The global chemical fermentation market is categorized on the basis of products and application. In terms of application the market is segmented into food and beverages market, plastics and fibers market, industrial application market, nutritional and pharmaceutical market, and others. Due to high demand from the food and beverages industry, industrial application market is growing at an impressive rate. North America is the leading market for industrial application. On the basis of product, the global fermentation chemicals market is segmented into to organic acids, enzymes, alcohol, and others. Largest market share is held by alcohol segment, and is expected to grow at a fast pace in the forecast period, followed by the enzymes segment.
There are many factors that drive the global chemical fermentation market, like the strong market demand from various end user industries. Alcohol industry is the major segment that is driving the chemical fermentation market, due to the increasing sales performance. Increase in disposable income and growing population is accelerating the demand for alcohol beverages in turn fueling the global chemical fermentation market. Rising demand from pharmaceuticals and cosmetics industry helps boost the market growth. Fermentation process is increasingly being used by pharmacy companies, for production of various vaccines, proteins, antibodies and many more. The growing geriatric population and the increasing prevalence of lifestyle related diseases in regions like China and India is increasing the healthcare spending of people, due to which pharmaceutical industry is growing, in turn increasing the demand of fermentation chemicals. Also, there is an increase in the public healthcare services being opted by the government helping drive the market. Fermentation process is largely used in the production of various chemicals, alcoholic beverages, industrial enzymes, foods and food additive and therapeutic compounds and more. There has been a continuous research being carried out in fermentation chemicals market, for the development of the existing products and for the innovation of new products which again helps boost the market growth.
Although, there are many factors driving the market growth, but the presence of few factors restrain the market. Fermentation chemicals are majorly produced with the help of ethanol, which is a highly flammable substance and hence is required to be stored with care. If ethanol is not stored properly it can cause explosions and fires. The presence of combustible dust in a certain quantity in the air can lead to explosions causing dangerous accidents. Equipment raptures in fermentation vessels can also cause accidental fires which is a major concern. Expensive nature of the lactic acid fermentation restricts its use in dairy industry. There are huge fluctuations present in the fermentation process of bacteria, lactic acid, and ethanol, restraining the market growth. Eco friendly fermentation chemicals are produced which creates its application in sectors like biomass conversion.
Geographically, the global fermentation chemicals market is lead by North America having the largest market share, followed by Asia Pacific and Europe. In North America, pharmaceutical industry is the highest consumer of fermentation chemicals, and the increasing demand from alcohol industries is the major reason for the dominance of North American region. US is the major contributor in the growth of this market followed by Canada and Mexico. Asia Pacific is expected to be the fastest growing market in the forecast period, growing at an impressive rate. The growth of Asia Pacific is due to the increasing demand from emerging economies like, India, Indonesia and China for food and beverages. China followed by India is the major countries that are causing the fast pace growth of this region. Alcohol industry is showing tremendous growth in this region boosting the Asia Pacific market.
Some of the major market players of this industry are BASF SE, Ajinomoto Company Incorporation, DU Pont Danisco A/S, Hoffmann-La Roche, Amino, Evonik Industries AG, The Dow Chemical Company, Fuso Chemical, Cargill Incorporation and many more. To remain competitive in the market, many strategies are being adopted by the market players to sustain in the industry. New product innovation is one such strategy which is adopted to gain attention of the potential buyers and increase the market presence of the company. Recently, Isobionics, a Dutch biotechnology company, developed a unique flavor fermentation process, which could increase and upgrade the production capacity, which was not possible with the help of natural ingredients obtained from agriculture. Joint ventures are also being undertaken by the companies, to leverage the strength of both the companies.