Global Fermentation Chemicals Market - Segmented by Product Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global fermentation chemical market was estimated at USD 56.11 billion in 2016. The market is expected to register a CAGR of 5.12% during 2018 to 2023 (the forecast period). North America accounted for the largest share, accounting to around 35% of the global market, while Asia-Pacific is estimated to register the fastest CAGR through the forecast period.
Accelerating Growth in Alcohol Demand
Ethanol, butanol, BDO, and acetone are the major forms of alcohol considered in the report. The global fermentation chemical market is dominated by alcohol, primarily ethanol (both in terms of revenue and volume). The alcohol segment is expected to register a CAGR of 4.32%, through the forecast period. Ethanol is widely used as fuel in vehicles, as a fuel additive in gasoline, in paints and coatings, personal care products, alcoholic beverages, and many more.
The demand for fuel is expected to increase through the forecast period, due to the growing fleet of cars. Furthermore, according to IWSR, consumption of alcohol is expected to increase by 0.8%, by 2021. There is also a surge of alcohol usage in pharmaceutical applications for manufacturing of products, such as anesthetics, antiseptics, drugs, liniments, lotions, etc., all of which are expected to drive the market for alcohol during the forecast period.
North America to Dominate Market Growth
North America had the highest share in the market, accounting to around 35% of the global market in 2017. The market for North America is highly driven by the pharmaceutical industry in the United States, and its growing focus to turn itself into a green industry. Asia-Pacific is fastest growing region for fermentation chemicals, and portrays huge potential for growth in the future, due to the immense expansion in the food & beverage, pharmaceutical, and plastics market.
Adoption of Methanol as the Future Fuel in India
To lower fuel costs in India, the Government is planning to introduce methanol and its gaseous form, dymethylether (DME) as transport fuel. The Highways and Shipping Ministry has already prepared a draft notification relating this plan, and is expecting an official clearance from the Law Ministry. At present, India needs around 2,900 crore liters of petrol and 9,000 crore liters of diesel per year, and it is expected to double the consumption by 2030. With the adoption of methanol as a clean burning drop-in fuel that can replace petrol and diesel in transportation, the demand for it is definitely going to rise in the country, thus, driving the demand for fermentation chemicals in India.
Key Developments in the market