Description

The study assesses growth opportunities for fermentation-derived ingredients in human and animal nutrition. Among the five broad ingredient categories—organic acids, enzymes, amino acids, vitamins/carotenoids and xanthan—amino acid and enzymes are expected to dominate the total fermentation-derived ingredient market. Significant growth in the animal feed sector and processed food products, in addition to rising consumer sentiment toward bio-based chemicals, are expected to propel growth in the fermentation-derived ingredient market. With respect to individual product categories, driving factors vary according to the penetration of the product categories in end-use industries. For example, with respect to organic acids, the push toward the use of petroleum alternatives for the production of organic acids is expected to drive the market for fermentation-derived organic acids. In the case of amino acids, growing awareness among farmers to reduce the content of crude protein in animal diets is expected to drive the bulk demand for amino acids in both developed and developing regions. High demand for umami seasonings in India, Japan, and Africa is expected to drive the market for amino acids, especially monosodium glutamate. On the other hand, the market for food enzymes is primarily being driven by changing food habits; the preference for 'free-from' products is expected to drive the market for enzymes in developed regions. Changing fodder choices and the use of various grains are some factors that are expected to drive the rate of penetration of feed enzymes, especially in Latin America and Asia. Geographically, Asia-Pacific is expected to remain the most attractive region for ingredient manufacturers, with China being the manufacturing hub for most of the ingredients. Although, recent stringent environmental regulations imposed by the Chinese Government can influence the supply chain globally, the region is expected to maintain its dominance in the near future. Other than APAC, regions such as Latin America, Middle East and Africa also offer significant growth opportunities for fermentation-derived ingredients due to changing economic conditions in these countries. Technological innovation in some of the product categories, such as enzymes, amino acids, carotenoids, is significantly high. Patent trend analysis highlights the fact that companies are trying to innovate not only microbial strains to optimize cost and yield of production but also alternative feedstock. The competitive space for most of these ingredients remains dominated by Chinese players which offer strong competition to other noted players.