by Itaconic acid is an unsaturated dicarboxylic acid that can be derived from various sources such as sugar, starch or lignin through a fermentation process. It has been gaining importance as a building block for producing polymers such as polyitaconic acid and derivatives of polyitaconic acid. Itaconic acid derived polymers find wide application in industries such as detergents, adhesives, paints & coatings, pharmaceuticals and oil fields due to their easy biodegradability and excellent tolerance to pH and temperatures. The global markets for polymers are growing steadily which is expected to drive the demand for itaconic acid as an important building block in manufacturing various environment friendly polymers.
The global Itaconic acid Market is estimated to be valued at US$ 134.1 Mn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the itaconic acid market is the shift towards more sustainable production methods from renewable feedstock’s rather than relying on petroleum sources. Traditional itaconic acid production methods relied on derivatization of petrochemical compounds which are not environment friendly. However, with advances in fermentation technology major players are now able to produce itaconic acid through fermentation of sustainable biomass sources like corn, sugarcane or wood residues. This has provided an impetus to overall market growth as brands and consumers are increasingly preferring sustainable solutions. Another major trend is the focus on new application development of itaconic acid polymers especially in specialty chemical and industrial applications to supplement the existing demand from commodity polymer markets.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as initial capital investments are required to establish manufacturing facilities and research & development activities for production of itaconic acid. However, the industry has fair profit margins and opportunities for growth.
Bargaining power of buyers: The bargaining power of buyers is moderate due to availability of substitutes. However, itaconic acid has its own advantages and demand from end use industries.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of raw materials from multiple suppliers globally. However, long term relationships and contracts provide suppliers stability in supply chains.
Threat of new substitutes: The threat of new substitutes is low as itaconic acid has unique material properties and applications across various end use industries such as synthetic latex, unsaturated polyester resins, detergents & superabsorbent polymers.
Competitive rivalry: The competitive rivalry is fair as the industry has few key global players operating worldwide with proprietary production technologies.
Key Takeaways
The global itaconic acid market is expected to witness high growth over the forecast period of 2023-2030. Regionally, Asia Pacific is anticipated to dominate the global market owing to the increasing demand from countries such as China and India. China accounts for over 50% share of global itaconic acid production.
Regional analysis: Asia Pacific is expected to be the fastest growing as well as the largest regional market for itaconic acid during the forecast period. Increasing demand from end use industries such as adhesives, sealants, additives and paints & coatings in countries such as China and India is expected to drive the regional market growth.
Key players: Key players operating in the itaconic acid market are Itaconix Corporation, Jinan Huaming Biochemistry Co. Ltd., Iwata Chemical Co., Ltd, Alpha Chemika, Zhejiang Guoguang Biochemistry Co., Ltd., and Qingdao Langyatai Group Co., Ltd. Itaconix Corporation is a leading global producer and distributor of itaconic acid based in the United States.
