Global Itaconic Acid (IA) Market to Reach US$398.3 Million by 2017, According to a New Report by Global Industry Analysts, Inc.

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Source: PRWeb


San Jose, California (PRWEB) October 04, 2011 -- Itaconic Acid (IA) is gradually emerging as a new high-technology industry across the globe. With rising concerns of diminishing fossil fuel resources, efforts are being made to produce chemicals from green feedstock rather than petrochemical raw materials. IA, although widely sourced from petrochemical feedstock, has the ability of being produced from renewable resources and is therefore being viewed as an ideal bio-based platform chemical for the chemicals industry. Currently, production of the organic compound is mainly restricted to a limited number countries such as China, US, Japan and Russia, resulting in global production being much lower than the actual demand. The consumption of Itaconic Acid is widespread, spanning across various sectors including artificial jewelry, specialty lens, pesticides, plastic additive, dental agglutinant, boiler rust remover, plastics, synthetic rubber and chemical fibers among others. Market opportunities for the acid in the form of new applications areas are expected in the near future, with efforts currently being focused on extending applicability to biomedical fields such as drug delivery, dentistry, and ophthalmology.

Despite the enormous potential of IA as a platform molecule, the chemical is yet to reach its true utilization potential owing to high cost. The cost of the acid, which is significantly influenced by the prevailing oil prices, is significantly higher as compared to other petroleum based chemicals, a factor that has confined the acid’s usage to select application areas.. Production is limited to only a few countries, owing to the high cost of production of the acid from petroleum. Itaconic acid, although recognized an important raw material in the chemicals industry, is still a niche market in many economies. In this perspective, sourcing of IA from bio-based feedstock has been generating enormous interest in the chemicals industry. The market received a major impetus following the U.S. Department of Energy (DOE) publication, which identified 12 chemicals, including IA and its derivatives, which could be manufactured from sugars primarily through microbial fermentation. Ever since, the quest to commercialize bio-based IA has grown at a remarkable pace. The bio-based production of IA involves the use of renewable feedstock and bio-refineries.

The cost-structure for bio- IA production primarily includes raw material cost, separation and fermentation cost. Although the relatively high cost of purification and fermentation are major hurdles in the present scenario, rapid technological developments are expected to bring down overall bio- IA production outlay. Majority of itaconic acid production is through the synthetic process involving petroleum derivatives and chemicals, which proves to be expensive, lengthy and environmentally unsound. One of the main reasons therefore for the growing focus towards healthier, bi-based production process is the relatively low manufacturing cost and negligible environmental hazard. Innovation, cost competitiveness, and global expansion are the major determinants of success in the renewable chemicals marketplace. Innovations in chemistry will play a key role in saving scarce energy resources.

The United States represents the single largest market for Itaconic Acid (IA) worldwide, as stated by the new research report on Itaconic Acid. Renewable chemicals are expected to replace about 5% of all petrochemicals in the US by the year 2025. The country holds substantial competitive advantages in manufacturing bio-based products due to the presence of a strong agricultural sector, largest amount of arable land globally and advancements in industrial biotechnology among other factors. In addition, the region also benefits through presence of the largest plastics and chemicals market in the world; and existence of a fully-developed downstream industry for bio-based products. Asia-Pacific, backed by tremendous impetus from China is poised to emerge as the fastest growing market for itaconic acid at a CAGR of over 9.0% through 2017. China, previously a major importer of IA, is currently one of the leading producers in the world, trailing closely behind Russia, Japan and the US.

Key market participants profiled in the report include, Chengdu Lucky Biology Engineering Industry Co., Ltd, Itaconix LLC, Nanjing Huajin Biologicals Co., Ltd., Qingdao Langyatai Group Co., Ltd., Ronas Chemicals Ind. Co., Ltd, Shandong Kaison Biochemical Co., Ltd, Shandong Zhongshun Science & Technology Development Co., Ltd, Spectrum Chemicals & Laboratory Products, Inc and Zhejiang Guoguang Biochemistry Co., Ltd.

The research report titled “Itaconic Acid (IA): A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive industry overview, review of renewable chemicals, market trends, product overview, recent industry activity and profiles of market players worldwide. Market analytics and overview is provided in value (US$) terms for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. The study also provides historic data for an insight into market evolution over the period 2003 through 2008.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Itaconic_Acid_IA_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Web Site: http://www.StrategyR.com/

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