Market Definition

The market revolves around the production and use of this organic compound derived mainly through acid hydrolysis of biomass, including cellulose and waste feedstocks. It serves as a key intermediate in the formulation of plasticizers, fuel additives, herbicides, and personal care products.

The market scope includes its role in manufacturing solvents, resins, and bio-based chemicals. With applications across agriculture, pharmaceuticals, and cosmetics, levulinic acid is valued for its versatility in various synthesis processes.

The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Levulinic Acid Market Overview

The global levulinic acid market size was valued at USD 73.7 million in 2023 and is projected to grow from USD 77.6 million in 2024 to USD 113.7 million by 2031, exhibiting a CAGR of 5.61% during the forecast period.

The market is driven by the increasing adoption of LA in biodegradable plastic production, as companies seek more sustainable alternatives to traditional plastics. Technological advancements in biomass conversion processes also play a significant role, improving the efficiency and cost-effectiveness of levulinic acid production, further boosting the market demand.

Major companies operating in the levulinic acid industry are GFBiochemicals Ltd., Biofine Technology LLC, DuPont, Merck KGaA, Tokyo Chemical Industry Co., Ltd., Thermo Fisher Scientific Inc., Ascender Chemical Co., Ltd., Hebei Langfang Triple Well Chemicals Co., Ltd., Kanto Chemical Co. Inc., Junsei Chemical Co. Ltd., Hefei Home Sunshine Pharmaceutical Technology Co., Ltd., Otsuka Chemical Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., Dubi Chem, and NACALAI TESQUE, INC.

The shift toward renewable alternatives is boosting the market. With increasing restrictions on petroleum-derived chemicals, manufacturers across coatings, agriculture, and plastics industries are adopting LA as a viable intermediate.

Its compatibility with bio-refining processes and consistent output quality makes it attractive for scaling industrial applications, which contributes to the demand for LA across sectors seeking lower-carbon solutions.

Levulinic Acid Market Size & Share, By Revenue, 2024-2031

Key Highlights

The levulinic acid industry size was valued at USD 73.7 million in 2023.
The market is projected to grow at a CAGR of 5.61% from 2024 to 2031.
North America held a market share of 34.09% in 2023, with a valuation of USD 25.1 million.
The acid hydrolysis segment garnered USD 28.3 million in revenue in 2023.
The polymers & plasticizers segment is expected to reach USD 34.1 million by 2031.
The market in Asia Pacific is anticipated to grow at a CAGR of 6.59% during the forecast period.

Market Driver

"Increasing Adoption in Biodegradable Plastic Production"

LA plays a key role in the production of polyhydroxyalkanoates (PHAs) and other biodegradable polymers. The levulinic acid market is registering growth, due to heightened interest in alternative plastic solutions that reduce landfill waste.

Its function as a precursor to bioplastics supports performance in packaging, disposable cutlery, and coatings. As regulatory pressure mounts against conventional plastics, the polymers & plasticizers segment is expected to become a strong revenue source for LA producers.

In February 2025, a study published in ACS Sustainable Chemistry & Engineering introduced a novel bioplasticizer synthesized from LA and glycerol. This bioplasticizer demonstrated improved thermal and mechanical properties when incorporated into PHAs, a class of biodegradable plastics. The development signifies a step forward in enhancing the performance of PHAs, making them more viable alternatives to conventional plastics.

Market Challenge

"High Production Costs"

High production cost of LA is a key challenge for the growth of the levulinic acid market, This is primarily due to the complex processes involved in converting biomass into LA. This impacts the overall market competitiveness, especially when compared to traditional petroleum-based chemicals.

Key market players are investing in advanced technologies to improve the efficiency of biomass conversion and reduce operational costs. Many are also exploring alternative raw materials and more cost-effective catalysts.

Additionally, strategic collaborations with research institutions are helping to accelerate innovation and reduce production costs, making LA more accessible for a wider range of applications.

Market Trend

"Technological Advancements in Biomass Conversion"

Advances in hydrolysis and catalytic processing of biomass have significantly improved the yield and purity of LA. The levulinic acid market is benefiting from efficient conversion methods that allow commercial-scale production from agricultural residues, forestry by-products, and municipal waste.

With reduced input costs and improved scalability, these innovations are enabling broader commercialization, particularly for companies focused on sustainable chemistry and integrated biorefinery models.

In July 2024, a study published in RSC Advances reported advancements in the catalytic processing of biomass to enhance the yield and purity of LA. Researchers employed a Na-BEA zeolite catalyst in a one-pot conversion of glucose, achieving a 100% glucose conversion and an LA selectivity of up to 62.8% at 220°C over 2 hours. This process demonstrated higher efficiency compared to traditional homogeneous acid catalysis, offering potential for scalable and cost-effective LA production from agricultural residues.

