Fermentation Chemicals Market

Global Fermentation Chemicals Market Outlook 2022 to 2032

The fermentation chemicals market is predicted to grow at a moderate CAGR of 5% during the forecast period covering 2022 to 2032. The fermentation chemicals market share is estimated to reach a value of nearly US$ 123.9 Billion by 2032, expanding from US$ 71.8 Billion in 2021.

Fermentation acids or chemicals have a very critical function as an initiator of several types of fermentation reactions. When employed as an accelerator or catalyst in a reaction, it aids in speeding up the chemical process of fermentation to save time. Consequently, it is possible for fermentation chemicals to use in industries to reduce the reaction time and cost of their final product.

Given such advantages, this fermentation chemicals market report's goal is to examine the current and forecast future trends of the worldwide fermentation chemicals industry, which is likely to grow in total demand and supply volume in the coming days.

Attributes	Details
Fermentation Chemicals Market Share (2021)	US$ 71.8 Billion
Fermentation Chemicals Market Size Value (2022)	US$ 76 Billion
Fermentation Chemicals Market Size Value (2032)	US$ 123.9 Billion
Fermentation Chemicals Market Growth Rate (2022-2032)	5%
Fermentation Chemicals Market Key Players	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. TCI Chemicals (India) Pvt. Ltd Biocon INVISTA among others.

Global Fermentation Chemicals Market Historical Analysis (2015-2021) Vs. Forecast Outlook (2022-2032)

The overall growth rate of the global market is witnessed to have remained intact over the historical time period of 2015 to 2022, as figured out from the fermentation chemicals market demand analysis. However, a slight drop in the CAGR from 5.6% can be attributed to the global pandemic situation followed by the economic slowdown.

As the supply of several market goods was restricted following the lockdown of the public marketplaces, the resulting impact was observed in several associated industries in the aftermath. Contrastingly, the Pharmaceutical firm's increased research into developing breakthrough medications via bacteria culture is projected to fuel the demand for fermentation chemicals even during the post-pandemic years.

What is the Future of Global Fermentation Chemicals Market?

“The burgeoning cosmetic business is also providing a positive market for the fermentation chemicals adoption trends, particularly in men's cosmetics as organic acids have a low pH and are utilised in aftershave and other astringent treatments.”

Owing to their natural organic structure, affordability, and better results with increased yield, fermentation chemicals are widely employed in several types of industries all over the world. Alcohols, enzymes, and organic acids are its most common products that have created a huge demand for fermentation chemicals in the present market.

In the alcohol business, the right kind of fermentation chemicals is the essential raw material. Fermentation produces ethanol, which is an essential ingredient in creating alcohol and alcoholic drinks. As a follow-up to the increased demand for alcoholic drinks, the worldwide fermentation chemicals industry grows.

Fermentation chemicals are also required by other pharmaceutical, cosmetic, food, and beverage manufacturing sectors. As a result, the fermentation chemicals business is getting driven by the expansion of these sectors in diverse geographical locations of the world.

For its application in the novel process of biomass conversion, the manufacturing of environmentally friendly fermentation chemicals would generate more jobs. That’s why several government initiatives, particularly in agriculture-based economies, have been taken up for establishing fermentation chemicals manufacturing plants. Such developments are expected to propel further the global fermentation chemicals market in the coming days.

Fermentation chemicals are most widely used in the food sector and over the projected 2022 to 2032. The rising population around the world, particularly in the Asia Pacific, is predicted to increase food consumption and consequently strengthen the emerging trends in fermentation chemical industries.

What are the Major Challenges Experienced by the Fermentation Chemicals Market Players?

Lactic acid is not used in the dairy business because of the high expense incurred due to the use of chemicals process of fermentation. Furthermore, frequent alterations in the manufacturing process in the fermentation of ethanol, bacteria, and lactic acid are expected to limit the fermentation chemicals market growth.

Isolation and purification of the target products after the use of fermentation chemicals need further downstream processing. When compared to synthetic manufacturing techniques, the generation of organic acids and alcohols is a time-consuming process with a long holdup period and low yields. The world fermentation chemicals market growth may be hampered by these complicated fermentation procedures and therein incurring heavy expenditure for achieving it.

Region-wise Outlook

What is the Performance of Fermentation Chemicals Market in Different Geographical Regions?

This fermentation chemicals market analysis report gives insight into the market potential for various industrial applications. The new market research report on fermentation chemicals focuses on the opportunities in the present world's growing economies so that businesses may strategically build region-specific plans and acquire a competitive advantage.

What is the Fermentation Chemical Market Outlook for the North America Region?

By virtue of well-established biotech and pharmaceutical research laboratories in the United States, it is the dominating region in terms of sales of fermentation chemicals throughout the year.

The net worth of the overall US fermentation chemicals market is calculated to be around US$ 27.7 Billion for the year 2022. According to the global market study on fermentation chemicals, the regional market is estimated to witness the highest growth rate of 4.8% over the projected period culminating in 2032 at a net worth of nearly US$ 44.2 Billion.

What is the Fermentation Chemical Market Outlook for the Asia Pacific Region?

The pharmaceutical industry's expansion, notably in the Asia Pacific, is predicted to boost the regional countrie's fermentation chemicals market during the forecast period of 2022 to 2032.

Asia Pacific countries are mostly agriculture-intensive economies, and the starch and carbohydrate content of these agricultural products is significant, making it a superbly favorable region for fermentation chemicals market players. The readiness of government authorities to encourage agriculture-based industries in the Asia Pacific countries is also a major driving factor for the proliferation of fermentation chemicals business in China, India, Japan, South Korea, and other emerging economies of the region.

China leads in the production and sales of fermentation chemicals, with the overall market estimated to be around US$ 5.8 Billion for the year 2022, followed by Japan and South Korea with valuations of US$ 5.2 Billion and US$ 3.4 billion, respectively. China fermentation chemicals market share is predicted to follow the second-highest growth rate of 4.4% during the forecast year ending in 2032.

Category-wise Outlook

What is the Growth Outlook for the Fermentation Chemicals Market According to Different Segments?

In the base year 2012, the global fermentation chemicals market was figured out to be dominated by the alcohol production process. This trend continued till 2021, with the year-on-year growth rate for sales of fermentation chemicals to liquor industries estimated to be around 5%, followed by sales of fermentation chemicals for the production of enzymes and organic acids industries.

In 2012, the alcohol segment brought in US$ 22.3 Billion, accounting for about more than 50% of the total intake capacity of fermentation chemicals market share. During the upcoming years 2022 to 2032, the growth rate of the alcohol fermentation segment is expected to continue at 4.9%, as predicted by the new market the research report on fermentation chemicals by Fact.MR.

Despite the fact that alcohols are the most used fermentation chemicals, other types such as enzymes and organic acids also contribute significantly to the global fermentation chemicals market growth. These two segments are rapidly gaining popularity with the global increase in demand for food and medicines that promises some better fermentation chemicals market future trends.

By the end of the year 2028, the global fermentation chemicals market for organic acids are expected to reach nearly a value of US$ 22.6 Billion. Organic acids are widely utilized in the culinary, pharmaceutical, and medical sectors, which has swelled the demand for fermentation chemicals in this segment.

Citric acid is one of the most common food acidulates used in the production of processed cheese, jams, jellies, and other sugar-based preservative foods. Organic acids are also added to many soft drinks for artificial flavoring, which has fuelled the fermentation chemical market expansion with the increasing volume of these food items in the global market.

The other segment, which includes antibiotics, vitamins, and xanthan, is also most appealing for some niche market-oriented fermentation chemicals producers in the current years.

What are the Major Applications of Fermentation Chemicals that categorizes the Market into Different Segments?

The industrial application of these chemicals for the making of biofuels, bioplastics, biopolymers, and composites is the major contributing segment of the global fermentation chemicals market. This segment involves a multistep reaction that is expected to increase in demand at a CAGR of 5% during the forecast period of 2022 to 2032.

With the highest growth rate of industrial application of fermentation chemicals, it is anticipated to be the best performing than any other application segment of the fermentation chemical market share.

The other application segments, for instance, food & beverages, and nutritional & pharmaceutical sectors, have also been observed to have shown some lucrative growth opportunities for the fermentation chemicals market players during the last couple of years.

How Strong is the Competitive Landscape for the Fermentation Chemicals Market?

Some of the major key players contributing to the growth of the global fermentation chemicals market include BASF SE, Archer Daniels Midland (ADM) Company, Cargill Incorporated, Dow Inc., AB Enzymes, and Chr. Hansen /S, DSM, Ajinomoto Co., Inc., Novozymes A/S, Evonik Industries AG, Amano Enzyme, Inc., MicroBiopharm Japan Co., Ltd., TCI Chemicals (India) Pvt. Ltd, Biocon, and INVISTA, among others.

As these chemicals are mostly used in industrial settings, so the fermentation chemicals market key players are tying up with big manufacturing companies to secure their profits.

Higher market penetration of fermentation chemicals has occurred from the introduction of green chemistry and numerous laws for commercial and industrial uses. Taking over small regional fermentation chemical manufacturers by the big market players is also a major approach resulting in its greater market penetration. 

Recent Developments in the Global Fermentation Chemicals Market

• Evonik Industries AG, for example, launched a new rhamnolipids manufacturing unit in around January 2022. This industrial manufacturing facility for bio-based and entirely biodegradable rhamnolipids is expected to boost the fermentation chemicals market share in cosmetics and toiletries segment in the coming decade.

Key Segments

• By Product Type :

  • Alcohol Fermentation
    • Ethanol
    • Others
  • Enzymes
  • Organic Acids
    • Lactic Acid
    • Citric Acid
    • Gluconic Acid
    • Acetic Acid
    • Others
  • Others

• By Form :

  • Liquid
  • Powder

• By Application :

  • Industrial Application
  • Food & Beverages
  • Nutritional & Pharmaceutical
  • Plastics & Fibers
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)