Biotech Ingredients Industry Overview
The global biotech ingredients market size was valued at USD 1.61 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.3% from 2020 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.
Gather more insights about the market drivers, restrains and growth of the Global Biotech Ingredients Market
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.
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· Oleoresin Market - The global oleoresin market size was valued at USD 1.43 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.9% from 2022 to 2030. Growing demand from healthcare, pharmaceutical, food, and beverage industries are driving forces of the global oleoresin market. Oleoresins are made from varied ingredients and spices, which are found all around the world. It is usually found in semi-solid extract form. A variety of oleoresins has multiple characteristics based on the spice they are derived from.
· Essential Oils Market - The global essential oils market size was valued at USD 18.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% in terms of revenue from 2021 to 2028. The market is expected to be driven by increasing demand from major end-use industries, such as food and beverage, personal care and cosmetics, and aromatherapy. Unlike most conventional medicines and drugs, essential oils have no major side effects. Such traits of the product are projected to be the major driving factor for market growth.
Biotech Ingredients Market Segmentation
Grand View Research has segmented the global biotech ingredients market on the basis of flavors, fragrances, active cosmetic ingredients, and region:
Biotech Ingredients Flavors Outlook (Revenue, USD Million, 2016 - 2027)
· By Source
o Filamentous Fungi
· By Product
· By Carbonyls
Biotech Ingredients Fragrances Outlook (Revenue, USD Million, 2016 - 2027)
· By Application
o Fine Fragrances
Biotech Ingredients Active Cosmetic Ingredients Outlook (Revenue, USD Million, 2016 - 2027)
· By Application
o Hair Care
o Skin Care
o Sun Care
o Makeup and color cosmetics
Biotech Ingredients Regional Outlook (Revenue, USD Million, 2016 - 2027)
· North America
· Asia Pacific
· Latin America
· Middle East Africa (MEA)
Market Share Insights
· October 2019: Mibelle Biochemistry, a cosmetic ingredient manufacturer, launched IceAwake, a biotech ingredient developed using glacial melt. The ingredient reduces the ageing process of skin occurred due to sleep deprivation.
Key Companies profiled:
Some prominent players in the global biotech ingredients market include
- Givaudan SA
- International Flavors Fragrance (IFF), Inc.
- Firmenich SA
- Amyris, Inc.
- Novocap Group
- Evolva S.A.
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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