Succinic acid is a chemical intermediary and is expected to develop as a platform chemical in a broad range of applications varying from niche segments such as food additive and personal care to large applications such as plasticizers, resins, coatings and polyurethanes. The U.S. Department of Energy classifies it as one of the five most promising \u201cbuilding block\u201d chemicals that can be manufactured through biomass. Until now, Succinic acid was being produced through petroleum raw materials which resulted in high cost due to the soaring oil prices, restricting application scope to just pharmaceuticals and personal care products. There are numerous companies researching on the development of Succinic acid through biobased raw materials. Bio-based succinic acid can be produced by the fermentation of glucose using natural producers or engineered organisms. It is expected that the fermentation process for bio succinic acid would be cost effective and would result in lower succinic acid prices as compared to their chemical counterparts. The companies currently manufacturing biobased succinic acid include BioAmber, Succinity and Reverdia.<\/p>\n
A critical step for successful entry in the bio-succinic acid market is to create strategic partnerships with other leading companies in the global chemical industry, especially in the field of addressable market for succinic acid. These partnerships will help to reduce production costs. Three leading companies, BioAmber, Myriant Corporation and Reverdia, have already signed several partnerships to help them to leverage existing know-how, infrastructure and reduce production costs. The companies with which they have partnered include feedstock partnerships, fermentation, downstream processing, chemical transformation and commercial partnerships. The key factor driving the growth of bio succinic acid is expected to be the replacement of other chemicals such as maleic anhydride (MAN). MAN is used in the manufacturing of 1,4 BDO and its derivatives such as gamma-butyrolactone (GBL), tetrahydrofuran (THF) and polybutylene terephtalate (PBT). The cost effective production of bio succinic acid would result in replacement of MAN in the manufacturing of BDO. BDO is mainly used in the manufacturing of engineering plastics and in the application of polyurethane in the leather industry. The other key driver is the growing use of bio succinic acid in the manufacturing of polybutylene succinate (PBS). PBS is biodegradable polyester used in the manufacturing of bioplastics and with the growing demand for bioplastics; the demand for PBS is expected to increase over the forecast period. The global market for conventional succinic acid was 46.6 kilo tons in 2013 and is expected to increase to 92.3 kilo tons by 2020. Bio based succinic acid is expected to show exponential growth with an estimated CAGR of 32.2% from 2014 to 2020. The bio succinic acid market was 51,000 tons in 2013 and is expected to increase to 593,400 tons by 2020. In terms of revenue, the market is expected to reach USD 992.0 million by 2020.<\/p>\n
The application segments covered in the report include BDO, polyester polyols, PBS\/PBST, plasticizers and alkyd resins. Other applications such as food additive, pharmaceuticals, personal care and solvent have also been included in the report. BDO was the largest application of bio succinic acid accounting for over 35% of global consumption in 2013. BDO is used in the manufacturing of engineering plastics and is manufacturing using MAN. With the expected replacement on MAN by bio succinic acid, the demand for succinic acid in BDO is also expected to increase over the forecast period. The second largest application was polyester polyols and accounted for over 5,000 tons of bio succinic acid consumption in 2013. The growing market for polyurethanes and the use of polyester Polyols in the industry is expected to be the key cause for the high market share. Presently, polyester polyols are manufactured using<\/p>\n
adipic acid and bio based succinic acid is the only renewable replacement to adipic acid in the manufacturing of polyurethanes. Another emerging segment is the use of bio succinic acid in the manufacturing of PBS. This application segment is expected to witness the fastest growth over the forecast period at an estimated CAGR of 38.9% from 2014 to 2020. The use of PBS in bioplastics manufacturing is expected to be a key driving factor for the growth of the market over the next six years.<\/p>\n
Europe was the largest market of bio succinic acid with a share of over 49% in 2013. The region generated revenue in excess of USD 65 million and is expected to witness growth at an estimated CAGR of 23.6% from 2014 to 2020. The growing preference coupled with favorable regulatory scenario for development of bio based products is expected to be a key for the growth of the market. It is estimated that by 2020, Europe would have boo based succinic acid manufacturing capacity in excess of 300,000 tons. Asia Pacific was the second largest market for succinic acid accounting for 29% of global consumption in 2013. The region is also expected to witness fastest growth at an estimated CAGR of 33.9% from 2014 to 2020. The growing industrialization in countries such as China and India is expected to boost the demand for bio based succinic acid in applications such as BDO, polyester polyols, plasticizers and alkyd resins.<\/p>\n
The market for bio based succinic acid was dominated by three companies in 2013 viz. BioAmber, Succinity and Reverdia. Succinity and BioAmber were the largest manufacturer of bio succinic acid in 2013 with a combined share of over 55%. New bio based succinic acid capacities are expected to come online over the next six years with Myriant expected enter the market with production facilities in China and Germany. The total capacity additions over the next six years are expected to be in excess of 300,000 tons with the existing companies expanding their capacities. The market is highly competitive with various companies entering into alliances in order to obtain leverage in feedstock supply and production technologies. BioAmber formed a joint venture with Mitsui (Japan). The joint venture plans to build another plant in Sarnia, Ontario with a capacity of approximately 17,000 MT of bio-based succinic acid. Myriant has signed a partnership with China National BlueStar, one of the leading BDO producers in Asia, to build a plant located in Nanjing, China.<\/p>\n
Key questions answered by the report<\/p>\n
Industry Insights Succinic acid is a chemical intermediary and is expected to develop as a platform chemical in a broad range of applications varying from niche segments such as food additive and personal care to large applications such as plasticizers, resins, coatings and polyurethanes. The U.S. Department of Energy classifies it as one of the […]<\/p>\n","protected":false},"author":59,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","nova_meta_subtitle":"","footnotes":""},"categories":[5572],"tags":[],"supplier":[1180,2777,2249,3364,3928,11236],"class_list":["post-20138","post","type-post","status-publish","format-standard","hentry","category-bio-based","supplier-bioamber-inc","supplier-mitsui-co-ltd","supplier-myriant-technologies-llc","supplier-reverdia","supplier-succinity-gmbh","supplier-u-s-department-of-energy"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/20138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=20138"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/20138\/revisions"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=20138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=20138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=20138"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=20138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}