Fermentation Chemical Market

Fermentation Chemical Market Outlook (2024 to 2034)

The global fermentation chemical market size is estimated at US$ 84.4 billion in 2024 and is forecasted to expand at a CAGR of 5.2% to climb to a value of US$ 140.1 billion by the end of 2034.

Food & beverage applications of fermentation chemicals are expected to generate an absolute dollar opportunity of US$ 10.6 billion between 2024 and 2034. Worldwide sales of liquid fermentation chemicals are estimated at US$ 49.7 billion in 2024.

• Short Term (2024 to 2027): The market is anticipated to rise steadily due to the rising demand for bio-based products from several industries. While fermented foods and beverages are becoming more popular, the food and beverages industry will continue to be a significant customer. Furthermore, the growth of the biofuel business will increase demand for alcohols obtained from fermentation, such as ethanol.
• Medium Term (2027 to 2030): The market will rise significantly over the medium term as a result of consumers' growing desire for environment-friendly and renewable products. Market growth will be complemented by the pharmaceutical industry's growing emphasis on antibiotics, vitamins, and other bioactive substances produced by fermentation. Changes in regulations that support sustainable practices will have a positive effect on market expansion.
• Long Term (2030 to 2034): Long-term fermentation chemical market trends will be largely influenced by the growing focus on sustainability and the circular economy. Additionally, the creation of novel fermentation-derived molecules with distinctive features will be made possible by the advancement of fermentation technologies, such as synthetic biology and metabolic engineering, creating new commercial potential.

Report Attribute	Detail
Fermentation Chemical Market Size (2023A)	US$ 80 Billion
Estimated Market Value (2024E)	US$ 84.4 Billion
Forecasted Market Value (2034F)	US$ 140.1 Billion
Global Market Growth Rate (2024 to 2034)	5.2% CAGR
North America Market Share (2024E)	31.6%
East Asia Market Growth Rate (2024 to 2034)	5.3% CAGR
China Market Growth Rate (2024E)	5.6% CAGR
Key Companies Profiled	BASF SE; Archer Daniels Midland (ADM) Company; Cargill Incorporated; Dow Inc.; AB Enzymes; Chr. Hansen /S, DSM; Ajinomoto Co., Inc.; Novozymes A/S; Evonik Industries AG; Amano Enzyme, Inc.; MicroBiopharm Japan Co., Ltd.; Biocon; INVISTA; Other Prominent Players.

Which Factors are Expected to Drive Future Fermentation Chemical Demand?

“Movement toward Bio-based and Sustainable Products”

Demand for fermentation chemicals will be largely driven by the shift to a bio-based economy and increasing emphasis on sustainability on a global scale. Both consumers and businesses are looking for sustainable and ecologically friendly substitutes for conventional chemical products. Because fermentation-derived compounds are made from renewable feedstock such as agricultural waste, biomass, or even waste streams, they provide a sustainable alternative.

To generate bio-based chemicals such as succinic acid, 1,4-butanediol, and other platform chemicals, large corporations such as DuPont and BASF have made significant investments in bio-based chemical manufacturing facilities. These facilities use fermentation techniques. Over the coming years, there will be a significant need for fermentation chemicals due to this transition toward bio-based ethanol products.

More jobs would be created for the production of ecologically friendly fermentation chemicals because of their use in the cutting edge biomass conversion process. As such, governments have made several efforts to develop factories that produce fermentation chemicals, especially in economies that depend heavily on agriculture.

"Increasing Use of Fermentation Chemicals in Fast-growing Cosmetics Industry”

Low pH and astringent qualities of organic acids, such as lactic acid, which are produced through fermentation processes, are making them more popular. These acids are used in skincare formulations for their exfoliating and rejuvenating properties, as well as in men's grooming products such as toners and aftershaves. In response to rising consumer demand for sustainable and bio-based personal care products, leading cosmetic companies are increasingly investigating chemicals generated from fermentation.

Appropriate types of fermentation chemicals are necessary raw materials in the alcohol industry. Ethanol, a byproduct of fermentation, is needed to make alcohol and alcoholic beverages. Other industries that manufacture food, beverages, cosmetics, and pharmaceuticals also need fermentation chemicals.

What are the Main Issues Faced by Fermentation Chemical Manufacturers?

“Issues Related to Production Efficiency, Complexity, and Cost”

Dairy product manufacturing companies do not use lactic acid due to the significant cost associated with using chemicals in the fermentation process. Expansion of the market will be hit by frequent modifications to the production process in the fermentation of ethanol, bacteria, and lactic acid. After using fermentation chemicals, the end products need to be isolated and purified, which brings in the need for additional downstream processing.

Synthesis of organic acids and alcohols is a labor-intensive process with a lengthy holdup period and low yields when compared to synthetic production techniques. These intricate fermentation processes and the high costs associated with obtaining them are hindering global fermentation chemical market growth to some extent.

Country-wise Insights

Country	CAGR
United States	5.5%
China	5.6%
Japan	5.4%
South Korea	4.6%

What are the Expectations of Suppliers of Fermentation Chemicals for the US market?

“Bio-based Fermentation Chemicals Showing Promise for Sustainability Trend"

From 2024 to 2034, the United States fermentation chemical market size is projected to expand at a CAGR of 5.5%, mainly due to its well-established biotech and pharmaceutical research laboratories. The market is expected to create an absolute dollar opportunity worth US$ 16.4 billion between 2024 and 2034.

Fermentation chemical suppliers to the U.S. expect an increase in the demand for bio-based and sustainable solutions from several industries. Fermentation has become popular in the country as businesses and consumers alike place a higher priority on environmental sustainability. As such, sellers to the food and beverage industry predict a spike in the demand for organic acids formed from fermentation, such as citric and lactic acids, as natural and clean-label preservatives. Furthermore, the pharmaceutical industry is looking for more bioactive chemicals and antibiotics obtained from fermentation as substitutes for their synthetic counterparts.

Why are Fermentation Chemical Producers Focusing on China?

“Rising Agrarian Production of fermentation chemicals”

The market in China has been projected to advance at a CAGR of 5.6% during the projected period of 2024 to 2034 and reach a value of US$ 12.7 billion by 2034, accounting for a leading fermentation chemical market share in East Asia.

In most countries in East Asia, agriculture is the mainstay of the economy. Because of the high starch and carbohydrate content in farm produce, those involved in the sector will find fermentation chemicals worthwhile. The growth of the market in China, Japan, and South Korea is being influenced by the substantial trend and the backing being given to agro-based firms.

Category-wise Insights

What is the Growth Outlook for Fermentation Chemicals According to Their Types?

"Alcohol Fermentation Chemicals Account for Leading Market Share"

According to the report by Fact.MR, the alcohol fermentation segment is forecasted to reach a value of US$ 43.5 billion in 2024.

Despite alcohols being the most commonly utilized fermentation chemicals, other types such as enzymes and organic acids also account for substantial market shares. Due to the rising need for food and medications worldwide, these two categories are becoming popular, which is expected to lead to improved fermentation chemicals in the future.

One of the most popular food acidulates used in the manufacturing of processed cheese, jams, jellies, and other foods with sugar as a preservative is citric acid. Due to the artificial flavoring of many soft drinks being combined with organic acids, the global market for fermentation chemicals has been growing as a result of the rising volume of these food products. Some manufacturers of fermentation chemicals focused on niche markets find the other segment, which includes vitamins, xanthan, and antibiotics, to be attractive in the current market scenario.

What Should Fermentation Chemical Companies Focus On?

“Production of Biofuel Increasing Use of Fermentation Chemicals for Renewable Energy”

Industrial application of fermentation chemicals is projected to account for 25.8% share of the global market in 2024. The segment is forecasted to provide a high absolute $ growth opportunity of US$ 14.9 billion between 2024 and 2034.

The most important use of fermentation chemicals is the generation of biofuels, especially bioethanol. Fermentative microorganisms such as yeast, sugar, or starch-based feedstock such as corn, sugarcane, or cellulosic biomass are used to make bioethanol.

In the United States, businesses such as POET Biorefining and Archer Daniels Midland (ADM) operate large-scale fermentation facilities to manufacture bioethanol from corn, making the country a leading producer and user of bioethanol. Brazil leads the world in producing bioethanol from sugarcane, with businesses such as Raízen and Biosev using fermentation techniques to turn sugarcane into fuel-grade ethanol.

Competitive Landscape

Leading companies in the fermentation chemical industry are BASF SE, Archer Daniels Midland (ADM) Company, Cargill Incorporated, Dow Inc., AB Enzymes, Chr. Hansen /S, DSM, Ajinomoto Co., Inc., Novozymes A/S, Evonik Industries AG, Amano Enzyme, Inc., MicroBiopharm Japan Co., Ltd., Biocon, and INVISTA.

• In June 2022, a novel bio-based and biodegradable polyamide made from renewable feedstock and fermentation methods was introduced by BASF SE. Polyamide 6.10, is intended for use in textile, automotive, and packaging applications.
• In 2020, Cargill stated that a new lactic acid created from fermentation would be added to its portfolio of bio-based products. This lactic acid is made by a patented fermentation process and is intended for use in food, personal care, and industrial industries. It will cater to the growing demand for renewable and sustainable alternatives.

Fact.MR has provided detailed information about the price points of key manufacturers of fermentation chemicals positioned across regions, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Fermentation Chemical Market Research

• By Product Type :

  • Alcohol Fermentation
    • Ethanol
    • Others
  • Enzymes
  • Organic Acids
    • Lactic Acid
    • Citric Acid
    • Gluconic Acid
    • Acetic Acid
    • Others
  • Others (Amino Acids, etc.)

• By Form :

  • Liquid
  • Powder

• By Application :

  • Industrial
  • Food & Beverages
  • Nutritional & Pharmaceuticals
  • Plastics & Fibers
  • Others (Agriculture, etc.)

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa