Fermentation Chemicals Market Size, Share, Analysis, Trends, Growth, 2032

Fermentation Chemicals Industry Prospective:

The global fermentation chemicals market size was worth around USD 74.97 billion in 2023 and is predicted to grow to around USD 129.92 billion by 2032, with a compound annual growth rate (CAGR) of roughly 6.30% between 2024 and 2032.

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Fermentation Chemicals Market: Overview

Fermentation chemicals are substances or compounds used to facilitate the process of fermentation or are produced during the process. According to market research, fermentation is a chemical process that involves the breakdown of organic substances into smaller units with the aid of microorganisms such as molds, yeasts, or bacteria. Fermentation is an important process that produces a wide range of end-products. Some of the most commonly used items in day-to-day life that are produced through fermentation include dairy items, vaccines & hormone-related drugs, and alcohol. The fermentation process is also accompanied by the release of gasses such as hydrogen or carbon dioxide.

The fermentation chemicals industry is mainly divided into two categories, primary and secondary metabolites. The former includes ethanol, different types of alcohol, amino acids, and acids in general. They are produced as a result of the fermentation process. Secondary metabolites are a result of environment-induced processes after the initial growth process. Secondary metabolite chemicals include enzymes and antibiotics. Furthermore, fermentation chemicals include biofuels that have become a wide range in the energy & utilities and transportation industries.

Key Insights:

• As per the analysis shared by our research analyst, the global fermentation chemicals market is estimated to grow annually at a CAGR of around 6.30% over the forecast period (2024-2032)
• In terms of revenue, the global fermentation chemicals market size was valued at around USD 74.97 billion in 2023 and is projected to reach USD 129.92 billion by 2032.
• The fermentation chemicals market is projected to grow at a significant rate due to the growing use in the dairy industry.
• Based on product, the organic acid segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on end-user application, the industrial segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Fermentation Chemicals Market: Growth Drivers

Growing use in the dairy industry to drive market demand rate during the projection period

The global fermentation chemicals market is expected to grow due to the rising use in the dairy industry. The addition of lactic acid bacteria to milk assists in producing several types of fermented dairy products, which are also known as cultured items. Some of the most commonly used dairy products developed through fermentation include butter, cheese, and yogurt.

Furthermore, lactic acid bacteria are also used to thicken milk, assisting in enhancing the overall shelf life of the product and improving its digestibility. The increasing demand for packaged food products, especially milk and derived items, has helped fuel the use of fermentation chemicals in the past. Factors such as the rapid rate of urbanization, increasing investments in the construction of multiple large-scale supermarkets & hypermarkets, and product innovation techniques have been crucial in fueling the demand for packaged food & beverages.

In August 2024, Yakulk, a popular food company specializing in the fermented beverages segment, announced the launch of its latest addition. Yakult has launched Yakult Plus Peach. According to official claims, the peach-flavored fermented milk is expected to satisfy customer’s taste buds. The demand for cruelty-free and organic fermented dairy products is significantly growing as consumer awareness is on the rise. In August 2024, Bored Cow, a leading supplier of animal-free dairy items, announced the distribution of its products through select stores of Target across the US.

Growing focus on scaling the production of biofuel will generate market expansion possibilities

Fermentation chemicals are essential for the production of biofuels. They are a prominently growing type of renewable energy source produced using sustainable biological sources such as animal waste, algae, and plants. Fermentation chemicals such as methane, ethanol, or biodiesel are crucial components required for transforming the organic sources into desired biofuel. The urgent need to limit the usage of non-renewable energy sources due to depleting reserves and increasing impact on the environment is expected to fuel demand in the global fermentation chemicals market in the coming years.

Fermentation Chemicals Market: Restraints

Living availability of raw materials to limit the industry’s expansion rate

The global industry for fermentation chemicals is projected to be restricted due to the limited availability of raw materials. For instance, sugar is the main material that undergoes fermentation to produce ethanol, a popular biofuel. However, sugar is also used in several other industries and enjoys wide popularity, thus limiting the volume of sugar available for the fermentation process. On the other hand, disruptions in the supply chain and extensive dependence on climate conditions for optimal production of raw materials for further processing further limit the overall revenue in the industry.

Fermentation Chemicals Market: Opportunities

Increased investments in fermentation technology will generate high-growth higher growth opportunities

The global fermentation chemicals market is projected to generate growth opportunities due to the increased investments in fermentation technology. In January 2024, the colloquium hosted by the University College Cork (UCC), Ireland, witnessed the official launch of the Center for Sustainable Fermentation and Bioprocessing Systems for Food and the Bioeconomy (SUSFERM).

The event hosted stakeholders and experts along with government bodies belonging to the bioeconomy industry. SUSFERM is a cutting-edge, multi-disciplinary fermentation research center. The facility is also equipped with a research infrastructure supported by Science Foundation Ireland, providing the researchers access to novel fermentation technology. The agency aims to create new processes and products that promote sustainable growth in the future.

In July 2024, scientists from the College of Engineering, Architecture, and Technology at Oklahoma State University announced that they were investing in refining the con-fermentation process that the agency patented in 2021.The co-fermentation process is expected to revolutionize biofuel research and production.

Fermentation Chemicals Market: Challenges

Complexities associated with scaling chemical production rate will challenge the market expansion trend

The global fermentation chemical industry is projected to be challenged by the high cost and complexities associated with scaling the production of chemicals, especially at industrial levels. The process requires higher investment in building the right supporting infrastructure. In addition, challenges related to the inefficient proper management of waste generated during fermentation processes may further inhibit the overall growth rate in the industry.

Fermentation Chemicals Market: Report Scope

Fermentation Chemicals Market: Segmentation

The global fermentation chemicals market is segmented based on product, end-user application, and region.

Based on the product, the global market divisions are enzymes, organic acid, alcohol, and others. In 2023, the highest growth rate was listed in the organic acid segment. These compounds have acidic properties, and carboxylic acids are the most common variants. According to market findings, phenolic acids have pKa values of 3 or more. The increasing development in fermentation technology has assisted in large-scale production of organic acids resulting in higher segmental revenue. Fumaric acid is also one of the widely used products, especially for enhancing the shelf life of food products.

Based on the end-user application, the fermentation chemicals industry divisions are industrial, plastics & fibers, pharmaceuticals, food & beverages, and others. In 2023, the highest growth was listed in the industrial segment. It held control over 42.01% of the segmental revenue. Fermentation chemicals have shown extreme applications across industrial units. The segmental revenue will gain further momentum with the introduction of green chemistry and a surge in regulations concerning sustainable practices, according to market research.

Fermentation Chemicals Market: Regional Analysis

North America was the leading revenue generator during the forecast period

The global fermentation chemicals market is expected to witness the highest growth in North America. During 2023, the region was responsible for generating more than 34% of the global revenue. The growing use of enzymes across major industries such as personal care, food & beverages, paper, and others has fueled regional growth rate.

In October 2024, Chicago-based LanzaTech Global, Inc., one of the leading providers of carbon recycling solutions, announced investments toward the expansion of its biorefining platform capabilities with the introduction of LanzaTech Nutritional Protein, a microbial protein. According to the company claims, it is an excellent alternative to animal and plant-based proteins. The company will use the novel product in its proprietary gas fermentation process, thus supporting a more robust food supply chain.

Europe is a prominent market with high growth potential. In 2023, it led over 26.45% of the total market share. In November 2024, a France-based milk proteins producer using precision fermentation, Bon Vivant, announced that it had conducted Europe’s first peer-reviewed life cycle analysis for its precision fermentation offerings. In addition, the growing demand for packaged food products across major European countries will also be crucial to regional revenue in the long term.

Fermentation Chemicals Market: Competitive Analysis

The global fermentation chemicals market is led by players like:

• Evonik Industries
• Amano Enzyme Inc.
• BASF SE
• Lallemand Inc.
• Archer Daniels Midland Company (ADM)
• Amyris Inc.
• Novozymes A/S
• Corbion N.V.
• Chr. Hansen Holding A/S
• Ajinomoto Co. Inc.
• Cargill Inc.
• DSM (Royal DSM)
• Dow Inc.
• Lonza Group
• DuPont (IFF).

The global fermentation chemicals market is segmented as follows:

By Product

• Enzymes
• Organic Acid
• Alcohol
• Others

By End-User Application

• Industrial
• Plastic & Fibers
• Pharmaceuticals
• Food & Beverages
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa