Fermentation Chemicals Market Growth & Trends
The global fermentation chemicals market size is expected to reach USD 120.9 billion by 2030, registering a CAGR of 6.9% during the forecast period, as per the new report by Grand View Research, Inc. The growth is attributed to the increasing product utilization in numerous end-use industries like food & beverages, energy, pharmaceuticals, and plastics. The need for end-use products, such as processed foods, nutritional supplements, and pharmaceuticals, has increased in recent years, which has resulted in a significant increase in demand for fermentation chemicals. In addition, owing to the presence of a sizable number of manufacturing firms and the growing trend of organic products, the industry is estimated to witness rapid growth, especially in the Asia Pacific region.
The BRICS nations i.e., Brazil, Russia, India, China, and South Africa have experienced rapid industrial growth, which has a direct effect on the fermentation chemicals’ demand. These markets saw rapid industrial output growth and continue to be among the industrial regions with the greatest rate of expansion worldwide. The availability of a big pool of skilled labor, advantageous foreign investment norms, and technological know-how are the main growth drivers of the manufacturing industry in these economies. Stringent regulations established by the Environmental Protection Agency (EPA) and the European Union are likely to positively influence the demand due to the product’s eco-friendliness. These regulations propose various practices to reduce the use of fossil fuels and Greenhouse Gas (GHG) emissions.
The manufacturing of fermentation chemicals through green chemistry is considered the most practical and efficient way of reducing greenhouse effects. Key raw materials used to produce these chemicals include sugarcane, beet, wheat, tapioca, and corn. These agro products are high in carbohydrate and starch contents. Out of the entire production, the major share is consumed by the food industry. With the growing population across the globe, especially in Asia Pacific, the food demand is expected to increase in the coming years. These agro products are basic cereals and vegetables, which are consumed on a daily basis. There is a rise in demand for these products among consumers as fluctuations in the food supply & demand food may negatively impact the industry growth.
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Fermentation Chemicals Market Report
Fermentation Chemicals Market Report Highlights
- The organic acids segment is estimated to witness the fastest growth rate from 2023 to 2030 owing to increased product usage in the industrial fermentation process on account of their advantages, such as increased shelf life and ability to inhibit bacterial growth
- The plastics & fibers application segment will register the fastest CAGR from 2023 to 2030 due to the rising need to produce plastics from biopolymers to minimize pollution
- Plastics made from biopolymers are manufactured by undertaking the fermentation process of microalgae
- Asia Pacific will emerge as the fastest-growing region over the forecast years due to the developments in the end-use application industries like personal care & cosmetics, food & beverages, and pharmaceuticals
- Moreover, in countries like India, there has been a rise in the number of food & beverage startups, which is expected to create lucrative growth opportunities for the market
- The global industry is highly competitive on account of the presence of major manufacturing companies, such as Novozymes, DuPont, DSM, BASF SE, and Dow
