Key Market Overview:
The Fermentation Chemicals Market was worth USD 65.00 Billion in 2022 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.5% during the forecast period of 2023-2030. The market is projected to reach a value of USD 105.20 Billion by 2030.
Fermentation chemicals are used in the metabolic process in which yeast or bacteria converts a carbohydrate including sugar or starch, into an acid or an alcohol. For instance, yeast performs fermentation to attain energy by converting sugar into alcohol. Fermentation chemicals are used as catalysts, nutrients, and pH regulators in the fermentation process.
Fermentation chemicals are used in a variety of applications including the production of processed food, antibiotics, plastics, and others. In the food and beverage industry, fermentation chemicals are widely employed to produce nutritional food such as yogurt, kefir, kombucha, and kimchi. Fermentation chemicals are widely employed in the pharmaceutical industry to produce antibiotics, therapeutic proteins, enzymes, and insulin.
Fermentation Chemicals Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||105.20 Billion|
|CAGR (2023-2030)||5.5 %|
|By Product Type||Alcohols, Enzymes, Organic Acids, Antibiotics, and Others|
|By Form||Liquid and Powder|
|By Application||Industrial Applications, Food and Beverages, Nutritional and Pharmaceuticals, Plastics, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||BASF SE, Novozymes A/S, Koninklijke DSM N.V., Amano Enzyme Inc., AB Enzymes GmbH, Chr. Hansen Holding A/S, Evonik Industries AG, Cargill, Inc., Ajinomoto Co., Inc., and Archer-Daniels-Midland Company|
The rapidly growing health and wellness trends among consumers and the increasing awareness about the health benefits offered by fermented food and drinks are driving the market growth. Fermentation of the food and drink adds value, improves nutritional quality and digestibility, and enhances food safety. Further, fermented foods provide many health benefits such as anti-oxidant, anti-fungal, anti-microbial, anti-diabetic, anti-inflammatory, and anti-atherosclerotic activity. For instance, as per the report published by Statista, the global fermented food and ingredients market amounted to USD 24 billion in 2018 and reached USD 35.5 billion in 2023. Hence, the various supreme qualities offered by the fermentation process and the rapidly growing demand for fermented food are creating an optimistic growth prospect for the fermentation chemicals market.
The major factor restraining the growth of the fermentation chemicals market is the side effects produced by the consumption of fermented foods. The intake of fermented food products including yogurt, kimchi, and sauerkraut leads to bloating, headaches, and histamine intolerance. In addition, fermented food products have high concentrations of histamine resulting in migraine and severe headaches. For instance, in August 2020, according to the National Library of Medicine, a low-histamine diet reduced headache and migraine problems in approximately 70% of individuals. In conclusion, the harmful side effects produced by the consumption of fermented foods are likely to hamper the growth of the fermentation chemicals market.
The advancements in genetic engineering are anticipated to create new opportunities for the fermentation chemical market to grow in the future. The growing research and development activities related to converting industrial waste gases, such as carbon monoxide and carbon dioxide, into ethanol is an influencing factor that is expected to drive the market growth. Further, ethanol is broadly used in the production of biofuel, a renewable fuel. The rising awareness of renewable and sustainable alternatives to fossil fuels is also anticipated to create lucrative opportunities for key players operating in the fermentation chemicals market. For instance, according to the report published by Statista, in 2021, the global biofuels market amounted to USD 110 billion and is expected to reach USD 201.2 billion in 2030. Therefore, the aforementioned factors are projected to boost the demand for fermentation chemicals during the forecast period.
Fermentation Chemicals Market Segmentation:
By Product Type
The product type segment is categorized into alcohols, enzymes, organic acids, antibiotics, and others. In 2022, the alcohol segment accounted for the largest market share in the fermentation chemicals market owing to the increasing use of alcohol particularly, ethanol as a fuel additive, solvent, and ingredient in various consumer products. Furthermore, alcohol is widely used in the production of biofuels and the increasing consumption of biofuels particularly in the U.S. is driving the segment growth. For instance, according to the statistics published by The U.S. Energy Information Administration (EIA), in 2021, in the U.S. biofuel production amounted to 17.5 billion gallons and biofuel consumption amounted to 16.8 billion gallons. Hence, the expanding biofuel industry is one of the key factors, bolstering the demand for fermentation chemicals.
