Biotechnology Based Chemicals Market Size and Analysis (2026-2035)

Revenue, 2025

USD 109.53 Billion

Forecast, 2035

USD 274.93 Billion

CAGR, 2026-2035

9.64%

Report Coverage

Global

Biotechnology Based Chemicals Market Trends for 2026

The global biotechnology based chemicals market size was estimated at USD 109.53 billion in 2025 and is predicted to increase from USD 120.09 billion in 2026 to approximately USD 274.93 billion by 2035, expanding at a CAGR of 9.64% from 2026 to 2035.

The biotechnology based chemicals market is rapidly growing as sustainable, bio-derived alternatives to petrochemicals gain demand across pharmaceuticals, agriculture, food & personal care. It's driven by eco-friendly trends, tech advances, and regulatory support, with strong CAGR and broad industrial adoption.

Key Takeaways

• Biotechnology based chemicals sector pushed the market to USD 120.09 billion by 2026.
• Long-term projections show USD 274.93 billion valuation by 2035.
• Growth is expected at a steady CAGR of 9.64% in between 2026 to 2035.
• Asia Pacific dominated the biotechnology based chemicals market and is expected to grow at the fastest CAGR in the market during the forecast period.
• North America is expected to grow at a significant CAGR in the market during the forecast period.
• By product type, the bio-alcohols segment held the largest market share in 2025.
• By product type, the bio-organic acids segment is expected to grow at the fastest CAGR in the market during the forecast period.
• By application, the pharmaceuticals and healthcare segment led the market.
• By application, the food & beverages segment is expected to grow at a notable rate in the market during the forecast period.

Key Indicators and Highlights

Driving the Future: The Rapid Rise of Biotechnology-based Chemicals

Biotechnology-based chemicals are products manufactured using biological processes, such as enzymes or microorganisms, instead of traditional petrochemical methods, offering more sustainable, eco-friendly, and renewable chemical alternatives. The biotechnology based chemicals market is expanding due to rising demand for sustainable and renewable alternatives, stricter environmental regulations, reduced carbon emissions, advancements in bioprocessing technologies, and increasing adoption across pharmaceuticals, agriculture, and industrial applications.

How AI Can Revolutionize the Market?

AI can revolutionize the biotechnology-based chemicals market by accelerating molecule discovery, optimizing bioprocesses, reducing production costs, and improving yield efficiency. Advanced analytics enable predictive maintenance, faster scale-up, and smarter supply chains, driving innovation, sustainability, and faster commercialization of bio-based chemical products.

Trend and Future Outlook of the Biotechnology Based Chemicals Market

• Sustainable Growth: Increasing focus on eco-friendly and renewable alternatives is driving the adoption of biotechnology-based chemicals across industries to reduce environmental impact and carbon emissions.
• Technological Advancements: Innovations in bioprocessing, fermentation, and AI are improving production efficiency, scalability, and cost-effectiveness of bio-based chemicals.
• Supportive Regulations: Government incentives and strict environmental regulations are encouraging industries to shift from petrochemicals to sustainable biotechnology-based chemical solutions.

Major Investments in the Biotechnology Based Chemicals Market

• In December 2025, two green biotech firms received £10 million from the Scottish/UK governments to build bio-chemical production plants at Grangemouth.
• In September 2025, the UK’s Xampla raised $14 million to expand biodegradable bio-chemical packaging solutions.
• In May 2025, Biomaterials companies, many producing bio-based chemicals, received $392 million in investments, signaling strong investor interest in sustainable chemical platforms.

Segmental Insights

By Product Type Insights

Why Did the Bio-Alcohols Segment Dominate in the Market in 2025?

The bio-alcohols segment held the largest biotechnology based chemicals market share in 2025 due to its wide application across fuels, solvents, pharmaceuticals, cosmetics, and chemical intermediates. Strong demand for bioethanol as renewable fuel additives, combined with established and biobutanol as renewable fuel additives, combined with established production technologies, cost-efficient, and supportive government policies promoting low-carbon alternatives, further strengthened the segment’s dominance.

Bio-Organic Acids

The bio-organic acids segment is expected to grow at the fastest CAGR because these acids, from renewable biomass via fermentation, are increasingly used across food & beverage, bioplastics, pharmaceuticals, and personal care due to sustainability, eco-friendly properties, regulatory support, and rising demand for biodegradable and natural ingredients. Technological advances in production further boost cost-effective scalability and adoption.

By Application Insights

What Made the Pharmaceuticals and Healthcare Segment Dominant in the Market in 2025?

The pharmaceuticals and healthcare segment led the biotechnology based chemicals market due to the high demand for bio-based solvents, intermediates, and active ingredients used in drug formulation and medical products. Growing prevalence of chronic diseases, increased biopharmaceutical production, stringent quality standards, and a strong shift towards sustainable and biocompatible chemicals further supported the segment’s leading market growth.

Food & Beverages

The food & beverages segment is expected to grow at a notable CAGR because of rising consumer demand for natural, clean-label, and sustainable ingredients. Bio-based acids, enzymes, and preservatives are increasingly used to improve taste, shelf life, and nutritional quality. Health awareness, stricter food safety regulations, and preference for eco-friendly products further drive adoption, boosting growth throughout the forecast period.

Regional Insights

Asia Pacific at the Forefront: The Fastest Growing Hub for Biotechnology-Based Chemicals

Asia Pacific dominated and is expected to grow at the fastest CAGR in the biotechnology based chemicals market due to rapid industrialization, rising demand for sustainable and eco-friendly products, expanding pharmaceutical and food & beverage sectors, and strong government support for bioeconomy initiatives. Lower production costs, increasing investments, and growing consumer awareness of green alternatives further accelerate regional market growth throughout the forecast period.

