personal care category generated the most income over the forecast period. This is owing to the usage of the product as a saving and pH adjuster in cosmetics products. As a preservative, levulinic acid has antimicrobial effects and can help to develop cosmetics' shelf life by inhibiting the growth of bacteria, fungi, and other microorganisms. It is often combined with other preservatives to create a broad-spectrum system.
Levulinic Acid Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Levulinic acid market will dominate over the forecast period, owing to increasing demand for bio-based products coupled with various government initiatives supporting the production of this acid in this region. Moreover, the US levulinic acid market held the largest market share, and Canada levulinic acid market was the fastest-growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LEVULINIC ACID MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe levulinic acid market accounts for the second-largest market share due to favorable government regulations, substantial production capacities, easy availability of raw materials, and early adoption of bio-based chemicals. Further, the German levulinic acid market held the largest market share, and the UK levulinic acid market was the fastest-growing market in the European region.
The Asia-Pacific levulinic acid market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to various government policies regarding environmental protection and a shift in consumer preferences toward bio-based products. Expanding bio-based plastic industry and the increasing adoption of bio-fuel concepts are projected to drive market growth in this region. Moreover, China levulinic acid market held the largest market share, and the India levulinic acid market was the fastest-growing market in the Asia-Pacific region.
Levulinic Acid Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the levulinic acid market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the levulinic acid industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the levulinic acid industry to benefit clients and increase the market sector. Major players in the Levulinic Acid market, including G.F. Biochemicals Ltd. (Italy), Biofine International Inc. (U.S.), Avantium (Netherlands), Langfang Triple Well Chemicals Co. Ltd (China), Simagchem Corporation (China), Hefei TNJ Chemical Industry Co., Ltd. (China), and others, are attempting to increase market demand by investing in research and development operations.
Brenntag SE sells and distributes industrial and specialty chemicals. The company also develops and prepares specific chemical compounds and offers analysis services. Brenntag's customers include oil and gas, paint, cosmetic, pharmaceutical, and water treatment companies. In October 2021, Brenntag formed a distribution contract with NXTLEVVEL Biochem to develop its emerging Industrial, Household, and Institution (HI&I) portfolio in providing sustainable biobased solvents in the region. The current contract includes the latest product line, such as the below product names, and comprises levulinates and levulinate ketals. The products are bio-based solvents bringing sustainability, expanded safety, and high performance.
Ford Motor Company and Origin Materials began their Net Zero Automotive Program in 2021. A sustainable automotive supply chain project, the Net Zero Automotive Program aims to industrialize novel materials to promote decarbonization in the automobile sector. With the help of technology developed by Origin Materials, sustainable wood scraps can now be produced into affordable, carbon-negative materials that cut down on the consumption of fossil fuels. The versatile furan CMF (chloromethyl furfural) and the equally versatile resin HTC (hydrothermal carbon) make up the majority of the product. Levulinic acid and furfural are also produced by the process; none of these produce carbon. Ford and Origin Materials will explore drop-in applications for carbon-negative PET plastic (polyethylene terephthalate) made from sustainable wood waste using Origin technology in order to introduce the Net Zero program. PET plastic helps make cars lighter, more fuel-efficient, and often comprise a large percentage of a vehicle’s mass. The use of carbon-negative PET is expected to further reduce emissions and the need for fossil resources.
GF Biochemicals is a biochemical company founded in 2008. It was co-founded by and named after Pasquale Granata and Mathieu Flamini. It is the first firm in the world able to mass-produce levulinic acid. The company worked with the University of Pisa for seven years on its production. In 2016 GF Biochemicals acquired the American company Segetis.In June 2022, GFBiochemicals agreed with German chemical giant BASF’s European distribution organization, BTC Europe GmbH, on distributing biobased and biodegradable solvents derived from levulinic acid for the European market.
Key Companies in the Levulinic Acid market include
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G.F. Biochemicals Ltd. (Italy)
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Langfang Triple Well Chemicals Co. Ltd (China)
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Biofine International Inc. (U.S.)
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Avantium (Netherlands)
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Simagchem Corporation (China)
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Hefei TNJ Chemical Industry Co., Ltd. (China)
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CSPC Pharmaceutical Group (China)
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Great Chemicals Co. Ltd. (China)
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Anhui Herman Impex Co Ltd (China)
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DuPont (U.S.)
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The Valspar Corporation (U.S.)
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KCC Corporation (South Korea)
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Sherwin-Williams (U.S.)
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AkzoNobel (Netherlands)
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Jotun A/S (Norway)
Levulinic Acid Industry Developments
In June 2022, GFBiochemicals agreed with German chemical giant BASF’s European distribution organization, BTC Europe GmbH, on distributing biobased and biodegradable solvents derived from levulinic acid for the European market.
May 2022:Â BTC Europe GmbH collaborated with NXTLEVVEL Biochem to distribute biobased and biodegradable solvents from levulinic acid in Europe. The development is aimed at strengthening its presence in the European market. Levulinic acid can be used in many applications owing to its high solvency, low volatility, and biodegradability.
October 2020:Â Biofine Developments Northeast Inc. (Biofine) and Sprague Resources LP (Sprague) have signed a purchase agreement for the production and marketing of ethyl levulinate (EL), a product poised to revolutionize the heating oil market by transforming waste material into zero-emission heating fuel.
February 2020:Â GF Towell Engineering Group partnered with GF Biochemicals Ltd. To expand offerings in the levulinic acid industry. The development enabled the companies to strengthen their position in the bio-solvents and bio-plasticizers sectors. It offered the opportunity to cater to a wider customer base in industrial cleaning, coatings, home and personal care, and agriculture sectors.
Levulinic Acid Market Segmentation
Levulinic Acid Technology Outlook
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Hydrolysis Production Process
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Biofine Production Process
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Others
Levulinic Acid Application Outlook
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Food Additives
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Pharmaceuticals
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Cosmetic & Personal Care
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Agriculture
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Plasticizer
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Others
Levulinic Acid Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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