Global Biotechnology Based Chemicals Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Bio-Pharma, Agri-Biotech and Bio-InformaticsBy Production Process;
Fermentation-Based Production, Enzymatic Processes, Microbial Processes, Plant-Based Extraction, and Cell Culture TechniquesBy Source Of Raw Materials;
Microorganisms, Plants, Animal-Derived Sources, Waste Biomass, and Synthetic BiologyBy Method of Distribution;
Direct Sales, Distributors & Wholesalers, Online Retail, Partnerships with Manufacturing Companies, and Government ContractsBy Application;
Pharmaceuticals & Nutrition, Foods & Beverages, Agriculture, Animal Feeds, and OtherBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Biotechnology Based Chemicals Market Overview
Biotechnology Based Chemicals Market (USD Million)
Biotechnology Based Chemicals Market was valued at USD 74231.63 million in the year 2024. The size of this market is expected to increase to USD 111616.93 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 6.0%.
Global Biotechnology Based Chemicals Market Growth, Share, Size, Trends and Forecast
*Market size in USD million
CAGR 6.0 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 6.0 % |
Market Size (2024) | USD 74231.63 Million |
Market Size (2031) | USD 111616.93 Million |
Market Concentration | Medium |
Report Pages | 392 |
Major Players
- BASF SE
- Vertec BioSolvents Inc.
- AGAE Technologies, LLC
- TOTAL
- ADM
- DuPont
- Evonik Industries
- Toray Industries, Inc.
- Cargill, Incorporated
- GF Biochemicals Ltd.
- Mitsubishi Chemical
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Global Biotechnology Based Chemicals Market
Fragmented - Highly competitive market without dominant players
The biotechnology based chemicals market is witnessing rapid growth due to the increasing need for sustainable and eco-friendly products across various industries. Traditional petrochemical-based solutions are being replaced by bio-based alternatives, which contribute to reduced carbon emissions. Over 45% of chemical manufacturers are incorporating biotechnology-based processes into their production lines to align with environmental goals.
Industrial Integration and Innovation
Biotechnology-based chemicals are being rapidly integrated into industries such as agriculture, food processing, pharmaceuticals, and cosmetics, owing to their improved performance and reduced ecological impact. More than 50% of product innovations in the specialty chemicals segment now involve some form of biotechnological intervention, enabling better cost efficiency and functional advantages.
Technological Advancements Driving Growth
Advanced technologies in genetic engineering, fermentation, and enzymatic synthesis are accelerating the development of more potent biotechnology-based chemicals. With over 40% of chemical R&D budgets being directed towards bio-based research, companies are prioritizing innovation that reduces reliance on fossil fuels and minimizes toxicity.
Regulatory Support and Sustainable Practices
The market is further bolstered by stringent environmental regulations and policies promoting green chemistry. Government and institutional support have contributed to a 38% increase in bio-based chemical production projects. These frameworks provide both incentives and pressure for manufacturers to adopt biotechnology-based production methods.
Shifting Consumer Preferences
A notable 52% of end-users are now opting for products made from biotechnology-based chemicals, driven by growing awareness of environmental and health impacts. This shift in consumer behavior is encouraging businesses to adopt sustainable sourcing and manufacturing practices, solidifying the long-term growth potential of this market.
Biotechnology Based Chemicals Market Recent Developments
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In early 2025, Bloom Biorenewables secured $15 million to develop plant-based alternatives to petrochemicals, focusing on converting lignin and cellulose into high-value chemicals for industries like cosmetics and packaging.
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In March 2023, a biotech company introduced fermentation,derived chemicals, reducing dependence on petroleum,based inputs for industrial applications, including solvents and adhesives.
Biotechnology Based Chemicals Market Segment Analysis
In this report, the Biotechnology Based Chemicals Market has been segmented by Type, Production Process, Source Of Raw Materials, Method of Distribution, Application and Geography.
Biotechnology Based Chemicals Market, Segmentation by Type
The Biotechnology Based Chemicals Market has been segmented by Type into Bio-Pharma, Agri-Biotech and Bio-Informatics.
Bio-Pharma
Bio-Pharma dominates the biotechnology-based chemicals market, contributing nearly 54% of the total share. This segment encompasses the production of therapeutic proteins, vaccines, monoclonal antibodies, and other biopharmaceuticals using biotechnology processes. The growth is fueled by increasing demand for targeted therapies, biologics, and the ongoing expansion of personalized medicine.
Agri-Biotech
Agri-biotech accounts for around 28% of the market and includes biotechnology applications in crop protection, genetically modified organisms (GMOs), and bio-fertilizers. This segment supports sustainable farming by enhancing crop yield, pest resistance, and soil health. Rising global focus on food security and climate-resilient agriculture continues to drive its growth.
Bio-Informatics
Bio-Informatics represents approximately 18% of the market and involves the integration of biological data with computational tools for genomic analysis, drug discovery, and molecular diagnostics. This segment is growing rapidly with advancements in AI-driven platforms, cloud computing, and the increasing demand for data-driven biological research.
Biotechnology Based Chemicals Market, Segmentation by Production Process
The Biotechnology Based Chemicals Market has been segmented by Production Process into Fermentation-Based Production, Enzymatic Processes, Microbial Processes, Plant-Based Extraction, and Cell Culture Techniques.
Fermentation-Based Production
Fermentation-based production holds the largest share in the biotechnology-based chemicals market, contributing approximately 42%. It is widely used in the manufacture of bio-ethanol, amino acids, organic acids, and vitamins by utilizing microorganisms under controlled conditions. Its scalability, efficiency, and compatibility with renewable feedstocks make it a preferred production method in industrial biotechnology.
Enzymatic Processes
Enzymatic processes account for about 21% of the market and involve the use of biocatalysts to facilitate chemical reactions under mild conditions. These processes are known for their specificity, low energy consumption, and environmental benefits. They are widely applied in pharmaceuticals, food ingredients, and fine chemical synthesis.
Microbial Processes
Microbial processes contribute roughly 18% of the market and are based on the metabolic activity of engineered or natural microbes to produce bioactive compounds, biosurfactants, and biopolymers. This approach supports green chemistry principles and enables cost-effective biotransformation of raw materials in diverse industrial applications.
Plant-Based Extraction
Plant-based extraction represents nearly 12% of the market and involves isolating bioactive compounds from medicinal plants, crops, and botanical sources. It is prominently used in the production of phytochemicals, flavors, fragrances, and nutraceuticals, with growing preference in the cosmetics and functional food sectors.
Cell Culture Techniques
Cell culture techniques make up around 7% of the market and are essential for the production of recombinant proteins, monoclonal antibodies, and vaccines. Though capital-intensive, these methods offer high purity, precision, and are crucial for biopharmaceutical and research-grade chemical production.
Biotechnology Based Chemicals Market, Segmentation by Source Of Raw Materials
The Biotechnology Based Chemicals Market has been segmented by Source Of Raw Materials into Microorganisms, Plants, Animal-Derived Sources, Waste Biomass, and Synthetic Biology.
Microorganisms
Microorganisms represent the largest share of the biotechnology-based chemicals market, contributing approximately 40%. Bacteria, yeast, and fungi are extensively used in the production of enzymes, biofuels, amino acids, and organic acids through fermentation and biotransformation. Their ability to be genetically modified for high yield and precision makes them a cornerstone of industrial biotech applications.
Plants
Plant-derived sources account for about 24% of the market. They are commonly used to produce phytochemicals, alkaloids, flavors, and fragrances through extraction and biocatalysis. With a strong presence in the cosmetic, nutraceutical, and agri-biotech sectors, plant-based materials offer advantages in terms of renewability, scalability, and low toxicity.
Animal-Derived Sources
Animal-based raw materials make up roughly 12% of the market, mainly used in the production of biopharmaceuticals, collagen, hormones, and antibodies. These sources are important in cell culture, vaccine development, and tissue engineering, though their growth is tempered by ethical concerns and stringent regulatory compliance.
Waste Biomass
Waste biomass contributes about 15% of the global share and includes agricultural residues, food waste, and forestry by-products. It is widely used in biofuel production, bioplastics, and biocomposites, supporting circular economy models and reducing environmental impact through waste valorization.
Synthetic Biology
Synthetic biology accounts for nearly 9% of the market and involves the design of engineered microbes and custom genetic circuits to produce novel chemicals. Although still emerging, this segment is rapidly growing due to advances in genome editing, metabolic engineering, and the demand for tailored bio-based products.
Biotechnology Based Chemicals Market, Segmentation by Method of Distribution
The Biotechnology Based Chemicals Market has been segmented by Method of Distribution into Direct Sales, Distributors & Wholesalers, Online Retail, Partnerships With Manufacturing Companies, and Government Contracts.
Direct Sales
The direct sales segment commands around 35% of the biotechnology-based chemicals market. This method ensures closer client relationships, better customization, and improved profit margins by eliminating intermediaries. It is often favored by companies seeking long-term contracts and control over pricing strategies.
Distributors & Wholesalers
Accounting for approximately 28% of the market, distributors and wholesalers provide a broad reach and facilitate large-volume transactions. They play a crucial role in connecting manufacturers with smaller retailers and regional markets, ensuring efficient supply chain management.
Online Retail
Online retail represents about 15% of the distribution landscape and is steadily growing. With increasing adoption of digital sales platforms and demand for convenient procurement, this segment appeals to tech-savvy buyers and small-scale operations seeking quick turnaround and transparent pricing.
Partnerships With Manufacturing Companies
This segment accounts for roughly 12% of the market, leveraging strategic alliances to integrate production and distribution channels. These partnerships enhance market penetration, reduce logistical overhead, and improve innovation adoption in targeted sectors.
Government Contracts
Government contracts hold around 10% of the market and are essential for ensuring steady revenue streams and regulatory alignment. This distribution channel supports public-sector procurement of sustainable chemicals and often involves long-term agreements with compliance assurance.
Biotechnology Based Chemicals Market, Segmentation by Application
The Biotechnology Based Chemicals Market has been segmented by Application into Pharmaceuticals & Nutrition, Foods & Beverages, Agriculture, Animal Feeds, and Other.
Pharmaceuticals & Nutrition
Pharmaceuticals & nutrition represent the largest application segment, contributing nearly 41% of the biotechnology based chemicals market. These chemicals are used in producing therapeutic proteins, enzymes, nutraceuticals, and vitamins. Growing demand for personalized medicine, biologics, and immune-boosting supplements is driving this segment forward, especially in developed markets.
Foods & Beverages
This segment accounts for approximately 23% of the market. Biotechnology-based chemicals such as enzymes, flavor enhancers, and natural preservatives are increasingly used in dairy, bakery, and beverage products. Rising consumer interest in clean-label and functional foods continues to fuel innovation and demand in this category.
Agriculture
Agriculture applications contribute around 17%, with bio-chemicals playing a key role in bio-pesticides, bio-fertilizers, and plant growth regulators. These inputs are critical to enhancing crop productivity and supporting sustainable farming practices. The push for climate-resilient agriculture and chemical-free produce is boosting segment growth.
Animal Feeds
Biotechnology chemicals in animal feeds make up about 11% of the market. They are used to improve digestion, nutrient absorption, and growth performance in livestock and aquaculture. As demand rises for antibiotic alternatives and protein-rich diets, the segment is expanding, particularly in Asia-Pacific and Latin America.
Other
The "Other" category comprises around 8% and includes applications in cosmetics, textiles, biofuels, and household products. Growth in this segment is driven by increased adoption of eco-friendly and biodegradable ingredients across diverse end-use industries, aligned with global sustainability goals.
Biotechnology Based Chemicals Market, Segmentation by Geography
In this report, the Biotechnology Based Chemicals Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa and Latin America.
Regions and Countries Analyzed in this Report
Biotechnology Based Chemicals Market Share (%), by Geographical Region
North America
North America holds approximately 35% of the biotechnology based chemicals market, driven by strong investment in biopharmaceutical R&D, a well-established agri-biotech industry, and widespread adoption of industrial biotech processes. The United States leads the region, supported by government funding, a robust regulatory framework, and a high demand for sustainable chemical alternatives.
