Succinic Acid, also called amber acid or butanedioic acid, has continued a largely underexplored market in the current global scenario despite having potentials for converting it into a major commercial production and flourishing a lucrative business platform. One of the key reasons for this setback primarily due to the high production cost associated with the petroleum-derived process. However, the global market for Succinic Acid and its related products have steadily pushed to a remarkable growth over the recent some years as many new markets start opening up in many regions and the demand for the acid among customers increases significantly.

Due to its water-soluble and odorless properties, the acid represents a vital component for manufacturing various medicinal or cosmetic products as well as it is also commonly applied as additives for food items. Besides using the acid as a flavoring agent in food and beverages, it is widely used as a medicine supplement for the treatment of health-related problems including joint pain and symptoms such as hot flashes and irritability prompted by menopause. Moreover,  as a chemical intermediate, the acid is used for manufacturing of pharmaceutical products such as industrial solvents, perfumes, and lacquers, as well as photographic chemicals, alkyd resins, plasticizers, metal treatment chemicals, and coatings for chemical and industrial productions.

Market Developments of Bio-Based and Petro-based Succinic Acid

Succinic acid is a dicarboxylic acid, which acts as a metabolic intermediate, can be mainly produced from petroleum feedstock of from bio-based materials. The bio-based acid can be obtained naturally through a process of microbial fermentation of glucose extracted from raw material feedstock such as maize, wheat, and sugarcane while the acid is produced synthetically from maleic anhydride by the oxidation of benzene or butane.

As per the global data, the annual growth rate of 10% was recorded for the Succinic Acid Market in 2014 with an estimated global production of 16,000–30,000 tons of the products. Since the rise of the global movement towards bio-based sustainable productions and increasing awareness concerning to environmental issues over the years, several manufacturers have started huge investments for the massive development of bio-based acid.

In December 2016, BioAmber Inc. entered a joint venture with a South Korea-based CJ CheilJedang Corporation aiming to produce up to 36,000 metric tons of bio-succinic acid annually in China and commercialize its output in Asia. In the same year, Anhui Sunsing Chemicals had introduced a new method for producing succinic acid using sucrose-containing feedstock.

Moreover, Reverdia entered into an agreement with Dezhou Xinhuarun Technology in 2016 to develop and promote bio-based succinic microcellular polyurethane foams, which can be used in soles for footwear and other applications. With the approval from the US Food and Drug Administration (FDA), BioAmber Inc. launched a pharmaceutical-grade succinic acid in June 2017, under the brand name BIO-SA to widen its product portfolio.

Nonetheless, the petro-based segment dominated the global market of succinic acid in 2017 with a share of 52.02% due to the cost-effectiveness and high efficiency compared to bio-based succinic acid.  Among the industries, food & beverage segment for the acid held highest market share of 37.16% in the year mentioned owing to demand for a bio-based chemical and growing per-capita income.

Current Scenario and Future Estimation of the Succinic Acid Market

The current market trend of the amber acid reflects a positive growth and a promising revenues or sales of the products in the coming few years. One key reason behind the positive outlook of the succinic acid market is due to the strict regulations by authorities and government initiatives especially in the developed regions of North America and Europe towards implementation of bio-based sustainable developments. This factor remains a key driver for the possible growth for the amber acid global market.

In terms of trade volume and market value of the global succinic acid, Europe occupies the highest market shares due to the sharp increase in the demand for bio-based acid products. Many European manufacturers are focusing on the development and use of bio-based succinic acid for their commercial productions; because of these reasons, the region is expected to register healthy CAGR over the forecast period.

Meanwhile, Asia Pacific has emerged a key potential market for succinic acid in terms of consumption and production mainly because the region has the largest base for customers. Over the recent years, the emerging economies such as India and China has been witnessing a substantial growth of various industries including pharmaceuticals, chemicals and food & beverages. This development remains a key factor for pushing the global market in a positive growth. The region is thus, projected to register healthy CAGR over the forecast period. Besides this, succinic acid market in Latin America and Middle East & Africa regions are expected to register relatively slower growth during the forecast period due to a steady gain of awareness of the product’s benefits especially the bio-based products.

However, the fluctuating prices of crude oil possesses a major challenge that can restrict the expected growth of the market. Another challenging factor is the relatively higher manufacturing cost for bio-based succinic acid and side effects for using petro-based products. The ongoing COVID-19 pandemic has affected the global price of the crude oil because of the emergency lockdown implemented by various countries.

Concerning these opportunities and challenges, DataIntelo estimates that the global bio succinic acid market is expected to nearly USD2220 million by the end of 2025, growing at a CAGR of 38.3% between 2019 and 2025 while the market was valued around USD170 million in 2018.

Key Players and their Market Strategies

The key manufacturers for the global succinic acid market include Anhui Sunsing Chemicals Co. Ltd., Nippon Shokubai Co. Ltd., GC Innovation America, Kawasaki Kasei Chemicals, Mitsubishi Chemical Corporation, Reverdia, and Showa Denko K.K., BASF SE, BioAmber Inc., Myriant Corporation, Koninklijke DSM N.V, Anqing Hexing Chemical Co. Ltd., Yantai Shanshui Chemical Technology Co. Ltd., Astatech (Chengdu) Biopharmaceutical Corp., New Japan Chemical Co., Ltd., TCI Chemicals (India) Pvt. Ltd., and Thirumalai Chemicals Ltd.

Some of these companies are actively focusing on the development of innovative bio-based succinic acid in bid to provide the growing needs in the different regions. Moreover, they are constantly engaging to increase their respective market shares through acquisition or mergers, and partnership or joint venture. For instance, In February 2019, Nippon Shokubai had acquired Sirrus, Inc., expanding its core business under “Reborn Nippon Shokubai 2020” which is broad application opportunities targeting reduction in solvents, energy and harmful chemicals, and generation of novel reactive chemical platform technology.

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