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Report Overview: Biotech Ingredients MarketThe global biotech ingredients market size was valued at USD 1.50 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 8.2% from 2021 to 2027. The market growth can be attributed to increasing demand for biotech flavors and fragrance ingredients from the food and beverage segment. Flavors and fragrances form an integral component of different types of consumer products as they have a significant impact on consumers’ purchasing decisions. Rapid industrialization has led to the large-scale consumption of flavored or scented products, such as food and beverages, personal care products, and cleaning and household products. This is expected to drive the market for biotech ingredients in the coming years. Both flavors and fragrances can be naturally derived or synthetically made. However, there has been an increasing shift towards natural and organic products owing to consumer awareness regarding the ill effects of synthetic ingredients. There is limited availability of raw material due to unpredicted weather conditions. Moreover, stringent environmental regulations pose significant hurdles for the companies producing these ingredients. As a result, the leading players in the flavors and fragrances industry are focusing on developing new and sustainable ways of producing these ingredients, which can be labeled as “natural” and will also meet consumer expectations. Increasing shift towards organic and natural beauty products is also compelling the manufacturers of cosmetic products to incorporate these ingredients into their products. Thus, it is likely to provide immense growth opportunities for biotechnology-based active ingredients, especially for cosmetics. Currently, biotechnologically produced active ingredients for pharmaceuticals hold a significant market share as compared to the cosmetics market. Currently, the biotechnological route is still at the novice stage, especially for fragrances and active ingredients for cosmetics. However, it is not only expected to provide the companies an alternative way to produce substitutes for existing products but also open new avenues for more innovation in the flavors and fragrances industry. Flavors Insights In terms of revenue, biotech flavor ingredients accounted for a share of 38.44% in 2019. Flavors can be classified as natural flavors and artificial flavors. Natural flavors are usually sourced from edible essential oils, oleoresins, essence or extract from fruits/fruit juices, spices, vegetables/vegetable juices, herbs, roots, and buds. Artificial or synthetic flavors come from inedible sources, such as petroleum or paper pulp, which are processed to produce aroma chemicals for different flavors. The natural flavors are difficult to extract and are both time consuming and expensive. Besides, their production is dependent on various factors, such as temperature and climate. Thus, these drawbacks have led the directed research & development teams of the companies to develop different strategies for producing the natural flavor compounds. Artificial flavors are cheaper than their natural counterparts as they do not require high investments in cultivating and harvesting fields. Artificial flavors could also be tailored to enhance a particular flavor according to one’s needs. However, health concerns related to consuming synthetic flavors and stringent rules and regulations on the use of these flavors in food and beverages are likely to restrain the product demand to a certain extent. Vanillin is considered the most widely used flavoring agent, especially in dairy and food products. It imparts a sweet flavor to the finished food products, including bakery products, alcoholic beverages, dietary supplements, dairy products, and confectioneries. Demand for vanillin from the food and beverage segment is anticipated to increase over the years ahead due to its ability to enhance flavor in food products, coupled with low-calorie content.
Fragrances Insights: Biotech Ingredients MarketIn terms of revenue, Europe lead the biotech fragrance market with a share of 57.66% in 2019. Europe’s high priority for development of bio-based sector along with various strategies and policies to achieve sustainable economic growth is likely to foster the demand for biotech ingredients in the region. Biotech fragrances are aromatic mixtures consisting of many individual chemicals and are used in a number of applications, such as perfumes, air fresheners, candles, toiletries, personal care products, dyes, and bleaches. Increased demand for fragrances in cosmetics, personal care products, and toiletries, such as soaps, detergents, and hand washes, is projected to boost overall product demand. Fragrances are normally derived from plants and are largely dependent on the uninterrupted supply of essential oils for the production of scents for food and drinks, cleaning products, and perfumes. However, a natural disaster or any political disruption can easily affect the supply. Thus, in order to overcome such situations, the fragrance companies are now aiming to produce fragrances using lab-engineered yeast and bacteria. Some of the oils such as patchouli, grapefruit, bitter orange, sandalwood, and rose are difficult to obtain naturally. According to the Chemical and Engineering News, biotech firms like Isobionics Allylix and Evolva have evolved a biotechnological way of genetically engineering yeast and bacteria to produce these plant oils by fermenting sugars. However, they are yet to scale up their production to meet the growing demand. Currently, the only microbial-based fragrances available are the molecules, which smell like the grapefruit peel, Valencia oranges, and vanilla. Companies like Firmenich and Robertet are aiming at formulating fragrances using biotech ingredients. In addition, global players such as Symrise AG and International Flavors and Fragrances Inc. are undertaking several strategic activities to enhance their product portfolio.
Active Cosmetic Ingredients Insights: Biotech Ingredients MarketThe skin care segment held the largest share of 51.49% in 2019. Rising global population, along with increasing interest in physical appearance, has led to the growth of the cosmetics market worldwide. Moreover, mounting concerns for aging skin and need for an evenly toned skin are likely to contribute to this growth, which, in turn, is boosting the growth of the global cosmetic ingredients market. However, consumers these days are more concerned about the ingredients being used in cosmetic products. They are shifting towards more natural products derived from natural ingredients. Changing consumer dynamics have led the cosmetic companies to adopt scientific research and new product developments through sustainable means. Moreover, consumers have become more conscious towards the environment and sustainability issues, which compels these companies to consider this factor while developing new cosmetic ingredients. In addition, key players in the market are investing in several research and development activities for developing sustainable and innovative products using biotechnology. Moreover, they are entering into strategic alliances with other market players in order to broaden the product portfolio. For instance, in June 2019, Symrise acquired Cutech, an Italian biotech company, which offers screening for cosmetic ingredients and formulations.
Regional Insights: Biotech Ingredients MarketIn 2019, Europe emerged as the leading market for biotech ingredients in cosmetics and fragrances, accounting for around 37.46% share in the active ingredients market. The growth in the region can be attributed to the development of innovative value chains for producing bio-based ingredients, government initiatives, and increasing production capacities of bio-based chemicals. Business sustainability programs, along with potential investors in the European biotech ingredients industry, are projected to drive the regional market over the forecast period 2021-2027. North America emerged as the second largest regional market for biotech ingredients. Increasing R&D activities to develop innovative bio-based routes is likely to contribute to the growth of market in this region. Early adoption of biotech ingredients, along with presence of potential industry participants, is likely to boost the regional market growth over the forecast period. The bio-based economy plays a significant role in the American economy. Emergence of bio-based products, along with innovation in biotechnology, has contributed to job creation, which is likely to drive the bio-based economy of America. Abundant procurement of bio-based feedstock is projected to create ample growth opportunities for the North America market. Increasing reliance of the flavors and fragrances industry on alternative materials, along with implementation of technologies, such as nanotechnology and stem cell technology, is expected to create demand for biotech ingredients for flavors and fragrances. North America has great potential for the flavors market and demand for biotech ingredients in such market is high owing to changing consumer tastes and rising awareness about nutritional benefits of naturally derived ingredients. This is expected to drive the market for biotech ingredients in this region.
Key Companies & Market Share Insights: Biotech Ingredients MarketKey players in the market are developing flavors using microbial processes, such as biosynthesis or biotransformation, using bacteria, yeast, or fungi. Companies are focusing on R&D based on biotechnology to invent novel microbial fermentation processes for manufacturing natural vanillin. Moreover, companies such as Evolva S.A., International Flavors and Fragrances, Inc., and other vanillin manufacturers aim to improve their market reach by setting up new production facilities and distribution centers in developing countries as well as expand the production capacities of vanillin at their existing sites. Furthermore, business partnership of companies such as Hallstar Company and Deinove SAS to develop a stable oily active ingredient for the personal care and beauty care industries is projected to foster the growth of market in North America. Some of the prominent players in the global biotech ingredients market include:
Key companies Profiled: Biotech Ingredients Market Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global biotech ingredients market report on the basis of flavors, fragrances, active cosmetic ingredients, and region:
- Givaudan SA
- International Flavors & Fragrance (IFF), Inc.
- Firmenich SA
- Amyris, Inc.
- Sollice; Novocap Group
- Evolva S.A.
Flavors Outlook (Revenue, USD Million, 2016 - 2027)
- By Source
- Filamentous Fungi
- By Type
- By Carbonyls
Fragrances Outlook (Revenue, USD Million, 2016 - 2027)
- By Application
- Fine Fragrances
Active Cosmetic Ingredients Outlook (Revenue, USD Million, 2016 - 2027)
- By Application
- Hair Care
- Skin Care
- Sun Care
- Makeup and Color Cosmetics
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation & Scope 1.2 Market Definition 1.3 Information Procurement 1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2 IFF Internal Database 1.3.3 Secondary Sources 1.3.4 Third Party Perspective 1.3.5 Primary Research 1.4 Information Analysis 1.4.1 Data Analysis Models 1.5 Research Scope and Assumption | read more...