Global Biotech Ingredients Market - 2020-2027
The global biotech ingredients market size was worth US$ XX billion in 2019 and is estimated to show significant growth by reaching up to US$ XX billion by 2027, growing at a CAGR of XX% during the forecast period (2020-2027).
Biotech ingredients are the set of large and complex chemical mixtures that show structural resemblance to compounds found in organisms, animals, and botanical biological sources. Various biotechnological processes such as hybridoma technology, genetic engineering, and others are involved in manufacturing biotech ingredients.
Biotech ingredients can be exacted directly from microbes like bacteria and yeast through genetic modifications. Biotech ingredients include essential oils, oleoresins, and several other plant extracts manufactured using steam distillation, cold pressing or compression, carbon dioxide extraction, and solvent extraction as the modern techniques for extraction of biotech ingredients. These ingredients are widely used in various personal care and cosmetic items, food & beverages, and cleansing & household items. Carbonyls, alcohols, lactones, acids are a few of the types of biotech ingredients currently ruling the market.
The global biotech ingredients market is majorly driven by the increasing demand for biotech flavors and fragrance ingredients from the food and beverage sectors. The growing demand for biotech ingredients for its most prominent usage in the personal care & cosmetic sectors to generate lower carbon footprint at an affordable rate is further expected to trigger the market of biotech ingredients in the coming tenure.
Increasing demand for biotech flavors and fragrance ingredients from food and beverage sectors
With growing awareness among the population towards adopting natural products and increasing knowledge about synthetic ingredients' side effects has shifted consumers' preference towards naturally derived products. Both flavors and fragrances can be derived either from a natural source or can be made synthetically.
However, due to limited availability of raw materials and unpredictable weather conditions during crop season, a significant manufacturer shift has adopted a more sustainable production approach. It creates opportunities for various flavors and fragrance industries to develop new and sustainable production methods for these ingredients, which can be labeled as natural and meet consumer demand and expectations. Thus this sudden shift boosts the biotech ingredients market and is expected to maintain the momentum in the coming years.
For instance, in March 2020, Evolva enters a new agreement with International Flavors & Fragrances, a leading player and creator of taste, scents, and nutrition for consumers' products. The agreement was made to expand further and develop the commercialization of vanillin.
The growing demand for biotech ingredients for its most prominent usage in the personal care & cosmetic sectors generates a lower carbon footprint at an affordable rate
As per various statistical reports, cosmetics and the cosmetics market are estimated to register an annual growth of 25% by touching USD 20 billion by 2025. Solely Indian cosmeceutical and cosmetics industry holds around USD 6.5 billion from a global market of USD 274 billion. The significant growth in the cosmetics industry is due to increasing consumer shift towards organic and natural beauty products.
It also creates opportunities for cosmetic product manufacturers to incorporate these ingredients in their products to fulfill the consumer's demand. In return, this leads to create immense opportunities for the biotech sector and biotech-based active ingredients to increase in the recent cosmetics market. The production of these biotech ingredients used in cosmetic products is often cleaner, more sustainable, and more efficacious beauty ingredients as compared to those extracted from a petrochemical source.
For instance, in October 2019, Mibelle launched an anti-aging remedy- IceAwake, for sleep-deprived consumers. The product is a biotech ingredient made available by glacial melt. Bacteria present in glacier ice layer help Mibelle biochemistry produce 'IceAwake,' an ingredient that helps rejuvenate skin caused by prolonged periods of inadequate sleep.
Limited availability of raw materials owing to the requirement of ambient conditions for the growth of microorganisms coupled with stringent regulatory norms imparted by government bodies
Biotechnological processes have significantly increased research sectors' growth, and rapid growth in various end-users has been seen in the past two decades. However, many biotechnological processes may carry more risks than any other scientific field, such as microorganisms used to produce different biotech ingredients are very tiny and hard to handle sometimes, which creates unavoidable dangers.
