Fermentation Chemicals Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 194.04 Billion |
| Market Size (2029) | USD 242.98 Billion |
| CAGR (2024 - 2029) | 4.60 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fermentation Chemicals Market Analysis
The Fermentation Chemicals Market size is estimated at USD 194.04 billion in 2024, and is expected to reach USD 242.98 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the fermentation chemicals market. However, the market recovered significantly in 2021.
- Over the short term, the growing demand from the methanol and ethanol industry and increasing demand from the pharmaceutical industry are major factors driving the studied market's growth.
- However, high costs due to the complexity involved in the manufacturing process are likely to restrain the growth of the studied market.
- Nevertheless, growing green chemistry opportunities will likely create lucrative growth opportunities for the global market soon.
- The North American region dominates the fermentation chemicals market, with the largest consumption coming from countries like the United States, Canada, and Mexico.
Fermentation Chemicals Market Trends
Food and Beverage Sector to Dominate the Market
- Fermentation usually signifies that the action of microorganisms is desirable. Fermentation produces alcoholic beverages such as wine, beer, and cider. Fermentation is also used to produce dairy products and leavening bread.
- Fermentation chemicals are highly demanded by the food and beverages industry as it is the oldest biotechnology used by human beings to produce safer, more stable, and better foodstuff.
- In the Asia-Pacific region, the demand for processed food is growing due to increasing lifestyle changes, disposable income of people, working professionals, and preferences for fast food. Consumers prefer ready-to-eat foods as these require considerably lesser time for cooking, are fresh, and include attractive and sturdy packaging.
- Also, China is expected to continue to be Asia's largest food market, and India and Southeast Asia will witness the most significant increases in food spending.
- The market for food processing in North America is robust due to the excessive dependence of people on packaged food products and the strong foothold of the food processing companies. PepsiCo, Tyson Foods, and Nestle are large food processing companies operating in the region.
- Germany is by far Europe's largest market for foods and beverages, home to more than 83 million of the world's wealthiest consumers. In 2023, the German food market is expected to generate USD 245.50 billion in revenue. The market is expected to grow annually by 3.64% between 2023 to 2027.
- According to OIV (International Organisation of Vine and Wine), global wine production in 2022 amounted to about 258 million hectoliters.
- Additionally, in 2022, Italy was the world's top wine producer and exported the most wine, amounting to 21.9 million hectoliters. The top exporters were the other two top wine producers. France exported 14 million hectoliters, while Spain exported 21.2 million.
- Such factors likely support the demand for the studied market from the food and beverages segment.
North America to Dominate the Market
- North America currently accounts for the highest global fermentation chemicals market share.
- The pharmaceutical industry highly drives the market for North America in the United States and its growing focus to turn itself into a green industry.
- In North America, the United States accounts for the largest share of the revenue generated by global pharmaceutical sales. In 2024, the United States is projected to spend between USD 605 and 635 billion on medicines, according to AstraZeneca. It will make the country achieve the highest pharmaceutical spending by far.
- Canada's pharmaceuticals market is the ninth-largest globally, with a 2.1% share of global market sales. The pharmaceutical sector in Canada is progressing under direct support from the government. For instance, in August 2021, the government of Canada announced new investments in diabetes research.
- Recently, the food & beverage industry witnessed major growth in the United States, likely to drive the market studied.
- In March 2022, Nestlé announced its plans to invest USD 675 million in a new plant in Metro Phoenix, Arizona, the United States, to produce beverages, including oat milk coffee creamers, as consumer demand for plant-based products increases. The plant is expected to be operational in 2024.
- Additionally, there is an increasing demand for fermentation chemicals from Canada and Mexico for use in the pharmaceutical, food & beverage industries.
- Therefore, the abovementioned factors contribute to the increasing demand for the fermentation chemicals market in North America during the forecast period.
Fermentation Chemicals Industry Overview
The global fermentation chemicals market is partially consolidated in nature. The major players include BASF SE, Cargill, Incorporated., Evonik Industries AG, DSM, and Lonza, among others (not in any particular order).
Fermentation Chemicals Market Leaders
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BASF SE
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Cargill, Incorporated.
