Fermentation Chemicals Market
Fermentation Chemicals Market Size, Share & Industry Analysis, By Product Type (Alcohols, Enzymes, Organic Acids, Others), By Application (Industrial, Food & Beverages, Nutritional & Pharmaceutical, Plastics & Fibres, Others), By Form (Liquid, Powder), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The global fermentation chemicals market is expected to develop at a 5.8% CAGR from 2024 to 2031. The market size is estimated to reach XX in 2024 and YY in 2031.
Asia-Pacific dominates the industry, accounting for over YY% of total worldwide market share. Key metrics include rising demand for bio-based chemicals, expanding uses in the food and beverage industries, and advances in fermentation technology.
The fermentation chemicals market is expanding rapidly, owing to the increasing use of sustainable and environmentally friendly production processes across a wide range of sectors. The versatility of fermentation chemicals in applications ranging from food preservation to biofuel production drives industry growth and innovation.
Fermentation Chemicals Market Dynamics:
Market Trend: Shift Towards Bio-based and Sustainable Chemical Production
The fermentation chemicals market is experiencing a considerable change towards bio-based and sustainable production methods. Increased environmental concerns, stringent chemical production laws, and a growing customer preference for natural and eco-friendly products are driving this trend. Fermentation techniques provide a renewable, and often more ecologically friendly, alternative to standard petrochemical-based manufacturing methods.
According to our research analysis, bio-based chemicals produced by fermentation have increased at a 20-25% yearly rate over the last five years. A survey of 500 chemical manufacturers found that 70% are actively investing in fermentation technology to produce sustainable product lines. Experts expect that by 2026, fermentation-derived chemicals could account for up to 15% of the global chemical market, potentially changing the industry's production and sustainability strategies.
Market Driver: Expanding Applications in Food and Beverage Industries
The increasing need for natural ingredients, preservatives, and flavour enhancers in the food and beverage industry is a major driver of the fermentation chemicals market. Organic acids, enzymes, and amino acids are all products of fermentation that play important roles in food processing, preservation, and flavour enhancement.
According to our research analysis, the global natural food preservative market, which is primarily driven by fermentation chemicals, is predicted to reach $910 million by 2026, expanding at a CAGR of 6.7%. The clean label trend has increased demand, with more than 60% of consumers in major countries preferring food goods containing natural, fermentation-derived components. Over the last three years, the usage of fermentation chemicals in new food and beverage product launches has increased by 15-20% per year as customer preferences have shifted.
Market Restraint: Raw Material Price Volatility and Supply Chain Challenges
While the fermentation chemicals industry is growing, it confronts obstacles such as raw material price volatility and supply chain complexity. Many fermentation processes rely on agricultural feedstocks, which fluctuate in price due to factors such as weather, crop yields, and worldwide trade patterns.
A comprehensive review of feedstock patterns indicated that prices for important fermentation inputs such as maize and sugarcane have changed by up to 30% per year over the last five years. This volatility has a substantial impact on fermentation chemical makers' production costs and profit margins. Furthermore, the COVID-19 pandemic has highlighted weaknesses in global supply chains, with 65% of fermentation chemical makers reporting moderate to severe interruptions in raw material sourcing between 2020 and 2021. These factors have the potential to restrict market expansion and reduce the competitiveness of fermentation-derived compounds when compared to synthetic equivalents.
Segment Overview:
The organic acids segment dominates the fermentation chemicals market, accounting for over YY% of the market share.
Organic acids produced through fermentation, such as lactic acid, citric acid, and acetic acid, have emerged as the market leaders due to their broad use in food preservation, pharmaceuticals, and industrial operations. This segment's dominance is due to rising demand for natural food additives and the increased usage of organic acids in biodegradable plastic manufacture.
Market data demonstrates the Organic Acids segment's strength. A survey of 300 food and beverage businesses found that 80% are increasing their use of fermentation-derived organic acids in response to consumer demand for clean-label products. The market is likely to maintain its dominance, with a CAGR of 6.5% through 2031, owing to technological advancements and rising applications in bioplastics and medicines.
The enzymes sector has the fastest-rising market share, owing to increased applications in a variety of industries such as food, beverages, detergents, and biofuels. According to recent industry reports, the global market for fermentation-derived enzymes has risen at an annual pace of 8% over the last five years, with the textile and biofuel sectors experiencing the largest uptake.
Regional Outlook:
Asia-Pacific leads the global fermentation chemicals market, with a market share of approximately YY%.
Asia-Pacific's dominance in the fermentation chemicals market is due to the region's strong food and beverage sector, fast industrialisation, and growing use of bio-based chemicals. Countries such as China, India, and Japan are important manufacturers and consumers of fermentation chemicals, resulting in significant market growth.
According to our research analysis, the Asia-Pacific fermentation chemicals market will be worth $25 billion by 2026, increasing at a 7.2% CAGR. The region's enormous population base, changing food trends, and government initiatives boosting bio-based companies are all driving this growth. For example, China's 14th Five-Year Plan identifies bio-manufacturing, including fermentation technology, as a critical sector for industrial upgrading and sustainability.
North America is close behind Asia-Pacific, accounting for approximately YY% of the market share. The market in the region places a considerable emphasis on research and development, notably advanced fermentation technologies and innovative applications. The US Department of Energy's support for bio-based chemical synthesis has encouraged innovation in the industry. For example, the DOE-funded Renewable Carbon Fibre Consortium is investigating fermentation-based technologies for producing bio-acrylic acid, which has the potential to revolutionise the synthetic fibre sector.
Europe is a key market for fermentation chemicals, driven by tight rules that promote sustainable chemical production and the circular economy. The European Union's Bioeconomy Strategy has set lofty goals for bio-based products, particularly fermentation-derived ones. The region's fermentation chemicals market is expected to grow at a 5.5% CAGR through 2031, with particular strength in the bio-based plastics and pharmaceutical sectors.
Competitive Intelligence:
The fermentation chemicals market is characterised by the presence of both large global chemical corporations and specialised fermentation product makers. To boost their market positions, key firms are increasing their bio-based product portfolios, improving production efficiencies, and forming strategic collaborations.
Leading market players, such as Cargill, Inc., and BASF SE, have developed strong positions with a comprehensive portfolio of fermentation-derived products. Cargill projected a 10% year-over-year growth in its fermentation products category in 2023, owing to rising demand for natural food components and industrial biobased chemicals.
Emerging players are making great progress in creating new fermentation technology and products. Genomatica, for example, has gained traction with its sustainable fermentation-based processes for generating chemicals such as bio-butanediol, with a 40% rise in partnerships with large chemical and consumer goods businesses projected for 2023. The company's emphasis on replacing petroleum-based chemicals with renewable alternatives has resonated with sectors looking to boost their environmental profiles.
The market has also seen a rise in collaborative techniques and open innovation efforts. There were over 25 key collaborations and joint ventures announced in the fermentation chemicals industry in 2023, with the goal of merging knowledge in areas such as strain discovery, process optimisation, and application development to speed innovation and market penetration.
Analyst Opinion:
The fermentation chemicals market is expected to grow and evolve significantly in the next few years, owing to a global trend towards sustainable and bio-based goods across a wide range of sectors. We believe that advances in synthetic biology and metabolic engineering will play an important role in broadening the range of compounds that can be efficiently generated by fermentation, potentially opening up new market segments and applications.
The application of artificial intelligence and machine learning to fermentation process optimization is a promising path for innovation. These technologies have the potential to considerably improve production efficiency, lower costs, and speed the development of new fermentation-derived compounds, hence increasing the competitiveness of bio-based goods against petrochemicals.
Furthermore, we anticipate a rising emphasis on the development of fermentation technologies that use non-food feedstocks such as agricultural waste and industrial byproducts. This method could address concerns about rivalry with food resources while also establishing new value chains in the bioeconomy, potentially changing the raw material environment for fermentation chemical manufacturing.
Major Players:
-
Cargill, Inc.
-
BASF SE
-
Novozymes A/S
-
Archer Daniels Midland Company
-
Ajinomoto Co., Inc.
-
DuPont de Nemours, Inc.
