Currently, the global automotive industry is plagued by the issue of greenhouse gas (GHG) emissions, which are the key reasons behind air pollution, ozone depletion, global warming, and climate change. As a result, countries around the world have implemented stringent regulations to control the expulsion of GHGs into the atmosphere. Many of these regulations, including the Tier 4 Emissions Standards of the U.S., Euro VI regulations of the European Union (EU), and Bharat Stage VI (BS6) regulations of India, mandate the usage of cleaner fuels.

As a result of the widespread concerns regarding air pollution, P&S Intelligence expects the levulinic acid market to grow from $27.2 million in 2019 to $60.2 million by 2030, at an 8.8% CAGR between 2020 and 2030 (forecast period). This is because the derivatives of this acid, particularly ethyl levulinate, is used as a fuel additive to lower the amount of sulphur emissions from diesel. Around the world, most commercial vehicles, including buses and trucks, run on diesel, which is why a reduction in their emissions has become paramount.

Download report sample at: https://www.psmarketresearch.com/market-analysis/levulinic-acid-mar...

Similarly, in the personal care sector, sodium levulinate finds application as a skin conditioning agent. Another usage of this derivative is as a preservative in the food and beverage industry. With the rising population, the demand for processed food and cosmetic products is increasing. Earlier, much of the demand for these products came from developed countries, as they are considered luxuries. But with the economic growth in developing countries, sales of cosmetics and processed foods are surging here too.

During the historical period (2014–2019), North America dominated the levulinic acid market, on account of the increasing demand for its derivatives for the manufacturing of agricultural chemicals, fuel additives, and personal care products. Currently, almost all of the rail freight and passenger traffic in Canada and the U.S. moves on diesel traction, which is why the need to reduce GHG emissions from this sector is quite strong in the region. Moreover, the countries are o home to a large trucking and logistics industry, which is also majorly fueled by diesel.

Hence, with the expansion of the end-use industries, the demand for various derivatives of levulinic acid will increase.