Fermentation chemicals are used to initiate the chemical reactions in synthesize of various chemicals. They act as a catalyst or initiators to control the speed of the chemical reaction. These chemicals are widely used across food processing industry for the preparation of food products. Moreover, they are also used in the production of Vitamins.
Global fermentation chemicals market was valued at US$ 65000.00 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.6% during the forecast period (2022 to 2030).
Strong demand for fermentation chemicals from the pharmaceutical industry is propelling market growth. These chemicals are used in the production of formulation such as anti-acne solutions, parenteral solutions, and ointments. Moreover, it is used in the manufacturing of calcium drugs used to treat calcium deficiency problems. Thus, rapid growth in the pharmaceutical industry is propelling the market growth of fermentation chemicals.
Growing research & development applications is propelling the market growth of the fermentation chemicals. All these chemicals act as a base for the many research and experiments in R&D centers. Hence, rise in the research and development applications are creating strong demand for fermentation chemicals, thus fueling the market growth.
In December 2019, the Covid-19 pandemic originated in Wuhan, Hubei Province, China. The World Health Organization (WHO) declared a public health emergency and high alert in early March 2020. This pandemic posed a serious threat to humans and economics. This unprecedented crisis has led to a rise in demand for patient engagement solutions and remote monitoring. Currently, most healthcare facilities are trying to expand homecare settings or other temporary setups that are intended to offer optimal care.
The state of urgency has led to the growing demand for ventilators and other personal protective equipment. Manufacturers, even from other industries, have focused their efforts on meeting the demand for such personal protective devices in contrast to their product portfolio. For the fermentation chemicals market, the government-imposed lockdown and barriers to cross-border transportation have highly affected the raw material supply chain resulting in their increased prices, ultimately increasing the cost of raw materials for manufacturers. Thus, manufacturers started sourcing from local raw material suppliers. This is expected to create high demand for fermentation chemicals coupled with an increased preference for organic feedstocks in the coming years.
Figure 1. Global Fermentation Chemicals Market Value Share (%), By Region, 2021
North America region dominated the global fermentation chemicals market in 2021, accounting for 34.0% share in terms of value, followed by Asia Pacific and Europe, respectively.
High cost associated with the fermentation of lactic acids is restricting its use across the dairy industry. This factor is expected to hinder the market growth of fermentation chemicals over the forecast period.
The fluctuation of the production process in the fermentation of bacteria, lactic acid, and ethanol is hampering the demand for these chemicals. This factor is hindering the market growth of the fermentation chemicals in the near future.
|Base Year:||2021||Market Size in 2021:||US$ 65000 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||5.6%||Forecast Period:||2022-2030|
Ajinomoto Company Corporation, AB Enzymes, BASF SE, Amano Enzymes Inc., Dow Chemicals, Archer Daniels Midland Company, Novozymes A/S, Cargill Incorporation, Evonik Industries AG, Du Pont Danisco A/S, and DSM
|Restraints & Challenges:||
Rapid growth in the polymer industry due to increasing disposable income and improving standard living of the consumers is expected to fuel the market growth of fermentation chemicals. These chemicals are widely used as additives in the production of polymers. Growing consumerism and shifting trend towards high-performance polymers for various industrial applications is again anticipated to propel the market growth of the fermentation chemicals.
Growing demand for enzymes from various industries is expected to augment the market growth. Enzymes are widely used across personal care and cosmetic industry in the production of cosmetic products. A growing sense of fashion coupled with the increasing awareness regarding the personal hygiene and aspire to look presentable is driving demand for cosmetic and personal care products. This is creating demand for enzymes, thereby fueling the market growth of the fermentation chemicals.
Figure 2. Global Fermentation Chemicals Market Value Share (%), By Type, 2021
The alcohols segment dominated the global fermentation chemicals market in 2021, accounting for 53.6% share in terms of value, followed by organic acids and enzymes segment respectively.
Major players operating in the global fermentation chemicals market include, Ajinomoto Company Incorporation, AB Enzymes, BASF SE, Amano Enzyme Inc., Dow Chemicals, Archer Daniels Midland Company, Novozymes A/S, Cargill Incorporation, Evonik Industries AG, Du Pont Danisco A/S, and DSM.
Fermentation chemicals are used to initiate the chemical reactions in synthesize of various chemicals. Fermentation chemicals are used to catalyze or initiate the chemical process of fermentation in various products. These chemicals are majorly manufactured using vegetable feedstock, such as sugar, corn and starch, and are used in the production of bioplastics, biofuels, polymers and composites, among other products. They are crucial for increasing the pace of the chemical reaction, which contributes to minimize the overall manufacturing cost, fermentation time and energy consumption. Owing to this, these chemicals find extensive applications across various industries, including plastic manufacturing, pharmaceuticals, nutraceuticals, and food and beverages (F&B).
Increasing use of fermentation chemicals for the manufacturing of organic acids such as citric acid, lactic acid, gluconic acid, and itaconic acid. Moreover, strong demand for fermentation chemicals from the pharmaceutical industry is propelling market growth. Fermentation chemicals are widely used as a preservatives and additives across food &beverage industry, which is expected to offer potential growth opportunities in the near future.
Key features of the study: