Global Biotech Ingredients Market by Flavors (By Application, By Type, By Source), by Fragrances (Fine Fragrances, Toiletries) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global biotech ingredients market was worth USD 1.61 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 9.3%) between 2020 and 2027. Market growth can be attributed largely to the increasing demand for biotech flavor and fragrance ingredients in the food and drink segment. Because consumers are influenced by the choices they make when purchasing consumer products, flavors and fragrances play an important role in their purchase decisions.

The rapid industrialization of the world has resulted in large-scale consumer of flavored and scented products such as food, beverages, cleaning products and personal care products. In the next few years, this will drive the biotech ingredient market. Both flavors and scents can either be synthetically or naturally derived. Consumer awareness about the harmful effects of synthetic ingredients has led to an increase in natural and organic products.

Unpredicted weather conditions can limit the availability of raw materials. Companies that produce these ingredients face significant challenges due to stringent environmental regulations. The leading companies in the flavor and fragrances sector are now focusing on sustainable production methods that can be labeled "natural" and meet consumer expectations.

Manufacturers of cosmetic products are increasingly being encouraged to include natural and organic ingredients in their products due to the growing shift towards natural and organic beauty products. It is expected to offer huge growth opportunities for biotechnology active ingredients, particularly for cosmetics. Biotechnologically-produced active ingredients for pharmaceuticals currently hold a substantial market share, compared to cosmetics.

The biotechnological route, particularly for active ingredients in cosmetics and fragrances, is still very much in its infancy. It is expected that it will not only provide companies with an alternative method to produce products, but also opens up new avenues to innovate in the flavor and fragrances sector.

Flavors insights

Biotech flavor ingredients made up 38.44% of 2019's revenue. There are two types of flavors: artificial and natural. The majority of natural flavors come from edible essential oils, and oleoresins. They also include essences or extracts from fruits/fruit juices/vegetable juices/herbs/roots, and buds. Synthetic or artificial flavors are made from inedible ingredients like petroleum or paper pulp. These aroma chemicals can be used to create different flavors.

Natural flavors can be difficult to extract, and they are expensive and time-consuming. Their production also depends on climate and temperature. These drawbacks led to the development of different strategies by the companies' directed research and development teams for producing natural flavor compounds.

Artificial flavors are less expensive than natural ones because they don't require large investments in cultivation and harvesting. You can also customize artificial flavors to suit your needs. The demand for these flavors is likely to be limited by health concerns and strict regulations regarding their use in food and beverages.

Vanillin is the most commonly used flavoring agent in food and dairy products. It gives food products such as bakery products, confectioneries, dietary supplements, and dairy products a sweet taste. Vanillin's ability to enhance the flavor of food products and its low-calorie content will drive demand in the food and beverage sector.

Fragrances Insights

Europe was the market leader in biotech fragrances with a market share of 57%.66% in 2019. Europe's priority in developing a bio-based sector, as well as various policies and strategies to promote sustainable economic growth, is likely to increase the demand for biotech products. Biotech fragrances can be described as aromatic mixtures that contain many chemicals. They are used in a variety of applications such as perfumes and air fresheners, candles and toiletries. The overall product demand is expected to rise due to increased demand for perfumes in cosmetics and personal care products like soaps, detergents and hand washes.

Fragrances are usually derived from plants. They are dependent on the continuous supply of oils to produce scents for food, drinks, cleaning products, perfumes, and other household goods. The supply can be affected by a natural disaster, political disturbances, or other factors. To overcome such circumstances, fragrance companies now aim to make fragrances with lab-engineered yeast or bacteria.

It is difficult to find some oils, such as grapefruit, grapefruit bitter orange, sandalwood and rose, naturally. Chemical and Engineering News reports that biotech companies like Evolva and Isobionics Allylix have developed a biotechnological method of genetically engineering yeast and bacteria in order to make these plant oils from fermenting sugars.

They are still working to increase their production to meet growing demand. The only available microbial-based fragrances are molecules. They smell like grapefruit peel, Valencia oranges and vanilla. Firms like Robertet and Firmenich are working to develop fragrances with biotech ingredients. Global players like Symrise AG and International Flavors and Fragrances Inc. have begun several strategic activities to increase their product range.

Insights on Active Cosmetic Ingredients

In 2019, the skin care segment accounted for 51.49% of the market. The cosmetics market has seen a significant increase in growth due to increasing global population and increased interest in personal appearance. This growth is likely to be aided by growing concerns about skin aging and the need for even skin tone. Consumers are now more concerned about cosmetic ingredients. Consumers are moving towards natural, more natural products made from natural ingredients.

Cosmetic companies have had to adapt to changing consumer behavior and develop new products through scientific research. Consumers are more aware of the environmental and sustainability issues. This makes it imperative for cosmetic companies to take this into consideration when developing new cosmetic ingredients.

Key players are also investing in research and development to develop innovative and sustainable products that use biotechnology. They are also forming strategic alliances to expand their product portfolio. Symrise, for example, acquired Cutech in June 2019. This Italian biotech company offers screening for cosmetic ingredients.

Regional Insights

Europe was the largest market for biotech components in cosmetics and fragrances in 2019, accounting for 37.46% of the active ingredients market. This growth can be attributed to innovative value chains, government initiatives, and increased production capacity of bio-based chemicals. The region's market will be driven by potential investors and business sustainability programs in the European biotech ingredient industry.

North America was the second-largest regional market for biotech products. This region is expected to grow by increasing R&D to develop new bio-based routes. The region's market growth is expected to be boosted by the early adoption of biotech components and the presence of potential industry players.

American's economy is dominated by the bio-based economy. The rise of bio-based products and innovation in biotechnology have contributed to the creation of jobs, which will drive America's bio-based economy. The North American market will benefit from abundant supply of bio-based feedstock.

The flavors and fragrances market is likely to increase its reliance on alternative materials and implement new technologies such as stem cell technology and nanotechnology. This will create demand for biotech components for flavor and fragrance. North America is a great market for flavors. The market for biotech ingredients is huge because of changing consumer tastes and increasing awareness about the nutritional benefits of natural ingredients. This will drive the region's market for biotech products.

Market Share Insights & Key Companies

The market's key players are those that develop flavors by using microbial processes such as biosynthesis, biotransformation or biotransformation using bacteria, yeast or fungi. R&D using biotechnology is being used by companies to develop novel microbial fermentation methods for natural vanillin. Evolva S.A., International Flavors and Fragrances, Inc., and others are aiming to expand their market reach through the establishment of new production facilities and distribution centres in developing countries, as well as expanding their production capacity at existing vanillin sites.

The North American market is expected to grow due to the business partnership between companies like Hallstar Company or Deinove SAS, which will help develop an oily active ingredient that can be used in personal care and beauty products. The following are some of the major players in the global market for biotech ingredients:

• Givaudan SA

• International Flavors & Fragrance, Inc.

• Firmenich SA

• Amyris, Inc.

• Sollice

• Novocap Group

• Evolva S.A.

Up Market Research published a new report titled “Biotech Ingredients Market research report which is segmented by Flavors (By Application, By Type, By Source), by Fragrances (Fine Fragrances, Toiletries), By Players/Companies Amyris Inc, Firmenich SA, Evolva SA, International Flavors & Fragrance (IFF) Inc, Sollice, Novocap Group, Givaudan SA”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Biotech Ingredients Market Report Segments:

The market is segmented by Flavors (By Application, By Type, By Source), by Fragrances (Fine Fragrances, Toiletries).

Biotech Ingredients Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Biotech Ingredients Market

Overview of the regional outlook of the Biotech Ingredients Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Biotech Ingredients Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Biotech Ingredients Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. By Application

                2. By Type

                3. By Source

                1. Fine Fragrances

                2. Toiletries

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Biotech Ingredients Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Biotech Ingredients Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.