COVID-19 impact on Biochemical Market
- The COVID-19 outbreak is hampering the demand for biochemicals in many applications. Governments of various countries across the globe have enforced lockdown measures to curb the spread of the coronavirus. This has resulted in slowdown and even halt in manufacturing operations, thus hampering the demand for biochemical.
- Key players operating in the biochemical market are primarily tier I and tier II manufacturers and suppliers. Manufacture and supply chain facilities of these players are spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of these players have halted their production output over the last few months due to the COVID-19 pandemic. The pandemic has negatively influenced the demand and supply chain of biochemicals.
- The COVID-19 outbreak has directly affected the production and demand for biochemicals. Industrial shutdown caused by the COVID-19 pandemic has created disruption in the supply chain. Disruption in supply of raw materials is projected to hamper full-scale operations of companies operating in the market.
Key Drivers of Biochemical Market
- Focus of countries on environmental issues has resulted in growth of biochemicals. Countries and industries are looking at renewable materials for long sustainable growth.
- Biochemicals such as hormones or enzymes are expected to play an important role as activators, catalysts, and inhibitors of various biochemical and physiological reactions
Restraints of Biochemical Market
- Production of biochemicals is still expensive and new technologies or improvements are needed. Therefore, high capital is needed for research & development and new infrastructure development.
- New laws and regulations are required to scale up the market of biochemicals. There is also lack of knowledge in terms of usage of biochemicals as alternatives for existing chemicals. These factors are likely to hamper the biochemical market.
Asia Pacific to Constitute Significant Share of Global Biochemical Market
- In terms of region, the global biochemical market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific dominated the global market in 2020. Asia Pacific is the major region of the global biochemical market due to the significant rise in demand for biofuels in the region. Rise in consumption of biochemicals in pharmaceuticals and food processing industries in Asia Pacific is also boosting the biochemical market in the region.
- North America and Europe are also key consumers of biochemicals. The market in North America and Europe is anticipated to expand at a moderate pace in the near future.
Competitive Landscape of Global Biochemical Market
- Major players operating in the biochemical market are adopting various organic and inorganic growth strategies such as joint ventures, mergers & acquisitions, expansion, collaborations, new product launches, strategic alliances, and research and development to increase their regional presence and business operations
- The market is currently witnessing fierce competition among several leading players. Key players operating in the market include United States Biological, Kraton Corporation, Cayman Chemical Company, Chemodex Ltd., AAT Bioquest, Inc., Cosan, Verbio, and Renewable Energy Group.
Global Biochemical Market: Research Scope
Global Biochemical Market, by Product Type
- Amino Acids
- Fine Chemicals
- Dyes & Stains
Global Biochemical Market, by Application
- Food Processing
Global Biochemical Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
Biochemical Market Introduction
- Biochemical refers to any chemical compound that is a naturally occurring compound or synthetically derived compound developed by the usage of industrial biotechnology. Biochemicals offer a sustainable alternative to chemicals based on fossil feedstock. Developed from biomass, these chemicals can be structurally identical to existing chemicals or contain new structures that offer new opportunities.