Levulinic Acid Market Report Snapshot

Segmentation	Details
By Process	Acid Hydrolysis, Biofine, Others
By Application	Polymers & Plasticizers, Pharmaceuticals, Flavors & Fragrances, Cosmetics, Agriculture, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

By Process (Acid Hydrolysis, Biofine, Others): The acid hydrolysis segment earned USD 28.3 million in 2023, due to its cost-effectiveness, scalability, and ability to efficiently convert a wide range of biomass feedstocks into LA for industrial use.
By Application (Polymers & Plasticizers, Pharmaceuticals, Flavors & Fragrances, Cosmetics, Agriculture, Others): The polymers & plasticizers segment held 29.90% share of the market in 2023, due to the rising demand for sustainable plastic alternatives and increasing use of LA derivatives in producing bio-based polymers and flexible plasticizers.

Levulinic Acid Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Levulinic Acid Market Size & Share, By Region, 2024-2031

North America levulinic acid market share stood at around 34.09% in 2023, with a valuation of USD 25.1 million. North America’s focus on reducing dependency on fossil fuels is driving the market. Governments in the region are implementing policies and providing incentives to promote the development of bio-based chemicals.

LA, as a sustainable alternative to petroleum-based chemicals, fits well within these initiatives. Moreover, in North America, there has been a surge in collaborations between research institutions, universities, and industries to advance the production of LA.

These partnerships are focused on improving production processes, optimizing the use of renewable feedstocks, and scaling up operations. As these research initiatives progress, the commercial viability and affordability of LA are improving, which is boosting the market in the region.

The levulinic acid industry in Asia Pacific is poised for significant growth at a robust CAGR of 6.59% over the forecast period. Industries in Asia Pacific are increasingly prioritizing bio-based chemicals to reduce reliance on fossil resources.

Industrial sectors, such as chemicals, agriculture, and packaging, are moving toward sustainable solutions, boosting the market in the region. Furthermore, ongoing advancements in catalytic processes across Asia Pacific are improving the efficiency and sustainability of LA derivative production.

Research institutions in the region are increasingly focused on developing cost-effective, recyclable catalysts for biomass conversion. These innovations are making LA production more scalable and environmentally friendly.

In April 2025, researchers from the National Institute of Technology Karnataka (NITK), India, published a study in RSC Advances detailing a sustainable method for producing levulinic ester ketals (LEKs) from carbohydrate-derived ethyl levulinate. Utilizing cellulose sulfuric acid (CSA) as a recyclable heterogeneous catalyst, the process achieved nearly quantitative yields of LEKs, which have applications as fuel additives, solvents, monomers, and plasticizers.

Regulatory Frameworks

In the U.S., LA is regulated under the Toxic Substances Control Act (TSCA), overseen by the U.S. Environmental Protection Agency (EPA). It is listed on the TSCA Inventory, which requires manufacturers to comply with reporting and safety standards.
In the European Union (EU), LA is regulated under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) by the European Chemicals Agency (ECHA). Companies must register the substance if they manufacture or import over one tonne per year. Additionally, its use in food contact materials is subject to Regulation (EU) No. 10/2011, which sets migration limits and substance conditions.
China regulates LA under the National Food Safety Standard GB 5009.252-2016, which outlines the method for determining its levels in food using gas chromatography. The substance must meet quality standards under the purview of the National Health Commission (NHC) and the State Administration for Market Regulation (SAMR).

Competitive Landscape

Market players are strategically focusing on Research and Development (R&D) and forging collaborations with research centers & institutions to drive growth in the levulinic acid industry. These partnerships are essential for advancing the technical aspects of levulinate esters, including enhancing their efficiency, sustainability, and safety in various applications.

Companies are improving the chemical properties of these esters through R&D, making them more suitable for industrial uses like coatings, adhesives, sealants, and paints.

Collaborating with academic & research institutions accelerates innovation by providing access to cutting-edge technologies and expertise. This focus on continuous improvement and innovation ensures that the market evolves to meet growing environmental demands and industry-specific needs.

List of Key Companies in Levulinic Acid Market:

GFBiochemicals Ltd.
Biofine Technology LLC
DuPont
Merck KGaA
Tokyo Chemical Industry Co., Ltd.
Thermo Fisher Scientific Inc.
Ascender Chemical Co., Ltd.
Hebei Langfang Triple Well Chemicals Co., Ltd.
Kanto Chemical Co. Inc.
Junsei Chemical Co. Ltd.
Hefei Home Sunshine Pharmaceutical Technology Co., Ltd
Otsuka Chemical Co., Ltd.
Hefei TNJ Chemical Industry Co.,Ltd.
Dubi Chem
NACALAI TESQUE, INC.

Recent Developments (Agreement)

In January 2025, Brenntag entered into a supplier agreement with GFBiochemicals to distribute three of its levulinate esters in the Coatings, Adhesives, Sealants, and Elastomers (CASE) markets across Europe. These environmentally friendly and safer solvents are designed for use in industrial solvent-based coatings, safer paint removal formulations, and to meet specific solubility requirements for coatings.