White Biotech Market

Market Overview

The global white biotech market size 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).

White biotechnology, also known as industrial biotechnology, is the application of the scientific principles of biotechnology to produce biodegradable and biobased products using biocatalysts like enzymes and microorganisms. Various essential bioactive compounds, secondary metabolites, pigments, organic compounds like citric acid, acetic acid, glycerin, and acetone, as well as antibiotics like penicillin, streptomycin, and mitomycin, are all frequently produced using it. Metabolites, biodegradable plastics, biocontrol agents, biobased fuel, sustainable energy, and waste treatment are also made using it. White biotechnology has numerous uses in various sectors, including bioenergy, textile, construction, chemical, food and beverage, and pharmaceutical.

Highlights

• The biochemical segment is the highest contributor to the market by type.
• The chemicals segment is the highest contributor to the market by application.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Market Drivers

Wide Market Application with Different Functionality

The demand for white biotechnology among end-users has increased over the past few years due to growing awareness of its applications and many advantages, including eco-friendliness, lower manufacturing costs, low waste generation, and maximum raw material consumption. The demand for biofuels is also rising due to the increased pressure from various high-end industries, such as the automotive and consumer goods sectors, to meet sustainability targets. Manufacturers are forced to use white biotechnology rather than conventional chemical production methods because of consumers' growing demand for green chemicals, particularly in North America and Europe (developed economies). Additionally, in the past few years, the biochemical market has seen lucrative opportunities due to the advancement in polymer development technology, particularly from biomass. Manufacturers gravitate toward biochemicals because they have broad commercial applications in the personal care product, food, coating, and textile industries. This is significantly accelerating the market for white biotechnology on a global scale.

Market Restraints

Declining Fertility of Agricultural Lands Could Hold Back Development

The production status of bio crops may soon be lost due to factors such as the growing population, the scarcity of agricultural land, small landholdings, and declining soil fertility. Additionally, the overuse and improper application of fertilizers to crops have led to a decrease in the fertility of agricultural lands, which has resulted in the depletion of that fertility. The prices of bio-crops have also fluctuated due to excessive fertilizer use because there is uncertainty about the production yield, which is anticipated to impede market expansion. According to a report on the rising food demands produced by the Indian Institute of Soil Science, crop productivity and the rate at which they respond to applied fertilizers are declining yearly under intensive cropping systems. For most nutrients, the current level of nutrient-use efficiency is still relatively low. For instance, it has been discovered that the soil's nutrient-use efficiency for phosphorus is only 15-20%; for sulfur, it is 8–12%; and for nitrogen, it is 30–50%. As a result, the production of bio crops is being constrained by declining land fertility, which could slow the market's growth over the forecast period.

Market Opportunities

Demand for Bioplastic is Surging

Nine hundred sixty thousand metric tons of biobased and biodegradable plastics were demanded globally in 2017, an increase of 19% per year. Even though it is still in its early stages of development, the bioplastics industry has become a mainstay in several commercial markets and applications. Demand is predicted to increase significantly in almost all geographic markets due to consumer preferences for eco-friendly materials, a rise in the use of bioplastics by plastic processors and compounders, and the introduction of new products that broaden the benefits of bioplastics.

Biobased commodity resins, such as polyethylene and polypropylene, which are likely to enter the commercial market, are being propelled by the growing demand. These bioplastics' ability to be used as a "drop-in" for current applications and an increased focus on bio-based content rather than biodegradability as a desired attribute may be contributing factors to their rapid adoption. In response to market demand, the UK-based biotech company Toraphene introduced the first graphene-reinforced bioplastic in 2020.

High Agricultural Yields

The United Nations projects that the world's population will rise from 7.7 billion in 2019 to 9.7 billion in 2050, an increase of more than 25%. A growing population increases the need for food for both humans and livestock. Additionally, it puts pressure on how land is used because urban areas are expanding onto agricultural lands. These global trends offer biotechnology the chance to increase agricultural yields. Gene editing, for instance, can create wheat or corn varieties that can withstand harsher environmental conditions or yield more grain in a smaller space than other crop varieties while maintaining the same nutritional value. Additionally, the creation of biological pesticides has the potential to shield crops from harm to the environment or harmful chemicals.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global white biotech market is segmented by region: North America, Europe, Asia-Pacific, and the Rest of the World.

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 17.95% during the forecast period. Over the past ten years, China's biotech sector has expanded quickly, and biologics and medical technologies now account for most of its output. The market's availability of biotechnologically modified food ingredients accelerates growth. Players are putting money into local businesses in this way. Additionally, inconsistent potency and subpar product quality, caused by product contamination, hinder the expansion of the Chinese biopharmaceutical and pharmaceutical market. Even after government intervention and tighter quality control regulation, the industry needs more due to ambiguity, a slow approval process, and other administrative procedures in systems that allow for the sale of high-quality pharmaceuticals containing genetically altered ingredients. The country's expanding population and associated food needs created a sizable market opportunity for genetically modified crops.