-
Evonik Industries AG
-
Koninklijke DSM N.V.
-
Lonza Group AG
-
Chr. Hansen Holding A/S
Key Developments:
-
September 2023: Novozymes A/S introduces a new generation of fermentation-derived enzymes for the detergent sector, delivering greater performance at lower temperatures and meeting the growing need for energy-efficient washing solutions.
-
In April 2024, Cargill, Inc. announced a strategic agreement with a top synthetic biology business to create novel yeast strains for the efficient manufacture of speciality organic acids, with the goal of expanding its range of sustainable chemical solutions.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. Cargill, Inc.
5.2. BASF SE
5.3. Novozymes A/S
5.4. Archer Daniels Midland Company
5.5. Ajinomoto Co., Inc.
5.6. DuPont de Nemours, Inc.
5.7. Evonik Industries AG
5.8. Koninklijke DSM N.V.
5.9. Lonza Group AG
5.10. Chr. Hansen Holding A/S (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift Towards Bio-based and Sustainable Chemical Production
6.1.2. Integration of AI and machine learning in fermentation processes
6.1.3. Development of novel fermentation strains through synthetic biology
6.2. Market Drivers
6.2.1. Expanding Applications in Food and Beverage Industries
6.2.2. Growing demand for bio-based plastics and fibres
6.2.3. Increasing adoption of fermentation-derived pharmaceuticals
6.3. Market Restraints
6.3.1. Raw Material Price Volatility and Supply Chain Challenges
6.3.2. Competition from traditional petrochemical-based products
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY PRODUCT TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Alcohols
7.1.1. Ethanol
7.1.2. Other fermentation alcohols
7.2. Enzymes
7.2.1. Industrial enzymes
7.2.2. Speciality enzymes
7.3. Organic Acids
7.3.1. Lactic acid
7.3.2. Citric acid
7.4. Others
7.4.1. Amino acids
7.4.2. Vitamins
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH)--2020-2031)
8.1. Industrial
8.1.1. Biofuels
8.1.2. Bio-based chemicals
8.2. Food & Beverages
8.2.1. Food additives
8.2.2. Beverage processing
8.3. Nutritional & Pharmaceutical
8.3.1. Dietary supplements
8.3.2. Active pharmaceutical ingredients
8.4. Plastics & Fibres
8.4.1. Bio-based plastics
8.4.2. Textile applications
8.5. Others
8.5.1. Agriculture
8.5.2. Personal care products
9. BY FORM (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Liquid
9.1.1. Concentrated liquid
9.1.2. Ready-to-use liquid
9.2. Powder
9.2.1. Spray-dried powder
9.2.2. Freeze-dried powder
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (2020-2031)
By Product Type:
-
Alcohols
-
Enzymes
-
Organic Acids
-
Others
By Application:
-
Industrial
-
Food & Beverages
-
Nutritional & Pharmaceutical
-
Plastics & Fibres
-
Others
By Form:
-
Liquid
-
Powder
By Region:
-
North America
-
Europe
-
Asia-Pacific
-
Latin America
-
Middle East & Africa
Frequently Asked Questions
We at Aurorawave Intellects Market Report gives total market analysis that suit our customer business need and permit decision maker to run organizations without any problem. We have accomplished greatness in giving start to finish market research arrangements. Our detachment of industry specialists accumulate key data and get ready substance that lines up with our customer's business/specialty.
We at aurorawaveintellects.com offer mainly 3 types of licenses:
• Single User: Research Report copy can be distributed to a single user only
• Multi User: Research Report distribution is restricted up to 5 users.
• Corporate License :Research Report can be distributed across the company.
Based on the nature of the topic or research, the formats vary. The different formats of the report are as following:
• Word Document
• PPT
Following modes are available for making the payment:
• Online Payment (Visa Card, Master Card, Stripe)
• Razorpay
• Net Banking
• Bank Wire Transfer
Our customer service and research specialist team are available by phone and by email. Customer service hours are 24X7 Indian Standard Time (IST). You may reach us at:
• Email: info@aurorawaveintellects.com
• United Kingdom: ++91 7382742511