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Evonik Industries AG
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DSM
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Lonza
*Disclaimer: Major Players sorted in no particular order
Fermentation Chemicals Market News
October 2022: ScaleUp Bio, a joint venture company of ADM and Temasek- Asia Sustainable Foods Platform, announced to open two precision fermentation facilities in 2023 in Singapore. The first facility will support up to 100 l of fermentation and downstream processing capacity with testing and process optimization capabilities. The second facility will offer a space for start-ups and early-stage food tech companies to access up to 10,000 l of fermentation capacity.
January 2022: BASF SE announced the expansion of the production capacity of its enzymes plant in Ludwigshafen, Germany. By expanding the existing plant, BASF significantly increased the annual feasible fermentation runs.
Fermentation Chemicals Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Growing Demand from Methanol and Ethanol Industry
- 4.1.2 Increasing Demand from the Pharmaceutical Industry
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 High Cost Due to the Complexity Involved in the Manufacturing Process
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
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5.1 Product Type
- 5.1.1 Alcohols
- 5.1.2 Organic Acids
- 5.1.3 Enzymes
- 5.1.4 Other Product Types
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5.2 Application
- 5.2.1 Industrial
- 5.2.2 Food and Beverage
- 5.2.3 Pharmaceutical and Nutritional
- 5.2.4 Plastics and Fibers
- 5.2.5 Other Applications
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 ASEAN Countries
- 5.3.1.6 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%) **/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 AB Enzymes
- 6.4.2 Ajinomoto Co., Inc.
- 6.4.3 ADM
- 6.4.4 BASF SE
- 6.4.5 Biocon
- 6.4.6 BioVectra
- 6.4.7 Cargill, Incorporated.
- 6.4.8 Chr. Hansen Holding A/S
- 6.4.9 DSM
- 6.4.10 Evonik Industries AG
- 6.4.11 Lonza
- 6.4.12 MicroBiopharm Japan Co., Ltd.
- 6.4.13 Novasep
- 6.4.14 Novozymes
- 6.4.15 Teva Pharmaceutical Industries Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Opportunities for Green Chemistry
- 7.2 Other Opportunities
Fermentation Chemicals Industry Segmentation
Fermentation is a metabolic process in which an organism converts carbohydrates, such as starch or sugar, into an alcohol or an acid. For example, yeast uses fermentation to produce energy, turning sugar into alcohol. Fermentation is the process through which bacteria turn carbohydrates into lactic acid.
The fermentation chemicals market is segmented by product type, application, and geography. The market is segmented by product type into alcohols, organic acids, enzymes, and other product types. The market is segmented by application into industrial, food and beverage, pharmaceutical and nutritional, plastics and fibers, and other applications. The report also covers the market size and forecasts for fermentation chemicals in 15 countries across major regions. Market sizing and forecasts are based on revenue (USD) for each segment.
| Product Type | Alcohols | |
| Organic Acids | ||
| Enzymes | ||
| Other Product Types | ||
| Application | Industrial | |
| Food and Beverage | ||
| Pharmaceutical and Nutritional | ||
| Plastics and Fibers | ||
| Other Applications | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Fermentation Chemicals Market Research FAQs
How big is the Fermentation Chemicals Market?
The Fermentation Chemicals Market size is expected to reach USD 194.04 billion in 2024 and grow at a CAGR of 4.60% to reach USD 242.98 billion by 2029.
What is the current Fermentation Chemicals Market size?
In 2024, the Fermentation Chemicals Market size is expected to reach USD 194.04 billion.
Who are the key players in Fermentation Chemicals Market?
BASF SE, Cargill, Incorporated., Evonik Industries AG, DSM and Lonza are the major companies operating in the Fermentation Chemicals Market.
Which is the fastest growing region in Fermentation Chemicals Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fermentation Chemicals Market?
In 2024, the North America accounts for the largest market share in Fermentation Chemicals Market.
What years does this Fermentation Chemicals Market cover, and what was the market size in 2023?
In 2023, the Fermentation Chemicals Market size was estimated at USD 185.51 billion. The report covers the Fermentation Chemicals Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fermentation Chemicals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fermentation Chemicals Industry Report
Statistics for the 2024 Fermentation Chemicals market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fermentation Chemicals analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
