Biotech Ingredients Market Size, Share, Trends, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Biotech Ingredients Market


The global Biotech Ingredients market size is projected to reach US$ 2.78 billion by 2026, from US$ 1.75 billion in 2020, at a CAGR of 8% during 2021-2026. Market growth can be attributed to increasing demand for biotech flavors and fragrance ingredients from the food and beverage industry. Flavors and fragrances form an integral component of different types of consumer products as they have a significant impact on consumer purchase decision.
There has been large-scale consumption of flavored or scented products within industries such as food and beverages, personal care, and cleaning and household products. This is expected to drive demand for biotech ingredients in the coming years. Flavors and fragrances can both be naturally derived or synthetically manufactured. However, ongoing trends indicate increasing preference for natural and organic products, owing to consumer awareness regarding ill effects of synthetic ingredients.

Nevertheless, limited availability of raw material, due to unpredictable weather conditions and stringent environmental regulations, can pose significant hurdles in production of these natural ingredients. As a result, leading players have been focusing on developing new and sustainable ways of producing them in a manner that enables them to be labeled as natural and will also meet consumer expectations.

Increasing shift toward organic and natural beauty products is also forcing manufacturers of cosmetic products to incorporate these ingredients. This is likely to provide immense opportunities for the growth of biotechnology-based active ingredients, especially for cosmetics. Currently, biotechnologically produced active ingredients for pharmaceuticals have a more significant market share as compared to the cosmetics market.

Although the biotechnological route is still in a novice stage, especially for fragrances and active ingredients for cosmetics, it is not only expected to provide companies an alternative way to produce substitutes for existing products but also open new avenues for more innovation in the flavors and fragrances industry.

Market Segmentation, Outlook & Viewpoint: Global Biotech Ingredients Market

Flavor Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

By Source

  
Bacteria
  
Yeast
  
Filamentous Fungi

By Product

  
Carbonyls
  
Lactones
  
Alcohols
  
Acids

By Carbonyls

  
Ketones
  
Aldehydes

Fragrance Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

By Application

  
Fine Fragrances
  
Toiletries
  
Others

Active Cosmetic Ingredient Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

By Application

  
Hair Care
  
Skin Care
  
Sun Care
  
Makeup and color cosmetics

Key Players, Recent Developments & Regional Insights: Global Biotech Ingredients Market

Flavors can be classified as natural and artificial. Natural flavors are usually sourced from edible essential oils and oleoresins, or is an essence or extract from fruits/fruit juices, spices, vegetables/vegetable juices, herbs, roots, buds, and others. Artificial or synthetic flavors are derived from inedible sources such as petroleum or paper pulp, which are processed to produce aroma chemicals for different flavors.

Many compounds such as aldehydes, alcohols, esters, carbonyls, fatty acids, lactones, phenolic compounds, methyl ketones, and sulfur compounds are responsible for the aroma in food items. These compounds can be produced naturally by using microbial cultures or enzyme preparations. Several microorganisms are capable of naturally synthesizing flavors as secondary metabolites during fermentation.

Key players in the market have been developing flavors using microbial processes such as biosynthesis or biotransformation using bacteria, yeast, or fungi. However, the production of flavor using yeast and fungi is done on a large scale as compared to bacteria. The most important group of the flavor compound comprises ketone, diketone, and aldehydes.

Ketones are particularly responsible for cheese flavors. Aldehydes occupy a greater market share and are valued in the food industry for their flavor-producing capabilities. Some of the examples of bio-based aldehydes are vanillin, benzaldehyde, and acetaldehyde.

Fragrance Insights

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 the global biotech ingredients market.

Fragrances are normally derived from plants and are largely dependent on uninterrupted supply of essential oils in the production of scents for food and drinks, cleaning products, and perfumes. However, natural disasters or trade policies can easily affect supply. Thus, in order to overcome such situations, fragrance companies are now aiming to produce fragrances using lab-engineered yeast and bacteria.

Oils such as patchouli, grapefruit, and bitter orange are difficult to obtain naturally. As a result, biotech firms such as Isobionics 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 growing demand. Currently, the only microbial-based fragrances available are molecules that smell like grapefruit peel, Valencia oranges, and vanilla.

Companies like Firmenich and Robertet are aiming to formulate fragrances using biotech ingredients. In March 2015, Ginkgo Bioworks, along with their partner Robertet, successfully produced a rose-like oil by genetic engineering. In 2017, they announced its successful commercial-scale fermentation.

Active Cosmetic Ingredient Insights

Latest research trends in the cosmetics industry are based on the use of biotechnology-based ingredients and a study of their effects on cell biology. Biotechnology has had a significant impact on the cosmetics industry in many ways. Companies use this technology to discover and develop components of cosmetic formulas. Many active ingredients are being made using this technology.

For instance, hyaluronic acid (HA), which is an active ingredient used in many cosmetic products, is now being made using microbial fermentation. It is used in the formulation of various skin care products such as facial creams and lotions. Novozymes is a global biotech company producing enzymes and microorganisms. It has developed a special method for production of HA using fermentation of non-pathogenic strain Bacillus subtilis.

Regional Insights

In 2017, Europe emerged as the leading market for biotech ingredients in cosmetics and fragrances. This growth can be attributed to 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 industry, are projected to drive market growth over the forecast period.

North America emerged as the second-largest market for biotech ingredients. Increasing R & D activities to develop innovative bio-based routes are likely to contribute to market development. Early adoption of the product, along with presence of potential industry participants, is likely to drive market growth over the forecast period. Increasing consumption of personal care products, flavoring agents, and fragrance products is likely to create potential opportunities for this regional market. Moreover, advances in metabolic engineering, bio-transformation, and microbial biosynthesis is projected to drive the market.

Biotech Ingredients Market Share Insights

Key players in the market have been developing flavors using microbial processes such as biosynthesis or biotransformation using bacteria, yeast, or fungi. Companies have been focusing on R & D activities based on biotechnology in order to invent novel microbial fermentation processes to manufacture natural vanillin.
Moreover, 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 expanding production capacities of vanillin at existing sites.

Sollice, Givaudan, and Novocap Group are some of the pioneering players in the market for biotech active ingredients. Business partnerships are projected to foster market growth in the North American region. Companies such as Hallstar Company and Deinove SAS have been working on developing stable oily active ingredients for personal care and beauty industries.

Key Insights Covered: Global Biotech Ingredients Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Biotech Ingredients industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Biotech Ingredients industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Biotech Ingredients industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Biotech Ingredients industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Biotech Ingredients industry.

Research Methodology: Global Biotech Ingredients Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other