Fermentation Chemicals Market Report 2025

The fermentation chemicals market size has grown strongly in recent years. It will grow from $70.98 billion in 2024 to $75.54 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to government policies and incentives, industrial biotechnology growth, shift towards bio-based products, rise in pharmaceutical applications, biofuel production demand.

The fermentation chemicals market size is expected to see strong growth in the next few years. It will grow to $100.08 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to rise in biopharmaceuticals, bio-based products demand, expansion in biofuel production, food and beverage industry growth, cosmetics, and personal care applications. Major trends in the forecast period include biopharmaceutical advancements, bio-based products demand, global economic factors, government regulations and support, research and development focus, cosmetic and personal care applications.

The growing demand for alcoholic and non-alcoholic beverages is expected to drive the fermentation chemicals market. Alcoholic beverages contain ethanol, commonly known as alcohol, while non-alcoholic beverages have little or no alcohol content. During the fermentation process, yeast converts carbohydrates into alcohol. Fermentation chemicals are used to accelerate or initiate this process, an anaerobic reaction that breaks down molecules like glucose. For example, according to a February 2023 report by Statistics Canada, a national statistical agency, sales of alcoholic beverages at retail outlets and liquor authorities reached $26.1 billion in the fiscal year ending March 31, 2022, a 2.4% increase from the previous year. Wine sales rose by 2.1% to $8.1 billion between 2021 and 2022. Beer accounted for 34.9% of the total alcohol sales in 2021-2022, followed by wine (31.3%), spirits (25.8%), and ciders and coolers (8%). As a result, the rising demand for both alcoholic and non-alcoholic beverages is fueling the growth of the fermentation chemicals market.

The expansion of the pharmaceutical and healthcare sectors is set to propel the fermentation chemicals market in the future. These industries encompass the production of medicines, vaccines, and various healthcare products for humans and animals. Fermentation chemicals find extensive usage in these sectors, particularly in the production of enzymes, antibiotics, and other pharmaceutical ingredients. For instance, data from the India Brand Equity Foundation revealed that India's domestic pharmaceutical industry reached a value of US$ 42 billion in 2021 and was projected to grow to US$ 65 billion by 2024, escalating further to US$ 120-130 billion by 2030. Thus, the burgeoning pharmaceutical and healthcare industries are driving the fermentation chemicals market.

Major companies in the fermentation chemicals market are increasingly adopting strategic partnerships to develop functional chemicals using synthetic biology. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual success. For example, in July 2023, Sumitomo Chemical Co. Ltd., a Japan-based chemical company, formed a partnership with Ginkgo Bioworks, a US-based biotech firm. This collaboration aims to enhance the development of functional chemicals through synthetic biology, building on their existing biomanufacturing efforts. Under this project, Ginkgo Bioworks will utilize its strain design technology to develop a microbial strain and fermentation process for producing the target molecule, while Sumitomo Chemical will focus on scaling up the manufacturing process for commercialization. This strategy will enable the large-scale production of functional chemicals through microbial fermentation, reducing dependence on fossil fuels and supporting efforts toward a carbon-neutral society by lowering the carbon footprint.

Major companies within the fermentation chemical market are actively pursuing strategic collaborations with significant manufacturing entities to solidify their market positions. These collaborations enable firms to join forces with partners possessing essential expertise, thereby turning conceptual ideas into tangible outcomes. In a noteworthy collaboration, Sumitomo Chemical Co., Ltd., a Japan-based chemical enterprise, partnered with Ginkgo Bioworks, a US-based biotechnology firm, in July 2023. The objective is to develop an advanced platform for biosecurity and cell programming, expand their biomanufacturing alliance, and generate functional chemicals through synthetic biology. Sumitomo Chemical will oversee the creation and scaling-up of the manufacturing process for commercial purposes. Meanwhile, Ginkgo Bioworks will leverage its strain design technology to engineer microbial strains and devise fermentation processes to produce the targeted molecules. By shifting away from traditional chemical synthesis reliant on fossil fuels, the collaboration aims to produce products with a reduced carbon footprint, contributing to societal progress towards carbon neutrality.

In July 2024, Olon Group, an Italy-based company specializing in the development and production of active pharmaceutical ingredients (APIs), acquired GTP Bioways for an undisclosed sum. The acquisition aims to strengthen Olon Group's biopharmaceutical development and manufacturing capabilities, enhancing its competitive edge in the biotech industry and improving its ability to support clients in developing advanced therapeutic products. GTP Bioways, based in France, is a manufacturer of fermentation chemicals.

Major companies operating in the fermentation chemicals market include Ajinomoto Co. Inc., AB Enzymes GmbH, BASF SE, Amano Enzymes Inc., Archer Daniels Midland Company, Novozymes A/S, Cargill Incorporated, Evonik Industries AG, DuPont Danisco A/S, Koninklijke DSM N.V., Chr. Hansen Holding A/S, LanzaTech Inc., MicroBiopharm Japan Co Ltd., Novasep Holding SAS, Kerry Group plc, Lallemand Inc., Amyris Inc., Codexis Inc., Lesaffre et Compagnie, Givaudan SA, NatureWorks LLC, Roquette Frères S.A., Sekisui Chemical Co. Ltd., Novamont S.p.A., Metabolic Explorer S.A., Corbion N.V., Raízen Energia S.A.

North America was the largest region in the fermentation chemicals market in 2024. Asia-Pacific is expected to be the fastest-growing region in the fermentation chemicals market durng the forecast period. The regions covered in the fermentation chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fermentation chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Fermentation chemicals are compounds that accelerate or initiate the fermentation process, an anaerobic chemical reaction that breaks down molecules. Their key role is to speed up the chemical reaction, reducing energy consumption, fermentation time, and overall costs.

The main types of fermentation chemical products include alcohols and ketones, amino acids, industrial enzymes, organic acids, and others. Alcohol, a colorless, volatile, combustible substance, results from the sugars in wine, beer, spirits, and other alcoholic beverages naturally fermenting. These chemicals are available in various forms, including liquid and powder, and are used in diverse applications such as food and beverages, plastics and fibers, nutritional and pharmaceuticals, industrial processes, cosmetics and toiletries, and others.

The fermentation chemicals market research report is one of a series of new reports that provides fermentation chemicals market statistics, including fermentation chemicals industry global market size, regional shares, competitors with an fermentation chemicals market share, detailed fermentation chemicals market segments, market trends, and opportunities, and any further data you may need to thrive in the fermentation chemicals industry. This fermentation chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The fermentation chemicals market consists of sales of alpha-amylase and nonionic surfactants. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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