January 14, 2011

Global fermentation chemicals market to top US$48 billion

World fermentation chemicals market is expected to exceed US$48 billion by 2012, with the Asia-Pacific representing the fastest growing market, according to a new report by Global Industry Analysts, Inc.

Substances in fermentation comprise a wide-ranging variety of chemicals with their usage spread across different industries. With the effect of global recession, it varied unevenly across the fermentation chemicals market, with categories such as enzymes displaying stable growth, citric acid exhibiting slight decline, and ethanol displaying significant decline.

With China leading the pack, the Asia-Pacific represents the fastest growing market for fermentation chemicals. Fastest compound annual growth rate (CAGR) of 6% is projected over the analysis period. During the recent years, due to low production overheads and high local demand, China has become a major manufacturing centre for fermentation chemicals. Among the product segments, fermented alcohol represents the largest fermentation chemicals segment. With impelling 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.

Lysine, used primarily as swine feed, is witnessing growth with 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.

Manufacturers of vital ingredients including organic acids, enzymes, amino acids, and vitamins make up the fermentation industry. The industry comprises of large diversified multinational 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.

Major global and regional players 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.