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Fermentation chemicals are key ingredients used in the chemical reactions as they act as initiators in the synthesis of various chemicals. It helps in the speeding of the reactions. These chemicals are key raw materials used in the manufacturing of alcohol. For example, Ethanol is one of the keys fermentation chemicals used in the production of alcohol and alcoholic beverages. Pharmaceutical, cosmetic, food and beverages are some of the key end-user of the fermentation chemicals.

In terms of value, the global fermentation chemicals market was accounted for US$ 60,123.9 Mn by the end of 2019, and is expected to register growth of 5.4% CAGR during the forecast period (2020-2027).

Drivers

High demand from the alcohol industry is primarily fueling the market growth of fermentation chemicals. Alcohol is produced by using fermentation process which is carried out by fermentation chemicals. Fermented alcohol is the largest consumer of fermentation chemicals. Increasing consumption of alcohol is augmenting the market growth of these chemicals. Moreover, the growing demand for biofuels around the globe is again anticipated to foster the market growth of fermentation chemicals.

Market Opportunities

The development of advanced fermentation technology for the production of organic acids is expected to create enormous market opportunities. For instance, in February 2020, Novozymes has launched its next yeast technology, Innova Fit. Fit is the most advanced non-GM yeast in the market, eliminating production constraints caused by conventional and basic yeasts. The advanced Innova yeast enables producers to maximize inputs, achieve throughput, and production targets, without losing ethanol yield to common stressors such as high temperature.

Market Restraints

Irregular supply of the raw materials used in the production of fermentation chemicals is hindering the market growth. Micro-organisms and nutrients are some of the raw materialsused in the fermentation chemicals. These raw materials are highly susceptible to the fluctuation in the supply.

Key Takeaways:

Global Fermentation chemicals market was valued at fermentation chemicals market in 2019 and is forecast to reach a value of US$ 91,921.16 by 2027 at a CAGR of 5.4% between 2020 and 2027.

Alcohol segment dominated the global fermentation chemicals market in 2019 accounting for 53.6% share in terms of volume, followed by organic acid and enzymes segment, respectively.

Market Trends

Increasing demand for supplements such as carotenoids, vitamins, and proteins among consumers due to a growing health wellness trend is propelling the market growth of fermentation chemicals. The growth of the supplements is also attributed to the increasing prevalence of chronic diseases such as diabetes, cardiovascular, arthritis, and allergy. Also, growth in the geriatric populations is again expected to foster the demand for supplements which in turn again accelerating the market growth of fermented chemicals.

Partnership and agreements among key players for business expansion are one of the growing trends in market growth. For instance, in March 2018, Modern Meadow, announced a long term partnership with Evonik, a global provider of microbial fermentation, to scale up their fermentation and collagen production. Under the agreement, Evonik will be Modern Meadow’s worldwide development partner to industrialize and scale-up collagen production for use in the company’s bio leather materials technology.

Global Fermentation Chemical Market - Impact of Coronavirus (Covid-19) Pandemic

The sudden occurrence of the novel coronavirus has a major impact on the global fermentation chemicals market owing to increased consumption of alcohol globally. It is estimated that the global alcohol consumption increased by +3.6% in terms of value in the year 2019.

Competitive Section:

Key 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.

Few Recent Developments

In February 2020, Novozymes has launched its next yeast technology, Innova Fit. Fit is the most advanced non-GM yeast in the market, eliminating production constraints caused by conventional and basic yeasts. The advanced Innova yeast enables producers to maximize inputs, achieve throughput, and production targets, without losing ethanol yield to common stressors such as high temperature.

Market Taxonomy

By Type

  • Alcohol
  • Enzymes
  • Organic Acids
  • Others (Antibiotics, etc.)

By Application

  • Industrial Applications
  • Food & Beverages
  • Nutritional & Pharmaceuticals
  • Plastics & Fibers
  • Others (Animal Feed, etc.)

By Region

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World
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