Biotech Ingredients Market

Biotech Ingredients Market Size:

The global biotech ingredients market size reached USD 62.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 94.5 Billion by 2033, exhibiting a growth rate (CAGR) of 4.29% during 2025-2033. The market is witnessing steady growth, primarily propelled by innovations in biotechnology and increasing sustainable ingredients demand across numerous sectors. In addition, the expanding product applications in food, pharmaceuticals, and cosmetics industries, reinforced by rapid research efforts and advancements, is also supporting the market expansion.

Biotech Ingredients Market Analysis:

• Major Market Drivers: The market is shaped by the amplifying demand for environmentally friendly and sustainable products across numerous industries, especially cosmetics and pharmaceuticals. The increasing emphasis on biotechnological innovations and green chemistry has further boosted the market expansion. Moreover, major companies are currently making investments in research and development (R&D) projects to engineer advanced biotech ingredients with better efficacy, aiding the inclination towards natural alternatives. In addition, regulatory implementations for cleaner, non-toxic ingredients in both pharmaceutical and personal care products are facilitating the market expansion, while the intensifying customer need for bio-based cosmetics and drugs accelerates the adoption of biotech ingredients.
• Key Market Trends: Key trends that are significantly steering the biotech ingredients market growth include the escalating utilization of fermentation-based products and the surge in demand for bio-based compounds in cosmetic formulations. Various businesses are focusing on the development of microbial-based and plant-derived biotech ingredients to address the accelerating demand for natural products. In addition, advancements in manufacturing technologies, such as synthetic biology, are facilitating more effective production of such ingredients. Furthermore, such innovations are also prompting product differentiation, attracting substantial investments and bolstering the overall market competitiveness.
• Geographical Trends: Europe is a leading region in the global biotech ingredients market, majorly driven by heightening awareness regarding sustainability among consumers and enforcement of stricter regulatory frameworks. The region’s robust cosmetics and pharmaceuticals industries are major contributors to market dominance. Moreover, countries such as the UK, Germany, and France are leading in terms of biotechnological innovations, driving the biotech ingredients market demand in Europe. In addition, the shift towards bio-based, natural substitutes in pharmaceuticals and personal care segments further solidifies Europe’s leadership in the global market landscape.
• Competitive Landscape: Some of the major market players in the biotech ingredients industry include AbbVie Inc., Advanced Biotech, Amyris Inc., Becton Dickinson and Company, Bell Flavors & Fragrances Inc., Bruker Corporation, Evolva AG, Evonik Industries AG, GlaxoSmithKline plc., International Flavors & Fragrances Inc., Merck KGaA, Sanofi SA., among many others.
• Challenges and Opportunities: The market experiences challenges like strict regulatory standards, which can delay product approvals, and elevated costs of production. However, these challenges also offer opportunities for advancements, especially in cost-efficient production methodologies. The inclination towards natural and sustainable products provide immense prospects for market growth. In addition, amplifying customer demand for bio-based and organic compounds is prompting investments in research and development activities, paving the way for new applications and innovative products across industries.
   

Biotech Ingredients Market Trends:

Rising Demand for Sustainable and Natural Ingredients

According to the biotech ingredients market research report, the increasing popularity of sustainable and natural ingredients is a crucial trend observed in the global market. Customers currently prefer bio-based products in sectors such as food, cosmetics, and pharmaceuticals. This notable inclination is primarily fueled by concerns related to environmental sustainability and increased prohibition of synthetic chemicals usage in various products. For instance, in January 2024, New Zealand announced a permanent ban on PFAS, a large and complex group of toxic synthetic chemicals used in cosmetics, which can cause testicular and kidney cancer, alteration in liver enzymes, etc. The ban will take effect on December 31, 2026. Consequently, key players are actively investing in formulating biotech alternatives, like plant-derived and fermentation-based ingredients. Such sustainable ingredients not only mitigate the rising environmental concerns but also provide better safety solutions, presenting opportunities for manufacturers to address the transforming customer preferences while improving both competitiveness and brand value. 

Advancements in Biotechnology and Synthetic Biology

Biotechnology and synthetic biology are revolutionizing the global biotech ingredients market. New techniques, encompassing fermentation methodologies and gene editing, enable the effective formulation of excellent-quality ingredients with improved efficacy. Such innovations allow the development of specialized ingredients for specific applications in food production, pharmaceuticals, or cosmetics. In addition, synthetic biology is lowering reliance on conventional raw materials, reducing environmental impact, and minimizing the costs of manufacturing processes, thus supporting market expansion. Furthermore, this technological improvement is boosting the innovation of new biotech ingredients with better sustainability profile, expanding their market presence, and contributing to a positive biotech ingredients market outlook. For instance, in May 2024, Integrated DNA Technologies, a prominent genomics solutions provider, announced the expansion of its synthetic biology operations by unveiling a new 25,000-square facility, elevating its production capacity and upgrading its gene synthesis portfolio with diversified, improved solutions.

Increasing Adoption in Cosmetics and Personal Care Industries

The cosmetics and personal care industries are rapidly integrating biotech ingredients, aligning with the escalating need for non-toxic, natural and clean products. Biotech-based actives, like hyaluronic acid, peptides, and enzymes, are notably gaining momentum for their better sustainability and exceptional efficacy. Moreover, such ingredients provide improved effectiveness, such as skin hydration or anti-aging benefits, in comparison to conventional synthetic analogues. In addition, this trend is compelling manufacturers to expand and innovate their product offerings with bio-based compounds, forming new growth avenues for this evolving market within the personal care segment. For instance, in April 2024, Nuxe, cosmetic care brand, launched Nuxuriance Ultra Alfa , its new range of anti-aging products developed using innovative green technology and integrated with natural-origin ingredients, including hyaluronic acid, alfalfa seed extract, and Hemerocallis fulva, an orange day-lily extract. 

