Fermentation Products Market - Forecast(2023 - 2028)

Report Code: CMR 91891 Report Format: PDF + Excel

Fermentation Products Market Overview

Fermentation Products market size is forecast to reach US$225 billion by 2026, after growing at a CAGR of 4.8% during 2021-2026. Fermentation is a metabolic process in which sugar, cellulosic content, and starch are converted into fruit, feed, fuel, and other industrial products. Fermentation materials such as alcohols, amino acids, polymers, industrial enzymes, and vitamins are important components used in the manufacturing of bio-based products. During the forecast period, stringent government regulations imposed by key regulatory authorities in developing economies are expected to increase the demand for fermentation products. In the food & beverage industry, these products aid with food storage and increase the shelf life of products. Fermentation device producers are constantly embracing R&D practices, acquisitions, and mergers to broaden their current product range, which will also aid in market growth during the forecast period.

COVID-19 Impact

Due to the COVID-19 pandemic, the production of fermentation products was somehow reduced as the food and beverages industry was shut down. In the early stages of the pandemic, F&B supermarkets and grocery stores across the nation were closed as people were instructed by Governments to stay indoors. Consumers avoided heading out, dining out, and frequenting crowded stores and other food and beverage establishments. Food and beverage firms in the consumer products sector saw their sales plummet, and their supply chains were disrupted. At-home consumption grew, but out-of-home consumption – which has traditionally produced the highest profit margin – came to a halt. But, to keep the stocks for a longer duration, the demand for fermentation products was in a constant path, due to which, the impact was not high. Thus, the market of fermentation products was in a balanced condition.

Fermentation Products Market Report Coverage

The report: “Fermentation Products Market – Forecast (2020-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fermentation Products Acid Market.

By Type: Alcohols, Amino Acids, Organic Acids, Biogas, Industrial Enzymes, Polymers, Vitamins, Antibiotics, and Others
By Feedstock: Corn, Rice, Wheat, Sugarcane, Cassava, Potatoes, Barley, Sugar Beet, Sorghum and others
By Process: Batch Fermentation, Continuous Fermentation, and Others
By End-User Industry: Industrial Application, Food & Beverages (Dairy, Meats, Fruits, Beer, Wine, and Others), Pharmaceutical (Anti-Viral Drugs, Therapeutic Recombinant Proteins, and Others), Agriculture (Biofertilizers, and Biopesticides), Personal Care, Animal Feed, and others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

  • Asia-Pacific dominates the fermentation products market, owing to the increasing demand for fermentation products from the flourishing food and beverages industry in the region.
  • The growth of the bioethanol industry and the increase in consumer awareness of bio-based products and environmental issues are driving the growth and development of the demand for fermentation products.
  • In developing countries, such as India, China, and Brazil, diversified demand for fermentation products, technical advancement, and growth in the number of applications is projected to provide lucrative business expansion opportunities.
  • A rise in the use of fermentation products as a raw material in the clothing, leather, plastic, chemical, and rubber industries, as well as an increase in demand for antibiotics and steroids, all contribute to market development.

Figure: Asia-Pacific Fermentation Products Market Revenue, 2020-2026 (US$ Billion)

 

Fermentation Products Market Segment Analysis – By Type

The organic acid segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 5.1% during 2021-2026, due to its strong use in the food & beverage industry, it is projected to be the first choice for new entrants. Organic acids are those with a pKa value of 3 (carboxylic) to 9 (phenolic). Technological developments in fermentation technology have allowed organic acids to be developed on an industrial scale. As preservatives in food, organic acids such as lactic acid, tartaric acid, and fumaric acid are commonly used.

Fermentation Products Market Segment Analysis – By Process

The continuous fermentation segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 5.9% during 2021-2026, due to its continuous reaction with zero idle time, reduction of labor costs, and growth in product yields. Continuous fermentation is an open procedure whereby, at a specific dilution rate, sterile substrates are applied to the system while an equivalent number of transformed substrates containing the substance is concurrently extracted along with the producer. Effective plant productivity, better carbohydrate productivity, increased throughput, and quality are the benefits claimed for continuous fermentation.

Fermentation Products Market Segment Analysis – By End-Use Industry

The food and beverages segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 7.6% during 2021-2026, owing to the rising use of fermented ingredients to increase the shelf life of food products, food, and drinks are currently the dominant category and are expected to remain so. Fermented ingredients can be used in a variety of foods and beverages, including beer, bread, yogurts, and cheese. In food products, fermented amino acids are commonly used, and various amino acids add varying tastes to the food products in which they are used. The growing use of fermented products in bakeries and dairy products is projected to boost the global demand for food & beverage fermented products. With the advancement of microbiology and biotechnology, the demand for fermented products has become a major industry for food and beverages.

Fermentation Products Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the fermentation products market in 2020 up to 42% and is growing at a CAGR of 8.3% during 2021-2026. In the upcoming years, growth in key end-use industries such as food and beverages and, especially in India and China, is expected to remain a key driver for the regional market. According to Invest India, with stimulating growth in the food retail sector, favorable economic policies, and attractive fiscal incentives, India's food ecosystem offer huge investment opportunities. India has the world's sixth-largest food and grocery industry. India's food processing industry is estimated to be worth more than half a trillion dollars by 2025. According to the China Chain Store & Franchise Association, the food and beverage (F&B) market in China reached $595 billion in 2019, up 7.8% from 2018. Thus, the growth in the food and beverage industry in countries such as China and India owing to the rising middle-class disposable income is projected over the forecast period to expand the regional demand.

Fermentation Products Market – Drivers

Rising Demand of Natural Products in Comparison to Synthetic

Fermentation products consist mainly of feedstock from vegetables such as maize, sugar, and starch. The shortage of synthetic feedstock has resulted in these products being favored by a significant number of end-use industries in fermentation processes. To minimize reliance on petrochemicals, major manufacturers have turned their focus on bio-based raw materials. The main factors driving the move towards bio-based chemicals are rising crude oil prices combined with the worries about carbon emissions and the degradability of petrochemical-based goods.

Increasing Demand for Fermentation Products from Pharmaceuticals and Personal Care Industry

Fermentation technology for cosmetic and personal care products helps to generate eco-friendly products, owing to which the demand for fermentation products is increasing from the personal care industry. Personal care ingredients manufacturing companies are using fermentation ingredients such as amino acids, polymers, industrial enzymes, and more to develop new products and processes, which include high bioavailability actives, bioconversion of fragrance to water-soluble natural fragrance, bioactive for anti-aging, whitening, and moisturizing, anti-inflammatory, and UV-blocking effect. Furthermore, the pharmaceutical industry is also using fermentation products by focusing on developing new concepts and products using specialty ingredients. Amino acids, vitamins, and related compounds, and industrial enzymes are commonly used as fermented ingredients in the pharmaceutical industry for applications such as anti-viral drugs, therapeutic recombinant proteins and DNA, and monoclonal antibodies. 

Fermentation Products Market – Challenges

Fermentation Products are Directly Linked with the Development of Gastric Cancer

In January 2011, a report was published in Cancer Science showing a correlation between fermented food intake and the risk of developing gastric cancer. The study was a meta-analysis of studies demonstrating the impact of the intake of fermented and non-fermented soy food on the risk of developing gastric cancer. The study found that high consumption of fermented soy foods raised the risk of gastric cancer, while the risk of gastric cancer was decreased by a diet high in non-fermented soy foods. Due to such health issues occurring from fermentation products, the demand tends to get constraint. 

Fermentation Products Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the fermentation products market. Fermentation products Market top companies are Ab Enzyme Gmbh, Ajinomoto Company Incorporation, Amano Enzyme Inc, Chr. Hansen A/S, Lonza Group Ltd, BASF SE, Evonik Industries AG, and Novozymes A/S. 

Acquisitions/Technology Launches

In April 2021, Chr. Hansen launched “FreshQ® DA”, a food culture selected to enhance the fermentation of these products and to better protect them from spoilage by yeasts and molds as fermented plant-based products are becoming increasingly popular 

Relevant Reports

Fermentation Ingredients Market – Forecast (2021 - 2026)

Report Code: FBR 0081                                                                                                 

Fermentation Chemicals Market – Forecast (2021 - 2026)

Report Code: CMR 0854

 For more Chemicals and Materials Market reports, please click here

1. Fermentation Products Market- Market Overview
    1.1 Definitions and Scope
2. Fermentation Products Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Feedstock
    2.3 Key Trends by Process
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Geography
3. Fermentation Products Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4.Fermentation Products Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5.Fermentation Products Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6.Fermentation Products Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Fermentation Products Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8.Fermentation Products Market – By Type (Market Size -US$ Million/Billion)
    8.1 Alcohols
    8.2 Amino Acids
    8.3 Organic Acids
    8.4 Biogas
    8.5 Industrial Enzymes
    8.6 Polymers
    8.7 Vitamins
    8.8 Antibiotics
    8.9 Others
9. Fermentation Products Market – By Feedstock (Market Size -US$ Million/Billion)
    9.1 Corn
    9.2 Rice
    9.3 Wheat
    9.4 Sugarcane
    9.5 Cassava
    9.6 Potatoes
    9.7 Barley
    9.8 Sugar Beet
    9.9 Sorghum
    9.10 Others
10. Fermentation Products Market – By Feedstock (Market Size -US$ Million/Billion)
    10.1 Batch Fermentation
    10.2 Continuous Fermentation
    10.3 Others
11.Fermentation Products Market – By End-Use Industry (Market Size -US$ Million/Billion)
    11.1 Industrial Application
    11.2 Food & Beverages
        11.2.1 Dairy
        11.2.2 Meats
        11.2.3 Fruits
        11.2.4 Beer
        11.2.5 Wine
        11.2.6 Others
    11.3 Pharmaceutical
        11.3.1 Anti-Viral Drugs
        11.3.2 Therapeutic Recombinant Proteins
        11.3.3 Others
    11.4 Agriculture
        11.4.1 Biofertilizers
        11.4.2 Biopesticides
    11.5 Personal Care
    11.6 Animal Feed
    11.7 Others
12. Fermentation Products Market - By Geography (Market Size -US$ Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 U.A.E
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13.Fermentation Products Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Fermentation Products Market – Market Share Analysis Premium
    14.1 Market Share at Global Level - Major companies
    14.2 Market Share by Key Region - Major companies
    14.3 Market Share by Key Country - Major companies
    14.4 Market Share by Key Application - Major companies
    14.5 Market Share by Key Product Type/Product category - Major companies
15. Fermentation Products Market – Key Company List by Country Premium Premium
16. Fermentation Products Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
"*Financials would be provided on a best-efforts basis for private companies"