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Global Fermentation chemicals market size to be worth over USD 142 billion by 2028

  • Published Date: April 5, 2022

According to a new research report by Global Market Insights Inc., the Fermentation Chemicals Market size is anticipated to surpass USD 142 billion by 2028. Rapidly growing chemical industry across the globe is one of the key reasons augmenting the market growth.

Fermentation chemical has immense demand in various end-use industries which includes, industrial application, cosmetic & toiletry, food & beverages, and others. Stringent government regulations and policies towards the usage of eco-friendly and bio-based products would promulgate the product demand favorably. In addition, these fermentation chemicals produce zero net carbon dioxide emissions into the atmosphere, which created an optimistic growth scenario for the market.

High per-capita spending capacity and consumer preference toward bio-based ingredients in final product formulations should drive the regional industry growth. Also, the industry's growth will be fueled by recovering economies, rising disposable incomes, and increased spending on personal care products and consumer goods. The rising adoption of the product in new and unconventional markets across the globe will offer numerous opportunities for the growth of the fermentation chemicals market.

The Fast-Moving Consumer Goods (FMCG) sector is registering ample expansion, particularly in the developing countries, driving the demand for the market from end products like toiletries and cosmetics, and pharmaceuticals. Rapid industrialization expansion, urbanization, and adoption of western lifestyle have led to increasing the product penetration across the globe and is likely supports fermentation chemicals market growth.

Incitation towards western culture is likely to boost the market from alcoholic beverages

Alcoholic beverages is projected to grow with a CAGR of 5.5% by the end of 2028. Growing demand for alcoholic beverages like beer, whisky, brandy owing to the increasing trend of get together, and celebrations is driving the fermentation chemicals market share. Alcoholic beverages are made up of the fermented process of fruits, grains, honey, and other products like rice, corn, hop. Ethanol fermentation chemical has often in alcoholic beverages as it can easily dissolve in water and organic compounds

Steadily inclination of consumers towards western culture especially in countries like India, China and ASEAN countries is projected to boost market demand from alcoholic beverages. The change in lifestyle along with the influence of social media, the tendency of entertainment at cafés is spurring the demand for alcoholic beverages.

Increasing demand for eco-friendly alternatives fuels has spurred the market demand from biofuel end-use

Biofuel end-use is anticipated to surpass over USD 3.60 billion by the end of 2028.  Fermentation is used to make ethanol which, in turn, is used to make biofuels. Biofuels are made by fermentation of biomass such as grains and crops residue such as corn, sugar cane, sugar beets, and cassava, and hence it is a renewable resource. The renewable aspect of the product is creating an optimistic scenario for market growth.

The need for biofuels is likely to rise as the world seeks a secure, sustainable, and clean energy supply. Increasing crude oil prices and increasing geopolitics across the globe is encouraging consumers to move towards biofuel thus driving the market growth. The blending of biofuel in automotive fuel coupled with increasing government support and favorable policies is expected to fuel the global demand for biofuel and concurrently fermentation chemicals market revenue.

Browse key industry insights spread across185 pages with 293 market data tables and 20 figures & charts from the report, Global Fermentation Chemicals Market by Product (Dairy products, Alcoholic Beverages, Organic Acid {Amino Acids, Citric acids, Lactic acids} Alcohols & Ketones {Ethanol, Polyols}, Industrial Enzymes, Biopolymers) By End-Use (Food & Beverages, Plastics & Fibers, Nutritional & Pharmaceuticals, Industrial Application, Cosmetic & Toiletries, Biofuel), in detail along with the table of contents:

Asia Pacific market is gaining traction owing to increasing demand for plastics in consumer good

Asia Pacific fermentation chemicals market is projected to gain traction with a CAGR of 6.5% by the end of 2028 due to growth in the consumer goods industry owing to the development of innovative products and changing lifestyles. Fermentation chemical is used as building blocks for renewable plastics. Positive indicators toward the use of lightweight components with an improved aesthetic look in construction and other industries will drive the demand for plastics and concurrently boost the market across the globe.

Furthermore, polymers made from bio-based materials are more carbon-neutral, and their production emits fewer greenhouse gases. As a result, substituting renewable plastic for conventional plastic will help to create a more sustainable environment. Thereby, industry players are focusing on the development of novel bio-based building blocks for bioplastics support the fermentation chemicals market.

Industry players in the fermentation chemicals industry are participating in several activities, such as research & development mergers, acquisitions, and collaborations, as the product has a wide range of applications in the market including cosmetic, pharmaceutical, food, and beverage. Some of the key players operating in the market are Cargill Inc., INVISTA, Du Pont Danisco A/S, Chr. Hansen A/S, DSM, and others.

Authors: Kunal Ahuja, Sarita Bayas