Global Fermentation Chemicals Market is expected to surpass US$ 108.41 Billion by 2030, exhibiting a CAGR of 6.8% during the forecast period (2023-2030).
Driver
Catalysts for chemical fermentation
Fermentation chemicals are key ingredients that are used in the chemical reactions as these act as initiators in the synthesis of various chemicals. It helps in speeding of the reactions. These chemicals are key raw materials that are used in the manufacturing of alcohol. For instance, ethanol is one of the keys fermentation chemicals that is used in the production of alcohol and alcoholic beverages. Pharmaceutical, cosmetic, food and beverages are some of the key end-use industries of the fermentation chemicals.
Restrain
However, production from lignocellulose feedstock (that requires the fermentation of carbohydrates) has its own limitations such as low overall conversion and relatively lesser applications of directly biosynthesized fermentation chemicals.
Impact of the COVID-19 pandemic on the fermentation chemical industry
The COVID-19 pandemic caused supply chains and trade cycles to be disrupted, which had a negative impact on the market for fermentation chemicals. During the outbreak, production and distribution stopped in many different industries. However, the food and beverage and pharmaceutical industries both experienced respectable growth, which in turn affected industry demand. Following the removal of restrictions and limitations, businesses are establishing supply chain alliances with retailers and distributors to guarantee that their products are successfully delivered across all regions.
However, a shift in consumer eating habits and a lack of time to prepare and consume healthy food, particularly during the COVID-19 period, cause consumers to turn to processed or packaged foods, which raises product demand. The market is anticipated to grow as a result of the time savings and minimal work involved in meal preparation that processed food offers.
Global fermentation chemicals market accounted US$ 68.28 Bn in 2023, exhibiting a CAGR of 6.8% during the forecast period (2023-2030)
Trends
Rising dietary supplement demand
Increasing demand for supplements such as carotenoids, vitamins, and proteins among consumers due to growing health wellness trend is propelling the market growth. Growing usage of supplements due to increasing prevalence of chronic diseases such as diabetes, cardiovascular, arthritis, and allergy is expected to drive the market growth. Moreover, growing geriatric populations is expected to boost demand for supplements, and this is expected to drive the market growth.
Partnership and agreements among key players for business expansion is one of the growing trends in market growth. For instance, in March 2020, Modern Meadow, announced a long term partnership with Evonik Industries AG, a global provider of microbial fermentation, to scale up its fermentation and collagen production. Under the agreement, Evonik Industries AG 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.
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Key Takeaways:
- The Global Fermentation Chemicals Market was valued at US$ XX Bn in 2022 and is forecast to reach a value of US$ XX Bn by 2030 at a CAGR of XX % between 2023 and 2030.
- The Product Type segment was valued US$ XX Bn in 2022 and is expected to witness a CAGR of XX % over the forecast period owing to increasing consumption Product Type globally.
Competitive Section
- 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
- DSM
