Global Biotech ingredients Market - 2023-2030

Market Overview

The Global Biotech Ingredients Market reached US$ 56.6 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 86.0 billion by 2030. The global biotech ingredients market is expected to exhibit a CAGR of 5.5% during the forecast period (2023-2030).

The global biotech ingredients market has grown significantly in recent years, due to various trends such as rising demand for natural and organic products, advancements in drug development and therapies, growing application in personal care and cosmetics, expansion in agricultural biotechnology, and focus on sustainability and environmental impact.

The global biotech ingredients market is driven by multiple factors such as the advancements in biotechnology, increasing adoption across industries, increasing demand for personal care and cosmetics, and growing consumer demand for sustainable and natural products. For instance, the advancements such as genetic engineering, synthetic biology, and bioprocessing have considerably broadened the scope of biotech substances.

Market Dynamics

The Increasing Demand for Personal Care and Cosmetics is Propelling the Growth of the Global Biotech Ingredients Market

Natural and organic products are in high demand in the personal care and cosmetics sector, use of biotech ingredients in it will drive the global biotech ingredients market. Consumers are becoming more aware of the products they use on their skin and hair, and they are looking for natural and organic alternatives to typical cosmetic formulas. Biotechnology-derived enzymes, such as proteases and lipases, have unique qualities that make them appropriate for skincare products.

For instance, in April 2022, Probi, a Swedish biotech business, collaborated with Symrise, a global ingredient supplier, to develop a unique postbiotic for cosmetic skincare. This partnership resulted in the creation of SymFerment, an extraordinary recycled ingredient marketed under the Symrise brand.

SymFerment is created from Lactobacillus Ferment, a sustainable byproduct obtained from the fermentation process of the bacteria Lactiplantibacillus plantarum. The fermentation broth that results, also known as the supernatant, has exceptional properties that are suitable for skincare applications. It is high in micronutrients that support skin health, such as amino acids, proteins, minerals, and organic acids.

The Growing Adoption in Food and Beverage Industry is Driving the Growth of the Global Biotech ingredients Market

The growing adoption of biotech ingredients in the food and beverage industry is driven by several factors, including the need to enhance food quality, extend shelf life, and improve nutritional profiles. Consumers are increasingly looking for clean-label and natural food items, which has increased demand for biotech components in this area.

For instance, in March 2023, Shiru, a biotech startup based in California, launched its first market offering, OleoPro. This novel product is a plant protein-derived fat intended for substitute meat and other plant-based culinary applications. Shiru's pioneering Flourish technology platform yielded OleoPro, a superior alternative fat ingredient that combines sustainability, high performance, and nutritional value.

The Technical and Manufacturing Challenges is Hampering the Growth of the Market

Biotech ingredient production often requires specialized infrastructure, equipment, and experience that may not be commonly available or easily accessible. These issues can have an impact on the scalability and cost-effectiveness of manufacturing processes. Establishing and maintaining specialized facilities such as bioreactors, fermentation tanks, or cleanrooms can be costly and time-consuming.

Scaling up production procedures is becoming increasingly important as demand for biotech components develops, but it can be difficult. As production numbers expand, maintaining consistent product quality, optimizing yields, and assuring reproducibility become more difficult. Variations in raw materials, processing conditions, and biological systems can all have an impact on product consistency, necessitating stringent quality control procedures. Thus, owing to the above factors, the market is expected to hamper over the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic had a huge impact on the global biotech ingredients market. The rising demand for biopharmaceuticals such as vaccines and monoclonal antibodies raised the demand for biotech components used in the formulation. However, supply chain problems impacted ingredient availability. Governments and organizations concentrated on increasing vaccine manufacturing capacity, which increased demand.

Regulatory flexibility and quick approvals facilitated the timely availability of biotech substances. The pandemic sparked research and development initiatives, emphasizing the significance of continual innovation and investment in biotech elements to address new health concerns. The long-term impacts of COVID-19 on the global biotech ingredients market are still being determined.

Russia-Ukraine Conflict Analysis

The Russia-Ukraine conflict has the potential to disrupt global biotech ingredient supply chains, particularly in affected countries. This might cause biotech ingredient delays or shortages around the world. Geopolitical uncertainty may have an impact on investment decisions and company operations in the biotech industry, potentially changing the global supply chain. Regulatory measures relating to the war may have an impact on trade and raise compliance costs.

Moreover, market confidence and investor sentiment may be harmed, thereby hurting funding and investment in the biotech sector. Regional biotech ingredient markets in Russia and Ukraine may encounter problems in terms of business continuity and access to international markets. Continuous monitoring and flexibility are critical for stakeholders navigating the conflict's influence on the global biotech ingredients market.

Segment Analysis

The global biotech ingredients market is segmented based on type, product, expression system, end user, and region.

The Mammalian Expression System Segment is expected to hold a Dominant Position in the Global Biotech Ingredients Market over the Forecast Period.

The mammalian expression system segment is expected to hold 35.9% of market share for the global biotech ingredients market. Owing to the factors such as optimal protein functionality, complex biotech ingredient production, and downstream processing efficiency. Mammalian expression systems, which use mammalian cells, have distinct benefits for producing complex biotech ingredients, particularly therapeutic proteins and antibodies.

Moreover, many collaboration are ongoing for utilization of this mammalian expression system. For instance, in April 2022, Luzhu Biotech and Lonza, a global development and manufacturing partner to the pharmaceutical, biotech, and nutritional industries, have entered into a research and commercial license agreement for Luzhu to use Lonza's GS Xceed Gene Expression System with GS piggyBac transposon technology. Luzhu Biotech is a biopharmaceutical business dedicated to the discovery and development of novel therapeutic candidates for the prevention, control, and treatment of human diseases.

Geographical Analysis

North America Holds a Dominant Position in the Global Biotech Ingredients Market

North America is estimated to hold around 37.8% of the total market share throughout the forecast period, owing to the well-established healthcare infrastructure, favorable reimbursement policies, and presence of leading market players.

The United States is an example of North America's dominance. The country is a center for many biotech ingredient manufacturers as well as prominent research organizations. The headquarters of notable biotech businesses such as Amgen, Genentech, and Biogen are in the United States. These firms have played critical roles in the development and production of biotech ingredients, contributing to the market growth in North America.

Furthermore, renowned research institutions like as Massachusetts Institute of Technology (MIT) and University of California, San Francisco (UCSF) conduct pioneering research, driving innovation and bolstering North America's dominance in the global biotech ingredients market. Therefore, North America dominates the global biotech ingredients market with key companies, research infrastructure, and innovation focus.

Competitive Landscape

The major global players in the market include: Mylan, Inc., Pfizer, Inc., Novartis AG, Sigma-Aldrich (Merck KGaA), Bristol-Myers Squibb Company, Sanofi, Teva, AstraZeneca, BD, and AbbVie Inc., among others.

Why Purchase the Report?

• To visualize the global biotech ingredients market segmentation based on the coating, end user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of global biotech ingredients market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global biotech ingredients market report would provide approximately 49 tables, 53 figures, and 195 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies