Levulinic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts ((2022 - 2027)

Levulinic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts ((2022 - 2027)

The levulinic acid market is expected to witness healthy growth at an estimated CAGR of over 4% over the forecast period (2021-2026).

Due to the COVID-19 impact in 2020, production in various chemical and other industries has decreased, and the supply of raw materials to industries has been significantly affected. For instance, the personal care and cosmetics industry's growth declined by around 4% in 2020 compared to 2019, due to the impact of these situations. However, the pharmaceutical industry witnessed a huge growth in 2020, due to increased health concerns and diseases.

Key Highlights

• Over the medium term, the major factor driving the growth of the market studied is the increasing usage as substitutes for traditional fertilizers.
• On the flip side, the COVID-19 impact is expected to hinder the market's growth.
• The Asia-Pacific region is expected to dominate the market, and it is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsCosmetics and Personal Care to Dominate the Market

• Levulinic acid and their salts (majorly sodium levulinate) are water-soluble and are commonly used in beauty and personal care products, as it is approved by the US Food and Drug Administration (FDA). Moreover, the rules governing cosmetic products in the European Union are not restricting the use of these ingredients.
• Levulinic acid is used in around 130 cosmetic formulations, and sodium levulinate is used in approximately 400 cosmetic formulations, according to the 2020 VCRP survey data. Levulinic acid has the highest maximum concentration of around 4.5% in hair dyes, while sodium levulinate is used at a maximum concentration of 0.62% in mouthwashes and breath fresheners.
• Also, these ingredients are reportedly safe for use in products that come in contact with the eyes. For instance, sodium levulinate is used up to 0.57% in the eye shadows and lotions.
• Hair textures vary from person to person, and so do the hair- and scalp-related issues. Some people may have damaged or dry hair, while others must deal with breakage and hair fall problems. This, in turn, is increasing the demand for hair care products, primarily hair dyes.
• Continuous growth in online beauty spending, expanding use of social networks, increasing interest of consumer interest in new and premium products, accelerating urbanization, and the growth of the upper-middle-class population are the major factors driving the cosmetics market worldwide.
• According to Statista's market forecast, the market for beauty and personal care (cosmetics, skincare, and personal care) declined by 4.19% in 2020 compared to the previous year, reaching a total of USD 483.34 billion. The market is estimated to reach USD 615.82 billion in 2025.
• All the above-mentioned factors, in turn, are projected to show an impact on the market studied during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is the largest market for levulinic acid. It is also expected to be the fastest-growing market during the forecast period. The dominance is majorly attributed to the countries such as China, India, and Japan.
• Countries like China and India are the largest consumers of fertilizers, especially because of their ever-increasing population and limited agricultural land. Hence, the need for fertilizers is high in these countries.
• At present, the penetration of personal care products in India is low compared to developed or even other developing economies. However, improving the economic environment and increasing the purchasing power of the Indian population are expected to increase the adoption of personal care products in the country, thereby driving the demand for levulinic acid and its salts.
• According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually.
• According to the India Brand Equity Foundation, India's pharmaceutical export stood at USD 19.13 billion in 2018-2019.
• Thus, all the aforementioned factors are expected to drive the market growth in the region during the forecast period.

Competitive Landscape

The levulinic market is consolidated, with a few companies controlling the majority share in the market. The major companies in this market include GFBiochemicals Ltd, Alfa Aesar - Thermo Fisher Scientific, Tokyo Chemical Industry Co. Ltd, Ascender Chemical Co. Ltd, and Merck KGaA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

AK Scientific Inc.
Alfa Aesar, Thermo Fisher Scientific
Aromalake Chemical Co. Ltd
Ascender Chemical Co. Ltd
Bio
On SpA
Boerchem Pharmtech Co. Ltd
GC Innovation America
GFBiochemicals Ltd
Merck KGaA
Tokyo Chemical Industry Co. Ltd

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