Fermentation Chemicals Market Size, Share & Trends Analysis Report By Application (Plastics & Fibers, Industrial), By Product (Organic Acids, Alcohols), By Region (Asia Pacific, North America), And Segment Forecasts, 2023 - 2030

Report Overview

The global fermentation chemicals market size was valued at USD 71.16 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.9% from 2023 to 2030. The growth is attributed to the rising demand for bio-based feedstock, especially in industrial biotechnology.The need for fermentation chemicals is further expected to increase due to the high demand for methanol and ethanol as well as the need to meet demands from different chemicals and industrial end-use applications. In addition, the demand rise will be significantly impacted by a similar, seemingly larger demand for various organic acids from fiber as well as plastic manufacturing makers.

The chemicals, which are usually used in many end-user sectors to speed up chemical reactions, are known as fermentation chemicals. In comparison to chemicals made from petroleum, these are environmentally friendly & beneficial, and less expensive. Moreover, owing to their ability to reduce manufacturing time by accelerating reaction rates, these chemicals are predicted to have high demand during the forecast period. In contrast to their synthetic counterparts (chemicals made from petroleum), fermentation chemicals are distinguished by their eco-friendliness, and they are becoming more and more popular around the world.

They are primarily made from environmentally safe vegetable feedstocks like starch, sugar, and corn. In addition, when contrasted on a nominal scale index, the raw materials needed include sugar and starch, which are more affordable than petrochemicals. Fermentation chemicals have been developed as a result of the above-mentioned factors. To reduce the level of reliance on petrochemicals, major chemical manufacturing companies have moved their attention to bio-based raw resources. The trend toward the creation of sustainable and biodegradable solvents is primarily driven by fluctuations in crude oil costs, as well as increased concerns about carbon emissions and the degradability of petrochemical-based goods.

These factors have created numerous growth opportunities for the industry. However, the technique utilized to produce fermentation compounds is pricy and necessitates extensiveR&D. In addition, the quality of the feedstocks is crucial for the synthesis of fermentation chemicals since high-quality feedstocks result in higher yields. Moreover, the method for producing fermentation compounds from bio-based raw materials is still in the development phase. Such factors are likely to restrain the growth opportunities for the product market in the coming years.

Product Insights

The alcohol product segment dominated the industry in 2022 and accounted for the largest share of more than 53.30% of the overall revenue. This is attributed to the rising application scope of the product in various end-use industries, such as beverages and pharmaceuticals. In addition, the product is also used in industrial applications as a solvent. Carbohydrase, protease, lipases, cellulase, pectinase rennin, polymerases, nucleases, and other enzymes are examples of enzymes. Proteins called enzymes serve as a catalyst in biological processes. Enzymes’ primary purpose is to speed up reactions without changing their chemical makeup.

They are extensively used in industrial and chemical applications. Acids having pKa values of 3 (carboxylic) or above are considered organic acids (phenolic). Itaconic acid, kojic acid, acetic acid, gluconic acid, 2-ketoglutaric acid, 5-ketoglutaric acid, -ketoglutaric acid, malic acid, propionic acid, fumaric acid, lactic acid, and citric acid are other categories for these. Modern fermentation technology has made it possible to produce organic acids on a large scale. Because they can stop bacteria from growing and extend a product's shelf life, organic acids like fumaric acid, tartaric acid, and lactic acid are frequently employed as food preservatives.

Application Insights

The industrial application segment dominated the global industry in 2022 and accounted for the highest share of more than 41.70% of the total revenue. Its high share is attributed to the increased investments in biotechnology, R&D, and production from renewable raw materials. Formulation from lignocellulosic feedstock, however, has its own disadvantages, including low conversion and comparatively fewer applications of directly biosynthesized fermentation chemicals. This process necessitates the fermentation of carbohydrates. Demand for food and drinks is anticipated to increase as the global population grows. This is expected to directly benefit the industry.

Dairy products like cheese, sour cream, yogurt, and kefir; food additives like flavors; alcoholic beverages like distilled spirits, beer, and wine; plant products like sauerkraut, bread, coffee, soy, sauce, and tofu; and fermented meat & fish like salami and pepperoni are among the food items that are traditionally produced through fermentation chemicals. Growing health concerns are estimated to be advantageous for fermentation chemicals used in medicine & food products. Fermentation techniques are used to create the majority of the goods used in the production of pharmaceuticals, including recombinant proteins. The fermentation of sugars obtained from yeast or bacteria also yields nutritional additions like vitamins and proteins.

Regional Insights

North America dominated the industry in 2022 and accounted for with highest revenue share of 34.2%. This is attributed to a rise in the consumption of chemicals by numerous industries like pharmaceuticals, industrial, and food & beverages. In addition, the growing pharmaceutical industry in countries, such as the U.S., Mexico, and Canada, is anticipated to boost the demand in North America. Europe is run by major industrial economies, such as the U.K., Germany, France, and Italy. It is characterized by the presence of an increasing number of manufacturers and suppliers of food & beverage, cosmetics, and pharmaceutical products penetrating the regional ecosystem.

The presence of major cosmetic manufacturing companies in the region is expected to drive the demand for fermentation chemicals. Pharmaceutical, personal care & cosmetics, and food & beverage applications all have an impact on the demand for fermentation chemicals. The rising purchasing power parity, high-income levels, and growing populations in nations like China and India have contributed to the increased demand for the aforementioned goods. In addition, over the projection period, a lot of industries are expected to see an increase in demand for fermentation chemicals due to the rising number of food & beverage start-ups, particularly in India.

Key Companies & Market Share Insights

Due to the presence of numerous international corporations that are active in ongoing research and development, the industry is quite competitive. Key companies have a variety of products for each application market and a strong global brand presence. To maximize profit at the lowest possible investment, most of these companies have integrated their business activities throughout the value chain.

To obtain an advantage in the cutthroat market environment, international corporations are also concentrating on capacity increases, negotiating cooperation agreements with distributors, and implementing many other operational tactics. For instance, businesses like Novozymes are purchasing reputable distributors all over the world based on their channel and market presence to improve their product placement and thus grab a larger share in a specific region. Some prominent players in the global fermentation chemicals market include:

• BASF SE

• Novozymes

• DuPont Danisco

• DSM

• Amano Enzymes USA Co., Ltd.

• AB Enzymes

• Chr. Hansen Holding A/S

• Dow

• Evonik Industries AG

• Cargill, Inc.

• Ajinomoto Co., Inc.

• ADM

Fermentation Chemicals Market Report Scope

Global Fermentation Chemicals Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global fermentation chemicals market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Alcohols

  • Enzymes

  • Organic Acids

  • Other Products

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Industrial Application

  • Food & Beverages

  • Nutritional And Pharmaceutical

  • Plastics And Fibers

  • Other Applications

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa