PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1606471
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1606471
The market for Biotech Ingredients was projected to reach USD 2,151.5 million in 2023 and expand at a CAGR of 8.00% between 2024 - 2032.
The majority of biotech ingredients are natural and include oleoresins, essential oils, and other plant extracts. Common methods for obtaining these compounds include carbon dioxide extraction, solvent extraction, steam distillation, and cold pressing or compression. Biotech ingredients, like biopharmaceuticals, include complex proteins, such antibodies, nucleic acids, or antisense oligonucleotides, which are given by methods different from direct extraction from natural, non-engineered living forms. Due to reasons including consumers' growing preference for natural and organic products, the market for biotech ingredients has grown significantly. Additionally, this market is being driven by the growing usage of biotech components in various end-use industries, including medicines, cosmetics, and food & beverage. In addition, technological developments pertaining to monoclonal antibodies and next-generation antibody therapeutics, including antibody-drug conjugates by major companies, are some other aspects anticipated to further influence the biotech ingredients market.
Biotech Ingredients Market- Market Dynamics
Rising Need for Generic Medications
It is anticipated that the market for biotech ingredients will continue to expand due to the growing need for generic medications. A generic medication is intended to have the same qualities as a previously authorized medication. General medicine uses biotech substances because they are the main source of less expensive, more effective ways to produce a variety of active ingredients that are almost comparable to the original product and are usually subject to a more stringent set of regulations. For instance, in September 2022, the U.S. Generic and Biosimilar Medicines Savings Report, published by the Biosimilars Council, a division of the Association for Accessible Medicines (AAM), a US-based association of generic medicine manufacturers and distributors, revealed that 91% of the 6.4 billion prescriptions were written for patients in the US in 2021 for generic or biosimilar medications. With generic medications accounting for 3% of all healthcare spending, patients, consumers, employers, and taxpayers saved $373 billion by using these less expensive medications. Thus, the market for biotech ingredients is expanding due to the increased demand for generic medications.
Biotech Ingredients Market- Key Insights
According to our research analyst's analysis, the global market is projected to expand at a CAGR of approximately 8.00% during the forecast period of 2024-2032.
The active pharmaceutical ingredients category was predicted to hold the largest market share in 2023 based on type.
The microbial expression systems category was predicted to hold the largest market share in 2023 based on expression systems.
North America held the largest revenue share by region in 2023.
The Global Biotech Ingredients Market is segmented into Type, Expression System, Application, and Region.
The global market for biotech ingredients is divided into two segments based on type: biosimilars and active pharmaceutical ingredients. In 2023, the market's largest contributor is the active pharmaceutical ingredients category. Active pharmaceutical ingredients (APIs) are the chemicals or a mixture of substances utilized in final or finished products. They are intended for use in pharmacology studies to investigate the effects of drugs on living organisms when they are used to treat different diseases. When researching causes and consequences that are directly related to different diagnoses, cures, preventive, therapy, and mitigation aims, APIs are used. In most cases, a formulation uses the most thermodynamically stable crystalline form of API. The quality of APIs strongly impacts the efficacy and safety of pharmaceuticals.
Based on application, the market is segmented into Vaccines, Monoclonal Antibodies, Cytokines, Hormones and Growth Factors, Fusion Proteins, Blood Factors, and Therapeutic Enzymes. Due to its high specificity, low toxicity, and capacity to target particular disease markers, monoclonal antibodies are expected to dominate the global market for biotech ingredients. Additionally, the growing incidence of chronic illnesses and the demand for individualized treatment options will propel market expansion. Synthetic proteins known as monoclonal antibodies (mAbs) replicate the immune system's ability to fight off intruders by targeting particular cells or proteins. These biotech components have grown significantly in the pharmaceutical industry because of their therapeutic applications in the treatment of many illnesses, including cancer, autoimmune diseases, and infectious diseases.
Biotech Ingredients Market- Geographical Insights
The Biotech Ingredients market is widely distributed geographically in North America, Latin America, Europe, Asia Pacific, the Middle East and Africa. These areas are further separated based on the countries that provide business.
The market for biotech ingredients is dominated by North America, mostly because of the region's strong pharmaceutical and food companies as well as its substantial investments in biotechnology R&D. The market's expansion is being aided by the region's established healthcare system and advantageous regulatory environment. Due to the increasing demand for biotech ingredients in food and drink, cosmetics, and pharmaceuticals, the US is a significant contributor to the market. With the help of growing biotechnology investments and growing consumer awareness of sustainable products, Canada is also experiencing rapid growth.
Additionally, with the help of a large number of pharmaceutical and cosmetic firms as well as rising consumer demand for sustainable products, Europe also commands a sizable portion of the market for biotech ingredients. The market is mostly driven by Germany, France, and the United Kingdom, all of which have made large expenditures in biotechnology R&D. The use of biotech substances is being fueled by the region's strict regulations and emphasis on environmental sustainability. Furthermore, the growing popularity of natural & organic products is driving the European biotech ingredients market's expansion.
The market for biotech ingredients is characterized by a dynamic competitive environment with many well-established companies and newcomers vying for market share in the expanding demand for cutting-edge biotechnology solutions across a range of industries. Important companies such as AbbVie Inc., Pfizer Inc., Boehringer Ingelheim International GmbH, Lilly, GSK Plc, Novartis AG, and others always work on R&D projects to expand their product lines, emphasizing technological improvements, sustainable business practices, and regulatory compliance. In order to meet changing customer demands and maintain a competitive edge in the market, industry players are attempting to broaden their worldwide reach and provide a variety of biotech ingredients through strategic alliances, mergers, and acquisitions.
May 2023: The renowned biotech company Willow Biosciences Inc., which aims to revolutionize the industrial production of sustainable and pure functional components, has inked a Master Services Agreement with a cutting-edge biotech company that focuses on age-related illnesses. In this partnership, it will develop precise fermentation processes for a particular class of molecules created as active pharmaceutical ingredients (APIs) and nutritional supplements for health and wellness.
February 2023: CETO3 is an omega-3 and cetoleic acid that Grntvedt Biotech introduced. It has been investigated if cetoleic acid, sometimes referred to as "omega 11," can change alpha-lipoic acid (ALA), a plant-based omega-3 fatty acid, into eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) in liver cells. It's a chemical from Norwegian herring that's being used for skin and heart health.
February 2022: For $226 million, the Irish taste and nutrition giant Kerry Group plc purchased c-LEcta. Kerry hopes to enhance its innovation efforts in fermentation, enzyme engineering, and biotechnological development with this acquisition. Kerry also intends to make investments in the development of innovative sustainable technologies that will propel the future growth of sustainable food and health systems. c-LEcta is a biotechnology innovation company based in Germany that specializes in producing high-value targeted biomolecules and ingredients through extremely accurate fermentation, optimized bio-processing, and bio-transformation.