Fermentation Chemical Market is Expected to Grow at a Compound Annual Growth Rate (CAGR) of 5% Through 2032 Due to an Industrial Shift Toward Using Organic Ingredients in Final Products

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The global fermentation chemicals market is expected to grow at 5% CAGR, reaching US$ 123.9B by 2032, driven by bio-based feedstocks and diverse industry applications.

The Global Market for Fermentation Chemicals is Expected to Grow at a Compound Annual Growth Rate (CAGR) of 5% Through 2032 Due to an Industrial Shift Toward Using Organic Ingredients in Final Products

From 2022 to 2032, the global fermentation chemical market is expected to increase at a moderate rate of 5%. It is anticipated that the market share of fermentation chemicals will increase from US$ 71.8 billion in 2021 to US$ 123.9 billion by 2032.

The food and beverage, chemical, textile, rubber, alcohol, and pharmaceutical industries are just a few of the businesses that use fermentation chemicals in their diverse chemical processes.

These chemicals are most frequently made from various vegetable or organic feedstocks, such as corn, sugar, and starch. Major companies have shifted their focus to bio-based raw materials to reduce the world's dependency on petrochemicals, which is undoubtedly a positive development for the main trends and prospects in fermentation chemicals.

Growing concerns about carbon emissions and the price of crude oil are driving the global shift to bio-based chemicals. The primary driver of the adoption trends of fermentation chemicals is the degradability of products based on petrochemicals. Because of its antibacterial and antifungal properties, organic acid is highly sought after in the animal feed and nutrition sectors. It increases the need for fermentation chemicals by releasing hydrogen ions.

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Strict rules on greenhouse gas (GHG) emissions from chemical plants have been enforced by regulatory bodies like the US Department of Energy (DOE) and the US Environmental Protection Agency (EPA). Because of this, a lot of industrial companies are now focusing on biological methods for producing chemicals or acids, which presents a great opportunity for the market for fermentation chemicals to grow both now and in the future.

The market expansion for fermentation chemicals is expected to be somewhat slowed by the insufficient availability of organic base materials owing to logistical or source limitations. Many end-use sectors opt to employ synthetic substrates for chemical manufacturing processes due to the lack of organic feedstock, which raises concerns about the market trends and projections for fermentation chemicals.

Key Takeaways

· Over the next decade, the global fermentation chemicals market is projected to grow by approximately US$ 47.9 billion in total.

· Alcohol fermentation is anticipated to be the top-performing product category in the fermentation chemicals market, with an expected growth rate of 4.9% from 2022 to 2032.

· The industrial application sector is the leading revenue-generating segment in the fermentation chemicals market, with a forecasted compound annual growth rate (CAGR) of 5% during the predicted period.

· The Asia Pacific region is expected to be the fastest-growing market for fermentation-based products, with a growth rate of 4.4% in the Chinese fermentation chemicals market.

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Competitive Landscape

Key players in the fermentation chemicals market include BASF SE, Archer Daniels Midland (ADM) Company, Cargill Incorporated, Dow Inc., AB Enzymes, Chr. Hansen A/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.

Recent Developments in the Global Fermentation Chemicals Market

• In January 2022, Evonik Industries AG launched a new manufacturing plant for rhamnolipids. This bio-based, fully biodegradable production facility is expected to contribute to the growth of the fermentation chemicals market, particularly in the cosmetics and toiletries sector, over the coming decade.

Country-wise Insights

From 2024 to 2034, the U.S. fermentation chemicals market is forecasted to grow at a compound annual growth rate (CAGR) of 5.5%, driven primarily by the country's robust biotechnology and pharmaceutical research sectors. During this period, the market is anticipated to generate an absolute dollar opportunity of US$ 16.4 billion.

Suppliers of fermentation chemicals to the U.S. are expecting increased demand for bio-based and sustainable products across various industries. As environmental sustainability becomes a top priority for both businesses and consumers, fermentation processes have gained popularity. In particular, suppliers to the food and beverage sector anticipate a surge in demand for organic acids such as citric and lactic acids, which are used as natural, clean-label preservatives. Additionally, the pharmaceutical industry is seeking more bioactive compounds and antibiotics derived from fermentation to replace synthetic alternatives.

Category-wise Insights

The Fact.MR analysis projects that the alcohol fermentation market will be worth US$ 43.5 billion by 2024.

Although alcohols are the most widely used fermentation chemicals, other kinds such organic acids and enzymes also hold significant market shares. These two categories are growing in popularity due to the increased need for food and drugs globally, which is anticipated to result in better fermentation chemicals down the road.

Citric acid is one of the most often used food acidulants in the production of processed cheese, jams, jellies, and other foods that contain sugar as a preservative. The global market for fermentation chemicals has been expanding as a result of the artificial flavoring that many soft drinks include together with organic acids.

Competitive Landscape

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 are the top companies in the fermentation chemical sector.

BASF SE unveiled a new bio-based and biodegradable polyamide in June 2022 that was produced using fermentation techniques and renewable feedstock. Polyamide 6.10 is designed for usage in packaging, automobiles, and textiles.
Cargill said in 2020 that it would expand its line of bio-based products to include a new lactic acid produced through fermentation. The culinary, personal care, and industrial sectors are the target markets for this lactic acid, which is produced using a unique fermentation process.

In its recently updated market report, Fact.MR has offered comprehensive insights into the pricing strategies of major fermentation chemical manufacturers across various regions, along with information on their sales growth, production capabilities, and potential technological advancements.