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The fermentation chemicals market share is expected to increase by USD 26.38 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 6.02%.
This fermentation chemicals market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers fermentation chemicals market segmentations by product (alcohol, organic acid, enzymes, and others), application (industrial, food and beverages, pharmaceutical and nutritional, plastic and fibers, and others), and geography (North America, APAC, Europe, South America, and MEA). The fermentation chemicals market report also offers information on several market vendors, including Ajinomoto Co. Inc., Archer Daniels Midland Co., Associated British Foods Plc, BASF SE, Cargill Inc., Chr. Hansen Holding A/S, Daesang Corp., Evonik Industries AG, Koninklijke DSM NV, and Novozymes AS among others.
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Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The growing end-user industry is notably driving the fermentation chemicals market growth, although factors such as health issues due to alcohol consumption may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the fermentation chemicals industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Fermentation Chemicals Market Driver
The growing end-user industry is one of the key factors driving the growth of the global fermentation chemicals market. Globally, the increase in pharmaceutical sales will boost the production of pharmaceutical products and subsequently drive the medical industry, which, in turn, will propel the demand for fermentation chemicals. Fermentation chemicals are used in the medical industry to manufacture different types of drugs. By using these chemicals, drug manufacturers can minimize the direct emission of harmful and toxic pollutants, energy consumption, and environmental effects, which helps reduce their carbon footprint. The demand for fermentation chemicals is expected to increase for manufacturing antibiotics and steroids. Moreover, growth in the plastic industry will drive the demand for fermentation chemicals. The plastic industry is witnessing rapid demand for fermentation chemicals, especially for manufacturing bioplastic. The plastic industry across the globe grew by nearly 20.07% between 2014 and 2020 and is expected to grow by nearly 25% during the forecast period. This is expected to drive the growth of the global fermentation chemicals market. The growth of end-user industries is expected to drive the demand for fermentation chemicals during the forecast period.
Key Fermentation Chemicals Market Trend
The increased demand for eco-friendly fermented chemicals will fuel the global fermentation chemicals market growth. The use of eco-friendly fermentation chemicals helps in reducing volatile organic compounds (VOCs) and specific target organ toxicity, thereby helping in maintaining better sustainability and environmental balance of the atmosphere in the vicinity. The increasing preference for bio-based raw materials for the production of fermentation chemicals is expected to boost the growth of the fermentation chemicals market during the forecast period. To sustain and grow in this competitive environment, vendors are introducing eco-friendly fermentation chemicals. Bio-based fermentation chemicals are gaining high popularity among food and beverage manufacturers. This is owing to the rising demand for healthy and quality food and beverages. Bio-based fermentation chemicals enhance the tenderness, flavor, texture, and shelf-life of food items. To address the growing demand for eco-friendly fermentation chemicals, vendors are introducing fermentation chemicals made through eco-friendly processes. For instance, CJ CheilJedang is a global leader in bio-based chemical ingredients for different applications. It offers a wide range of eco-friendly fermentation chemicals.
Key Fermentation Chemicals Market Challenge
The health issues due to alcohol consumption is a major challenge for the global fermentation chemicals market growth. Food and beverages, especially alcoholic beverages such as wine and beer, are a major field of application for fermentation chemicals. However, the health and social concerns associated with alcohol consumption are negatively affecting the growth of the global alcoholic drinks market, subsequently hampering the sales of fermentation chemicals for alcoholic beverages. Moreover, the consumption of alcoholic beverages can lead to liver damage as alcohol destroys liver cells and leads to scarring (cirrhosis). The excess consumption of alcoholic beverages can also lead to fatty liver disease. Similarly, it can adversely affect the pancreas, resulting in long-lasting health complications. Long-term alcohol consumption can lead to the swelling of blood vessels around the pancreas, which can increase the chances of pancreatitis and pancreatic cancer. However, the abovementioned side effects of alcoholic drinks and raising awareness about the adverse effect of alcohol consumption among the population can slow down the volumetric demand for alcoholic drinks, thereby hampering the demand for fermentation chemicals used in alcoholic beverages.
This fermentation chemicals market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.
Technavio categorizes the global fermentation chemicals market as a part of the global diversified chemicals market within the global chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the fermentation chemicals market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the fermentation chemicals market encompasses successful business strategies deployed by the key vendors. The fermentation chemicals market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The fermentation chemicals market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the fermentation chemicals market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global diversified chemicals market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Market Segmentation by Application
7 Customer landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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