Hydroxypropionic acid is a type of carboxylic acid, which has emerged as an intermediate in the decomposition of a branched chain of amino acids.
In addition to amino acids, hydroxypropionic acid can also be obtained from renewable energy sources.
Rising demand for acrylates in different industries such as fabrics, adhesives, and paints & coatings is the key growth driver for the global hydroxypropionic acid market.
Also, increasing use of hydroxypropionic acid in acrylic acid production has fueled product demand and helped in the growth of the overall hydroxypropionic acid market.
The reduction in global demand for petroleum reserves and increase in environmental pollution is also helping fuel the hydroxypropionic acid demand.
Rising customer preference for environmental-friendly products has also propelled hydroxypropionic acid demand, in the last few years.
Hydroxypropionic acid comprises several bio-based polymers, which are eco-friendly products, thereby causing increased product demand worldwide and propelling the overall hydroxypropionic acid market.
Some of the application areas for hydroxypropionic acid are in areas such as construction, paints, adhesives, and coatings.
Paints and coatings have been significantly deployed in different industries such as automotive and aerospace, leading to growth in the overall hydroxypropionic acid market.
Hydroxypropionic acid is available in both powdered and liquid form. The powdered form of the product has witnessed a surge in demand in the last few years owing to increased product deployment in adhesive manufacturing.
COVID-19 Outbreak Dents Hydroxypropionic Acid Demand in Industries
The outbreak of the COVID-19 pandemic adversely affected the hydroxypropionic acid market.
Manufacturing facilities were forced to shut down temporarily or permanently as governments imposed strict lockdowns and social distancing norms, in a bid to contain the spread of the virus, leading to decrease in demand for hydroxypropionic acid.
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The pandemic also led to disruptions in demand and supply. Changes in supply also led to an increase in the price of raw materials.
However, with the subsequent reduction in cases and availability of vaccines, it is anticipated that the hydroxypropionic acid demand will rise again and the overall hydroxypropionic acid market will grow at a steady pace, again.
While hydroxypropionic acid has been extensively deployed in several industries, it has its drawbacks, as well.
Availability of Suitable Alternatives, Price Volatility in Raw Materials Could Dent the Growth in Hydroxypropionic Acid Market in Future
The availability of low-cost synthetic products, which have emerged as suitable alternatives has emerged as the key restraining factor to the growth and development of the hydroxypropionic acid market.
One such substitute is synthetic polymers, which have been used by acrylate manufacturers owing to their low costs.
Also, price volatility of raw materials owing to lack of availability of proper resources could dent the hydroxypropionic acid demand, in future.
R&D Undertakings, Collaborations with Smaller Players Could be a Key Growth Strategy for Prominent Players
Leading market players are looking to make huge investments in research and development activities in a bid to produce improved quality of prod could be deployed in wide application areas in future.
Establishment of R&D centers, particularly in the developing economies in Asia Pacific such as India, owing to the ease of availability of key resources such as land and labor could help in the growth of leading market players, too.
Government support, in terms of funding for R&D undertakings to leading players, could help in the growth of the hydroxypropionic acid market, too.
The smaller players will seek investments from private investors and governments, which would help them in their long-term growth.
Prominent players could also look to engage in different growth strategies such as new product launches, in a bid to gain a competitive edge over the other market players.