Canada Fermentation Chemical Market Overview, 2029

The Canada fermentation chemicals market forms an emerging dynamic sub-segment of the broader chemical industry. The growing demand for greener solutions and sustainable products among different industries has driven this growth. In that case, coupling a strong agricultural sector with world-class biotechnology infrastructure easily places Canada in a better position to increase its pace and market share in the global fermentation chemicals market. Since the use of renewable raw materials and elimination of harmful by-products are inherently some of the goals for sustainability of the Canadian fermentation chemicals market, the same trend flows into the country's industry. This further aligns with environmental sustainability, focused on by both regulators and consumers through environmentally-friendly sustainable production methods. Against the backdrop of this raising awareness, fermentation chemicals offer industries some exciting potential for reducing carbon footprints and developing a bio-based economy. Canada represents a competitive landscape in the fermentation chemicals market with large multinational companies competing with smaller ones focused on specialized products. Of course, key players like Lallemand Inc., Novozymes, and BASF invest heavily in research and development to stay ahead. There is an uptake of strategic collaborations between companies, mergers, and acquisitions in an effort to further stretch out product portfolios and geographical presence. Regulations encouraging the use of bio-based products and promoting sustainable practices favored the adoption of fermentation chemicals into multiple industries. A lot of investments in research and development have to be made, and complicated procedures for approval have to be gone through for observance of regulations on GMOs and biotechnology products. R&D are the keys to growth and innovation in the Canadian fermentation chemicals market. For instance, BIOGEST signs LOI for its first Canada RNG project. BIOGEST America Inc has signed a letter of intent (LOI) for the joint development and financing of a renewable natural gas (RNG) project in Saint-Nazaire d’Acton area in Canada. This milestone marks the country's first BIOGEST RNG project. Located in Quebec, the Saint-Nazaire d’Acton area project will produce 105,000 MMBTU (350 Nm³/h) of RNG and demonstrate the benefits of the PowerRing technology, underscoring its suitability and effectiveness for the Canadian market. During fermentation, the waste is transformed into high-quality organic fertiliser that substitutes for chemical products.

According to the research report “ Canada Fermentation Chemicals Market Overview, 2029," published by Bonafide Research, the Canada Fermentation Chemicals market is anticipated to grow at more than 5% CAGR from 2024 to 2029. Growth of the Canadian fermentation chemicals market is being hitched by several factors. Probably the most important driver is consumer demand for natural and organic products, which has compelled manufacturers to turn towards sustainable and eco-friendly product manufacturing methods. Another influential factor is the growing awareness and concern related to environmental problems, like global warming and pollution, thus augmenting the demand for fermentation chemicals, in turn derived from renewable resources and producing fewer harmful by-products. Apart from that, with new developments in the field of biotechnology and bioengineering, the conditions of production processes are now more effective and less expensive, which fosters market growth. Challenges in the fermentation chemicals market in Canada. One major challenge these markets go through is high production costs, as this requires sophisticated equipment and processes; this proves to be a barrier for new entrants and smaller companies. Another significant challenge is the regulatory environment for genetically modified organisms and products from biotechnologies, which turn out to be very tough; compliance and approval are likewise testing for market players. The market competitiveness and, hence the pricing is driven by strong competition from synthetic chemicals and other bio-based alternatives. Fermentation chemicals in Canada play a crucial role in several basic industries. Food and beverages segment use these chemicals in the manufacture of milk products, baking items and alcoholic beverages. The pharmaceutical industry relies on fermentation to develop antibiotics, vaccines, and other medicinals of biological origin, while shifting more attention to the next generation of treatments for innumerable chronic diseases. Meanwhile, a lot of industrial enzymes created through fermentation are applied to detergents, textiles, and biofuel processes—squarely within the drive for more sustainable industrial activities. Production of biofuels from biomass through fermentation processes has gained momentum and contributes to Canada's targets in terms of reducing carbon emissions and enhancing energy security. Job creation opportunities exist in research, manufacturing, and distribution. Furthermore, market growth enhances the development of related industries, like agriculture, by providing raw materials required for fermentation processes.

The Canadian fermentation chemical market represents a dynamic industry characterized by the manufacturing of a large product range extending its applications to various other sectors. Alcohol Fermentation industry related to alcoholic beverages is very strong in Canada, the production of which relies on fermentation. For instance, companies such as Molson Coors and Andrew Peller Ltd. use fermentation in the production of their products. The increasing sector of biofuels applies ethanol fermentation in making renewable energy sources towards the sustainability of Canada. Several organic acids are produced in Canada by fermentation. BioAmber is an example of a biotech company in Montreal that produces succinic acid, a multi-use chemical used to create everything from personal care products to biodegradable plastics, using fermentation. Canadian companies harness fermentation in enzyme production for application in various industries. Such a company is Novozymes, a global biotechnology company with a significant presence in Canada and engaged in developing enzymes for industries such as bioenergy, household care, and food and beverages.Other kinds of products in Canada's fermentation chemicals market include the production of other products such as biopolymers and amino acids. For example, BioAmber is producing bio-based 1,4 butanediol, the biopolymer used in various industries, including textiles and plastics.Government support from Canada in developing bio-based products and sustainable practices will, therefore, be the primary driver behind growing growth and the fermenting chemical market. This is followed by the policies of Canada in terms of commitment to the sector through strategies such as the Bioeconomy Strategy and Clean Fuel Standard, that insist on the use of sustainable biomass for use in the production of biofuels. But it is institutions such as the National Research Council of Canada and leading universities across the country that are trying to further research and development, thus helping to support fermentation technologies that would aid innovation.

The Canadian market for fermentation chemicals is diverse and on the rise, having both broad and wide-ranging applications in various industries. In the industrial segment, ethanol production by fermentation for industrial purposes and as an additive to gasoline is dominated by companies like Greenfield Global. Ethanol is used in the food and beverage sector, which is very active, with the supply of yeast and bacteria globally for use in food fermentation by the bakery, wine, and beer industries being dominated by Lallemand Inc., headquartered in Montreal. It's demand fueled further into the sector by Canada's booming craft beer industry, companies like Steam Whistle Brewing in Toronto, which enhances interest in specialized fermentation products. Such companies as Novozymes, operating in Ontario, and Biena Inc. in Quebec are in the frontline in pharmaceutical and nutritional business in production of enzymes, microorganisms, and probiotics through such process. The plastics and fibers segment is emerging with much promise, illustrated by companies such as Vancouver-based good natured Products Inc., formerly Solegear Bioplastic Technologies, working on plant-based plastics developed using fermentation technologies. Other cutting-edge applications includes biological crop inputs developed by Concentric Ag, formerly Inocucor Technologies, and biofuel production from waste by Enerkem. Canada's market is therefore typified by a high level of orientation toward sustainability and innovation, backed by government initiatives such as the Clean Growth Program. Abundant agricultural resources in the country offer reliable feedstock for fermentation processes, thus further supporting market growth. Despite the fact that traditional methods of chemical production are rival technologies and that huge investments in R&D are required, Canada's robust biotech sector, along with a favorable regulatory regime that supports sustainable development, continues to drive growth in all application segments.

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.