Europe
Europe contributes about 30% of the global market, fueled by strict environmental regulations, emphasis on circular economy goals, and strong consumer preference for bio-based products. Countries like Germany, France, and Netherlands are at the forefront of innovations in bio-based plastics, green solvents, and bio-pharma ingredients.
Asia Pacific
Asia Pacific accounts for nearly 22% of the market and is experiencing rapid growth due to expanding agricultural biotechnology, increased demand for bio-nutrition, and large-scale industrial adoption in countries such as China, India, and Japan. The region also benefits from favorable government policies promoting bio-economy development and domestic manufacturing.
Middle East and Africa
Middle East and Africa represent around 7% of the market. While still emerging, the region is witnessing growth in bio-agriculture, waste-to-chemical conversion, and biopharma imports, particularly in South Africa, UAE, and Saudi Arabia. Sustainability initiatives and food security concerns are further supporting regional development.
Latin America
Latin America holds an estimated 6% share of the biotechnology based chemicals market. Countries like Brazil, Argentina, and Mexico are advancing in bioethanol production, agri-biotech, and enzyme-based applications. Regional growth is supported by a rich base of agricultural raw materials and increasing public-private investment in green chemical industries.
Biotechnology Based Chemicals Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Biotechnology Based Chemicals Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers:
- Rising Demand for Sustainable and Eco-Friendly Products
- Advancements in Biotechnology and Genetic Engineering
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Increasing Consumer Awareness About Health and Wellness - Rising consumer awareness about health, wellness, and environmental safety is becoming a major driver for the biotechnology-based chemicals market. Consumers are increasingly prioritizing products that are safe, sustainable, and derived from natural sources. This shift is encouraging companies to adopt bio-based chemical alternatives in everyday products, from cosmetics and food additives to personal care and cleaning solutions.
The demand for non-toxic and eco-friendly ingredients has grown significantly, especially as people become more informed about the potential risks associated with synthetic chemicals. As a result, industries are turning to biotechnology-based solutions that not only meet performance expectations but also enhance brand transparency and consumer trust. These bio-chemicals are gaining popularity due to their lower environmental impact and alignment with clean-label and wellness-focused product trends.
The growing connection between environmental sustainability and personal well-being is influencing purchasing behavior. Consumers view products made with renewable, biodegradable ingredients as healthier choices, not just for themselves but for the planet. This broader understanding is reinforcing the shift toward bio-based materials across various industries.
As health-conscious lifestyles and green consumerism continue to gain momentum globally, companies that integrate biotechnology-based chemicals into their formulations are well-positioned to capture new market opportunities and strengthen customer loyalty.
Restraints:
- High Production Costs of Biotechnology-Based Chemicals
- Technical Challenges in Scaling Up Biotechnology Processes
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Limited Raw Material Availability for Bio-Based Chemical Production - One of the core challenges in the biotechnology-based chemicals market is the limited availability of high-quality raw materials. Unlike synthetic chemicals that rely on petroleum-based inputs, bio-based chemicals require agricultural or organic feedstocks. These sources are subject to seasonal availability, climate conditions, and competition from food and energy sectors, all of which can disrupt supply chains and affect production volumes.
Inconsistent crop yields and environmental uncertainties often result in fluctuating costs and limited scalability. For example, a poor harvest of corn, sugarcane, or other biomass feedstocks can directly impact the availability of essential bio-based raw materials. This volatility makes it challenging for producers to plan long-term operations or maintain stable pricing models.
The growing demand for bio-based materials across industries such as biofuels, biodegradable packaging, and green textiles further intensifies pressure on available feedstocks. This competition can create bottlenecks and increase raw material costs, posing a barrier for companies attempting to scale production or expand into new markets.
This restraint will require strategic investment in alternative feedstocks, more efficient biomass processing technologies, and robust agricultural supply chains. Until these challenges are addressed, raw material limitations will continue to affect the global scalability of biotechnology-based chemical production.
