The fermentation chemicals market share is expected to increase by USD 26.38 billion from 2019 to 2024, and the market’s growth momentum will accelerate at a CAGR of 6.02%.
This fermentation chemicals market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers fermentation chemicals market segmentations by product (alcohol, organic acid, enzymes, and others), application (industrial, food and beverages, pharmaceutical and nutritional, plastic and fibers, and others), and geography (North America, APAC, Europe, South America, and MEA). The fermentation chemicals market report also offers information on several market vendors, including Ajinomoto Co. Inc., Archer Daniels Midland Co., Associated British Foods Plc, BASF SE, Cargill Inc., Chr. Hansen Holding A/S, Daesang Corp., Evonik Industries AG, Koninklijke DSM NV, and Novozymes AS among others.
What will the Fermentation Chemicals Market Size be During the Forecast Period?
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Fermentation Chemicals Market: Key Drivers, Trends, and Challenges
Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The growing end-user industry is notably driving the fermentation chemicals market growth, although factors such as health issues due to alcohol consumption may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the fermentation chemicals industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Fermentation Chemicals Market Driver
The growing end-user industry is one of the key factors driving the growth of the global fermentation chemicals market. Globally, the increase in pharmaceutical sales will boost the production of pharmaceutical products and subsequently drive the medical industry, which, in turn, will propel the demand for fermentation chemicals. Fermentation chemicals are used in the medical industry to manufacture different types of drugs. By using these chemicals, drug manufacturers can minimize the direct emission of harmful and toxic pollutants, energy consumption, and environmental effects, which helps reduce their carbon footprint. The demand for fermentation chemicals is expected to increase for manufacturing antibiotics and steroids. Moreover, growth in the plastic industry will drive the demand for fermentation chemicals. The plastic industry is witnessing rapid demand for fermentation chemicals, especially for manufacturing bioplastic. The plastic industry across the globe grew by nearly 20.07% between 2014 and 2020 and is expected to grow by nearly 25% during the forecast period. This is expected to drive the growth of the global fermentation chemicals market. The growth of end-user industries is expected to drive the demand for fermentation chemicals during the forecast period.
Key Fermentation Chemicals Market Trend
The increased demand for eco-friendly fermented chemicals will fuel the global fermentation chemicals market growth. The use of eco-friendly fermentation chemicals helps in reducing volatile organic compounds (VOCs) and specific target organ toxicity, thereby helping in maintaining better sustainability and environmental balance of the atmosphere in the vicinity. The increasing preference for bio-based raw materials for the production of fermentation chemicals is expected to boost the growth of the fermentation chemicals market during the forecast period. To sustain and grow in this competitive environment, vendors are introducing eco-friendly fermentation chemicals. Bio-based fermentation chemicals are gaining high popularity among food and beverage manufacturers. This is owing to the rising demand for healthy and quality food and beverages. Bio-based fermentation chemicals enhance the tenderness, flavor, texture, and shelf-life of food items. To address the growing demand for eco-friendly fermentation chemicals, vendors are introducing fermentation chemicals made through eco-friendly processes. For instance, CJ CheilJedang is a global leader in bio-based chemical ingredients for different applications. It offers a wide range of eco-friendly fermentation chemicals.
Key Fermentation Chemicals Market Challenge
The health issues due to alcohol consumption is a major challenge for the global fermentation chemicals market growth. Food and beverages, especially alcoholic beverages such as wine and beer, are a major field of application for fermentation chemicals. However, the health and social concerns associated with alcohol consumption are negatively affecting the growth of the global alcoholic drinks market, subsequently hampering the sales of fermentation chemicals for alcoholic beverages. Moreover, the consumption of alcoholic beverages can lead to liver damage as alcohol destroys liver cells and leads to scarring (cirrhosis). The excess consumption of alcoholic beverages can also lead to fatty liver disease. Similarly, it can adversely affect the pancreas, resulting in long-lasting health complications. Long-term alcohol consumption can lead to the swelling of blood vessels around the pancreas, which can increase the chances of pancreatitis and pancreatic cancer. However, the abovementioned side effects of alcoholic drinks and raising awareness about the adverse effect of alcohol consumption among the population can slow down the volumetric demand for alcoholic drinks, thereby hampering the demand for fermentation chemicals used in alcoholic beverages.
This fermentation chemicals market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.
Parent Market Analysis
Technavio categorizes the global fermentation chemicals market as a part of the global diversified chemicals market within the global chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the fermentation chemicals market during the forecast period.
Who are the Major Fermentation Chemicals Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Ajinomoto Co. Inc.
- Archer Daniels Midland Co.
- Associated British Foods Plc
- BASF SE
- Cargill Inc.
- Chr. Hansen Holding A/S
- Daesang Corp.
- Evonik Industries AG
- Koninklijke DSM NV
- Novozymes AS
This statistical study of the fermentation chemicals market encompasses successful business strategies deployed by the key vendors. The fermentation chemicals market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Product Insights and News
- Ajinomoto Co. Inc. - The company offers a range of biotechnologies, including technologies that support the discovery and application of microbes to convert raw materials into amino and nucleic acids as efficiently as possible. It also offers fermentation technologies to maximize the capabilities of microbes and distillation technologies to optimize the recycling of byproducts while ensuring the purity of the end products.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The fermentation chemicals market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Fermentation Chemicals Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the fermentation chemicals market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global diversified chemicals market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Fermentation Chemicals Market?
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36% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for fermentation chemicals market in APAC. Market growth in this region will be faster than the growth of the market in regions.
The growing end-user industry will facilitate the fermentation chemicals market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 hampered the growth of the regional fermentation chemicals market in 2020. For instance, in March 2020, the Indian government imposed a full lockdown initially for 60 days to prevent the community's spread of the disease. All end-user industries, such as consumer goods, pharmaceuticals, personal care, and chemical, were highly affected, as their production units were either closed or halted. However, in 2021, the initiation of large-scale vaccination drives has lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
What are the Revenue-generating Product Segments in the Fermentation Chemicals Market?
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The fermentation chemicals market share growth by the alcohol segment will be significant during the forecast period. Alcohols are widely used in industrial and food and beverage applications. Alcohol fermentation is a type of biotechnological process done with the help of yeast, bacteria, and other microorganisms.
This report provides an accurate prediction of the contribution of all the segments to the growth of the fermentation chemicals market size and actionable market insights on post COVID-19 impact on each segment.
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Fermentation Chemicals Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2019 |
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Forecast period |
2020-2024 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
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Market growth 2020-2024 |
$ 26.38 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
5.26 |
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Regional analysis |
North America, APAC, Europe, South America, North America, APAC, Europe, and South America |
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Performing market contribution |
APAC at 36% |
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Key consumer countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Ajinomoto Co. Inc., Archer Daniels Midland Co., Associated British Foods Plc, BASF SE, Cargill Inc., Chr. Hansen Holding A/S, Daesang Corp., Evonik Industries AG, Koninklijke DSM NV, and Novozymes AS |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Fermentation Chemicals Market Report?
- CAGR of the market during the forecast period 2020-2024
- Detailed information on factors that will drive fermentation chemicals market growth during the next five years
- Precise estimation of the fermentation chemicals market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the fermentation chemicals industry across North America, APAC, Europe, South America, North America, APAC, Europe, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of fermentation chemicals market vendors
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