Industrial applications accounted for 47 percent of the total market volume for fermentation chemicals in 2013.
Fermentation chemicals are used in many industries, including plastics & fibers, nutritional & pharmaceuticals and food & beverages. They include ethanol and other alcohols, as well as organic acids, enzymes, antibiotics, vitamins and xanthan.
A new study by Grand View Research, Inc. says that global demand for fermentation chemicals reached 51.83 million tons in 2013 and is expected to climb to 70.76 million tons by 2020, rising at a compound annual growth rate (CAGR) of 4.5 percent from 2014 to 2020. By the end of the forecast period, the market is expected to be worth $65.81 billion.
The research firm expects increasing industrialization in emerging Asian markets such as India, China and Indonesia to remain a key driving factor for this segment.
Globally, the plastics & fibers industry is expected to show the highest rate of growth over the next few years, with this segment rising at an estimated CAGR of 5.1 percent from 2014 to 2020. Grand View Research said that growth of key end-use industries such as construction and automotive in key regional markets is anticipated to boost plastics demand, which in turn will have a positive impact on the demand for fermentation chemicals.
Alcohols represent the leading product segment, accounting for 56.6 percent of total market volume in 2013. Increasing ethanol and methanol production is expected to further drive growth of this segment.