Biotech Ingredients Market growing at a CAGR of 7.8% from 2024 to 2030

The global biotech ingredients market size was estimated at USD 2.17 billion in 2023 and is projected to reach USD 3.68 billion by 2030, growing at a CAGR of 7.8% from 2024 to 2030. Innovations in genetic engineering, fermentation processes, and biocatalysis have enabled the production of high-quality biotech ingredients with greater efficiency and precision.

Key Market Trends & Insights

• The Europe biotech ingredients market registered the dominant market share of 37.4% in 2023.
• The Asia Pacific biotech ingredients market accounted for a significant market share in 2023
• By product, Active cosmetic ingredients dominated the market with a 49.0% share in 2023.
• By flavor ingredients, The flavor segment accounted for 42.0% in 2023.
• By fragrance ingredients, fine fragrances accounted for the dominant market share in 2023.

Market Size & Forecast

• 2023 Market Size: USD 2.17 Billion
• 2030 Projected Market Size: USD 3.68 Billion/li>
• CAGR (2024-2030): 7.8%
• Europe: Largest market in 2023
• Asia Pacific: Fastest growing market

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These advancements are crucial for developing complex molecules such as recombinant proteins, monoclonal antibodies, and growth factors, essential for various applications in pharmaceuticals, cosmetics, and food industries.

In addition, the increasing demand for sustainable and natural products propelled the market forward. Consumers have become progressively environmentally conscious and have sought effective and sustainable products. Biotech ingredients derived from natural sources such as bacteria, yeast, and fungi align well with this trend. They offer a more sustainable alternative to synthetic chemicals, reducing the environmental footprint of production processes.

This shift in consumer preference is particularly evident in the cosmetics and personal care industry, as the market witnessed a growing demand for natural and organic products free from harmful chemicals. The Biotechnology Innovation Organization (BIO) reported substantial growth in producing bio-based chemicals in the U.S., such as lactic acid and succinic acid. These chemicals, produced through biotechnological processes, including fermentation, are used as ingredients in bioplastics, detergents, and personal care products.

Furthermore, government support and favorable regulations played a pivotal role in expanding the biotech ingredients market. Many governments worldwide have invested in biotechnology research and providing financial incentives to biotech companies. These initiatives aim to promote innovation and the development of new biotech products. For instance, regulatory frameworks that streamline the approval process for biotech ingredients and provide clear guidelines for their use in various industries have increasingly encouraged more companies to adopt these ingredients.  

Biotech Ingredients Market Report Scope