Levulinic Acid Market

Levulinic Acid Market Outlook (2022-2032)

The global Levulinic Acid Market is estimated at around US$ 31.1 Mn in 2022. With a projected CAGR of 15.3% for the next ten years, the market is likely to reach a valuation of nearly US$ 127.2 Mn by the end of 2032.

Levulinic Acid is witnessing a significant boost in demand, largely due to the reduction in production costs for the material. While Levulinic acid has been in production even historically, it is only recently that technology has been developed enough to tap into to the actual potential of Levulinic Acid.

Fact.MR analysis reveals that most of the market revenue is grossed from the Agriculture application, which has a forecasted CAGR of 18.3% by 2032 and accounted for 29.9% of the global market in 2021.

Attributes	Details
Market Size (2021A)	US$ 28.1 Mn
Estimated Market Value (2022E)	US$ 31.1 Mn
Forecasted Market Value (2032)	US$ 127.2 Mn
Global Market Growth Rate (2022-2032)	15.3% CAGR
United States Levulinic Acid Market Size (2022)	US$ 9.1 Mn
United States Growth Rate (2022-2032)	15.9% CAGR
Key Companies	Anhui Herman Impex Co Ltd AkzoNobel Avantium Biofine International Inc. CSPC Pharmaceutical Group DuPont G.F. Biochemicals Ltd Great Chemicals Co. Ltd. Hebei Shijiazhuang Hefei TNJ Chemical Industry Co., Ltd. Jotun A/S KCC Corporation Langfang Triple Well Chemicals Co. Ltd Simagchem Corporation Sherwin-Williams Segetis The Valspar Corporation

Sales Analysis of Levulinic Acid from 2017 to 2021 Vs Market Outlook for 2022 to 2032

The global market for Levulinic Acid expanded at a CAGR of 11.3% in the 2017-2021 time period. The market is projected to surge ahead at a CAGR of 15.3% and record sales worth US$ 127.2 Mn by the end of 2032.  

One key component for Levulinic acid demand is the fact that it can be created using renewable resources and even waste like starch waste, and lignocellulosic biomass. Both biofine and acid hydrolysis are being used to produce Levulinic acid.

Under the biofine process, a double-step mineral acid hydrolysis process is used. This helps break down biomass into usable platform chemicals like Levulinic acid and other related products or derivatives. This process generates four different products, which include Levulinic acid and formic acid.

What are the varied uses for the derivatives of Levulinic acid and how are they driving the market?

The use of the varied derivatives of Levulinic Acid is driving demand for the acid Methyltetrahydrofuran or MeTHF which is emerging as a possible THF substitute. It has several advantages, such as the green benefits of low solubility which makes it easy to recover.

It shows potential for use in synthesis as well, particularly that of organometallics and lignocellulose processing. The DOE or US Department of Energy has approved its usage in many fuel blends.

Ethyl-levulinate in particular is being researched for its use as a NOX-emission control agent in high-compression diesel engines. Gammavalerolactone or GVL is a solvent for paint stripping and other industrial processes. It also finds use as a monomer and starting material for some isomer types. It benefits from high solvating power and low vapor pressure.

Delta-amino Levulinic Acid or DALA has widespread use primarily as a pesticide that is attractive due to the environmental benefits it has over commonly used pesticides and herbicides. 1,4-Pentanediol or PDO derived from Levulinic acid is a relatively lower-cost PeDo that has lower levels of leaching potential leaching, making it attractive for potential usage in DDS systems. Alpha-methylene-gammavalerolactone or alpha?mGVL is a temperature booster that can enhance desirable characteristics such as scratch resistance in plastic.

Ketals and esters produced from Levulinic acid have a multicity of uses. The high degreasing ability of ketals and their relatively more green, bio-based and sustainable nature is leading to their increased usage in various areas, such as in metal cleaning and in use as plasticizers. Esters are often used as flavor and fragrance agents.

Sodium Levulinate, a salt of Levulinic acid, is finding widespread use, particularly in the cosmetic and personal care industry. It can help in preserving foods, particularly in the preservation of red meats. It helps prevent the growth of aerobic microorganisms in storage without causing any significant changes in pH levels or the color of the product. It is thus being used for its antimicrobial and antibacterial action potential.

How is Levulinic Acid a key component in cigarettes?

Levulinic Acid is a key ingredient in cigarettes, because it can soften the effects of nicotine while desensitizing the upper respiratory tract and allowing deeper inhalation of the smoke itself. Its usage also increases the smooth and mild sensations of cigarette use. There have also been researches that find that Levulinic acid was used as a method to augment nicotine yield.

Research has also indicated that Levulinic acid is an enhancer for the process in which nicotine binds itself to neurons by increasing the brain’s receptiveness to nicotine. This usage, however, is expected to witness obstructions because the increase in the addictive nature of cigarettes is a healthcare hindrance as it leads to nicotine addictions, which are very harmful to human health.

Why the demand for levulinic acid is increasing in the personal care industry?

The use of Levulinic acid in personal care and fragrances is giving a boost to the market, with sodium levulinate specifically finding widespread use. They are being used to provide perfuming, pH regulation, and skin benefits. Levulinate ketals are used as formulation aids and help increase water loading, boost the actives range and reduce the greasy feeling from formulations.