Biotech Ingredients Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type and application.

Breakup by Type:

• Yeast
• Algae
• Others
   

Algae accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes yeast, algae, and others. According to the report, algae represented the largest segment.

According to the biotech ingredients market forecast, algae is anticipated to sustain its dominance as the widely used biotech ingredient, principally due to their sustainable cultivation and excellent nutritional nature. Rich in essential fatty acids, antioxidants, and vitamins, algae-based ingredients are extensively leveraged in key sectors such as food, pharmaceuticals, and cosmetics. For instance, in August 2024, FDA approved Cresilon Inc’s Traumagel, an emergency treatment to control severe bleeding and treat bullet wounds. This pharmaceutical product is formulated using algae-derived hydrogel technology and is anticipated to be commercially available in the same year. Moreover, their renewable profile and minimal impact on environment position them as an ideal ingredient for the development of bio-based products. In addition, the increasing requirement for natural and eco-friendly ingredients has further bolstered the significance of algae within the global biotech ingredients market.

Breakup by Application:

• Food and Beverages
• Personal Care and Cosmetics
• Cleaning Products
• Others
   

Personal care and cosmetics hold the largest share of the industry 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes food and beverages, personal care and cosmetics, cleaning products, and others. According to the report, personal care and cosmetics accounted for the largest market share. 

The personal care and cosmetics represent the largest market share, as the heightening demand for effective, sustainable, and safe cosmetics has significantly fueled the adoption of biotech-based ingredients, including enzymes, hyaluronic acid, and peptides. Such ingredients provide improved effectiveness in anti-aging and skincare formulations, aligning with the growing trend toward bio-based and natural personal care products. In addition, as cometic companies are currently focusing on sustainability as well as innovations, the utilization of biotech ingredients is rapidly amplifying, further strengthening this segment’s leadership in the market. For instance, in July 2024, Debut, a biotechnology and beauty company, signed an agreement with L'Oréal, a major cosmetics brand, to formulate bio-identical ingredients aimed at substituting traditionally extracted materials leveraged in L'Oréal's cosmetic products. Debut will utilize its proprietary advanced biomanufacturing methods, integrating cell-free and fermentation technology, to develop new bio-based ingredients.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest biotech ingredients market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for biotech ingredients.

Europe has emerged as the largest regional market for biotech ingredients, mainly due to the strict regulations profiting natural and sustainable products across key industries such as cosmetics and pharmaceuticals. Europe’s expanding biotechnology infrastructure, coupled with increased demand for environmentally friendly ingredients, fuels market growth. Major countries, including France and Germany, dominate the research and development segment, focusing on product innovations. In addition, the European Union’s emphasis on approving biotech ingredients, such as algae, while minimizing the utilization of toxic chemicals, further reinforces the region’s dominance in this dynamic market. For instance, in February 2024, the European Commission approved more than 20 algae species to be sold as food supplements or food in the European region. This approval is anticipated to streamline the marketing authorization process for algae products, significantly reducing costs by around €10 million for the algae sector within the region. 

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the biotech ingredients industry include AbbVie Inc., Advanced Biotech, Amyris Inc., Becton Dickinson and Company, Bell Flavors & Fragrances Inc., Bruker Corporation, Evolva AG, Evonik Industries AG, GlaxoSmithKline plc., International Flavors & Fragrances Inc., Merck KGaA, and Sanofi SA.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The market experiences intense competition, with major players emphasizing on mergers, tactical collaborations, and innovations to fortify their market foothold. Numerous companies are making or securing heavy investments in research and development segment to develop effective and innovative biotech ingredients for diverse applications, including food, pharmaceutical, and cosmetics sectors. For instance, in August 2024, Bigelow Laboratory received USD 7 million investment from the National Science Foundation to develop the Maine Algal Research Infrastructure and Accelerator (MARIA). MARIA aims to improve research abilities with cutting-edge equipment, establishing it as a major hub for advancements in algae-based solution for pharmaceutical, aquaculture, agriculture, and energy applications. Moreover, the escalating need for bio-based and natural ingredients also fuels competition, prompting continuous innovation among key industry players. 

Biotech Ingredients Market News:

• In April 2024, Ole Hyva Luonnontuote, a natural products company, launched Meri, a new cosmetics range, that has substituted oil-based chemicals with seaweed-derived molecules. This range includes shower gel, handwash, shampoo, and hair conditioner. Additionally, algae-based alginate CAERULO, formulated by Origin by Ocean, is also utilized in sulphate-free Meri detergent range.
• In April 2024, GreenCoLab, a prominent biotech company, unveiled its new biotech ingredients-based food and beverage prototypes, including algae-based burgers, microalgae alternative to sturgeon roe, and microalgae artisanal beer. These prototypes integrate seaweed, non-GMO chlorella, and tetraselmis (a green algae), establishing algae as a sustainable vegan ingredient that improves the sensory, nutritional, and functional qualities of products.

Biotech Ingredients Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the biotech ingredients market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global biotech ingredients market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the biotech ingredients industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.