High Demand for Organic Acids to Soar the Demand for Fermentation Chemicals Market

Introduction

Fermentation chemicals are used to speed up or start the fermentation chemical process in various goods. These chemicals are used to manufacture polymers, biofuels, bioplastics, and composites, among other things, and are typically made from vegetable feedstock like corn, sugar, and starch. These are necessary for accelerating the chemical process, which reduces overall manufacturing costs, fermentation time, and energy consumption.

High Demand for Organic Acids to Drive Fermentation Chemicals Market

Organic acids have pKa values that range from 3 (carboxylic) to 9 (non-carboxylic) (phenolic). These can be further classified as itaconic acid, kojic acid, acetic acid, gluconic acid, 2- ketoglutaric acid, 5- ketoglutaric acid, α-ketoglutaric acid, malic acid, propionic acid, fumaric acid, lactic acid, and citric acid. Organic acids can now be produced on a large scale thanks to advancements in fermentation technology.

Organic acids, including lactic acid, tartaric acid, and fumaric acid, are widely used as preservatives in foods due to their ability to inhibit bacterial growth and increase a product's shelf life. Formic acid and acetic acid are less reactive than mineral acids such as hydrochloric acid and hydrofluoric acid, which are expected to boost their application in oil & gas well stimulation treatments.

Organic acids such as tartaric acid are gaining prominence in metal cleaning applications owing to their chelating properties with calcium and magnesium ions. Thus, increasing demand for organic acids is expected to result in an improved product penetration in major applications over the forecast period.

Increasing Application in Meat Production Industry to Boost Demand for Fermentation Chemicals

With the increasing population and growing economy in developing countries, the demand for meat is likely to witness significant growth globally. With changing eating habits in some regions of the world, meat consumption is expected to grow in the future. Based on consumption, meat consumption is divided into pork, poultry, sheep, and beef and veal. Pork and chicken meat contribute to a major share of the overall demand for meat in developing countries.

Due to the growing demand for meat, pig farmers and poultry owners are concentrating more on the feed given to animals. Raising livestock requires a significant amount of natural feedstock and amino acids. Amino acids help enhance the quantity and quality of meat. The demand for amino acids is expected to grow in the global meat market as it is one of the major animal feed additives based on their nutritional values.

These also help develop the muscle tissues of animals. Amino acids allow the efficient use of feedstock and hence the market is expected to grow with major players focusing on increasing the capacity of amino acid production to meet the rising demand globally, which, in turn, is expected to drive the growth of the fermentation chemicals market.

Regional Insights

The fermentation chemicals market is segmented into four regions: North America, Europe, Asia-Pacific, Middle East & Africa, and Central and South America.

Asia-Pacific is dominating the global fermentation chemicals market. The Asia-Pacific fermentation chemicals market is predicted to be worth USD 26,301.95 million by 2030, increasing at a 5.14% CAGR. Rising geriatric population and increased investment in research & development activities for manufacturing advanced medicines are expected to drive the market growth in Asia-Pacific, particularly in Japan. Japan is the second-largest pharmaceutical player in the world.

According to the Ministry of Health, Labour and Welfare (MHLW), Japanese pharmaceutical production stood at USD 105 billion in 2019, up by nearly 18% compared to 2018. Thus, the growing pharmaceutical industry in the country is expected to drive the product demand over the forecast period. Moreover, due to rising awareness regarding the environment, the growing demand for bioplastics is anticipated to augment the product demand. This provides lucrative opportunities for fermentation chemical manufacturers in the region.

The consumption of fermentation chemicals in food & beverage, pharmaceutical, and industrial applications is more prevalent in developed countries. This trend is expected to continue and pave the way for market growth in North America over the coming years. North America fermentation chemicals market is characterized by the presence of food & beverage and pharmaceutical companies such as Pfizer, Inc., Abbott, Bristol-Myers Squibb Company, and Merck Sharp & Dohme Corp.

Key Highlights

• The fermentation chemicals market was valued at USD 65.06 billion in 2021 and is anticipated to generate USD 98.34 billion by 2030. The market is expected to register growth at a CAGR of 5.30% during the assessment period.
• The global fermentation chemicals market is segmented into products: alcohol, enzymes, organic acid, and others. The alcohol market is overtaken and expected to generate USD 30,118.57 million by 2030 at a CAGR of 4.9% during the forecast period.
• The fermentation chemicals market is segmented into industrial applications, food & beverages, nutritional & pharmaceuticals, plastics & fibers, and others. The food & beverages segment held the greatest share of the market, with an anticipated value of 25,693.64million by 2030 at a CAGR of 4.38% during the projection period. 

Competitive Players

1. Novozymes A/S
2. AB Enzymes
3. DuPont
4. DSM
5. Ajinomoto Co., Inc.
6. BASF SE
7. ADM
8. Cargill Incorporated
9. Chr. Hansen Holding A/S
10. LANZATECH
11. MicroBiopharm Japan Co., Ltd.
12. Novasep
13. TCI Chemicals (India) Pvt. Ltd
14. Biocon
15. Evonik Industries AG
16. Dow
17. Lonza
18. Amano Enzyme Inc.
19. INVISTA

Recent Developments

• March 2018- Modern Meadow established a long-term collaboration with Evonik, a leading provider of microbial fermentation, to help them scale up their collagen and fermentation production. Modern Meadow will work with Evonik to industrialize and scale-up collagen production for use in the company's bio leather materials technology under the terms of the agreement.

Segmentation

1. By Product
   1. Alcohol
   2. Enzymes
   3. Organic acid
   4. Others 
2. By Application
   1. Industrial Application
   2. Food & Beverages
   3. Nutritional & Pharmaceuticals
   4. Plastics & Fibers
   5. Others
3. By Form
   1. Liquid
   2. Powder