The Total Addressable Market (TAM) for Biotech Ingredients was valued at USD 1.84 billion in 2021. It is expected to reach USD 4 billion by 2030, growing at a CAGR of 9% during the forecast period (2022–2030). Chemical substances used in biotech ingredients are analogous to those in nature. These ingredients are made using several intricate processes and structures like natural ingredients. These substances are made using various technologies, including genetic engineering, recombinant DNA technology, hybridoma technology, and gene transfer. The market for biotech ingredients is expanding rapidly due to the demand for these ingredients from personal care, aromatic, and herbal products.
Commercially, ingredients for biotech are created by genetically altering microbes like yeast and bacteria. Oleoresins, essential oils and other plant extracts make up the majority of the ingredients used in biotech. These extracts are produced using a variety of processes, including solvent extraction, steam distillation, and cold pressing or compression.
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Changing Consumers' Preferences for Bio-Based Ingredients over Synthetic
Consumers are more knowledgeable about the components of personal care products, herbs, and scented goods and how they are created. Concern over the adverse effects of such products on oneself and the environment has grown significantly. This has caused a shift in the consumption pattern away from synthetic to herbal and organic products. Such a change significantly impacts the demand for biotech products, which drives the sector's expansion. The increased chronic illnesses like cancer have also changed consumer preferences to favor natural and organic goods.
Growth in Biotechnology
The biotechnological production of proteins used to be a time-consuming process. Additionally, due to the market's extreme fragmentation, many goods and manufacturing techniques were covered by patents, making it difficult for new players to enter the market. However, with expirations quickly approaching, a surge in new players is anticipated to ensure market growth. The expansion of technological innovations that have reduced complex procedures to simple ones has contributed to the industry's growth. The intricate procedures used in cultivation, cloning, genetic mapping, and genetic engineering have opened the market for further expansion.
Limited Availability of Raw Materials
Expression systems from mammals, microbes, insects, plants, or yeast are the primary raw materials used to produce biotech ingredients. Plants come next, followed by readily and abundantly available microbial systems. However, mammalian and insect expression systems are subject to several limitations, which restrict growth in those markets. This causes a shortage of raw materials, which drives up production costs and the final price of the good.
Favorable Governmental Initiatives and Improvements in Bioengineering Technology
The market for biotech ingredients is predicted to grow due to the increased acceptance of biopharmaceuticals. Governments must implement measures that support producers and lower production costs. Additionally, the approval process for synthetic products is much more straightforward than that for biotechnologically produced products, which often involve lengthy additional approval processes. Therefore, expedited approval procedures and supportive regulations can create numerous opportunities for market expansion.
The global biotech ingredients market is segmented by type, product, and expression system.
Based on type, the global biotech ingredients market is bifurcated into active pharmaceuticals ingredients (APIs) and biosimilars.
The active pharmaceuticals ingredients (APIs) segment is the highest contributor to the market and is expected to grow at a CAGR of 4.8% during the forecast period. The substances or a combination of different substances used in final or finished products are known as active pharmaceutical ingredients (APIs). They are designed to be used in pharmacology research to examine how a drug affects living things when it is used to treat various illnesses. APIs are utilized when studying causes and effects directly related to various diagnoses, cures, prevention, treatment, and mitigation goals. Most frequently, the most thermodynamically stable crystalline form of API is used in a formulation. The quality of APIs significantly impacts the effectiveness and safety of medications. Poorly crafted, subpar, and compromised APIs can cause serious problems, including illnesses and even death. Since they contain potent antibodies that initiate the healing process, APIs are the most crucial component of any medication. Due to the demand for organic biotech ingredients, the market for APIs derived from natural sources is expanding.
Biosimilars are medications or dosage forms identical to any biologics on the market. They are made up of protein or protein-related components produced by living things, such as bacteria or animals. It is comparable to generic medications but is not a brand-name knockoff like generic medications. Biosimilar medicines are also secure and efficient. It is anticipated that biosimilars will dominate the market for biotech ingredients. Many illnesses and conditions are treated with biosimilars. Numerous potential biosimilars are in the pipeline and awaiting regulatory approval before being released on the market. This drives the demand for biotech ingredients for biosimilars. Compared to the biologics they are modeled after, biosimilars are more affordable. These further fuel market expansion by lowering the cost of treating several diseases requiring lengthy procedures and therapies.
Based on the product, the global biotech ingredients market is bifurcated into monoclonal antibodies, vaccines, hormones and growth factors, cytokines, fusion proteins, therapeutic enzymes, and blood factors.
The monoclonal antibodies segment owns the highest market share and is expected to grow at a CAGR of 5.2% during the forecast period. Cloning white blood cells (WBC) produces monoclonal antibodies and can be created to bind to a particular substance or any suitable single substance. They are produced using cloning, recombinant, and hybridoma technologies. Monoclonal antibodies imitate the intended action, aiding in the treatment of various cancers. Monoclonal antibodies were also used to treat coronavirus in the wake of the pandemic, which increased product demand and fueled the market's expansion for biotech ingredients. The production of these antibodies is expensive, which presents problems, but the demand for uses in cancer treatment ensures that monoclonal antibody growth is still significant.
