Farnesene Market Size

Farnesene Market Size

Farnesene Market size exceeded USD 315 million in 2020 and is estimated to grow at over 6% CAGR between 2021 and 2027. The growing awareness toward natural and organic cosmetic products and ingredients will support the overall market growth. Natural farnesenes obtained from the covering of fruits or essential oils are combined, and they are responsible for the scent of gardenia or the characteristic smell of green apples.

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The worldwide spread of COVID-19 led to lockdown in major cities, ports, and manufacturing units, which is anticipated to impact the prices and supply for farnesene and its raw materials for short and medium terms. However, the demand for farnesene was also impacted during the COVID-19 spread in the global market. The rising consumer concerns toward healthy diets due to the increasing inflectional diseases such as COVID-19 led to the increased demand for natural and organic ingredients in the food & beverage industry. This will boost the overall growth and demand for farnesene in flavors & fragrances industry over the forecast period.

The fluctuation in raw material prices owing to unsuitable weather conditions is expected to hinder the growth of farnesene market over the forecast period. Key feedstock and sugarcane are used for farnesene production. This production and supply may be affected by inappropriate weather, which can hamper the market growth. In addition, the regional availability of raw materials also impact the global price and supply of farnesenes. For instance, sugarcane is majorly produced in Brazil and accounts for over 55% of ethanol production, followed by sugar. This is one of the major influencing factors responsible for the fluctuating farnesene price trends in the global market.