According to The Insight Partners latest market study, titled "The global Fermentation Ingredients Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Application, and Geography" the market is expected to grow from US$ 28 billion in 2021 to US$ 54 billion by 2028; it is estimated to grow at a CAGR of 7.5% from 2022 to 2028.
The emerging applications of fermentation ingredients in personal care and cosmetic products pose significant growth opportunities for the fermentation ingredients market players. Various fermentation ingredients such as bacteria, yeast, and amino acid are used in skincare and personal care products. The fermentation method improves the level of antioxidants in personal care products which has surged its use. When incorporated in topical skincare products, the fermentation process improves the bioavailability of ingredients, which allows their deeper absorption into the skin depth. This property makes their use in skin care products meant for dry skin more suitable.
Fermentation ingredients are the microbial cultures used to ferment products in various industries to maintain appropriate texture, color, and flavor. The demand is majorly attributed to rising awareness about the preservation of food and beverage, higher demand for antibiotics, and rising demand for fermentation-derived products. However, the inconsistent availability and high cost of raw materials hamper the fermentation ingredients market growth.
Döhler GmbH; DSM; Chr. Hansen Holding A/S; Lallemand Inc.; Kerry Group plc; Cargill, Incorporated; Associated British Foods plc; Lonza; Ashland; and Angel Yeast Co., Ltd are among the key market players profiled during the study. Several other major companies were also studied and analyzed to get a holistic view of the fermentation ingredients market and its ecosystem.
North America holds the largest share of the fermented ingredients market, while Asia Pacific is expected to register the highest CAGR in the market during the forecast period. The market growth in North America is attributed to consumer inclination toward high-protein diets and rising awareness regarding the health benefits of fermented ingredients in various industries including food and beverages, pharmaceuticals, personal care, and others. However, the COVID-19 pandemic hampered the fermentation ingredients market due to interrupted supply chains, which resulted in a shortage of raw materials and products, eventually leading to price hikes.
The global fermentation ingredient market is segmented on the basis of process, type, and end-user industry. On the basis of process, the fermentation ingredient market is segmented into batch, continuous, and others. The fermentation ingredient market on the basis of type is classified into amino acids, antibiotics, polymers, and others. Similarly, on the basis of end-user industry the fermentation ingredient market is bifurcated into food and beverages, pharmaceutical, agriculture, and others.
The fermentation ingredient market has witnessed significant growth owing to factors such as increasing demand for fermentation-derived products coupled with the rise in awareness among users for the consumption of quality food. Moreover, rapid growth in the food and beverage industry in developing regions such as the Asia Pacific and South America provides a huge market opportunity for the key players operating in the fermentation ingredient market. However, new entrants, a surge in prices of raw materials, and developments of synthetic alcohol production are projected to hamper the overall growth of the fermentation ingredient market.