Fermentation Chemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Alcohol Fermentation, Enzymes, Organic Acids, Others), By Application (Food and Beverages, Pharmaceutical and Nutritional, Plastics and Fibers, Others), By Region, and Competition

Global Fermentation Chemicals Market is expected to grow impressively through 2028 due to the growing demand from the various end use industries such as food and beverages, pharmaceuticals, etc. In 2021, revenue from the e-commerce food and beverages industry in the United States stood at USD 99.3 billion.

Fermentation chemicals are utilized as a catalyst in the process of adding more chemicals to speed up fermentation. These substances act as essential raw components in the manufacturing process of alcohol. Fermentation is the process by which ethanol, the main ingredient in the production of alcoholic beverages, is created. Vegetable feedstocks like corn, sugar, and starch are the major ingredients in these compounds. Due to lack of available feedstocks, most end-use businesses use these products in the fermentation process. The main raw materials used in manufacturing are beet, sugarcane, tapioca, wheat, and corn. These agricultural byproducts are a good source of starch and carbohydrates. As a result, the food industry uses a sizable part of fermentation chemicals.

A significant contributor to industrial development is the use of fermentation chemicals for flavor or to extend the shelf life of products. In the forecast period, it is anticipated that the expansion of personal care products in developing nations would increase the market size of fermentation chemicals. Sales of fermentation chemicals are expected to be primarily driven by increased consumer expenditure on personal care and hygiene goods as well as the economic expansion of developing nations throughout the forecast period.

The market for fermentation chemicals is anticipated to rise quickly because of the rising disposable income and standard of living of customers in the polymer sector. These substances are employed as polymer manufacturing additives. Furthermore, it is projected that rising consumer spending and a changing industrial application trend towards high performance polymers will fuel the market expansion of fermentation chemicals.

It is anticipated that increasing demand for enzymes from numerous end-use industries will accelerate market expansion. In the manufacturing of cosmetic products, enzymes are widely utilised in the personal care and cosmetic industries. Hence,  there is an increase in demand for enzymes, which is causing the market for fermentation chemicals to expand.

Environment-Friendliness of Fermentation Chemicals Driving Market Growth

Several end-user industries develop fermentation chemicals to speed up chemical reactions. Due to their capability to save manufacturing time by accelerating reaction rates, fermentation chemicals are likely to see an increase in demand in the years to come.

The shortage of sufficient supplies of feedstock like sugarcane, corn, and soybean has affected several sectors to turn their attention to fermentation chemicals. The demand for the product is also anticipated to rise when petrochemicals are replaced by bio-based chemicals. The primary factors driving the transition to bio-based chemicals are rising crude oil prices and growing worries about carbon emissions.

Pharmaceuticals, textiles, metals, personal care & cosmetics, among other end-use sectors, are just a few of the places where fermentation chemicals are used. The demand for fermentation chemicals has risen drastically over the past few years as consumers need medications, processed foods, and other end-use products more regularly. Due to the existence of a considerable number of manufacturing firms and the growing trend of consumers consuming organic products, the demand is projected to be more pronounced globally.

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Increasing Demand from Various End Use Industries is Driving Market Growth

Pharmaceuticals, textiles, metals, personal care & cosmetics, among other end-use sectors, are some industries where fermentation chemicals are used. The recent increase in demand for end-use items including processed foods, medications, and nutritional supplements has resulted in a significant increase in demand for these chemicals. The demand is projected to be more pronounced in the Asia-Pacific region because of a sizable number of manufacturing businesses and the expanding trend of consumers consuming organic products.

The expansion of the worldwide PHA market is being driven by the rising safety concerns regarding the disposal of plastic and overflowing landfills. After fermentation, bacterial cells containing PHAs are separated from the medium by centrifugation. PHA has grown recently, and the trend is anticipated to continue during the projection period. Government sanctions that make bioplastics packaging mandatory with incentives for green packaging enterprises in the form of tax rebates have pushed the expansion of PHA. Over the forecast period, the global market for fermentation chemicals is anticipated to be driven by the rising demand for PHA.

Increasing Demand of Meat will Drive Market Growth

Animal raising need natural feedstock and amino acids. With the help of animal muscle tissues amino acids can be formed. As amino acids make it possible to use feedstock more effectively, it is projected that the market for fermentation chemicals will grow. Key players are focusing on increasing their ability to synthesize amino acids to meet the growing demand globally.

Complex and Expensive Manufacturing Process is a Major Challenge to the Fermentation Chemicals Market

Industrial fermentation is a sophisticated, multistep process used to produce goods including bioplastics, biofuels, polymers (such as xanthan, polyhydroxyalkanoates (PHA), and polylactic acid (PLA), and composites. High levels of expertise and capital are needed for it. The method aids in the conversion of starches, sugars, and cellulosic materials into fuel, feed, food ingredients, and other industrial goods.

Compared to the direct conversion of vegetable feedstock into desired products, it raises the total cost and the number of processing steps by almost 10%. Much more complicated and not yet used commercially is the process of transforming cellulosic materials. Technology breakthroughs and lower raw material prices are necessary for cellulosic material fermentation to be commercialized profitably.

The effective and efficient use of biomass is of significant priority for market participants due to the limited supply and depletion of arable and fertile land. The increased production cost resulting from multiple biological processes is another significant impediment to market penetration. The establishment of new biorefineries to produce fermentation chemicals is expensive financially and requires significant R&D investment from key industry players.

Recent Developments

• In Feb 2023, BOC Sciences launched large-scale fermentation tanks of different volumes, covering more than 40 reactors ranging from 30,000 to 40,000 liters. It accommodates and suitably maintains one-stop in-house upstream and downstream processes, quality control, and regulatory & lab testing on-site.
• In Feb 2023, Precision fermentation company Michroma raised a USD 6.4 million oversubscribed seed round.
• In Jan 2022, Evonik Industries AG set up a production plant for rhamnolipids. This Industrial production plant is bio-based and produces fully biodegradable rhamnolipids.
• In 2018, Modern Meadow announced a long-term partnership with Evonik AG which is a global provider of microbial fermentation company to increase their fermentation and collagen production. Under the agreement, Evonik AG will act as a global development partner to Modern Meadow to industrialize and increase collagen production.

Market Segmentation

Global Fermentation Chemicals Market is segmented based on type, application, and region. Based on the type, the market is categorized into alcohol fermentation, enzymes, organic acids, and others. Based on the application, the market is segmented into food and beverages, pharmaceutical and nutritional, plastics and fibers, and others. Based on region, the market is divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Market Players

BASF SE., Evonik Industries AG, Novozymes A/S ,Archer Daniels Midland Company, The Dow Chemical Company, Koninklijke DSM N.V., Amano Enzymes Inc., Lonza Group AG, Chr. Hansen A/S, Inc, DuPont de Nemours, Inc., are some of the key players of the Global Fermentation Chemicals Market.

Report Scope:

In this report, Global Fermentation Chemicals market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

• Fermentation Chemicals Market, By Type:
• Alcohol Fermentation
• Enzymes
• Organic Acids
• Others
• Fermentation Chemicals Market, By Application:
• Food and Beverages
• Pharmaceutical and Nutritional
• Plastics and Fibers
• Others
• Fermentation Chemicals Market, By Region:
• North America
• United States
• Mexico
• Canada
• Europe
• France
• Germany
• United Kingdom
• Spain
• Italy
• Asia-Pacific
• China
• India
• South Korea
• Japan
• Singapore
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive landscape

Company Profiles: Detailed analysis of the major companies present in the Global Fermentation Chemicals market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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