Global Fermentation Chemicals Market 2017-2021
About Fermentation Chemicals
The commercial fermentation of natural and renewable materials produces fermentation chemicals. These chemicals act as a catalyst or initiator in chemical and biochemical reactions to modify the rate of the reaction process. These chemicals can also be manufactured by using biodegradable products such as pulp, starch, paper, wood, and other biochemicals. The increasing demand from the alcohol industry is one of the driving factors. The rising demand for renewable energy fuel and consumption of alcohols such as ethanol and methanol as a substitute for conventional fuels are the major factors prompting the growth of the global fermentation chemicals market. Fermentation chemicals help increase the overall productivity by lowering the processing time and manufacturing costs.
Technavio’s analysts forecast the global fermentation chemicals market to grow at a CAGR of 5.98% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global fermentation chemicals market for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price of the product.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Fermentation Chemicals Market 2017-2021
Technavio recognizes the following companies as the key players in the global fermentation chemicals market: AJINOMOTO, Archer Daniels Midland, BASF, Cargill, Evonik Industries, and The Dow Chemical Company
Other Prominent Vendors in the market are: Amano Enzyme, AB Enzymes, Chr. Hansen Holding, Novozymes, and Royal DSM.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Emerging use of enzymes in nutraceuticals. The insufficiency of adequate nutrients in dairy foods and the growing health consciousness are driving the consumption of nutraceutical products globally. The developed regions such as the Americas and Europe are the main markets for nutraceutical products. The high cost of these products previously hindered their acceptance in the developing markets. However, the rising disposable incomes and the increasing awareness about such products are fostering their consumption in emerging markets such as India and China.”
According to the report, one of the major drivers for this market is Rising need for renewable and clean fuel. Globally, there is a growing interest to substitute fuels because of the uncertainty of global fuel prices, energy security, and the continued rise in CO₂ emission levels. There is a demand for industrial and automotive fuels that can reduce CO₂ emissions. The gradual depletion of fossil fuel reserves has given rise to the need for renewable sources of energy such as biofuels. The continuous R&D has led to the use of alternative fuels such as ethanol and methanol, which is gradually moving toward large-scale commercialization because their performance is like that of gasoline and diesel for transportation and industrial applications.
Further, the report states that one of the major factors hindering the growth of this market is Fall in crude oil prices. Various alcohol fuels are one of the main substitutes of crude oil products such as gasoline and diesel. The sudden change in the global crude oil prices has resulted in a steep decline in oil trading prices. Brent and West Texas Intermediate crude oil prices have dropped nearly 50% from 2014 to 2015. The remarkable decline in oil prices is attributed to a systemic demand-supply imbalance in the global crude oil market. This has made ethanol, methanol, and other alternative renewable fuels less lucrative. The low crude oil prices have increased the difference in prices between conventional fuels and renewable fuels. Generally, the governments subsidize renewable fuels to make them attractive to consumers. However, if crude oil prices continue to decline, governments must increase the subsidies to make alcohol fuel products competitive and more attractive. This will require additional funding from governments, failing which the sales of alcohols as fuel will decrease and subsequently affect the growth of the fermentation chemicals market.
AJINOMOTO, Archer Daniels Midland, BASF, Cargill, Evonik Industries, The Dow Chemical Company, Amano Enzyme, AB Enzymes, Chr. Hansen Holding, Novozymes, and Royal DSM.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook