Fermentation Chemicals Market Size, Share & Segmentation By Product (Alcohols, Amino Acids, Enzymes, Organic Acids, And Other), By Application (Industrial Application, Cosmetic & Toiletry, Plastics & Fibers, Food & Beverages, Nutritional & Pharmaceutical, And Others), By Region And Global Forecast For 2024-2032

Fermentation Chemicals Market Report Scope & Overview:

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The Fermentation Chemicals Market Size was valued at USD 74.50 billion in 2023 and is expected to reach USD 132.04 billion by 2032 and grow at a CAGR of 7.54% over the forecast period 2024-2032.

The Fermentation Chemicals Market is driven by factors such as increasing demand for pharmaceutical products, growing awareness of the benefits of fermented food and beverages, and the rising need for sustainable industrial practices. The rise in demand for bio-based feedstock, particularly in industrial biotechnology, is credited with the expansion. Due to the increasing need for methanol and ethanol as well as to meet demands from various chemicals and industrial end-use applications, it is anticipated that the need for fermentation chemicals will only grow. Additionally, a similar, presumably greater demand for other organic acids from producers of fiber and plastic will have a major influence on the rise over the coming years.

For example, Evonik Industries announced the release of "Vecollan," a very pure and soluble collagen made through fermentation, in July 2022. This collagen is not obtained from animals. Its triple-helix structure, which is derived from a fermentation-based production technique, replicates the characteristics of natural collagen and makes it appropriate for use in pharmaceutical, medical, and other life science applications.

Moreover, In the pharmaceutical sector, fermentation chemicals are utilized in the production of antibiotics, vaccines, and other medicinal products. The food and beverage industry also heavily relies on fermentation chemicals. They are used in the production of alcoholic beverages, such as beer and wine, as well as in the manufacturing of dairy products, bread, and pickles. Fermentation chemicals enhance the flavor, texture, and shelf life of these products, meeting the demands of consumers and ensuring their satisfaction. Furthermore, fermentation chemicals find extensive applications in industrial processes. They are used in the production of biofuels, bioplastics, and various chemicals used in the manufacturing sector. These chemicals offer a sustainable and eco-friendly alternative to traditional chemical production methods, contributing to the global efforts towards a greener future

Fermentation chemicals are produced using an expensive process that takes a lot of research and development. Furthermore, because high-quality feedstocks produce better yields, feedstock quality is critical to the synthesis of fermentation chemicals. The development of this costly and still-emerging approach for generating chemicals from bio-based basic materials is ongoing. These elements are probably going to limit the product market's potential for expansion in the upcoming years.

Drivers

• ​​Increasing awareness about the benefits of fermentation-based products drives the market growth.

Fermentation, the biological process involves the breakdown of complex compounds by microorganisms, resulting in the production of various chemicals and substances. These fermentation-based products have found applications in diverse industries such as food and beverages, pharmaceuticals, and biofuels. One of the key reasons for the rising awareness about fermentation-based products is their potential to enhance food preservation and nutritional value. Fermented foods, such as yogurt, cheese, and sauerkraut, not only have an extended shelf life but also offer improved digestibility and increased nutrient content. This has led to a growing demand for such products among health-conscious consumers.

Furthermore, fermentation plays a crucial role in the production of pharmaceuticals and biopharmaceuticals. The process enables the synthesis of essential drugs, vaccines, and therapeutic proteins. These fermentation-derived pharmaceuticals have proven to be effective in treating various diseases and medical conditions, contributing to the overall growth of the pharmaceutical industry. Additionally, the utilization of fermentation in the production of biofuels has gained significant traction in recent years. Biofuels, such as ethanol and biodiesel, offer a sustainable alternative to fossil fuels, reducing greenhouse gas emissions and promoting environmental conservation. As a result, governments and industries worldwide are increasingly investing in fermentation-based biofuel production, driving the demand for fermentation chemicals.

Restraint

• More dependency on raw materials hampers market growth.

Fermentation chemicals rely on specific feedstocks such as sugarcane, starch, and corn. Fluctuations in the availability or price of this raw material may impact the production and revenue of the product which may hamper the market growth.

