China Fermentation Chemical Market Overview, 2029

The chemicals from fermentation industry is at the threshold of global biotechnological innovation, playing a very key role in sectors ranging from pharmaceuticals to agriculture and even in the production of sustainable energy solutions. China's fermentation chemicals industry is literally acting as a backbone to quite a few key sectors. In providing raw materials for pharmaceuticals, antibiotics and other important medicinal compounds are produced through fermentation processes. In agriculture, fermentation amino acids are key additives to animal feed, enhancing nutrition and productivity. The enzymes resulting from fermentation take on pivotal roles in various industries: textiles, detergent manufacturing, and production of biofuels where they play catalytic capabilities while enhancing efficiency. Periodic breakthroughs in this technology act as a big fillip to the fermentation industry in China. These vary from innovations in bioprocess engineering and fermentation process optimization to the genetic engineering of techniques that help improve microorganisms' performance and yield. Such developments therefore bring in production efficiency while making it feasible for new products and applications to be made, which underpin continuous competitiveness of China in the global market. Environmental impact presents several challenges to the fermentation chemicals sector, just as most industries. It becomes obscure to inventively solve such problems related to waste management, energy consumption, and greenhouse gas emissions resulting from fermentation processes. China is increasingly focusing on the adoption of sustainable practices that include bioremediation techniques and resource recycling, energy-efficient production methods in a bid to mitigate these challenges and spur environmental stewardship. At the same time, the Chinese government is restricting the releases of new bonds—traditionally, a major source of funds for POEs—and private lending is becoming more regulated.


According to the research report “ China Fermentation Chemicals Market Overview, 2029," published by Bonafide Research, the China Fermentation Chemicals market is anticipated to add to more than USD 2 Billion by 2024–29. The last two decades of growth in chemicals in China have been hallmarked by rapid investment, fierce competition, and atomization across a large number of segments. This has been particularly true in the cases where production technology has been widely available and access to raw materials and financing easy to obtain. This has combined to create rampant overcapacity in many sectors. But market and industry are moving to a new level of development. There is a shift toward growth in specialty chemicals as it reflects consumer-demand trends and the rising sophistication of China's industrial output. At this late juncture, consolidation has started to grip in certain sectors. All these trends help the value-pool growth prospects for parts of the industry. Meanwhile, investment funds have become scarcer, and stricter environmental legislation is passed against the industry by the government. Succeeding in this next stage of development of China's chemical market will require a new set of strategies by players. But as China's economic policy is changing and, with that, a consumption-driven growth from investment, and within that consumption to more sophisticated products, the result is likely to lead to additional growth in demand for specialty chemicals. An example is the demand for higher-end personal-care products, where demand for more sophisticated specialty surfactants and additives, and more expensive fragrances, most likely will increase. New opportunities could come from Chinese consumer trends. For instance, the rapid rise of online ordering of food is likely to increase demand for packaging materials, potentially raising demand for innovative products like biodegradable polymers. As of now, much focus is being given to several high-tech industries that the Chinese government is emphasizing under its Made-in-China 2025 policy. The strategic direction it sets could encourage developments in certain end markets, for example, aerospace, electronics, EVs, and batteries, which will, in turn, open up opportunities for the expansion of production in China across a range of more sophisticated chemical products.

The Chinese fermentation chemicals industry is largely oriented towards fermentation products and is very dynamic. Ethanol/Alcohol fermentation is the first in the list, with China already being one of the largest global manufacturers of ethanol supplies for fuel purposes, in industrial production, and in making conventional spirit beverages such as baijiu. The potential for huge growth exists in organic acids because China holds dominance in citric acid production and sees higher demand for lactic and acetic acids within several industries. Enzymes find applications across many sectors, from detergents to food processing and pharmaceutical industries. Amino acids, vitamins, probiotics, and the emerging biopolymers are other fermentation products represented in the sector. The strong position of China in feed-grade amino acid production, the growing focus on natural vitamin synthesis, and the research being done on new probiotic strains and biodegradable plastics underpin this sector's dynamism. Other defining features of the biotechnology landscape in these countries include government support, a drive to innovation in areas such as biofuels and specialty chemicals, and a focus on domestic needs and international markets. Background Chinese liquor, a very popular fermented alcoholic beverage with thousands of years’ history in China, though its flavour formation and microbial process have only been partly explored, is facing the industrial challenge of modernisation and standardisation for food quality and safety as well as sustainability.



China is in the lead when it comes to the industrial application of such enzymes as amylases, proteases, and cellulases in various industries, from production of biofuel and processing of textiles to manufacturing paper. For example, cellulases support the production of ethanol from agricultural waste, thus contributing to the achievement of the renewable energy use goals outlined for China. A system of requirements for production permits and a push to relocate chemical production to special, carefully controlled chemical parks are part of the enforcement mechanism for new national pollution-control standards-including the 2018 ban on imports of plastics waste that has so disrupted Western countries that had relied on exporting to China. An increasing number of Chinese industries are currently using industrial biotechnology security and environmental concerns generated by China's robust economic growth will be offset by liquid biofuels and the chemical industries. Secondly, increasing use of bioprocesses rapidly in the manufacture of products like fuel ethanol and bioplastics is likely to contribute towards continued innovation, productivity gains, and cost savings. This coincides with increasing global prominence of the two industries, allied to strong government promotion of the country's bio-based economy. The growth has promoted higher investment at home and from abroad, including investment in bio-based projects, with associated export increases, above all in the chemical sector. They find broad applications in food and beverage industries in China. For example, in soy sauce production, one of the principal condiments in Chinese cuisine, enzymes are used in the hydrolysis of proteins and carbohydrates. Organic acids, like citric acid, find applications in many food and beverage products either as preservatives or for enhancing flavor. China has a large pharmaceutical industry that makes use of biological products. For example, traditional Chinese medicine usually includes some natural substances prepared from plants, animals, and minerals. Enzymes are utilized in the preparation of some pharmaceuticals while organic acids in the synthesis of vitamins. China represents the largest bioplastics producers of the world applied in packaging, textile industry, and any others. For example, PLA (polylactic acid) is one of the most widespread bioplastics, and when obtained in China, it is derived from renewable sources like corn starch. : There are several other areas where biological products are utilized in China, such as in animal feed additives, cosmetics, and cleaning products. For example, enzymes are used in supplemental feeding for good digestibility, while organic acids have some application in cosmetics because of their value for skincare.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Fermentation Chemicals market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Alcohol Fermentation
• Organic Acids
• Enzymes
• Other Product Types

By Application
• Industrial
• Food and Beverage
• Pharmaceutical and Nutritional
• Plastics and Fibers
• Other Applications

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Fermentation Chemicals industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.