Vaccines are substances that include a diseased cell or a portion of one and offer protection from disease. It promotes the production of antibodies against disease-causing germs and is therefore regarded as one of the most effective forms of immunization. Vaccines contain ingredients that make them safe and effective for a long time while providing disease protection. Preservatives, stabilizers, adjuvants, residual antibiotics, residual inactivating agents, and other ingredients are included in these vaccines. These ingredients serve several functions, including boosting immunity and preventing contamination. Vaccines are always in demand because they are the most effective method. The market for biotech ingredients sees an increase in demand as a result.
Based on the expression system, the global biotech ingredients market is bifurcated into mammalian expression systems, microbial expression systems, yeast expression systems, plant expression systems, and insect expression systems.
The microbial expression systems segment is the highest contributor to the market and is expected to grow at a CAGR of 5% during the forecast period. The most common system for expressing proteins is through microorganisms. Bacterial host expression systems are inexpensive to make and easy to do. Microbes produce around 71% of recombinant membrane proteins and are also widely accessible in nature's resources. One of the microbes used to make recombinant proteins is Escherichia coli (E. Coli), which has a rapid growth rate. It also provides structures with a high cell density. Plasmids are also replicated and stored using it. Like this, other microbes are also used to produce protein. It is anticipated that these benefits of microbial expression systems will aid in their expansion.
Yeast is used in this expression system to produce proteins. The production of sugar and other compounds also uses them. These systems are highly efficient and economical. The product is more reliable and appropriate for producing proteins in the expression systems for cytokines, interleukin, and tuberculosis. Its rapid growth and ease of production are attributed to straightforward genetic manipulation. Compared to E. Coli-based expression systems, they also provide a higher expression level. The solid cellular structure is also a feature of yeast expression systems. The benefits of yeast expression systems drive the market for biotech ingredients.
By region, the global biotech ingredients market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Europe Dominates the Global Market
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Europe is the most significant shareholder in the global biotech ingredients market and is expected to grow at a CAGR of 5.1% during the forecast period. In terms of revenue, Germany and the UK made up about 35.4% of the total in 2021, followed by the rest of Europe. The biotech ingredients market in Germany, the UK, France, Spain, Italy, Sweden, and the rest of Europe are analyzed in the Europe market. In terms of market share, Germany is the dominant nation in the area, followed by France. A significant portion of domestically produced biotech ingredients is used in Europe, which is a major consumer of the product. Biotech ingredients are highly sought-after in the region because of their advantage in reducing unfavorable side effects and the sizeable consumer base that favors natural and organic products.
Asia-Pacific is expected to grow at a CAGR of 5.3%, generating USD 27,636.79 million during the forecast period. China, Japan, India, Australia, South Korea, Sweden, and the rest of Asia-Pacific are all included in the Asia-Pacific biotech ingredients market analysis. In terms of market share, China is the dominant nation in the region, followed by India. Since Asia-Pacific is a major producer of pharmaceuticals, the demand for biotech ingredients is high. Due to their organic nature and environmental friendliness, biotech ingredients are increasingly in demand in medicine, food and beverage, personal care, and cosmetics. In terms of revenue contribution in 2021, China and India made up about 65.2%, followed by the rest of Asia-Pacific.
North America is expected to grow significantly over the forecast period. The markets for biotech ingredients in the United States, Canada, and Mexico are examined in the region. In terms of market share, the United States is the dominant nation in the area, followed by Canada. Mexico has the smallest market share. The increase in activities of biotech ingredient expression systems in the area is responsible for this growth. The existence of large industrial and manufacturing conglomerates fuels the demand for biotech ingredients. Additionally, the growing popularity of organic products in the United States and Canada supports market expansion. The growth of the Mexican market for microbial expression systems is another critical factor driving the market for biotech ingredients in North America.
Brazil, Saudi Arabia, South Africa, and the remainder of LAMEA are all included in the analysis of the LAMEA biotech ingredients market. In terms of revenue, Brazil and South Africa made up about 35.9% of the total in 2021, followed by the rest of LAMEA. In terms of market share, Brazil is the dominant nation in the area, followed by South Africa. Due to LAMEA's low revenue generation compared to other regions, it had a lower-than-average consumer base. As a result of declining economic growth and a slower rate of development, the market for biotech ingredients in the area is not very developed.
The global biotech ingredients market’s major key players are AstraZeneca Plc, Abbvie Inc., Boehringer Ingelheim International Gmbh, Eli Lilly and Company, Merck Kgaa, Mylan N.V., Novartis International Ag, Pfizer Inc., Sanofi S.A., and Teva Pharmaceutical Industries Ltd.