In terms of revenue, the Global Fermentation Chemicals Market is expected to reach USD 83.6 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 7.1% from 2022 to 2028.
In the alcohol industry, fermentation chemicals are used as a crucial raw material. The primary chemical used in the creation of alcohol and alcoholic beverages is ethanol, which is produced during the fermentation process. Therefore, the market for fermentation chemicals would be significantly influenced by rising alcoholic beverage demand. In addition, fermentation chemicals are also needed by a number of other industries, such as the cosmetic, pharmaceutical, and food and beverage sectors, to keep the production process running smoothly. As a result, the expansion of these sectors on a global scale would be the primary driver of increased demand for the fermentation chemicals market.
Regulatry authorities' rigorous legislation in developed nations like Europe will be a major factor in the market growth of fermentation chemicals throughout the projection period. Through their regulatory framework, organizations like the European Commission and EPA explicitly support the use of fermentation chemicals, which in turn can boost green chemistry. Furthermore, in the foreseeable term, rising end-user knowledge of the benefits of applying bio-based goods would further increase market demand.
Key Developments in the Industry
· A partnership between LanzaTech and BASF, to be announced in May 2021, intends to create usable chemicals from the carbon present in industrial off-gases. The partners have now achieved an important milestone: they were able to produce n-octanol at a laboratory scale from carbon monoxide and hydrogen, the main components of emissions, such as those from the steel industry. They did this by utilizing specialist bacteria. N-Octanol is an essential molecule used in cosmetics, among other things.
These compounds primarily consist of vegetable feedstock like corn, sugar, and starch. Most end-user industries utilize these products in the fermentation process due to the lack of feedstock. Beet, sugarcane, tapioca, wheat, and corn are some of the main agricultural products used in manufacturing. These agricultural derivatives include a lot of starch and carbohydrates. As a result, fermentation chemicals are widely used in the food business.
Furthermore, the dairy industry cannot use lactic acid because of the high expense associated with its fermentation. Additionally, the expansion of the market for fermentation chemicals may be hampered by variations in the production method for ethanol, bacteria, and lactic acid. The creation of environmentally acceptable fermentation chemicals would create a window of opportunity for their use in several fields, such as biomass conversion.
The main goods made from fermentation chemicals are beer, wine, and spirits. Beer is one of these that are sold the most all over the world. The demand for alcohol is expected to rise during the forecast period due to an increase in the use of alcohol in pharmaceutical applications for the production of items, including anesthetics, antiseptics, medicines, ointments, and lotions, among others. Ethanol is widely used in various products, including paints and coatings, alcoholic beverages, personal care items, and as a fuel additive in gasoline. As a result, it is projected that the market for fermentation chemicals will flourish due to this growth in alcohol demand.
During the forecast period, the Fermentation Chemicals Market in North Americais anticipated to develop at the quickest rate.This is a result of the region's rising demand for enzymes, which are used in a variety of processes involving paper, starch, and personal care products. The possibility of the company expanding significantly is expected to be significantly impacted by the rising demand for enzymes from a variety of industrial purposes, including paper, personal care, and starch. Cosmetics and toiletries have seen enormous demand growth in recent years due to people's growing awareness of the need for personal hygiene and cleanliness. A significant market opportunity for cosmetic products has also been created by the rise in the skin and dermatological diseases brought on by environmental change. Fruits, herbs, and yeast are frequently found in these fermented skin care products, which provide relaxing and anti-inflammatory properties on the skin.
The Global Fermentation Chemicals Market is Segmented as follows
- Organic Acid
- Other Products
- Industrial Application
- Food & Beverages
- Nutritional & Pharmaceutical
- Plastics & Fibers
- Cosmetic & Toiletry
- Other Applications
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of the Key Players of the Global Fermentation Chemicals Market is
BASF SE (Germany), Novozymes A/S (Denmark), Amano Enzymes Inc. (U.S.), DSM Chemicals Company (Netherlands), Archer Daniels Midland Company (U.S.), Cargill Incorporated (U.S.), The Dow Chemical Company (U.S.), AB Enzymes (Germany), Chr. Hansen A/S (Denmark), Ajinomoto Co. Inc. (Japan), Evonik Industries AG (Germany)
The Global Fermentation Chemicals Market Scope can be Tabulated as below
|Market Size Provided for Years
|2017 - 2030
|2017 - 2021
|2023 - 2030
|Regions & Counties Covered
|Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis