Driven primarily by the eco-friendly nature of fermentation chemicals, the global market for these chemicals is projected to exceed US$48 billion by 2015. In addition, lower consumption of solvents, reagents and power for manufacturing chemicals during fermentation as well as scope for utilizing renewable sources such as corn makes the fermentation process more suitable and lucrative as compared to alternative processes.

Fermentation, a process dating back to the days of Egyptian pharaohs, has evolved over the centuries and is used currently for the production of alcohol, lactic acid, acetone, acetic acid, butanol, and several other products. A range of polymers that find use across industries including food, lubricant, and consumer goods, can also be manufactured using fermentation process.

Fermentation chemicals comprise a wide range of chemicals with their usage spread across diverse industries. The effect of the global recession varied unevenly across the fermentation chemicals market, with segments such as enzymes displaying stable growth, citric acid exhibiting slight decline, and ethanol displaying significant decline.

Global ethanol consumption declined significantly in 2009 owing to reduced demand in the US, the largest consumer as well as producer of ethanol across the world. Enzyme sales were down for food and animal feed segments, while the detergent and technical enzymes segments witnessed marginal growth. Brewing sales also slid as beer volumes declined.

The US represents the largest market for fermentation chemicals, followed by Europe, as stated by the new market research report on fermentation chemicals. Led by China, the Asia-Pacific represents the fastest growing market for fermentation chemicals. The region is expected to register fastest CAGR of 6 percent over the analysis period. In recent years, China has become a major manufacturing hub for fermentation chemicals due to minimal production overheads and strong local demand.

Among the product segments, fermented alcohol represents the largest fermentation chemicals segment. Spurred by features such as eco-friendliness, cost-efficiency, and the ability to meet existing regulations, ethanol is likely to emerge as the fastest emerging fermentation chemical, replacing MTBE from the gasoline category.

Industrial applications have surged ahead of the F&B industry as the largest consumer for lactic acid. Industrial applications are likely to witness faster growth rate as compared to other users of lactic acid, owing particularly to the widening application areas for polylactic acid (PLA).

Lysine, used primarily as swine feed, is witnessing growth due to the stringent policy guidelines regarding animal feed in the European market and high consumption in developing regions such as East Europe, Latin America and China. Asia-Pacific market for vitamins,the fastest growing fermentation chemicals segment, is forecast to cross the US$1.0 billion mark by 2015. Demand for vitamins continues to emanate from the F&B industry that is surging ahead with the introduction of novel food applications at regular intervals.

The fermentation industry comprises of manufacturers of important ingredients including organic acids, enzymes, amino acids, and vitamins. The industry consists of large diversified transnational companies having presence in more than one market, specialty chemical companies, companies engaged in select products manufacturing in lesser quantity, and tailor-made products for end-use markets including pharmaceuticals and F&B industries.

Major global and regional players profiled in the report include AB Enzymes, Ajinomoto Company Inc., Amano Enzyme Inc., Amino GmbH, Asahi Kasei Corporation, Archer-Daniels-Midland Company, Avecia Biologics Limited, BASF SE, Boehringer Ingelheim Austria GmbH, Cargill, Inc., Chr. Hansen A/S, Danisco A/S, Dow Chemical Company, Evonik Degussa GmbH, International Specialty Products, Johnson Matthey Catalysts, MGP Ingredients Inc., Novozymes A/S, PURAC biochem, , Royal DSM, Tate & Lyle plc, Wacker-Chemie GmbH, among several others.

The research report titled “Fermentation Chemicals: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., elucidates on the prevailing trends and issues, particularly in light of the global economic crisis. The study also throws light on changed market dynamics and competition in the market and enumerates recent developments, product introductions/innovations, mergers, acquisitions and other strategic industry activities.

The study reviews recent past, current and future market projections over the period 2007-2015, while historic analytics offer a review of the industry’s performance in the past (2000-2006). Analysis for fermentation chemicals market is presented for established and emerging markets including the US, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Middle East, and Latin America. Segments analyzed in the report include – Fermented Bulk Antibiotics, Fermented Alcohol (Ethanol & Other Alcohol), Fermented Enzymes, Fermented Organic Acids (Amino Acid, Citric Acid, Lactic Acid & Other Fermented Organic Acids), Fermented Vitamins, Fermented Polymers & Biogums and Other Fermentation Chemicals.

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