Biotechnology Based Chemicals Market

By Type;

Bioethanol, Bio-Lubricants, Bio-Solvents, Bio-Alcohols and Others

By Application;

Food & Beverage, Pharmaceuticals, Agriculture, Packaging and Others

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn895141954 Published Date: September, 2025 Updated Date: November, 2025

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%.


Biotechnology Based Chemicals Market

*Market size in USD million

CAGR 6.0 %


Study Period2025 - 2031
Base Year2024
CAGR (%)6.0 %
Market Size (2024)USD 74231.63 Million
Market Size (2031)USD 111616.93 Million
Market ConcentrationMedium
Report Pages392
74231.63
2024
111616.93
2031

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

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 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
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
  • 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
  • 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
  • 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.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Type
    2. Market Snapshot, By Application
    3. Market Snapshot, By Region
  4. Biotechnology Based Chemicals Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Rising Demand for Sustainable and Eco-Friendly Products
        2. Advancements in Biotechnology and Genetic Engineering
        3. Increasing Consumer Awareness About Health and Wellness
      2. Restraints
        1. High Production Costs of Biotechnology-Based Chemicals
        2. Technical Challenges in Scaling Up Biotechnology Processes
        3. Limited Raw Material Availability for Bio-Based Chemical Production
      3. Opportunities
        1. Growing Adoption of Bioplastics and Bio-Based Polymers
        2. Rising Demand for Natural and Organic Ingredients in Pharmaceuticals and Food
        3. Expanding Applications of Biotechnology in Agriculture and Animal Feed
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry
  5. Market Segmentation
    1. Biotechnology Based Chemicals Market, By Type, 2021 - 2031 (USD Million)
      1. Bioethanol
      2. Bio-Lubricants
      3. Bio-Solvents
      4. Bio-Alcohols
      5. Others
    2. Biotechnology Based Chemicals Market, By Application, 2021 - 2031 (USD Million)
      1. Food & Beverage
      2. Pharmaceuticals
      3. Agriculture
      4. Packaging
      5. Others
    3. Biotechnology Based Chemicals Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. BASF SE
      2. DuPont
      3. Evonik Industries
      4. Cargill, Incorporated
      5. Archer Daniels Midland (ADM)
      6. Toray Industries
      7. Mitsubishi Chemical
      8. Vertec BioSolvents
      9. TOTAL
      10. GF Biochemicals
      11. Itaconix
      12. Royal DSM
      13. Braskem
      14. BioAmber
      15. GFBiochemicals
  7. Analyst Views
  8. Future Outlook of the Market