Fermented Ingredients Market Size, Share & Trends Analysis Report By Application (Food & Beverage, Pharmaceuticals), By Product (Vinegar, Cider), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global fermented ingredients market size was valued at USD 22.0 billion in 2018 and is expected to expand at a CAGR of 8.5% in the forecast period. Rising prevalence of digestive problems and obesity as well as increasing health awareness among consumers are some of the key factors for the growth of the market.

Fermented ingredients are acidic in nature, thus are good for digestive problems. These ingredients find application in food preservation and therefore, many manufacturers use them to lengthen the life of their products. This, in turn, is positively influencing the market growth.

Rising global consumption of alcohol is also one of the prominent factors for the growth of the industry. The most preferred alcoholic drink is beer, which is prepared by fermenting various products such as rice and wheat, thus increasing beer consumption will eventually fuel the growth of the market.

Moreover, increasing environmental awareness, eco-friendly production systems, and various health benefits of the product are propelling the demand for the product. High usage of biodegradable plastics that are produced by fermenting sugar is also impacting the growth of the market. For instance, the demand for biodegradable plastics is expected to increase from $1.1 billion in 2018 to $1.7 billion in 2023 due to their vast application in various industries.

Inconsistent availability of raw materials is a key restraining factor that can hinder the market growth in the long term. High cost involved in raw material procurement is another major reason restraining market growth. However, increasing demand in emerging economies such as Africa, India, and China is expected to overcome the effect of the restraining factors and drive the market to the positive side.

The growing biopharmaceutical industry is also expected to drive the market in the forecast period. The biopharma industry is witnessing significant growth due to its high efficiency and is considered to be the most sophisticated and elegant achievement innovation of modern science.

Application Insights

Fermented ingredients find their major application in food and beverage as well as pharmaceuticals. The food and beverage industry dominates the market in terms of usage of the product and it accounted for more than 65.0% share of the global revenue in 2018. Growing population and increasing consumption of various ready to eat foods and drinks are the prominent factors driving the segment. Increasing consumption of beer is also increasing the market share of the food and beverage industry in the global market.

The pharmaceutical industry is the fastest-growing application segment, expanding at a CAGR of 9.3% in the forecast period. The ingredients find their major application in the biopharma industry, which has witnessed robust growth in the last few years. Bio-pharmaceuticals accounts for more than 25.0% share of the overall pharmaceutical industry due to its high efficiency, which, in turn, is expected to propel the segment growth in the forecast period.

Product Insights

The fermented ingredients market is segmented into vinegar, cider, and others based on the product. Vinegar is the most prominent product for fermentation that accounted for more than 40.0% share of the overall revenue in 2018. The growth of the product is attributed to its vast application in bakery and confectionary, dairy, household, and animal feed.

Cider is the fastest-growing product segment, expanding at a CAGR of 9.2% in the forecast period. It finds its application in cleaning, washing hair, preserving food, and improving skin function. Increasing awareness about its application as well as growing usage of preservatives in the food by the manufacturers in order to increase shelf life is expected to drive its demand in the forecast period.

Cider also finds its application in the production of various forms of wine. India is the fastest-growing market for cider due to the increasing consumption of wine in the past few years. The majority of the population is young and thus, they prefer to explore new things, which, in turn, is boosting the growth of the wine market.

Regional Insights

Europe dominated the market in 2018, accounting for 35.0% share of the overall revenue and is expected to witness significant growth in the forecast period. France is a major contributor to market growth and is also the fastest-growing market in Europe. High consumption of alcohol, cheese, and yogurt is a key factor in boosting the market growth in Europe. U.K. also plays a vital role to drive the product demand in the regional market.

Asia Pacific is anticipated to be the fastest-growing regional market, registering a CAGR of 9.6% over the forecast period. The key reason for the growth of the market is the growing population in countries like India and China, westernization, increasing per capita income, and rising awareness about the health benefits of fermented items among youth. India and China account for more than 34.0% of the global population, thereby positively influencing the regional market growth.

Fermented Ingredients Market Share Insights

Key players in the market include Vander Mill; Citizen Cider LLC; India Cocoa; Red Boat; Squid; Lallemand Inc.; Chr. Hansen Holding A/S; Angel Yeast Co. Ltd.; E.I. du Pont de Nemours and Company; and Lonza. The market presents moderate to low entry barriers for the new entrants. The overall market is driven by product innovation by the market players and mergers and acquisitions in the long term. For instance, in 2016, Green Plains acquired Fleischmann’s Vinegar Company, which was the leading vinegar producer.

Fermented Ingredients Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global fermented ingredients market report on the basis of application, product, and region:

• Application Outlook (Revenue, USD Billion, 2015 - 2025)

  • Food & Beverage

  • Pharmaceuticals

  • Others

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Vinegar

  • Cider

  • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • France

    • U.K.

  • Asia Pacific

    • India

    • China

  • Middle East

    • UAE

  • CSA

    • Argentina