Also, the raw materials and conditions required for the production of biotech ingredients are cost-effective, and the maintenance of such ambient conditions becomes unfeasible, affecting the volume and quality of end-products. Many projects are still on hold due to stringent government regulatory norms, leading to an impact on market's growth. Thus, the limitation mentioned above of a biotechnological process is directly responsible for hurdling the biotech ingredient market's growth in recent times.
COVID-19 Impact Analysis
The global biotech ingredient has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut down for several months. Further several countries have restricted production activities during the covid-19 pandemic. The major lockdown due to the COVID-19 outbreak leads to suddenly dropping down consumers' interest towards purchasing any goods, and halt in transportation sectors has severely hampered biotech ingredient market business due to disruption in the product's supply chain management.
The majority of businesses is shut down, and operations across several end-users of biotech ingredient products such as food & beverages industries and cosmetic industries are also compromised, thus dropping the product's global demand in 2020. Also, due to the on-going pandemic majority of the research projects are shifted towards identifying the coronavirus behavior and finding out the possible cure for the illness, leading to halting the previously going project expected to hamper the future growth of biotech ingredients.
The global biotech ingredient market is segmented based on type, product, expression system, application and region.
Increasing cancer-positive patients and growing demand to treat oncology patients has uplifted the market of monoclonal antibodies in the recent times
In terms of product, the global biotech ingredient market is bifurcated into vaccines, monoclonal antibodies, cytokines, fusion proteins, therapeutic enzymes, hormones and growth factors, blood factors, and others. Out of the mentioned list, the monoclonal antibody segment is growing at the largest rate since the past recent years. The market is expected to maintain its dominance in the forecast period, owing to the high adoption of monoclonal antibodies in cancer and infectious treatment.
The growing use of monoclonal antibodies for cancer therapy has significantly contributed to tumor immunology and advanced the on-going procedure for treating oncology patients. As per WHO 2018, cancer is the second leading cause of death worldwide, and till 2018 it is responsible for taking 9.6 million lives. Nearly 70% of deaths due to cancer occurs in low and middle-income countries.
Currently, the most common types of cancers are- lung cancer (2.09 million), breast cancer (2.09 million), colorectal cancer (1.80 million), prostate (1.28 million), skin cancer (non-melanoma) (1.04 million), and stomach cancer (1.03 million). The rapidly growing cancer patients are directly responsible for creating monoclonal antibodies to treat cancer. These antibodies can enhance or mimic the immune system and attack the cancer cells present in the affected patient. Monoclonal antibodies are also designed to function in a variety of ways, particularly in a drug form. These drugs are helping the immune system fight against cancerous cells in different ways.
Increasing demand for these ingredients in the cosmetics and fragrances sector and growing on-going developments in the biotechnology sectors has improved the market share of the European region
Europe holds the highest 2019 market of biotech ingredients due to the increasing demand for these ingredients in the cosmetics and fragrances sector. Growing on-going developments in the biotechnology sectors and rising government investments on the projected have shown a severe growth impact on the biotech ingredient market in recent times. The increasing production capacity of bio-based chemicals and growing key players' adoption of biotech ingredients has uplifted Europe's market share.
On the other side, North America is in the second position for the biotech ingredient market due to the tremendous growth of biotech ingredients R &D over the past few years. Growing government regulations favoring biotech ingredients is another factor adding to the region's market.
The biotech ingredient market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Advanced Biotech, International Flavors and Fragrance (IFF), Bell Flavors and Fragrances, Sigma-Aldrich, Hayashibara Co, Firmenich SA, Novozymes SA, Evonik Nutrition and Care, Symrise A.G, Contipro a.s, Givaudan SA, Mibelle Group and among others.
The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to the biotech ingredient market's growth globally. However, the key players are following collaboration and acquisition as the growth strategy.
Overview: The company is the third-ranked own-brand manufacturer in the European market. The company develops, produces, and markets its brands and own retail brands in Personal Care & beauty, homecare, and nutrition. The company employed nearly 12,50 people over six sits in Switzerland, UK and holds a turnover of around 650 million Swiss francs.
The global biotech ingredient market report would provide access to an approx: 75 market data table, 72 figures, and 244 pages.
Target Audience 2022
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