A global shift towards bio based products coupled with end-use applications in the pharmaceutical and food & beverage industries is expected to be a key driving factor for the biotechnology based chemicals market growth over the next seven years. The pharmaceutical industry is the dominant biotechnology based chemicals consumer owing to increasing natural medicines demand compared to its counterparts such as synthetic chemicals. Rising awareness regarding ill effects associated with chemical drugs intake is anticipated to positively impact the biotechnology based chemicals industry over the forecast period. The animal feed industry is one of the key biotechnology based chemicals consumer. Biotechnology based chemicals market is slated to witness significant growth due to increasing lysine demand in the animal feed industry. Rising demand for polylactic acid (PLA) plastics manufacturing will require increasing lactic acid quantity. This in turn is expected to augment the biotechnology based chemicals market growth over the forecast period. Industrial biotechnology offers processes with reduced carbon footprints and greenhouse gas emissions (GNG) compared to petroleum products. These are cleaner and utilize less energy than synthetic processes. This in turn is expected to drive biotechnology based chemicals market growth. Biotechnology based chemicals products, a niche operation in terms of world chemical production, are anticipated to witness significant growth owing to rapid industrial biotechnology advancement coupled with crude oil price rise. This factor is anticipated to result in higher penetration of the biotechnology based chemicals market. Biotechnology based chemicals include lactic acid, lysine, glutamic acid, polyhydroxyalkanoates threonine, and citric acid. The most widely used amino acid manufactured as well as consumed in the world is glutamic acid. High raw material and processing cost is anticipated to hinder biotechnology based chemicals market growth and pose challenges to industry participants over the forecast period. With the dominant petroleum industry, there is a need to convert under-utilized biological material into useful products. Increasing bio based chemicals application addresses industrial needs through biological material products and processes. Growing industrial needs such as exploration and production (E&P) activities is expected to offer lucrative opportunities for industry participants over the forecast period. A new value chain starting with bio based feedstock and bio refineries at core is expected to yield immense opportunities to industry participants and augment the biotechnology based chemicals market.
Asia Pacific is expected to emerge as a key region for the biotechnology based chemicals market owing to growing pharmaceutical industry in emerging economies such as China and India. Rising citric acid demand from food & beverage industry in China is expected to positively impact biotechnology based chemicals market growth in the region over the forecast period. Shift in consumer preferences towards bio based products usage owing to increasing awareness regarding health hazards associated with non-bio based products is projected to drive biotechnology based chemicals market growth in North America and Europe. Dominant animal feed industry presence in China and the U.S. due to increasing lysine application as a supplement in swine and poultry feeds is expected to complement market growth over the forecast period. The U.S. has many existing biorefineries, which process corn into sugars, oils, food ingredients, and animal feeds. Europe is expected to witness considerable market growth over the next seven years. However, there are certain hurdles such as lacking industry knowledge and applicable policies forcing shift in production capacities outside Europe despite the technological knowhow in the region.
Biotechnology based chemicals market price depends on raw material and processing technology cost. Only a fraction of available biomass is utilized in biotechnology based chemicals production owing to high conversion costs, which has resulted in underutilization of resources. R&D is highly expensive while pilot plants require huge investments. Long term biotechnology based chemicals market growth depends on cost competitive technology development which is influenced by scale and access to diverse markets and biomass availability at low cost. This is expected to be one of the strategies adopted by producers to sustain and grow in this market over the forecast period. Major players operating in global biotechnology based chemicals market include Kemin Europa, Clariant, JC Biotech, Rossari Biotech Ltd., BioAmber, Inc., Krishnai Biotech, and Stora Enso.
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The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries. The report will account for Covid19 as a key market contributor.