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.
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.
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.
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.
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
Report Attribute |
Details |
Market size value in 2023 |
USD 75.00 billion |
Revenue forecast in 2030 |
USD 120.9 billion |
Growth rate |
CAGR of 6.9% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD million/billion, volume in kilotons, and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Germany; U.K.; France; China; India; Japan |
Key companies profiled |
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 |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global fermentation chemicals market size was estimated at USD 71.16 billion in 2022 and is expected to reach USD 75 billion in 2023.
b. The global fermentation chemicals market is expected to grow at a compound annual growth rate of 6.9% from 2023 to 2030.
b. North America dominated the fermentation chemicals market with a share of 34.2% in 2022. This is attributable to expanding pharmaceutical industry in countries such as Mexico and the U.S. is expected to surge the demand for fermentation chemicals.
b. Some of the key players in the fermentation chemicals market include Novozymes, DSM, Dupont Danisco, Chr. Hansen Holding A/S, Evonik Industries AG
b. The factors driving the fermentation chemicals market include eco-friendly nature of the products and high growth in the end-use industries.
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Demand across the organic chemicals sector shall register a slump in growth albeit increasing demand for certain chemicals that find end applications in healthcare and food. Furthermore, China, a major supplier of chemicals to the world, registered a considerable decline in manufacturing in the first quarter of 2020, following the trajectory unfolded by COVID-19's escalation to a pandemic. This has led to an imbalance in supply-demand dynamics, forcing manufacturers and customers alike to renegotiate supply agreements. The report will account for Covid19 as a key market contributor.
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