Levulinic acid is also widely used in the flavoring and fragrances industry, with a derivative, levulinate ester, being used as a flavoring agent. They can reduce VOC content, solubilize fragrances and other included solids, and act as fixatives. Owing to these factors, the demand for levulinic acid is increasing in the personal care industry.

Region-wise Insights

How Europe contributes to the demand for Levulinic Acid?

Europe is a significant contributor to the demand for Levulinic acid, having witnessed a CAGR of 12.2% during 2017 – 2022. Several prominent players in the market for Levulinic Acid are headquartered in Europe, which is the key reason why it is an emerging market for demand.

Levulinic acid was identified as a top biochemical and green chemical to drive bio-based industries in the UK.

GreenSolRes was a project consortium in Europe for the study of Levulinic acid. It received funding from the European Union’s Horizon 2020 Program of approximately US$ 7.6 Mn contribution. It aimed to study and prove the commercial viability of Levulinic acid, and to show that solvent and resin production from biomass was viable as well.

Country-wise Insights

United States Levulinic Acid Market Analysis

The market in the US is forecasted to reach a market size of US$ 39 Mn at a CAGR of 15.9%. The FDA has approved Levulinic acid. In 2022, the United States Department of Energy (USDOE) identified Levulinic acid as an important platform chemical for green industrial chemical process development. In 2019, the MTI, or The Maine Technology Institute, announced that had awarded funding to a bio-based Levulinic acid project by Biofine Developments Northeast.

U.K. Levulinic Acid Market Analysis

The Levulinic acid market in the U.K. is expected to grow from a meagre US$ 1.1 Mn in 2021 to reach a valuation of US$ 6.2 Mn by 2032, with nearly five-fold growth. The market in the country is expected to register an absolute dollar opportunity of US$ 5 Mn, growing at a CAGR of 17.3% during 2022 – 2032.

Japan Levulinic Acid Market Analysis

The market in Japan is expected to reach a valuation of US$ 7.3 Mn, growing from US$ 1 Mn in 2021. The market in the country is expected to gross an absolute dollar opportunity of US$ 6.2 Mn, with a forecasted CAGR of 21.2% during 2022 – 2032.

South Korea Levulinic Acid Market Analysis

In South Korea, the market is expected to reach nearly US$ 3 Mn by 2032, growing at a CAGR of 14.8% during 2022 – 2032. The market in the country is likely to garner an absolute dollar opportunity of 2 Mn during the forecast period.

Category-wise Insights

Which application of Levulinic Acid is the driver of demand for the market?

The levulinic acid market through Agricultural application, which witnessed a CAGR of 12.6% during 2017 – 2021, is forecasted to grow at a CAGR of 18.3% for the next decade. DALA or Delta Amino Levulinic Acid is in use as an herbicide. Solvents based on Levulinic Acid can be used for enhancements as adjuvants. It is also being used as an inhibitor of microbial growth where required. Agriculture is the highest revenue-generating application, with a 2021 market share of 29.9% and a forecasted market share of 39%.

Competitive Landscape

Levulinic Acid developers are focused on further research to harness the edge their products are gaining due to their environmental benefits. The key companies operating include Anhui Herman Impex Co Ltd, AkzoNobel, Avantium, International Inc., CSPC Pharmaceutical Group, DuPont, G.F. Biochemicals Ltd, Great Chemicals Co. Ltd., Hebei Shijiazhuang Hefei TNJ Chemical Industry Co., Ltd., Jotun A/S, KCC Corporation, Langfang Triple Well Chemicals Co. Ltd, Simagchem Corporation, Sherwin-Williams, Segetis and The Valspar Corporation, amongst others.

Some of the recent developments in Levulinic Acid are as follows:

• In May 2022, GF Biochemicals announced that they had raised US$ 16 Mn in their series A funding, with plans to use the money generated for R&D and the development of a new facility.
• In June 2021, Origin Materials, a carbon-negative materials company that has, among other products, Levulinic acid as a product, announced the listing of their shares on NASDAQ through a SPAC merger, which puts the valuation of Origin at US$ 1.8 Bn.
• In February 2020, GF Biochemicals and Towell Engineering announced a partnership through the forming of a joint venture under the name Nxtlevvel. Nxxtlevvel plans to open a plant in Europe or India, aiming to produce and sell Levulinic acid derivatives.
• In March 2017, Bio-On and Sadam Group announced the launch of a new project, which aims to produce Levulinic acid from the sugar industry by-products.
• In January 2022, Summit Cosmetics Corporation, or SCC and NXTLEVVEL, announced a Global Distribution Agreement, which gives SCC sales rights for 5 years.
• In October 2021, Brenntag and NXTLEVVEL announced a distribution contract. Under this contract, the lineup includes levulinates and levulinate ketals.

Similarly, recent developments related to companies manufacturing Levulinic Acid have been tracked by the team at Fact.MR, which is available in the full report.

Key Segments Covered in Levulinic Acid Industry Survey

• By Application:

  • Agriculture
  • Pharmaceutical
  • Food Additives
  • Other Applications

• By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa