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The specialty chemical industry has experienced rapid growth in recent years, driven by a convergence of factors reshaping various sectors and influencing consumer preferences. This expansion is characterized by innovations, evolving market dynamics, and an increased focus on sustainability and performance. A pivotal factor contributing to this growth is the shifting demand from customers who now seek products offering more than just fundamental functions. According to Statista, the global market for specialty chemicals is anticipated to climb from USD 588.2 billion in 2020 to approximately USD 895 billion by 2028. This surge in the usage of specialty chemicals across diverse industries is expected to drive the demand for industrial fermentation chemicals.
A notable paradigm shift in the production of specialty chemicals has been the growing integration of the fermentation process into the industry. This shift is propelled by several factors, including advancements in biotechnology, sustainability imperatives, and the pursuit of innovative, high-value products. At the core of this transformation lies the unparalleled potential of fermentation as a manufacturing technology. Fermentation chemicals play a crucial role in processing various specialty compounds, offering producers a flexible choice to diversify their product offerings. Fermentation techniques can be finely tuned to control yield, purity, and production speed, providing a significant advantage in creating high-purity specialty chemicals for applications in biochemicals and electronics.
The use of fermentation chemicals in the production of specialty chemicals is a burgeoning trend, driven by the industry's commitment to more ecologically friendly and sustainable practices. Fermentation processes leverage biological systems to manufacture a broad range of specialized chemicals, resulting in greater resource efficiency and fewer toxic by-products compared to conventional chemical synthesis.
One noteworthy application of fermentation chemicals is in the production of biopolymers such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA). These biodegradable alternatives to petroleum-based plastics are created through fermentation-based processes. PLA, for example, is produced by fermenting sugars derived from renewable sources like maize or sugarcane. Microbes such as lactobacilli or fungi convert these sugars into lactic acid, the monomeric building block for PLA. Following lactic acid polymerization, customized PLA biopolymers are produced. The advantages of using fermentation in biopolymer manufacturing include providing a sustainable alternative to traditional plastics, addressing concerns about resource depletion and plastic pollution. Furthermore, fermentation-derived biopolymers are naturally renewable and biodegradable, mitigating the long-term environmental impact of conventional plastics.
Fermentation is also instrumental in producing surfactants and emulsifiers, essential components used in diverse applications such as personal care products, detergents, and agrochemicals. Through bioconversion processes, fermentation chemicals support the synthesis of these substances by harnessing the natural capabilities of microbes. The customization potential of the fermentation chemical process enables the efficient and selective creation of specific surfactants and emulsifiers, meeting various industrial needs. Additionally, the ability to design microbes for production reduces dependence on rare natural resources, contributing to resource conservation. As industries increasingly prioritize sustainable practices, the demand for industrial fermentation chemicals is expected to continue its upward trajectory.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Growth, expansion, and demand of Fermentation Chemicals in the food & beverage industry. |
| Market Dynamics | Rising demand for organic feedstocks over synthetic feedstocks. |
Fermentation Chemicals Market Highlights:
Global Fermentation Chemicals Market Overview
Fermentation Chemicals Market Size was valued at USD 58.86 billion in 2023. The Fermentation Chemicals industry is projected to grow from USD 61.98 Billion in 2024 to USD 88.97 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.62% during the forecast period (2024 - 2032). The growing preference for organic feedstock over synthetic feedstock and the growing use of fermentation-based products in various industries are expected to be the market drivers contributing to market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Fermentation Chemicals Market Trends
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Increasing demand from different industries is driving the market growth
The market CAGR for the fermentation chemicals market has been growing rapidly in recent years, which is expected to continue in the coming years. Fermentation has been used in the food and beverage industry for centuries to produce bread, cheese, and beer. In recent years, there has been an increasing interest in using fermentation to produce new and innovative food and beverage products. It has led to a rise in the use of fermentation chemicals in the food and beverage industry. One of the key areas of growth in the food and beverage industry is using fermentation to produce plant-based protein alternatives.
