Biotech Ingredients Market Size, Share & Trends Analysis Report By Flavors (By Source, By Type, By Application), By Fragrances (Fine Fragrances, Toiletries), By Active Cosmetic Ingredients, And Segment Forecasts, 2020 - 2027

Research Methodology

A three-pronged approach was followed for deducing the biotech ingredients market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for biotech ingredients market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of biotech ingredients market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Biotech Ingredients Market Categorization:

The biotech ingredients market was categorized into four segments, namely flavors (By Source, By Type, By Carbonyls), fragrances (By Application), active cosmetic ingredients (By Application), and region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa).

Segment Market Methodology:

The biotech ingredients market was segmented into flavors, fragrances, active cosmetic ingredients, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The biotech ingredients market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into sixteen countries, namely, the U.S.; Canada; Mexico; the UK; Germany; France; China; India; Japan; Australia; South Korea; Singapore; Saudi Arabia; South Africa; Brazil; Argentina.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Biotech ingredients market companies & financials:

The biotech ingredients market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Givaudan - Givaudan creates, formulates, and distributes flavour and fragrance solutions globally. The firm provides services through two key divisions: flavours and scents. The flavours category is divided into drinks, dairy, savoury, and sweet items. The division creates and develops new components that are then employed in food and beverage compositions. The fragrance sector is divided into three segments: fine fragrances, consumer goods, and active beauty, which all serve consumer markets such as personal care, housekeeping, and cleaning. The firm is present in 181 locations worldwide, including 73 manufacturing sites, 3 GBS (Givaudan business solution) centres, and 69 creation centres. The corporation is continually looking to expand through mergers, acquisitions, partnerships, and capacity growth. In 2019, the firm made seven worldwide acquisitions and established a production unit and two creativity centres in India, Morocco, and Singapore, respectively.

• International Flavors & Fragrance (IFF), Inc. - International Flavours & Fragrances Inc. produces and distributes a diverse variety of ingredients and compounds worldwide. The company operates in three business segments: Taste, Scent, and Frutarom. The taste category includes savoury solutions, flavour compounds, nutrition, and unique ingredients and inclusions. Savoury solutions include spices, natural colours, powder flavours, natural antioxidants, and functional additives for the meat and fish industries. Natural health, colour, and flavour ingredients include plant extracts, flavour extracts, essential oils, citrus products, distillates, fragrance compounds, and natural gums and resins. The aroma section encompasses fragrance components and compounds. The ingredients category includes natural, synthetic, active, and functional ingredients. Fragrance compounds are divided into two categories: consumer and fine scents. Frutarom’s business sector creates, manufactures, and sells a diverse line of flavour compounds and specialised fine ingredients for small, local, and regional consumers. However, the Frutarom component will be combined with the flavour segment in the future. The firm has engaged in cooperation relationships with domestic and foreign suppliers, as well as distributors, to source raw materials.

• Firmenich - Firmenich is a biotechnology-driven corporation that manufactures and distributes flavours and perfumes globally. The company's products are used in a variety of sectors, including food and beverage, fragrance, cosmetics, and personal care. The firm uses the generated essential oils internally for flavour and scent compositions. The firm obtains its raw materials from thousands of suppliers through long-term agreements in numerous nations across the world. It has robust programmes in place to control the sustainability consequences of these operations. The company's supply partners include Jasmine Concrete (India), Essex Laboratories (Oregon, United States), and Nelixia (Guatemala). The customer base is diverse, ranging from global corporations to small and medium-sized organisations. The firm has launched a "Consumer Insights Programme" to identify customer demands and generate customised recipes. The corporation is also present in 100 markets and has 82 facilities, including 32 manufacturing units and 5 R&D centres. Production capacity development, strategic acquisitions, and partnerships are important growth tactics used by the corporation to broaden its market reach. In 2019, the corporation announced four acquisitions and a collaboration

• Amyris, Inc. -  Amyris, Inc. is an industrial biotechnology firm that produces and distributes natural, high-performance ingredient solutions derived from renewable sources for the clean skin care, health and wellness, and flavours and fragrances sectors. It uses industrial bioscience technology to grow yeast from microorganisms and to convert plant-based sugars into renewable components. The company’s product range comprises polymers, renewable solvents, and lubricants for the industrial industry, sustainably produced renewable fuels for the transportation fuel sector, and Biofene components for the vitamins and nutraceutical market. It operates R&D labs and production sites in the United States and Brazil.

