What Has Been the Progress and Growth of the Biochemical Market in Recent Years?
The biochemical market has seen considerable growth due to a variety of factors.
• Recent years have witnessed significant growth in the size of the biochemical market. This expansion is projected to continue, with an expected increase from $83.52 billion in 2024 to $91.7 billion in 2025, translating to a compound annual growth rate (CAGR) of 9.8%.
Factors that contributed to growth during the historic period include increased demand for environmentally friendly products, several initiatives and regulations introduced by the government, a shift in focus towards bio-based fuels, heightened consumer awareness and preferences, along with the broadening applications of biochemistry across various industries.
How Does the Forecast Look for the Biochemical Market?
The biochemical market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the biochemical market is projected to experience substantial growth in the upcoming years. By 2029, it's anticipated to reach a value of $125.23 billion, growing at a compound annual growth rate (CAGR) of 8.1%.
This growth during the forecast period is attributed to factors like the expansion of the biopharmaceutical sector, the increasing emphasis on a circular economy, worldwide initiatives to fight climate change, advancements in biorefineries, and consumer's growing demand for eco-friendly products. Key trends during this period include cutting-edge innovation in bioprocessing, heightened investment in research and development, strategic collaborations and partnerships, advancements in biotechnology, and a shift towards precision and synthetic biology.
What Are The Leading Drivers Of Growth In The Biochemical Market?
The biochemical market is anticipated to flourish due to the growing demand for bio-based products. These products are made from sustainable biological resources like plants, animals, and microorganisms. They utilize biochemicals to provide environmentally friendly alternatives to conventional petrochemicals. To illustrate, a report by the Organic Trade Association in May 2023 pointed out an extraordinary sales surge in the U.S. organic food market, setting a record at $61.7 billion in 2022, a 4.4% increase from 2021's $59.1 billion. Additionally, a 2023 report from European Bioplastics opined that the global bioplastics production capacity could grow from around 2.2 million metric tons in 2022 to an approximated 6.3 million metric tons by 2027. This rising demand for bio-based products signifies the expanding growth of the biochemical market. Further propelling the expansion of the biochemical market is the escalating demand for clean and renewable energy sources. Often associated with green fuels or renewable energy sources, these use biochemicals to transform organic substances like biomass and algae into sustainable biofuels and biogases. These cleaner and renewable energy resources are beneficial for the environment with their minimal emissions and can reduce reliance on fossil fuels. In reference to this, a prediction by the International Energy Agency (IEA) in December 2022 indicated that the global requirement for biofuels could witness a 6% growth, or 9,100 million liters per year, between 2021 and 2022. This illustrates how the escalating demand for cleaner and renewable fuel sources is contributing to the biochemical market's growth.
How Are The Segments Defined Within The Global Biochemical Market?
The biochemical market covered in this report is segmented –
1) By Type: Biodiesel, Amino Acids, Fine Chemicals, Phytochemicals, Antibiotics, Dyes And Stains
2 By Application: Fuel, Power Generation, Other Applications
3) By End-User: Pharmaceuticals, Dairy, Automotive, Agriculture, Textile, Food Processing
Subsegments:
1) By Biodiesel: Vegetable Oil-Based Biodiesel, Animal Fat-Based Biodiesel, Algae-based Biodiesel
2) By Amino Acids: Essential Amino Acids, Non-essential Amino Acids, Conditioned Amino Acids
3) By Fine Chemicals: Specialty Chemicals, Pharmaceutical Intermediates, Agrochemicals, Phytochemicals
4) By Phytochemicals: Flavonoids, Alkaloids, Terpenoids, Phenolics
5) By Antibiotics: Penicillin, Tetracycline, Cephalosporins, Macrolides
6) By Dyes And Stains: Synthetic Dyes, Natural Dyes, Fluorescent Dyes, Biochemical Stains
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How Are New Trends Impacting The Size Of The Biochemical Market?
Pioneering businesses in the biochemical market are ramping up their efforts to unveil items such as biobased precursors, as a strategy to maintain their competitive advantage. Biobased precursors are materials extracted from renewable biological resources like plants, animals, or microorganisms, and act as the foundational or raw materials in the creation of biobased products. For example, Advanced Biochemical, a biochemical firm in Thailand, in July 2022, inaugurated a bio-based, drop-in, and competitive brand named Epinity. This product finds its application as a precursor to epoxy resins in a multitude of downstream industries. Its uses span marine coatings, powder coatings, auto refinishing and industrial adhesives among others. The introduction of Epinity marks a meaningful advancement in the biochemical industry, providing a green way out for conventional ECH and other chemical compounds.
Elevation Of Product Efficacy And Eco-Friendliness in the Biochemical Market
Predominant businesses in the biochemical market are amplifying their initiatives to roll out unique eco-friendly products like biobased sustainable additives, striving to remain competitive in the market. Biobased sustainable additives are organic or renewable chemical substances derived from plant, agricultural, or other organic sources which contribute to improving the characteristics, performance, or ecological sustainability of a variety of products or processes. For instance, in March 2023, BYK, a subsidiary of Altana AG, a chemical firm based in Germany, inaugurated an innovative line of biobased, sustainable additives named CERAFLOUR. These additives are formulated to provide a natural appearance and silky, matte finishes to coatings used in wood and furniture, coil, and architectural coatings.
Who Are the Key Players In The Biochemical Market?
Major companies operating in the biochemical market report are:
• Cargill Inc.
• Archer Daniels Midland Company
• Pfizer Inc.
• Johnson & Johnson
• BASF SE
• F. Hoffmann-La Roche AG
• Merck & Co. Inc.
• Dow Chemical Company
• Novartis AG
• Sanofi S.A.
• Bristol-Myers Squibb Company
• Thermo Fisher Scientific Inc.
• AstraZeneca PLC
• Eli Lilly and Company
• Gilead Sciences Inc.
• Amgen Inc.
• Evonik Industries AG
• Solvay S.A.
• DuPont de Nemours Inc.
• Ajinomoto Co. Inc.
• Biogen Inc.
• Vertex Pharmaceuticals
• Agilent Technologies
• Illumina
• Renewable Energy Group Inc.
• Bio-Rad Laboratories
• Hansen A/S
• Naturex SA
• Arboris LLC
• AMINO GmbH
• LIPO Foods
What Is The Most Dominant Region In The Biochemical Market?
Asia-Pacific was the largest region in the biochemical market in 2024. The regions covered in the biochemical market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