However, the enzyme segment is expected to grow at the fastest CAGR over the forecast period owing to the widespread use in the synthesis of various products such as high-fructose corn syrup, ethanol, and others. Further, the increasing demand for processed foods is proliferating the need for enzymes to increase yields, reduce processing time and improve sensory characteristics, in turn, creating an optimistic growth prospect for the market in the following years.
The form segment is categorized into liquid and powder. In 2022, the powder segment accounted for the largest market share and is also expected to grow at the fastest CAGR over the forecast period. This is attributed to factors including longer shelf life and high purity attained from the crystallized form as compared to the liquid form. Owing to these factors, fermentation chemicals in powder form are widely employed in pharmaceuticals and multinational chemical companies. For instance, according to the European Chemical Industry Council, global chemical sales increased by 15.2% from USD 3,858.68 billion in 2020 to USD 4,446.21 billion in 2021. As a result, the growing chemical industry is another factor positively impacting the adoption of fermentation chemicals over the forecast period.
The application segment is divided into industrial applications, food and beverages, nutritional and pharmaceuticals, plastics, and others. In 2022, the food & beverages segment accounted for the largest market share in the fermentation chemicals market. In the food and beverage industry, fermentation chemicals are broadly used to produce various products, such as alcoholic beverages, cheese, yogurt, and bread. For instance, as per the report published by Statista, the revenue in the food market is expected to be USD 9.43 trillion in 2023 and is expected to increase annually by 6.21% CAGR by 2027. Hence, the rapidly expanding food industry is bolstering the demand for fermentation chemicals.
However, the pharmaceutical and nutritional segment industry is expected to be the fastest segment during the forecast period. Fermentation chemicals are widely used in the production of nutritional supplements and pharmaceuticals, such as antibiotics, vitamins, and enzymes. Additionally, the increasing use of fermentation in plant-based products such as vinegar, table olives, and kimchi is creating an optimistic growth prospect for the market in the following years.
Based on regions, the global fermentation chemicals market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In 2022, North America accounted for the largest market share in the fermentation chemicals market owing to the rapidly growing pharmaceutical industry, particularly in the U.S. For instance, as per the report published by Statista, in 2022, the U.S. is the largest national pharmaceutical market in 2021, comprising 41% of total pharmaceutical spending worldwide. Hence, the aforementioned factor is driving the product demand in the region.
However, Europe is expected to be the fastest-growing region during the forecast period. This is attributed to the presence of established key players such as DSM N.V., and BASF SE, among others that are likely to boost the revenues of the fermentation chemicals market. Additionally, the increasing use of fermentation chemicals in various applications such as alcoholic beverages, nutritional supplements, and pharmaceuticals is likely to create lucrative opportunities for key players operating in the fermentation chemicals market.
Fermentation Chemicals Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. The fermentation chemicals market is highly competitive, with a large number of players operating at both the regional and global levels. Companies compete based on factors such as product quality, price, innovation, and brand recognition, and many engage in research and development activities and strategic partnerships to stay ahead of the competition. Listed are the key players:
• BASF SE
• Novozymes A/S
• DSM N.V.
• Amano Enzymes Inc.
• AB Enzymes GmbH
• Chr. Hansen Holding A/S
• Evonik Industries AG
• Cargill, Inc.
• Ajinomoto Co., Inc.
• Archer-Daniels-Midland Company
• In July 2022, Novozymes launched two advanced yeasts named Innova Apex and Innova Turbo, aimed to break fermentation bottlenecks, reduce demand for expensive urea, and increase ethanol yield.
• In January 2022, BASF expanded the production capacity of the enzymes plant in Ludwigshafen, Germany to increase the annual number of feasible fermentation runs.