FERMENTATION CHEMICALS MARKET ANALYSIS

Global fermentation chemicals market is estimated to reach around US$ 108.41 Billion by 2030, in terms of revenue, exhibiting a CAGR of 6.8% during the forecast period (2023-2030).

 Drivers

Growing demand for fermentation chemicals from the pharmaceutical industry

Strong demand for fermentation chemicals from the pharmaceutical industry is expected to drive the market growth. These chemicals are used in the production of formulation such as anti-acne solutions, parenteral solutions, and ointments. Moreover, it is used in the manufacturing of calcium drugs that are used to treat calcium deficiency problems. Thus, rapid growth in the pharmaceutical industry is expected to drive the market growth of Fermentation Chemicals.

Growing research & development applications

Growing research & development in various end use applications is expected to drive the market growth. Fermentation chemicals act as a base for the many research and experiments in R&D centers. Hence, rising research and development applications is boosting demand for fermentation chemicals.

Restraints

High cost associated with the fermentation of lactic acids

High cost associated with the fermentation of lactic acids is restricting its usage in the dairy industry. This factor is expected to hinder the market growth over the forecast period.The fluctuation of the production process in the fermentation of bacteria, lactic acid, and ethanol is hampering demand for these chemicals. This factor is hindering the market growth.

Opportunity

High demand for bio based products

This market is driven by increasing use of fermentation chemicals in food, pharmaceutical, and plastic manufacturing. High demand for bio-based feed stocks, especially in industrial biotechnology, is expected to boost demand for fermentation chemicals. Demand for methanol and ethanol also contribute to the market growth. Demand for various organic acids from textile and plastic manufacturers is expected to influence the market growth. Fermentation chemicals are considered to be environmentally friendly, beneficial, and inexpensive as compared to petroleum-derived chemicals. 

Trends

Demand for polymer industry

Growing polymer industry due to increasing disposable income and improving standard living of the consumers is expected to drive the market growth. These chemicals are widely used as additives in the production of polymers. Again, it is anticipated that rising consumer spending and a changing industrial application trend toward high-performance polymers will fuel the market expansion of fermentation chemicals.

Growing demand for enzymes from various industries is expected to drive the market growth. Enzymes are widely used skin glow across personal care and cosmetic industry in the production of cosmetic products. A growing sense of fashion coupled with increasing awareness regarding the personal hygiene and aspire to look presentable is driving demand for cosmetic and personal care products. This boosts demand for enzymes, and this is expected to drive the market growth of the fermentation chemicals.

Recent Developments

• On January 14, 2022, Evonik Industries manufacture, leading specialty chemical AG launched a production plant for rhamnolipids. This commercial production facility for bio-based, fully biodegradable rhamnolipids is anticipated to spur market expansion in the cosmetics and toiletries sectors.
• In May 2021, LanzaTech an manufacture and BASF aims to utilize the carbon present in industrial off-gases to synthesize useful compounds. The partners have now achieved an important milestone: they were able to produce n-octanol at a laboratory scale from carbon monoxide and hydrogen, the main components of emissions, such as those from the steel industry. They did this by using specialized bacteria. N-Octanol is an essential chemical used in cosmetics, among other things.
• In May 2021: LanzaTech and BASF teamed up to develop useful compounds using the carbon contained in industrial off-gases.

Regional Analysis

Global Fermentation Chemicals Market Share (%), By Region, 2022North America region dominated the global fermentation chemicals market in 2022, accounting for a 34% share in terms of value, followed by Europe and Asia Pacific, respectively.

Global Fermentation Chemicals Market: Segmentation

Figure 1: Global Fermentation Chemicals Market Share, By Region, 2022

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On the basis of type in 2022, the alcohols segment has accounted for the largest market share of 53.7% in terms of value.

Figure 2: Global Fermentation Chemicals Market by Type in 2022

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Global Fermentation Chemicals Market: Key Companies

Key Companies are Ajinomoto Company Corporation, AB Enzymes, BASF SE, Amano Enzymes Inc., Dow Chemicals, Archer Daniels Midland Company, Novozymes A/S, Cargill Incorporation, Evonik Industries AG, Du Pont Danisco A/S, and DSM

*Definition: Fermentation chemicals are used to initiate the chemical reactions for synthesis of various chemicals. These act as a catalyst or initiators to control the speed of the chemical reaction. These chemicals are widely used in food processing industry for the preparation of food products. Moreover, these are also used in the production of Vitamins.