From $27.2 million in 2019, the global levulinic acid market is predicted to grow to $60.2 million in 2030, with a CAGR of 8.8% from 2020 to 2030, as per the calculations of the market research company, PS Intelligence. The main factors driving the advancement of the market are the increasing commercialization of various bio-based production processes and the soaring requirement of levulinic acid compounds in multiple end-use industries.

The various derivatives of levulinic acid such as ethyl levulinate, methyltetrahydrofuran (MTHF), diphenolic acid, succinic acid, sodium levulinate, and hydroxymethylfurfural (HMF) are heavily used as additives in personal care items, food and beverages, and fuels. Furthermore, huge investments are being made in RD (research and development) activities associated with levulinic acid by many private and public organizations for finding more applications for its derivatives, which is, in turn, fueling the growth of the market.

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The other major factor propelling the advancement of the market is the increasing commercialization of the bio-based production processes. Currently, the market is at a very nascent stage, with only a few players operating in it. As a result, the market has a huge potential for commercialization. The commercialization of the market and the bio-based production processes will lead to a sharp decline in the production cost of the compound.

Geographically, North America held the largest share in 2019, which is majorly ascribed to the high demand for levulinic acid for the production of the fuel additive n-butyl levulinate, in the region. The demand for the compound is also witnessing strong growth from the personal care and agriculture sectors of the U.S. and Canada; It is widely gaining usage as an additive for environment-friendly herbicides. With the increasing adoption of herbicides with renewable chemicals, the consumption of the compound is expected to further ramp up in the coming times.

Moreover, the depleting fossil fuel reserves and increasing environmental concerns have led to an increased focus on the conversion of biomass into fuels, in the region.