Fermentation Ingredients Market Forecasts to 2030 – Global Analysis By Process (Anaerobic Fermentation, Aerobic Fermentation, Continuous Fermentation and Batch Fermentation), Form (Liquid and Dry), Type, Application and By Geography

Fermentation Ingredients Market Forecasts to 2030 – Global Analysis By Process (Anaerobic Fermentation, Aerobic Fermentation, Continuous Fermentation and Batch Fermentation), Form (Liquid and Dry), Type, Application and By GeographyAccording to Stratistics MRC, the Global Fermentation Ingredients Market is accounted for $27.92 billion in 2023 and is expected to reach $57.24 billion by 2030 growing at a CAGR of 10.8% during the forecast period. A biological process called fermentation requires sterility and uses cellular enzyme reactions assisted by inanimate catalysts at a certain temperature and pressure in place of chemical reactions. Food additives called fermented substances are used to initiate fermentation in food and non-food products in order to acquire the required chemical qualities.

Market Dynamics:

Driver:

Rising demand of alcohol consumption

One of the key drivers of the industry's expansion is rising global alcohol consumption. Beer is the most popular alcoholic beverage and is made by fermenting a variety of materials, including wheat and rice. As a result, rising beer consumption will eventually support market expansion. Additionally, the public's growing awareness of the advantages of consuming fermented food products is boosting the market's expansion.

Restraint:

Shortage of shelf-life and stability

Some components for fermentation have a short shelf life and need particular storage conditions to maintain their quality and effectiveness. The efficacy and stability of fermentation ingredients can be impacted by variables like temperature, humidity, and light exposure. The management of inventories, logistics of transportation, and product waste may all be affected by this. Additionally, fermentation's primary ingredients can vary in price and availability. Weather patterns, crop yields, and market conditions, among other factors, can have an impact on the cost of agricultural products and other commodities, which can then have an impact on the profitability of companies that make fermentation ingredients.

Opportunity:

Fermented ingredients are in high demand for cosmetics and personal care products

In order to properly care for the skin, the cosmetics and personal care industries include enough bacteria, yeasts, and other fermented components in skincare products. For the general health of the skin, fermented substances are beneficial. Each ingredient's amount of antioxidants rises during fermentation, which aids in slowing down the aging process of the skin. This fermentation method improves the bioavailability of substances, enabling them to be absorbed at a deeper level when used in topical treatment.

Threat:

Complexity and vulnerability of the supply chain

The market for fermentation ingredients is based on intricate supply chains that involve a wide range of participants, including raw material suppliers, fermentation facilities, distributors, and end-users. The availability and price of components for fermentation can be affected by problems in any stage of the supply chain, such as a lack of raw materials, transportation problems, or legal restrictions. For the stability and expansion of the market, a secure and robust supply chain is essential.

Covid-19 Impact:

Significant changes in consumer behavior and tastes were brought about by the COVID-19 pandemic. The pandemic caused disruptions in several fermentation ingredient end-use industries, including food and beverage, pharmaceuticals, and animal feed. The demand for fermented food and beverage items was impacted by restaurant closures, hotel operations reductions, and catering service operations cutbacks. Due to the pandemic, many businesses had to reallocate resources and assign priority to mission-critical tasks. This might have had an effect on the introduction of novel products or technologies.

The Personal Care segment is expected to be the largest during the forecast period

Personal Care segment commanded the largest share over the domination period, due to their level of antioxidants in each ingredient, which helps slow down the skin's aging process. When used in topical skincare, this fermentation process increases the bioavailability of ingredients, which means that they can be absorbed at a deeper level. This is perfect for anyone with dehydrated skin. The fermentation process maintains the integrity of the ingredients because of these availability of resources and the growing use of fermentation-based components by personal care firms are expected to fuel the segment's expansion.

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

Cider segment is estimated to witness lucrative growth over the projection period. It is used for purification, hair washing, food preservation, and enhancing skin function. In order to extend food's shelf life, producers are using preservatives in greater quantities, which is likely to enhance consumer knowledge of their use and fuel demand. Additionally, due to the rise in wine consumption over the past few years, India has the fastest-growing market for cider.

Region with largest share:

North America is anticipated to hold the largest share throughout the projection period. Consumer awareness of the advantages offered by fermented products as they improve the digestive system, which influences immunity and brain functioning, is causing a rise in consumer interest in the possible health benefits of fermented foods and beverages. The demand for numerous fermented substances, including amino acids, enzymes, etc., is subsequently increased.

Region with highest CAGR:

North America is anticipated to witness lucrative CAGR over the forecast period. The demand for amino acids in the US is being driven by an increase in consumer preference for high-protein diets for bodybuilding and general health. Valine, leucine, and isoleucine, three branched-chain amino acids (BCAAs), are used more frequently in performance-nutrition products. Additionally, Canadian consumers place a high priority on fundamental dietary practices, including reducing sugar intake and consuming natural and useful foods. The demand for fermented products in Canada is driven by the emphasis on a better diet and contemporary purchasing habits.

Key players in the market

Some of the key players in Fermentation Ingredients market include Ajinomoto Corporation Inc., Associated British Foods PLC, BASF SE, Cargill Incorporated, Dohler Group SE, Evonik Industries AG, Kyowa Hakko Kirin Co. Ltd, Lallemand Inc., Lesaffre and Lonza Group.

Key Developments:

In December 2022, Foodiq, a Nordic food innovator developed a new ingredient namely, Fabea+, which is a fermented fava. The company claimed that this fermented ingredient was more nutritious, sustainable, and saleable as compared to other plant proteins like soy, peas, and oats.

In November 2022, Arla Food Ingredients launched its whey-based solution, having Lacprodan Hydro.365 and Nutrilac FO-8571, which can be used in high-protein fermented beverages as an alternative to protein.

In July 2022, Cellevant launched its fermented turmeric ingredient having antibiotic properties and bioactive ingredients like postbiotics and parabiotics. The ingredient has its application in nutraceuticals and food and is European Union organic certified.

Processes Covered:
• Anaerobic Fermentation
• Aerobic Fermentation
• Continuous Fermentation
• Batch Fermentation

Forms Covered:
• Liquid
• Dry

Types Covered:
• Antibiotics
• Industrial Enzymes
• Vitamins
• Polymers
• Organic Acids
• Amino Acids
• Cider
• Vinegar
• Other Types

Applications Covered:
• Paper
• Pharmaceutical
• Feed
• Food and Beverages
• Personal Care
• Biofuel
• 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 2021, 2022, 2023, 2026, and 2030
- 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