Global White Biotech Market Grows at a Staggering CAGR of 15.24%

Introduction

Using biocatalysts like enzymes and microorganisms, white biotechnology, also referred to as industrial biotechnology, uses the scientific principles of biotechnology to create biodegradable products based on living things. It is frequently used to produce a variety of vital bioactive substances, secondary metabolites, pigments, and organic compounds like citric acid, acetic acid, glycerin, and acetone, as well as antibiotics like penicillin, streptomycin, and mitomycin. It also produces metabolites, biodegradable plastics, biocontrol agents, biobased fuel, sustainable energy, and waste treatment. Numerous industries use white biotechnology, including bioenergy, textile, construction, chemicals, food and beverage, and pharmaceuticals.

Market Dynamics

Increased Government Efforts and Specific Policies to Stop Promoting Biotechnology Use Drives the Global Market

Bioenergy has more comprehensive policies for developing bio-based products than biochemicals or biomaterials (including liquid biofuel use and solid biomass applications). Globally, numerous governments are encouraging the use of flex-fuel vehicles while also providing subsidies, enforcing regulations, and modifying fuel taxes to aid in the growth of the biofuel sector. For instance, new incentives for second-generation biofuels are presently being developed in the US, the EU, Brazil, China, and several other countries. Additionally, because they want to support biorefineries for energy security and environmental protection, government organizations are primarily interested in bio-based products. Innovation leadership is also required to support market expansion to encourage private sector investments. However, the market for products made from bio-based materials is expanding in America due to the rising demand for everyday items made from renewable sources, such as textiles, cleaning supplies, plastic bottles, and more.

Increased Agricultural Yields Creates Tremendous Opportunities

UN estimates that the world's population will increase by more than 25%, from 7.7 billion in 2019 to 9.7 billion in 2050. Food demand is rising due to increased human and livestock populations. Additionally, because urban areas are encroaching on agricultural lands, it puts pressure on how land is used. These international trends provide biotechnology with the opportunity to boost agricultural yields. For example, gene editing can produce wheat or corn varieties with the same nutritional value that can withstand more extreme environmental conditions or yield more grain in a smaller space than other crop varieties. Furthermore, the development of biological pesticides can protect crops from ecological deterioration or hazardous chemicals.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to exhibit a CAGR of 17.95% during the forecast period. China's biotech industry has proliferated over the past ten years, and biologics and medical technologies now make up most of its output. The market's expansion is accelerated by the availability of biotechnologically altered food ingredients. In this way, players contribute money to nearby businesses. Additionally, product contamination results in inconsistent potency and poor product quality, restricting the growth of the Chinese biopharmaceutical and pharmaceutical industry. Due to ambiguity, a lengthy approval process, and other administrative procedures in systems that permit the sale of high-quality pharmaceuticals containing genetically altered ingredients, the industry is lacking even after government intervention and stricter quality control regulations. The nation's growing population and corresponding food needs created a sizable market opportunity for genetically modified crops.

North America is anticipated to grow at a CAGR of 13.21% during the forecast period. The United States, which accounts for about one-third of the global market, is the biopharmaceuticals sector's largest market. The United States Department of Commerce claims it is the world's leader in biopharmaceutical research and development. The US government has funded additional research into "cutting-edge methods" since 2006. The US EIA estimates that 5.2 billion liters of ethanol will be produced in January 2020. POET-DSM Advanced Biofuels LLC announced the development of an on-site enzyme manufacturing (OSM) facility in Emmetsburg, Iowa, in 2017. To increase the availability and sales of higher ethanol blends, the US Department of Agriculture declared in May 2020 that it would give a grant worth USD 100 million. The increasing investment in biofuels is expected to present profitable growth opportunities for participants in the global white biotechnology market.

Key Highlights

• The global white biotech market was valued at USD 793.17 million in 2022. It is expected to reach USD 2,843.12 million by 2031, growing at a CAGR of 15.24% during the forecast period (2023–2031).
• Based on type, the global white biotech market is bifurcated into biofuels, biomaterials, biochemicals, and industrial enzymes. The biochemical segment is the highest contributor to the market and is expected to grow at a CAGR of 16.77% during the forecast period.
• Based on application, the global white biotech market is bifurcated into chemicals, pharmaceuticals, food and beverages, and feed. The chemicals segment is the highest contributor to the market and is expected to grow at a CAGR of 14.24% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 17.95% during the forecast period.

Competitive Players

1. EUCODIS Bioscience GmbH
2. DuPont de Nemours Inc.
3. Koninklijke DSM NV
4. BASF SE
5. Evonik Industries AG
6. Lonza Group Ltd
7. Laurus Labs
8. Corbion NV
9. Novozymes
10. Archer Daniels Midland Company
11. Cargill Incorporated

Recent Developments

• June 2024 - BASF announced that they are researching CO2-neutral production of bio-based fumarate using bacteria found in cow stomachs. BASF wants to convert sugar and carbon dioxide into fumaric acid, a crucial intermediary for chemical manufacturing, using the bacteria Basfia succiniciproducens. For this reason, the company is working on a joint research initiative called FUMBIO (FUMarsäure BIObasiert) with Saarland University, the University of Marburg, and the University of Kaiserslautern-Landau.
• October 2023 - At its Ludwigshafen facility, BASF makes a high double-digit million-euro investment in a new fermentation unit for crop protection products based on biology and biotechnology. The plant will produce biological fungicides and biological seed treatments, among other goods that benefit farmers. Also, BASF intends to use the plant to make the primary component of Inscalis®, a revolutionary insecticide that is generated from a strain of fungus.

Segmentation

1. By Type
   1. Biofuels
   2. Biomaterials
   3. Biochemicals
   4. Industrial Enzymes
2. By Applications
   1. Chemicals
   2. Pharmaceuticals
   3. Food and Beverages
   4. Feed