• Symrise - Symrise manufactures flavourings, scents, cosmetic ingredients, raw materials, functional substances, and nutritional and sensory solutions. The company’s goods include food, drinks, scents for pet food, personal care and cosmetics, cleaning, and laundry detergent applications. It works in three business units: flavour, nutrition, and smell and care. The flavour segment is made up of three business units: Savoury, Beverages, and Sweet, which supply over 13,000 distinct flavourings that are then used in the formulations of food and beverage products. The nutrition section includes the Pet Food, Food, Probi, and Aqua business units, while the Scent & Care segment includes the Cosmetic Ingredients Fragrance and Aroma Molecules division. The company's essential oils are used to manufacture additional goods across all business divisions. Furthermore, the organisation has implemented backward integration for raw material sourcing. It has entered into long-term delivery contracts to procure raw materials and has set standardised standards, ensuring an ongoing supply of raw materials and consistent product quality. It has implemented green chemistry and artificial intelligence to improve the efficiency of the product development process. The organisation is always working to broaden its offering and expand regionally.

• Advanced Biotech - Advanced Biotech manufactures and distributes specialised ingredients globally. The firm manufactures items for the food, beverage, cosmetic, and personal care sectors. The company’s portfolio comprises a broader variety of substances such as pyrazines, thiazoles, natural and synthetic aromatics, oleoresins, essential oils and isolates, absolutes, heterocyclics, pyrazines and sulphur, distillates, extracts, vanilla extracts, and others.

• Bell Flavors & Fragrances, Inc. - Bell Flavors & Fragrances, Inc. is engaged in the production and distribution of flavors, fragrances, botanical extracts, and specialty ingredients worldwide. It caters its products to food, beverage, cosmetic, personal care, oral care, household care, and tobacco industries. The company has several manufacturing facilities located in different countries including, the U.S., Brazil, Mexico, Canada, Germany Hong Kong, and China as well as sales offices in Argentina, Colombia, Ecuador, France, Poland, India, and Indonesia among others. In addition, the company has continuously aimed to expand its product portfolio and global presence by acquiring other companies in the past including EIGSA (Empresa Industrializadora de Guadalajara, S.A. de C.V.), and Penrith Akers among others. Also, it has an 85,000 sq. ft. warehouse facility located in Illinois which proves to be favorable for timely distribution activities.

• Sigma-Aldrich (Millipore Sigma) - Sigma-Aldrich (Millipore Sigma) is a global manufacturer and distributor of chemicals and substances used in laboratory research. The company works in three business areas: Research Solutions, Process Solutions, and Applied Solutions. It has a 300,000-product portfolio that includes acids and bases, antibodies, biochemicals and reagents, enzymes, inhibitors and substrates, flavors and fragrances, inorganic salts, solvents, and biocompatible and biodegradable materials for the pharmaceutical, food, beverage, cosmetics, and personal care industries. The corporation has a presence in 66 countries, including 60 production sites and 130 life science distribution centers. As of 2019, the firm is a subsidiary of Merck KGaA Darmstadt.

• T. Hasegawa Co., Ltd. - T. Hasegawa Co., Ltd. Develops and distributes flavor and fragrance ingredients, food additives, aromatic compounds, and food products globally. The company works in two main segments: flavors and fragrances. The flavors business section provides flavor ingredients for drinks, frozen desserts, confectioneries, dairy products, chewing gum, and quick food formulations, while the fragrance segment provides ingredients for fragrances, skin-care, hair-care, and body-care products. The firm has a global presence, with operational locations in North America, China, and Japan.

• ROBERTET GROUP - ROBERTS GROUP is a company that specializes in the creation and distribution of unique ingredients for various industries such as flavor, fragrance, cosmetics, food & beverage, and healthcare. Furthermore, the company takes pride in its in-house development of flavors and fragrances, which it supplies to end-use industries for the formulation of consumer products. The company's operations are divided into four main divisions: natural raw material, flavor, fragrance, and active ingredients. The division of raw materials is responsible for the production of a diverse range of ingredients including essential oils, aroma chemicals, fractions, isolates, Oleoresins, and floral extracts, among others. These ingredients find applications in aromatherapy, fragrance, flavor, health, and beauty sectors. The flavors division of the company provides innovative solutions for food and pharmaceutical applications, which are incorporated into products such as ready-to-eat meals, dairy products, confectionery items, and flavored beverages.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Biotech Ingredients Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2019, historic information from 2016 to 2018, and forecast from 2020 to 2027). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Biotech Ingredients Market Report Assumptions:

• The report provides market value for the base year 2019 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.