Fermentation is also used in the production of pharmaceuticals and other biopharmaceutical products. Biopharmaceuticals are drugs made from living cells and used to treat a wide range of diseases. Fermentation is used to produce the cells used to make these drugs, and fermentation chemicals are used in the production process. The demand for biopharmaceuticals is growing as new treatments are developed for various diseases, including cancer, autoimmune disorders, and infectious diseases. As a result, the demand for fermentation chemicals used in producing these drugs is expected to grow.
One of the key drivers of the fermentation chemicals market is the increasing demand for bio-based products. Consumers are becoming more environmentally aware and seeking products from renewable resources with a reduced environmental impact. Fermentation is a natural process that can produce a wide range of bio-based products, including biofuels, bioplastics, and biopharmaceuticals.
The fermentation chemicals market is experiencing significant growth due to the increasing demand for bio-based products, the growing use of fermentation in the food and beverage industry, and the increasing demand from the pharmaceutical industry to drive the Fermentation Chemicals market revenue.
February 2024
Skin-identical biotechnology-derived vegan collagen has been introduced by Evonik.
A supplier of specialty chemicals has introduced Vecollage Fortify L, a novel vegan collagen designed for use in the cosmetics and personal care industry. This collagen closely resembles the collagen found in the epidermis.
By capitalizing on Evonik's strengths in biotechnology, collagen, and skin care, Vecollage Fortify L satisfies the need for vegan collagen in anti-aging and hydrating moisturizers, among other applications.
Fermentation Chemicals Market Segment Insights
Fermentation Chemicals Application Insights
The Fermentation Chemicals market segmentation, based on application, includes food & beverages, plastics & fibers, nutritional & pharmaceuticals, industrial application, cosmetics & toiletry, and others. The food & beverages segment dominated the market revenue. Fermentation products produce various foods and beverages, such as bread, cheese, beer, and wine. The demand for fermentation products in the food and beverage industry is expected to grow due to the increasing demand for fermented foods and beverages.
Fermentation Chemicals Type Insights
The Fermentation Chemicals market segmentation, based on type, includes alcohols & ketones, amino acids, industrial enzymes, organic acids, and others. The alcohols & ketones category generated the most income in the market. The demand for alcoholic fermentation products is expected to grow due to the increasing consumption of alcoholic beverages. It is used in the production of beer, wine, and spirits.
Figure 1: Fermentation Chemicals Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Fermentation Chemicals Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American fermentation chemicals market will dominate due to the high demand for fermented food and beverages, particularly in the United States. The U.S. is among the largest consumers of fermented products, such as yogurt, kefir, and sauerkraut, driving the demand for fermentation products in the region. Furthermore, the region has a well-established pharmaceutical and biotechnology industry, contributing to the growth of the fermentation products market.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FERMENTATION CHEMICALS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Fermentation Chemicals market accounts for the second-largest market share. The growth in Europe is driven by the high demand for fermented food and beverages, particularly in countries such as Germany and France. The region has a well-established biotechnology industry, contributing to the growth of the fermentation products market. Furthermore, the increasing demand for biofuels in the region is expected to drive the market's growth over the forecast period. Further, the German Fermentation Chemicals market held the largest market share, and the UK Fermentation Chemicals market was the fastest-growing market in the European region.
The Asia-Pacific Fermentation Chemicals Market is one of the fastest-growing markets. The growth in APAC to the increasing demand for fermented food and beverages, particularly in countries such as China, Japan, and India. The region has a large population, which is driving the demand for fermented products. Furthermore, the region has a rapidly growing biotechnology industry, contributing to the growth of the fermentation products market. Moreover, China’s Fermentation Chemicals market held the largest market share, and the Indian Fermentation Chemicals market was the fastest-growing market in the Asia-Pacific region.
The fermentation products market is expected to continue to grow steadily over the forecast period, driven by the increasing demand for fermented food and beverages and the growing use of fermentation products in various industries.
