Itaconic acid is an organic compound that is majorly used as a monomer in the production of synthetic latex, resins, and polyester. It offers high flexibility, resilience, biodegradability and low costs. The growing demand for green chemicals across various end-use industries such as construction, textiles, and paper has propelled the consumption of itaconic acid. The global itaconic acid market is estimated to be valued at US$ 134.1 Mn in 2024 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 Opportunity:
The growing use of itaconic acid in synthetic latex production presents a key market opportunity. Itaconic acid acts as an ideal comonomer in the manufacturing of synthetic latex which are increasingly replacing natural rubber latex across various applications owing to their superior performance characteristics. The consumption of synthetic latex has significantly grown across end use industries such as paper, paints & coatings and adhesives & sealants. With the growing demand for synthetic latex from these industries, the demand for itaconic acid as a major comonomer is also expected to surge substantially over the forecast period. The market players can capitalize on this opportunity by enhancing their production capacities and supply chain operations to cater to the rising needs of synthetic latex producers.
Porter’s Analysis
Threat of new entrants: Itaconic acid market has high requirement of technical expertise and financial investment for production facilities which makes threat of new entrants moderate.
Bargaining power of buyers: Large number of established producers provide buyers with choice making their bargaining power moderate.
Bargaining power of suppliers: Raw materials for production of itaconic acid are commoditized and available from multiple sources making supplier power weak.
Threat of new substitutes: Itaconic acid has properties superior to substitutes making threat of substitution low.
Competitive rivalry: Intense competition exists among established producers for market share keeping rivalry high.
SWOT Analysis
Strength: Itaconic acid is bio-based, non-toxic and sustainable chemical with diverse applications. Varied end-use industries provide stability.
Weakness: High production cost limits penetration in price sensitive markets. Dependency on few producers for supply.
Opportunity: Growing demand for biodegradable and biobased products and packaging from industries like paints, construction and personal care offers opportunities.
Threats: Fluctuating raw material prices and availability affects production economics. Environmental regulations may affect production.
Key Takeaways
The global itaconic acid market is expected to witness high growth during the forecast period of 2023-2030. The market is driven by growing end-use industries, stringent environmental regulations favoring bio-based chemicals and expansion of production capacities by major players.
North America dominates the global market and is expected to maintain its lead through 2030 supported by strong production base and end-use industries in the region. Europe and Asia Pacific are expected to be fastest growing regions during the forecast period.
Key players operating in the itaconic acid market are Itaconix Corporation, Jinan Huaming Biochemistry Co. Ltd., Iwata Chemical Co. Ltd, Qingdao Kehai Biochemistry Co., Ltd, Alpha Chemika, Aekyung Petrochemical Co., Ltd., Zhejiang Guoguang Biochemistry Co., Ltd., and Chengdu Jinkai Biological Engineering Co. Ltd. Major players are making significant investments in R&D and capacity expansions to capitalize on the projected growth opportunities in the market.
