Fermentation chemicals play a vital role as an initiator in the chemical reaction. Being used as a processor or catalyst in a reaction, it helps to speed the reaction. As a result of which, it is able to save time and cost of the reaction. The aim of the report is to analyze the present and projected future trends of global fermentation chemical market, as the demand of the product is expected to rise. The analysis provides an understanding of the market potential in various industry applications. The study is focusing on the opportunities of the emerging economies of the globe so that companies can strategically make region specific plans and gain competitive frame.
Fermentation chemicals are used as the most important raw material in alcohol industry. Ethanol, the major chemical required for the production of alcohol and alcoholic beverages is produced by fermentations. Therefore, rising demand for alcoholic beverages results in the growth of global fermentation chemical market. Moreover, other industries such as pharmaceutical, cosmetic, food and beverages industry need fermentation chemicals to run their production process. Hence, the growth of these industries in various geographical regions also drives the fermentation chemicals industry. High cost involved in the fermentation of lactic acid prevents its uses in the dairy industry. In addition, the fluctuation of production process in the fermentation of ethanol, bacteria, lactic acid also restraints the market growth. The production of eco friendly fermentation chemicals would create its application in the sectors such as biomass conversion.
Product Market Analysis
On the basis of product type, the fermentation chemical market is segmented into alcohols, enzymes, organic acids and others. Fermentation of alcohols such as ethanol is used in the production of alcoholic beverages. It is also used in bakeries. Therefore, this chemical is largely used in the alcohol and bakery industry.
Application Market Analysis:
On the basis of application, the fermentation chemical market is segmented into industrial applications, food and beverages, nutritional and pharmaceutical, plastics and fibers and others. Fermentation chemicals play a vital role in the production process of the pharmaceutical industry, especially the cultivation of microorganisms such as bacteria.
Geography Market Analysis
Based on geography, the market is segmented into North America, Europe, Asia Pacific and LAMEA. The demand for fermentation chemicals in North America is increasing due to the growth of its major application sectors such as Pharmaceutical and alcohol industry.
Competitive Landscape:
The major players dominating the global fermentation chemicals markets are Ajinomoto Company Incorporation, BASF SE, The Dow Chemical Company, AB Enzymes, Amano Enzyme Inc., Archer Daniels Midland Company, Cargill Incorporation, Du Pont Danisco A/S, Novozymes A/S, DSM, Evonik Industries AG Chr. Hansen A/S, etc. INVISTA and LanzaTech signed a research and development agreement aimed at the development of gas-fermentation process technology for the production of industrial chemicals from carbon dioxide and hydrogen gas feedstock.
HIGH LEVEL ANALYSIS
The market is growing swiftly in the global chemical market. The driving and restraining factors for this market are strategically dealt in this analysis and more emphasis is given towards its growth opportunities. The global market is analyzed using Porter’s five-force model, which assists the stakeholders to understand the bargaining power of buyers & suppliers, threat of new entrants and competitive rivalry. As the product is mostly used by industrial applications, the customer/buyer is highly educated and price sensitive. Therefore, the supplier has lower bargaining power, while the buyer enjoys high bargaining power. Due to the high cost involved in some of the important chemical fermentation, the threat of new entrant would be low.
Fermentation chemicals are used as the most important raw material in alcohol industry. Ethanol, the major chemical required for the production of alcohol and alcoholic beverages is produced by fermentations. Therefore, rising demand for alcoholic beverages results in the growth of global fermentation chemical market. Moreover, other industries such as pharmaceutical, cosmetic, food and beverages industry need fermentation chemicals to run their production process. Hence, the growth of these industries in various geographical regions also drives the fermentation chemicals industry. High cost involved in the fermentation of lactic acid prevents its uses in the dairy industry. In addition, the fluctuation of production process in the fermentation of ethanol, bacteria, lactic acid also restraints the market growth. The production of eco friendly fermentation chemicals would create its application in the sectors such as biomass conversion.
Product Market Analysis
On the basis of product type, the fermentation chemical market is segmented into alcohols, enzymes, organic acids and others. Fermentation of alcohols such as ethanol is used in the production of alcoholic beverages. It is also used in bakeries. Therefore, this chemical is largely used in the alcohol and bakery industry.
Application Market Analysis:
On the basis of application, the fermentation chemical market is segmented into industrial applications, food and beverages, nutritional and pharmaceutical, plastics and fibers and others. Fermentation chemicals play a vital role in the production process of the pharmaceutical industry, especially the cultivation of microorganisms such as bacteria.
Geography Market Analysis
Based on geography, the market is segmented into North America, Europe, Asia Pacific and LAMEA. The demand for fermentation chemicals in North America is increasing due to the growth of its major application sectors such as Pharmaceutical and alcohol industry.
Competitive Landscape:
The major players dominating the global fermentation chemicals markets are Ajinomoto Company Incorporation, BASF SE, The Dow Chemical Company, AB Enzymes, Amano Enzyme Inc., Archer Daniels Midland Company, Cargill Incorporation, Du Pont Danisco A/S, Novozymes A/S, DSM, Evonik Industries AG Chr. Hansen A/S, etc. INVISTA and LanzaTech signed a research and development agreement aimed at the development of gas-fermentation process technology for the production of industrial chemicals from carbon dioxide and hydrogen gas feedstock.
HIGH LEVEL ANALYSIS
The market is growing swiftly in the global chemical market. The driving and restraining factors for this market are strategically dealt in this analysis and more emphasis is given towards its growth opportunities. The global market is analyzed using Porter’s five-force model, which assists the stakeholders to understand the bargaining power of buyers & suppliers, threat of new entrants and competitive rivalry. As the product is mostly used by industrial applications, the customer/buyer is highly educated and price sensitive. Therefore, the supplier has lower bargaining power, while the buyer enjoys high bargaining power. Due to the high cost involved in some of the important chemical fermentation, the threat of new entrant would be low.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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