Fermentation Products Market - Forecast(2023 - 2028)

Fermentation Products Market Overview

Fermentation Products market size is forecast to reach US$225 billion by 2026, after growing at a CAGR of 4.8% during 2021-2026. Fermentation is a metabolic process in which sugar, cellulosic content, and starch are converted into fruit, feed, fuel, and other industrial products. Fermentation materials such as alcohols, amino acids, polymers, industrial enzymes, and vitamins are important components used in the manufacturing of bio-based products. During the forecast period, stringent government regulations imposed by key regulatory authorities in developing economies are expected to increase the demand for fermentation products. In the food & beverage industry, these products aid with food storage and increase the shelf life of products. Fermentation device producers are constantly embracing R&D practices, acquisitions, and mergers to broaden their current product range, which will also aid in market growth during the forecast period.

COVID-19 Impact

Due to the COVID-19 pandemic, the production of fermentation products was somehow reduced as the food and beverages industry was shut down. In the early stages of the pandemic, F&B supermarkets and grocery stores across the nation were closed as people were instructed by Governments to stay indoors. Consumers avoided heading out, dining out, and frequenting crowded stores and other food and beverage establishments. Food and beverage firms in the consumer products sector saw their sales plummet, and their supply chains were disrupted. At-home consumption grew, but out-of-home consumption – which has traditionally produced the highest profit margin – came to a halt. But, to keep the stocks for a longer duration, the demand for fermentation products was in a constant path, due to which, the impact was not high. Thus, the market of fermentation products was in a balanced condition.

Fermentation Products Market Report Coverage

The report: “Fermentation Products Market – Forecast (2020-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fermentation Products Acid Market.

By Type: Alcohols, Amino Acids, Organic Acids, Biogas, Industrial Enzymes, Polymers, Vitamins, Antibiotics, and Others
By Feedstock: Corn, Rice, Wheat, Sugarcane, Cassava, Potatoes, Barley, Sugar Beet, Sorghum and others
By Process: Batch Fermentation, Continuous Fermentation, and Others
By End-User Industry: Industrial Application, Food & Beverages (Dairy, Meats, Fruits, Beer, Wine, and Others), Pharmaceutical (Anti-Viral Drugs, Therapeutic Recombinant Proteins, and Others), Agriculture (Biofertilizers, and Biopesticides), Personal Care, Animal Feed, and others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominates the fermentation products market, owing to the increasing demand for fermentation products from the flourishing food and beverages industry in the region.
• The growth of the bioethanol industry and the increase in consumer awareness of bio-based products and environmental issues are driving the growth and development of the demand for fermentation products.
• In developing countries, such as India, China, and Brazil, diversified demand for fermentation products, technical advancement, and growth in the number of applications is projected to provide lucrative business expansion opportunities.
• A rise in the use of fermentation products as a raw material in the clothing, leather, plastic, chemical, and rubber industries, as well as an increase in demand for antibiotics and steroids, all contribute to market development.

The organic acid segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 5.1% during 2021-2026, due to its strong use in the food & beverage industry, it is projected to be the first choice for new entrants. Organic acids are those with a pKa value of 3 (carboxylic) to 9 (phenolic). Technological developments in fermentation technology have allowed organic acids to be developed on an industrial scale. As preservatives in food, organic acids such as lactic acid, tartaric acid, and fumaric acid are commonly used.

Fermentation Products Market Segment Analysis – By Process

The continuous fermentation segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 5.9% during 2021-2026, due to its continuous reaction with zero idle time, reduction of labor costs, and growth in product yields. Continuous fermentation is an open procedure whereby, at a specific dilution rate, sterile substrates are applied to the system while an equivalent number of transformed substrates containing the substance is concurrently extracted along with the producer. Effective plant productivity, better carbohydrate productivity, increased throughput, and quality are the benefits claimed for continuous fermentation.

Fermentation Products Market Segment Analysis – By End-Use Industry

The food and beverages segment held the largest share in the fermentation products market in 2020 and is growing at a CAGR of 7.6% during 2021-2026, owing to the rising use of fermented ingredients to increase the shelf life of food products, food, and drinks are currently the dominant category and are expected to remain so. Fermented ingredients can be used in a variety of foods and beverages, including beer, bread, yogurts, and cheese. In food products, fermented amino acids are commonly used, and various amino acids add varying tastes to the food products in which they are used. The growing use of fermented products in bakeries and dairy products is projected to boost the global demand for food & beverage fermented products. With the advancement of microbiology and biotechnology, the demand for fermented products has become a major industry for food and beverages.

Fermentation Products Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the fermentation products market in 2020 up to 42% and is growing at a CAGR of 8.3% during 2021-2026. In the upcoming years, growth in key end-use industries such as food and beverages and, especially in India and China, is expected to remain a key driver for the regional market. According to Invest India, with stimulating growth in the food retail sector, favorable economic policies, and attractive fiscal incentives, India's food ecosystem offer huge investment opportunities. India has the world's sixth-largest food and grocery industry. India's food processing industry is estimated to be worth more than half a trillion dollars by 2025. According to the China Chain Store & Franchise Association, the food and beverage (F&B) market in China reached $595 billion in 2019, up 7.8% from 2018. Thus, the growth in the food and beverage industry in countries such as China and India owing to the rising middle-class disposable income is projected over the forecast period to expand the regional demand.

Fermentation Products Market – Drivers

Rising Demand of Natural Products in Comparison to Synthetic

Fermentation products consist mainly of feedstock from vegetables such as maize, sugar, and starch. The shortage of synthetic feedstock has resulted in these products being favored by a significant number of end-use industries in fermentation processes. To minimize reliance on petrochemicals, major manufacturers have turned their focus on bio-based raw materials. The main factors driving the move towards bio-based chemicals are rising crude oil prices combined with the worries about carbon emissions and the degradability of petrochemical-based goods.

Increasing Demand for Fermentation Products from Pharmaceuticals and Personal Care Industry

In January 2011, a report was published in Cancer Science showing a correlation between fermented food intake and the risk of developing gastric cancer. The study was a meta-analysis of studies demonstrating the impact of the intake of fermented and non-fermented soy food on the risk of developing gastric cancer. The study found that high consumption of fermented soy foods raised the risk of gastric cancer, while the risk of gastric cancer was decreased by a diet high in non-fermented soy foods. Due to such health issues occurring from fermentation products, the demand tends to get constraint. 

Fermentation Products Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the fermentation products market. Fermentation products Market top companies are Ab Enzyme Gmbh, Ajinomoto Company Incorporation, Amano Enzyme Inc, Chr. Hansen A/S, Lonza Group Ltd, BASF SE, Evonik Industries AG, and Novozymes A/S. 

Acquisitions/Technology Launches

In April 2021, Chr. Hansen launched “FreshQ® DA”, a food culture selected to enhance the fermentation of these products and to better protect them from spoilage by yeasts and molds as fermented plant-based products are becoming increasingly popular 

Relevant Reports

Fermentation Ingredients Market – Forecast (2021 - 2026)

Report Code: FBR 0081                                                                                                 

Fermentation Chemicals Market – Forecast (2021 - 2026)

Report Code: CMR 0854

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