White biotechnology market is estimated to witness high growth, owing to growing demand for biofuels and renewable energy sources
Global white biotechnology market is estimated to be valued at USD 304.10 Bn in 2024, exhibiting a CAGR of 10.2% over the forecast period 2024-2031. The market is witnessing steady growth due to rising demand for renewable energy sources and biofuels. Furthermore, growing environmental concerns and initiatives taken by various governments to promote the use of bio-based products can drive the market growth.
Market Dynamics:
Growing demand for biofuels: With depleting petroleum reserves and rising environmental pollution from fossil fuels, there has been huge demand for renewable biofuels such as biodiesel and bioethanol. White biotechnology helps in developing sustainable biofuels from biomass that can substitute or reduce the dependence on petroleum-based fuels.
Increasing initiatives to promote bio-based products: Governments across major economies are launching various initiatives and programs to endorse the production and use of bio-based chemicals, materials, and fuels. Substantial funding and incentives are encouraging investments in R&D activities involving white biotechnology. For instance, the U.S. government announced the Bio Preferred program in 2002 to promote the increased procurement and use of bio-based products.
Increasing Demand for Renewable and Sustainable Products
Global white biotechnology market growth is driven by increasing demand for renewable and sustainable products from consumers and industries. White biotechnology uses bioprocesses to produce industrial products like chemicals, materials and fuels through sustainable biological processes rather than petrochemical processes. Due to rising environmental concerns over fossil fuel usage, industries are looking to switch to greener alternatives. White biotechnology offers renewable biological sources and processes that reduce dependency on oil and cause less pollution.
Stringent Regulations to Reduce Carbon Emissions
Stringent government regulations aimed at reducing carbon emissions from industries can drive the white biotechnology market growth. Regulations like carbon taxes are forcing industries to find technological solutions to lower their carbon footprint. White biotechnology provides innovative biological methods and materials to replace traditional fossil fuel-derived products and manufacture goods more sustainably. The regulatory push towards low-carbon industrial processes is compelling companies to adopt greener biotech solutions.
High Research and Development Costs
Global white biotechnology market growth can be hampered by high R&D costs. Developing new bioprocesses, testing innovative methods and obtaining approvals is a lengthy and expensive process as white biotechnology technologies are emerging and complex to develop compared to conventional chemical methods. R&D investments required to transform breakthroughs into commercially viable products can hamper the market growth.
Lack of Awareness and Acceptance
Lack of sufficient awareness and lack of acceptance of white biotechnology products, especially in developing nations, can hamper the market growth. Most consumers and industries prefer conventional products not realizing the environmental benefits of biotech options. Changing well-established consumer behavior and reluctance to adopt new green solutions hampers the white biotechnology market growth globally. Increased education campaigns are needed to promote this technology's sustainability virtues and build confidence in its products.
Scope for Product Diversification
Global white biotechnology market has vast opportunities to diversify into a wider range of end-use industries and product categories. The focus is on chemicals, materials and fuels. Bioprocesses also have applications in food and feed industries, agriculture, healthcare, and more which are relatively untapped. By developing novel solutions for these sectors, companies can significantly expand their market reach.
Rising Partnerships & Collaborations
Building strategic partnerships can offer market growth opportunities. Collaborations between technology players, research institutions and end users can accelerate commercialization. Partnerships allow sharing of costs and risks, jointly developing customized solutions, gaining required approvals faster, and ensure market readiness. This will not only support international expansion plans but also help smaller companies access new markets.
Link: https://www.coherentmarketinsights.com/market-insight/white-biotechnology-market-3876
Key Development
- In 2021, BASF Venture Capital (BVC) made an investment in Bota Biosciences Ltd (Bota Bio), an industrial synthetic biotech firm based in China. Bota Bio specializes in advancing biotechnology platforms that facilitate cost-effective and sustainable production of valuable products across various industrial sectors such as sweeteners, vitamins, personal care, and crop protection. The field of white biotechnology has created significant opportunities in Japan's functional food and beverage market, driven by growing consumer preference for products with enhanced nutritional benefits.
- In March 2023, Danisco Animal Nutrition introduced AXTRA Prime, an optimized enzyme blend tailored to meet the evolving needs of piglet production in the U.S. The company asserts that it enhances gut health, improves nutrient digestion, and delivers measurable performance benefits in swine.
- In June 2021, Eucodis, a biotechnology company, expanded its Cal B collection with novel immobilized variants, such as EUCODIS CalB01 optimized for organic solvents, EUCODIS CalB02 optimized for aqueous environments, and EUCODIS wildtype-CalB
Key Players: Novozymes, BASF SE, DuPont, Cargill, Inc., Royal DSM N.V., Archer Daniels Midland Company, BioAmber Inc., Lesaffre, Corbion N.V., Evonik Industries AG, Genomatica, Inc., Ginkgo Bioworks, Amyris Inc., TerraVia Holdings, Inc, Metabolic Explorer SA, Codexis Inc., Danisco A/S, Biocatalysts Ltd.