Opportunities

• Increasing demand for specialty chemicals and the development of novel fermentation techniques

Market segmentation

By Product

• Alcohols

• Amino Acids

• Enzymes

• Organic Acids

• Others

Alcohol product type dominated the market with the highest revenue share of more than 57.22% in 2023. The fermentation indicates that the activity of microbes is beneficial. Alcoholic beverages including wine, beer, and cider are made by fermentation. Dairy products and leavening bread are further products of fermentation. The food and beverage business has a strong demand for fermentation chemicals since it is the oldest biotechnology that humans have utilized to generate safer, more stable, and superior food products.

Organic acid demand is also rising in the upcoming time such as acids classified as organic (phenolic) have pKa values of three (carboxylic) or higher. Other names for them include malic acid, propionic acid, fumaric acid, lactic acid, citric acid, kojic acid, acetic acid, gluconic acid, 2-ketoglutaric acid, 5-ketoglutaric acid, and -ketoglutaric acid. It is now feasible to generate organic acids on a big scale thanks to modern technologies. since they can prolong a product's shelf life and prevent the growth of microorganisms. Food preservatives often contain organic acids such as lactic acid, fumaric acid, and tartaric acid.

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By Application

• Industrial Application

• Cosmetic & Toiletry

• Plastics & Fibers

• Food & Beverages

• Nutritional & Pharmaceutical

• Others

The industrial application dominated the market with the highest revenue share of more than 43% in 2023. The high proportion can be attributed to rising biotechnology, research and development, and production from renewable raw materials investments. Low conversion and relatively few applications of directly biosynthesized fermentation chemicals are among the drawbacks of formulating from lignocellulosic feedstock, nevertheless.

The food & beverage are anticipated to expand at the fastest compound annual growth rate (CAGR) during the projected period. Food and beverage demand is expected to rise in tandem with the world population growth. Food items that are traditionally produced through fermentation chemicals include 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 and fish like salami and pepperoni.

Regional Analysis

North America dominated the fermentation chemical market with the highest revenue share of about 37% in 2023. This dominance is due to the increasing consumption of chemicals across various industries, including pharmaceuticals, industrial, and food & beverages. Moreover, the thriving pharmaceutical sector in countries like the United States, Mexico, and Canada is expected to further fuel the demand for fermentation chemicals in North America. Furthermore, the region's strong presence of major cosmetic manufacturing companies is anticipated to drive the demand for fermentation chemicals. These companies rely heavily on fermentation chemicals to enhance the quality and effectiveness of their products. As a result, the demand for fermentation chemicals is projected to witness significant growth in North America.

For instance, As customer demand for plant-based products rises, in March 2022 Nestle SA will invest USD 675 million in a new plant in Metro Phoenix, Arizona, to create beverages, including oat milk coffee creamers. In 2024, the plant is anticipated to begin operations.

Asia Pacific is expected to grow with the highest CAGR of about 6.9% in the fermentation chemical market during the forecast period of 2024-2031. The expected growth in this region is attributed to the increasing purchasing power parity, high-income levels, and expanding populations in countries such as China and India. These factors have led to a surge in demand for fermentation chemicals. Moreover, the forecast period anticipates a significant rise in demand for fermentation chemicals across various industries, driven by the growing number of food and beverage start-ups, particularly in India.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of the Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

Key Players

The major key players are AB Enzymes, BASF SE, DuPont Danisco, Dow, Evonik Industries AG, Chr. Hansen Holding A/S, Amano Enzymes USA Co. Ltd., Cargill, Inc., ADM, Novozymes, Ajinomoto Co., Inc., and other key players mentioned in the final report.

Recent Development:

• In 2023, ADM and Solugen announced that they will be manufacturing plant-based specialty chemicals, including fermentation chemicals. The company intends to manufacture specialty chemicals and bio-based building block molecules to serve the cleaning, personal care, agriculture, and energy industries.

• In July 2022, Novozymes introduced Innova® Apex and Innova® Turbo to their Innova platform. These new additions are specifically designed to optimize fermentation times, allowing ethanol producers to achieve their production targets and business goals more effectively.

• In Jan 2022, BASF expanded the production capacity of their enzyme plant in Ludwigshafen, Germany. This expansion has resulted in a significant increase in the number of feasible fermentation runs that can be conducted annually.