North America is expected to grow at a CAGR of 13.21% during the forecast period. The largest market for biopharmaceuticals is the United States, which represents about one-third of the global market. According to the United States Department of Commerce, it is the worldwide leader in biopharmaceutical R&D. According to the US EIA, 5.2 billion liters of ethanol will be produced in January 2020, so the US government has been funding additional research into "cutting-edge methods" since 2006. The expansion of an on-site enzyme manufacturing (OSM) facility in Emmetsburg, Iowa, was announced by POET-DSM Advanced Biofuels LLC in 2017. The US Department of Agriculture reported in May 2020 that it would provide a grant worth USD 100 million to increase the accessibility and sale of higher ethanol blends. The growing investment in biofuels is anticipated to present lucrative growth opportunities for players in the global white biotechnology market.

Germany is encouraging new ideas to produce medicines, chemicals, materials, and energy sustainably and economically, and the sudden expansion of some white biotechnology companies is driving the growth in the anticipated period. In addition, BASF invested LanzaTech, a company that recycles carbon. In addition to ethanol, the company also sells other biochemicals that can be used as raw materials in other chemical production processes, such as chemical specialties and intermediates. Additionally, throughout the forecast period, the market for white biotechnology is anticipated to grow due to the use of biomaterials in the healthcare industry. During the forecast period, the German white biotechnology market is expected to expand faster due to the rising demand for biofuel and biopharmaceutical products.

The Middle East is a significant market. The demand for white biotech will increase during the forecast period due to increased government funding and biochemical product innovation. The biochemical industry is driven by using biomaterials in cardiology, plastic surgery, orthopedic surgery, and neurology. Furthermore, the Middle East has a very high meat consumption rate due to population growth, consumer spending on processed foods, and consumer awareness of the advantages of natural preservatives over chemicals, which has led to the introduction of more novel products on the market. The use of biofuels, which reduces carbon emissions and atmospheric pollution, attracts more partnerships in this industry.

Segmental Analysis

The global white biotech market is segmented by type and application.

The global white biotech market is bifurcated based on type 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. The biochemical is subdivided into household soap and detergents, personal care products, paper and pulp, and textiles. Tightening regulations, environmental concerns, and consumer demand for more sustainable products contribute to the market's growth. As a result, manufacturers of cleaning products—including those for the home—have been reducing their carbon footprints for years by reducing packaging, upping the proportion of biobased ingredients, and lowering the recommended temperature for product use. To meet the ongoing consumer demand for sustainable products, the global leaders in the household soaps and detergents market are also incorporating biochemicals into their product lineups. For illustration: In Chile, there is a dish soap by Unilever that uses rhamnolipids from Evonik.

Since they lower carbon emissions, qualify for carbon credits, lessen reliance on fossil fuels, and use naturally renewable feedstock, biofuels have drawn much attention in recent years. Aside from these advantages, the market for biofuels is also benefiting from agriculturally based economies like India and Brazil because of the large area available for feedstock production. For the promotion and use of biofuels, the governments of more than 23 nations have released mandates, development plans, policies, and regulations. The United States, Brazil, France, and China consume the most biodiesel, followed by Germany, the United Kingdom, Italy, Spain, Poland, Thailand, and Indonesia.

The global white biotech market is bifurcated based on application 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. Chemical producers have relied on intricate and frequently harmful processes for years to create a variety of goods, including vitamins, nylon, plastics, natural gas, petroleum, and process chemicals. White biotechnology has, however, been pushed into the industrial sector by recent developments. White biotechnology has grown in significance for the chemical industry, which is under pressure from rising crude oil prices and increasing consumer demand for eco-friendly products. Other factors accelerating white biotechnology in the chemical industry, aside from the rising cost of crude oil and consumer preference for green products, include the quickening pace of technological advancements and the increasing cost of carbon dioxide emissions in manufacturing. White biotechnology processes will be used by chemical manufacturers instead of conventional chemical manufacturing due to growing consumer demand for green chemicals, especially in North America and Europe, where consumers are willing to pay a higher price or a green premium for a variety of renewable products. To expand the chemical market, chemical producers are turning to biochemicals. 

White biotech, such as biomaterials in the pharmaceutical industry, is expanding due to the commercial interest of biomedical companies and research funding. Orthopedics, cardiology, wound care, and other areas of the pharmaceutical industry are just a few of the places where biomaterials have found applications. Industrial enzymes, in addition to biomaterials, are promoting the development of white biotech in the pharmaceutical sector. Promoting wound healing, eliminating disease-causing microorganisms, and diagnosing diseases are among the significant uses of pharmaceuticals. The pharmaceutical industry's use of these products is anticipated to be driven by a rising population, consumer demand, and awareness of diseases and their effects. Enzymes employed in this procedure also allow the production of chiral compounds and other difficult-to-synthesize intermediates, like active pharmaceutical ingredients. Over the next eight years, the market is anticipated to be driven by the expansion of the pharmaceutical industry, particularly in Europe.

Recent Developments

• August 2022- A supplier of essential materials to the life science sector, Biosynth Carbosynth ("Biosynth"), announced that it had reached an agreement to acquire EUCODIS Bioscience ("EUCODIS"), a leader in the engineering and development of enzymes for the pharma, biotech, and applied markets.
• November 2022- In Pinghu, China, BASF opened its largest surface treatment facility.