Fermentation Chemicals Market Forecasts to 2028 – Global Analysis By Product (Enzymes Alcohols & Ketones and other Products), Form (Powder and Liquid), Application (Pharmaceuticals and Nutritional, Industrial and Other Applications) and Geography

Fermentation Chemicals Market Forecasts to 2028 – Global Analysis By Product (Enzymes Alcohols & Ketones and other Products), Form (Powder and Liquid), Application (Pharmaceuticals and Nutritional, Industrial and Other Applications) and Geography

According to Stratistics MRC, the Global Fermentation Chemicals Market is accounted for $69.8 billion in 2022 and is expected to reach $106.5 billion by 2028 growing at a CAGR of 7.3% during the forecast period. Fermentation chemicals are used as process initiators in several applications. Chemicals used in fermentation are utilised to start chemical reactions during the synthesis of various chemicals. In order to accelerate or start the chemical process of fermentation in a variety of products, fermentation chemicals are utilised. These chemicals, which are used to make bioplastics, biofuels, polymers, and composites among other things, are mostly produced utilising vegetable feedstock’s including sugar, corn, and starch. They are essential for quickening the chemical process, which helps reduce total manufacturing costs, fermentation times, and energy usage. Due of this, these compounds are widely used in a variety of industries, such as the production of plastic, pharmaceuticals, nutraceuticals, and food and drinks (F&B).

According to the U.S. Department of Agriculture (USDA), total American cheese production in the U.S. was 5,253.8 million lb, 5,232.2 million lb, and 5,341.5 million lb in 2018, 2019, and 2020, respectively.

Market Dynamics:

Driver:

Environment-friendliness of fermentation chemicals

Chemicals for fermentation are applied to speed up chemical reactions in a variety of end-user sectors. The primary factors driving the transition to bio-based chemicals are rising crude oil prices and growing worries about carbon emissions. Compared to petroleum-based chemicals, these are less expensive and more environmentally friendly. Due to their ability to save manufacturing time by accelerating reaction rates, fermentation chemicals are projected to see an increase in demand in the years to come. The lack of sufficient supplies of feedstock like sugarcane, corn, and soybean has caused numerous 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.

Restraint:

Complex and cost-intensive manufacturing processes

Industrial fermentation is a very sophisticated, multistep process used to produce goods including bioplastics, biofuels, and polymers (such as xanthan, polyhydroxyalkanoates (PHA), and polylactic acid (PLA) and composites High levels of knowledge 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, this raises the total cost and the number of processing steps by almost 10%.

Opportunity:

Growing major end-use industries

Fermentation chemicals have numerous end-use applications in the pharmaceutical, textile, metal, personal care & cosmetics, among other industries. 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 expansion of the worldwide PHA market is being driven by the rising safety concerns regarding the disposal of plastic and overflowing landfills. PHA has expanded in recent times, and the tendency is anticipated to continue. PHA has grown recently, and the trend is anticipated to continue during the projection period. Government sanctions that make bioplastics packaging mandatory and incentives for green packaging enterprises in the form of tax rebates have also pushed the expansion of PHA. Over the projected period, the increased demand for PHA is anticipated to boost the global market for fermentation chemicals.

Threat:

High cost of raw materials

The high cost of raw materials will slow the market's expansion for fermentation chemicals. The availability of substitute raw materials and the advent of unfavourable conditions as a result of the COVID-19 epidemic would also be obstacles to the market expansion for fermentation chemicals. Fermentation chemicals market growth will be further hampered by fluctuating production processes for ethanol, lactic acid, and bacteria as well as a lack of competent labour.

Covid-19 Impact

The distinctive COVID-19 virus had a diverse impact on almost every business in the world. Rising investments in biotechnology, R&D, and production from renewable sources are predicted to promote market growth and an extension of the industrial application areas for fermentation chemicals. However, production using lignocelluloses feedstock has some limitations, such as low overall conversion and relatively fewer applications of fermentation chemicals that are directly biosynthesized. Additionally, a general reduction in demand for biofuels and other chemicals with non-medical applications as a result of COVID-19 has had a substantial impact on the market growth in the industrial application market area.

The alcohols & ketones segment is expected to be the largest during the forecast period

The alcohols & ketones segment is estimated to have a lucrative growth. Alcohol is a collection of substances that are created during fermentation and have an OH functional group. Alcohol serves as the primary component of alcoholic beverages and is utilised as a solvent in a wide range of chemical processes including distillation and extraction. It can be produced using a variety of fruits, sugars, and starches, including sugar cane, sweet sorghum, corn, wheat, and potatoes. Alcohol is mostly utilised in the formulation of cosmetic items in the personal care sector, such as anti-foaming creams, astringents, and preservatives in hair care, sink care, and oral care products.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment is anticipated to witness the fastest CAGR growth during the forecast period. Chemicals for fermentation are typically used in industrial applications. Higher penetration has been attained as a result of the adoption of green chemistry and numerous rules for commercial and industrial uses. Industrial fermentation refers to the use of microorganisms, such as fungus, bacteria, and eukaryotic cells, in the production of products including ethanol, citric acid, and acetic acid. It has been discovered that naturally derived goods are preferable to chemically generated food additives in terms of antioxidants, preservatives, flavours, colours, and vitamins.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the expansion of important end-use sectors, notably in China and India, such as food and beverage, pharmaceuticals, and polymers, is anticipated to continue to be a major driver for the regional market. Over the projected period, it is anticipated that rising per-capita middle-class disposable income levels and expansion in the food and beverage sector in nations like China and India will boost regional demand.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period; owing to intensive industrialization is a feature of North America. Major industry players with operations in the food and beverage, pharmaceutical, nutrition, and plastics and fibres sectors are well-represented in the region. Over the course of the forecast period, North America is anticipated to have the quickest growth in the enzymes market. It's anticipated that growing demand for enzymes from numerous industrial uses, including paper, personal care, and starch, will significantly impact industry growth.

Key players in the market

Some of the key players profiled in the Fermentation Chemicals Market include AB Enzymes, BASF SE, Ajinomoto Company Incorporation, Dow Chemicals, Archer Daniels Midland Company, Amano Enzymes Inc., Novozymes A/S, Cargill Incorporation, Du Pont Danisco A/S, Evonik Industries AG, DSM, ADM, Chr. Hansen Holding A/S, LANZATECH, TCI Chemicals (India) Pvt. Ltd, Evonik Industries AG, INVISTA, MicroBiopharm Japan Co., Ltd., Biocon, Lonza.

Key Developments:

In May 2021, a collaboration between LanzaTech and BASF aims to produce useful compounds from the carbon found in industrial off-gases. The partners have now made a significant breakthrough: using specialized bacteria, they were able to manufacture n-octanol at a laboratory scale from carbon monoxide and hydrogen, the major elements of emissions, such as those from the steel sector. Among other things, n-octanol is a crucial chemical used in cosmetics.

Products Covered:
• Tubs, Enzymes
• Alcohols & Ketones
• Organic Acid
• Other Products

Forms Covered:
• Powder
• Liquid

Applications Covered:
• Pharmaceuticals and Nutritional
• Industrial
• Plastic & Fibers
• Food and Beverages
• Cosmetic & Toiletry
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements