Argentina Fermentation Chemical Market Overview, 2029

Argentina Fermentation Chemical Market Overview, 2029

The industry of fermenting chemicals in Argentina has developed parallelly to its very lively agricultural sector, which provides the basic materials such as corn, sugarcane, and soybean, among others. The country had shown a good base for the fermentation related industries due to its historical abilities in food processing and wine manufacturing. In recent times, further better advancements in biotechnology and support from the government for sustainable practice have further accelerated market growth. Argentina has made strategic policy decisions with a focus on an increased agricultural output and natural resources for industrial application. In doing so, the rising importance to the economy has been the fermentation chemicals sector, especially in relation to innovation for global competitiveness. Continuous developments in the technology of fermentation not only improve the efficiency but open new ways of its application. Research institutions and companies from Argentina are pioneers in the development of new fermentative processes and products, inducing innovation within the market. Supportive policies on biotechnology and sustainable agriculture are boosting growth in the market. Incentives for biofuel production and sustainable farming practices will enhance demand for fermentation chemicals and are consistent with national goals for economic development and environmental sustainability. The increase in consumer awareness and preference for natural, organic, and sustainable products through fermentation is driving market demand. Shifting toward healthier lifestyles and eco-friendly products influences buying decisions in the food, pharmaceutical, and industrial sectors, which increases the uptake of fermentation-derived products. Argentina's strength in agriculture and industries that offer capabilities provide a strong market base for fermentation chemical products. Several economic factors, such as inflation and currency fluctuations, can have their impact on market dynamics, so strong supply chain management either way will allow for products' availability at the same level and market stability.

According to the research report “Argentina Fermentation Chemicals Market Overview, 2029,"" published by Bonafide Research, the Argentina Fermentation Chemicals market is anticipated to add to more than USD 100 Million by 2024–29.Richness of raw materials in countries such as Brazil and Argentina, with their strong agricultural sector, in the form of sugarcane, corn, and soybeans, acts as rich sources for various fermentation processes. This richness in agriculture reduces production costs and, hence, increases the competitiveness of fermentation-based industries in the global scenario. The growing global awareness about environmentally sustainable technologies increases the demand for fermentation chemicals. These chemicals make it possible to produce biodegradable plastics, biofuels, and sustainable agriculture inputs in a way that meets technology consumer preferences and regulatory requirements. Improvement in fermentation technology further strengthens the market by achieving process efficiency, reducing production costs, and growing by applications. Government policies and schemes are one of the most prominent factors driving the fermentation chemicals market. The most prominent policy in Brazil is the RenovaBio program, which is foreseen to increase the contribution of biofuels in the energy mix. RenovaBio, created in 2017, established ambitious targets for carbon intensity reduction for fuel distributors, thereby encouraging the production and use of biofuels produced through fermentation processes. The Proálcool Program, started in the 1970s, subsidizes ethanol producers with a view to its use as a replacement for fossil fuels. These programs provide the impetus for developing the ethanol sector in Brazil but provide support to the fermentation chemicals market in their aspirations for sustainable development with less reliance on imported energy sources. In Argentina, the Bioeconomy Strategy and the National Strategic Plan for Biotechnology emphasize biotechnological innovation as a key enabler of sustainable economic growth.

Argentina is focused on the different types of offerings that leverage the country's agricultural resources. The principal fermentation sector in Argentina is alcohol, and the drive is toward producing bioethanol from corn and other feedstocks. The country is one that is significant for its wine production, which relies on traditional fermentation processes. An equally significant segment related to the production of organic acids in Argentina within the fermentation chemicals market is organic acid production, with the country producing a wide variety of them, including citric and lactic acid, for applications in food and beverages, pharmaceuticals, and others. Another very important product type in Argentina is enzymes, especially for application in the food and beverage industry, for animal feed, and biofuels. Amylase and protease are some examples of enzymes from the group of those used to produce ethanol from corn, to produce meat, and in the manipulation of the functionalities of milk proteins, among others. Other product types available in the Argentina fermentation chemicals market include amino acids, polymers, and biopolymers, with applications having a wide span from animal feed supplements to biodegradable packaging.

The Food and Beverage sector drives the Argentina fermentation chemicals market and is the fastest-growing sector. This segment utilizes agriculture—dairy, in particular—that is well developed in Argentina to come up with a large portfolio of fermented products. A classic range of products—yogurts, cheeses, and fermented sausages—remains solid, while modern trends are driven by probiotic-rich beverages like kombucha and kefir. In addition to that, this will be further boosted by the country's famous wine industry. To put this in proper perspective, the growing consumer awareness of the health benefits associated with such food products is a major driver of demand, especially on top of a very fast-growing demand for natural preservatives and developing tastes for craft and specialty foods. The pharmaceutical and nutritional segment is the second-largest application area for fermentation chemicals in Argentina. This segment leverages the already developed pharmaceutical industry in the country and draws support from government initiatives that emphasize increasing drug production within the country. These fermentation processes are used in the manufacture of antibiotics, vitamins involved in the B-complex family, amino acids, and enzymes. There is developing interest in the production of probiotics for both pharmaceutical and nutraceutical markets. Advancements in biotechnology, growing consumer awareness about health, and increased demand for clean, 'green', and sustainable health products drive growth within this sector. Plastics and Fibers segment is relatively small in comparison to food and pharmaceuticals at present in the Argentinean fermentation chemicals market but certainly holds great potential for growth given rising environmental concerns and growing interest in sustainable materials.

With increasing interest in bio-based fibers for textiles and other applications made from fermentation processes for the production of bioplastics, chemicals coming from fermentation find an application as additives improving conventional plastics' performance. In light of this new focus on sustainability and the circular economy, this growth mirrors current global trends. The miscellaneous sectors, contributing towards the dynamics of the fermentation chemicals market of Argentina, fall under the category of Other Applications. In agriculture, there is an increased usage of fermentation-based bio-fertilizers and biopesticides, which are the sustainable variants of the chemical products. The animal feed industry makes use of fermentation-derived probiotics and nutritional additives to help improve health conditions and increase productivity in livestock. The cosmetics application of fermentation refers to natural ingredients applied in skincare and beauty products, riding on the heightened consumer attitude toward organic and natural cosmetics.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Fermentation Chemicals market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Alcohol Fermentation
• Organic Acids
• Enzymes
• Other Product Types

By Application
• Industrial
• Food and Beverage
• Pharmaceutical and Nutritional
• Plastics and Fibers
• Other Applications

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Fermentation Chemicals industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.