Opportunities:
- Growing Adoption of Bioplastics and Bio-Based Polymers
- Rising Demand for Natural and Organic Ingredients in Pharmaceuticals and Food
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Expanding Applications of Biotechnology in Agriculture and Animal Feed - The growing use of biotechnology in agriculture and animal feed presents a major opportunity for the biotechnology-based chemicals market. As global agriculture adapts to meet sustainability targets and improve productivity, biotech-derived chemicals are being widely adopted in the form of bio-fertilizers, biopesticides, and natural soil enhancers. These products support eco-friendly farming by minimizing the need for harmful synthetic inputs while maintaining high yield potential.
In the animal feed sector, biotechnology is enabling the development of advanced feed additives that enhance digestion, immunity, and growth in livestock. These bio-based additives reduce the dependency on antibiotics and chemical-based growth promoters, aligning with global efforts to promote cleaner, safer, and more ethical food production systems.
As sustainable agriculture practices continue to expand, particularly in response to food security concerns and climate change, biotechnology-based solutions are becoming essential. They help improve soil health, optimize resource use, and reduce the environmental impact of conventional farming, all of which are top priorities for both governments and consumers.
With greater investment in green agricultural practices and increased awareness of the benefits of bio-based innovations, the market for biotechnology-based chemicals in agriculture and animal nutrition is poised for strong, long-term growth across both developed and emerging economies.
Biotechnology Based Chemicals Market Competitive Landscape Analysis
Key players in Biotechnology Based Chemicals Market include,
- BASF SE
- Vertec BioSolvents Inc.
- AGAE Technologies, LLC
- TOTAL
- ADM
- DuPont
- Evonik Industries
- Toray Industries, Inc.
- Cargill, Incorporated
- GF Biochemicals Ltd.
- Mitsubishi Chemical Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Production Process
- Market Snapshot, By Source Of Raw Materials
- Market Snapshot, By Method of Distribution
- Market Snapshot, By Application
- Market Snapshot, By Region
- Biotechnology Based Chemicals Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Rising Demand for Sustainable and Eco-Friendly Products
- Advancements in Biotechnology and Genetic Engineering
- Increasing Consumer Awareness About Health and Wellness
- Restraints
- High Production Costs of Biotechnology-Based Chemicals
- Technical Challenges in Scaling Up Biotechnology Processes
- Limited Raw Material Availability for Bio-Based Chemical Production
- Opportunities
- Growing Adoption of Bioplastics and Bio-Based Polymers
- Rising Demand for Natural and Organic Ingredients in Pharmaceuticals and Food
- Expanding Applications of Biotechnology in Agriculture and Animal Feed
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Biotechnology Based Chemicals Market, By Type, 2021 - 2031 (USD Million)
- Bio-Pharma
- Agri-Biotech
- Bio-Informatics
- Biotechnology Based Chemicals Market, By Production Process, 2021 - 2031 (USD Million)
- Fermentation-Based Production
- Enzymatic Processes
- Microbial Processes
- Plant-Based Extraction
- Cell Culture Techniques
- Biotechnology Based Chemicals Market, By Source Of Raw Materials, 2021 - 2031 (USD Million)
- Microorganisms
- Plants
- Animal-Derived Sources
- Waste Biomass
- Synthetic Biology
- Biotechnology Based Chemicals Market, By Method Of Distribution, 2021 - 2031 (USD Million)
- Direct Sales
- Distributors & Wholesalers
- Online Retail
- Partnerships With Manufacturing Companies
- Government Contracts
- Biotechnology Based Chemicals Market, By Application, 2021 - 2031 (USD Million)
- Pharmaceuticals & Nutrition
- Foods & Beverages
- Agriculture
- Animal Feeds
- Other
- Biotechnology Based Chemicals Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Biotechnology Based Chemicals Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- BASF SE
- Vertec BioSolvents Inc.
- AGAE Technologies, LLC
- TOTAL
- ADM
- DuPont
- Evonik Industries
- Toray Industries, Inc.
- Cargill, Incorporated
- GF Biochemicals Ltd.
- Mitsubishi Chemical Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market