Fermentation Chemicals Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Fermentation Chemicals market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Fermentation Chemicals industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Fermentation Chemicals industry to benefit clients and increase the market sector. The Fermentation Chemicals industry has offered some of the most significant medical advantages in recent years. Major players in the Fermentation Chemicals market, including AB Enzymes (Germany), Amano Enzyme Inc. (Japan), Evonik Industries AG (Germany), Koninklijke DSM N.V. (The Netherlands), EUROSANEX (Spain), Cargill Incorporated (US), Archer Daniels Midland Company(US), BASF SE (Germany), Ajinomoto Co. Inc. (Japan), Novozymes (Denmark), Chr. Hansen Holding A/S (Denmark), INVISTA (US), DowDuPont (US), and others are attempting to increase market demand by investing in research and development operations.
Sasol Ltd., founded in 1950 in Sandton, South Africa, is an integrated energy and chemical company. Sasol develops and commercializes synthetic fuel technologies, producing different liquid fuels, chemicals, nuclear, coal tar, and electricity. In May 2022, Sasol Chemicals and Holiferm Ltd. made a joint partnership to develop new biosurfactants for the commercialization of sophorolipids. As per the partnership, Sasol Chemicals will buy the majority of sophorolipids produced at the Holiferm facility in the United Kingdom. Coliform research and development activities will meet the demand for sustainable requirements in primary surfactants. The Holiferm process for preparing biosurfactants reduces carbon emissions compared to traditional surfactants.
BASF SE, also known as Badische Anilin und Soda-Fabrik, founded in 1865 in Ludwigshafen, Germany, is a European multinational company and the largest chemical producer in the world. In 2020, BASF SE acquired Isobionics and Advanced Biochemical Thailand (ABT), two companies specializing in biotechnology-based aroma ingredients and sugar-based fermentation, respectively. The acquisition was valued at around €1.3 billion and aimed to expand BASF's product offerings in the market.
The introduction of Vecollage Fortify L, according to Evonik, brings the company one step closer to developing a platform for sustainable and non-animal collagen. This platform will feature a variety of vegan collagen varieties that Evonik and its partners have collaboratively developed.
Vecollage Fortify L was collaboratively developed with Modern Meadow Inc., an organization that specializes in the advancement of proteins through fermentation processes.
Produced through the process of fermentation, the novel constituent effectively satisfies the growing market need for vegan collagen. "Collagen has been a highly desirable component in cosmetics and dermatology for several decades due to its capacity to enhance the skin's firmness, elasticity, and hydration." "Collagen has traditionally been derived from marine and animal sources; however, brands are concerned about supply security and consumers are increasingly seeking ethical and sustainable alternatives," Evonik explains in a statement.
Key Companies in the Fermentation Chemicals market include
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AB Enzymes (Germany)
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Amano Enzyme Inc. (Japan)
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Evonik Industries AG (Germany)
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Koninklijke DSM N.V. (The Netherlands)
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EUROSANEX (Spain)
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Cargill Incorporated (US)
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Archer Daniels Midland Company(US)
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BASF SE (Germany)
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Ajinomoto Co. Inc. (Japan)
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Novozymes (Denmark)
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Chr. Hansen Holding A/S (Denmark)
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INVISTA (US)
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DowDuPont (US)
Fermentation Chemicals Industry Developments
In 2019: DowDuPont announced that it was spinning off its specialty products division, which includes the fermentation business, into a new company called DuPont de Nemours, Inc. This move aimed to focus on the company's core businesses and strengthen its market position.
In 2019: DSM announced that it was acquiring the flavor and fragrance business of the U.S. company Amyris Inc. for $150 million. The acquisition aimed to expand DSM's presence in the fermentation chemicals market and strengthen its product portfolio.
Fermentation Chemicals Market Segmentation
Fermentation Chemicals Type Outlook
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Alcohols & Ketones
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Amino Acids
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Organic Acids
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Others
Fermentation Chemicals Application Outlook
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Food & Beverages
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Plastics & Fibers
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Nutritional & Pharmaceuticals
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Industrial Application
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Cosmetic & Toiletry
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Others
Fermentation Chemicals Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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