India Market Trends

India led the biotechnology based chemicals market due to its well-established pharmaceutical and chemical manufacturing sectors, abundant availability of raw materials, and cost-efficient production capabilities. Strong government initiatives supporting bio-based industries, growing demand for sustainable chemicals, and increasing exports of bio-alcohols, bio-organic acids, and enzymes further strengthened India’s market leadership and revenue dominance.

North America on the Rise: Driving Growth in the Market

North America is expected to grow at a notable CAGR in the biotechnology based chemicals market due to high adoption of advanced bioprocessing technologies, strong R&D infrastructure, and increasing investments in sustainable and bio-based chemicals production. Supportive government regulations, rising demand for pharmaceuticals, healthcare, and food & beverages sectors, along with growing consumer preference for eco-friendly products, further drive regional market growth during the forecast period.

U.S. Market Trends

The U.S. is expected to grow rapidly due to rising demand for eco-friendly and renewable chemical solutions across healthcare, food, and industrial sectors. Strong investment in biotech startups, advancements in synthetic biology, and collaboration between private and public institutions enhance innovation, production efficiency, and commercialization, positioning the country as a major hub for sustainable biotechnology growth during the forecast period.

Europe sustainability Surges: Accelerating Growth in Biotechnology

Europe is expected to grow at a significant rate in the biotechnology based chemicals market due to increasing adoption of sustainable and bio-based chemicals across pharmaceuticals, food& beverages, and industrial sectors. Strong government regulation promoting low-carbon and eco-friendly solutions, significant R&D investments, and rising consumer demand for natural and biodegradable products are driving market expansion. Advanced bioprocessing technologies and collaborations between academia and industry further support Europe’s growth during the forecast period.

UK Market Trends

The UK is expected to grow at a rapid CAGR in the market due to strong government support for green and sustainable technologies, significant investments in bio-based research and infrastructure, and a robust pharmaceutical and chemical manufacturing sector. Increasing adoption of eco-friendly chemicals across healthcare, food & beverage, and industrial applications, along with favourable regulatory policies, further accelerates market expansion during the forecast period.

Value Chain Analysis

R&D

• Research and development centers on leveraging microorganisms, enzymes, and biological pathways to produce chemicals sustainably, reducing reliance on fossil-based resources.
• Key focus areas include genetic modification, synthetic biology, biocatalysis, and advanced fermentation to enhance yield, efficiency, and scalability.
• These innovations support the production of bio-alcohols, bio-organic acids, and high-value specialty ingredients for pharmaceuticals, food & beverage, agriculture, and industrial applications.
• Key Players: BASF, DSM-Firmenich, DuPont, Evonik Industries, Corbion

Clinical Trials

• Clinical trials for biotechnology-based chemicals are conducted through a structured, multi-phase process to evaluate safety, efficacy, dosage, and immunogenicity.
• Due to their complex biological composition, biologics require additional testing, specialized manufacturing controls, and strict regulatory oversight compared to conventional drugs.
• Regulatory agencies closely monitor consistency, stability, and long-term effects throughout all trial phases.
• Key Players: Roche, Pfizer, Novartis, Amgen, Johnson & Johnson, Sanofi

Formulation

• Formulation involves integrating the biologically active component, especially protein-based ingredients, with carefully selected excipients to maintain stability, safety, and therapeutic effectiveness.
• The process includes steps such as stabilization, preservation, and delivery optimization to protect sensitive biological molecules during storage and use.
• Strict quality control and regulatory compliance are essential to ensure product consistency and patient safety.
• Key Players: Lonza, Thermo Fisher Scientific, Catalent, Boehringer Ingelheim, Fujifilm Diosynth Biotechnologies

Top Vendors in the Market & Their Offerings

SWOT Analysis 

Strengths

• Sustainable and renewable production processes reduce dependence on fossil fuels
• Lower environmental impact and reduced carbon emissions
• Strong demand from the pharmaceuticals, food & beverage, and agriculture industries
• Continuous innovation in bioprocessing and synthetic biology

Weaknesses

• High initial R&D and production costs
• Complex manufacturing and scalability challenges
• Sensitivity of biological processes to contamination and variability
• Limited infrastructure in developing regions

Opportunities

• Growing demand for eco-friendly and biodegradable products
• Supportive government policies and bioeconomy initiatives
• Advancements in AI, genetic engineering, and fermentation technologies
• Expanding applications in bioplastics, specialty chemicals, and healthcare

Threats

• Competition from low-cost petrochemical alternatives
• Regulatory complexities and lengthy approval processes
• Supply chain volatility for biomass raw materials
• Economic downturns are affecting investment in sustainable technologies

What are the Recent Developments in the Biotechnology Based Chemicals Market?

• In January 2025, Mitsubishi Chemical Group’s plant-based DURABIO bioengineered plastic was selected by PopSockets for iPhone 16 accessories. This development underscores the rising adoption of durable, sustainable bio-based materials in consumer electronics, driven by increasing demand for environmentally responsible and high-performance product solutions.
• In December 2024, Tate & Lyle partnered with BioHarvest Sciences to develop sustainable, non-GMO plant-based ingredients using Botanical Synthesis technology, reducing land and water use while supporting next-generation food and beverage innovation.
• In September 2024, Lygos partnered with CJ BIO at the Fort Dodge biorefinery to manufacture Soltellus biodegradable polymers and Ecoteria malonates. The collaboration also focuses on expanding large-scale production of bio-based aspartic acid, supporting the growing demand for sustainable and high-performance bio-based materials.

Segments Covered in the Report

By Product Type

• Bio-Alcohols
• Biopolymers
• Bio-Organic Acids

By Application

• Pharmaceuticals and Healthcare
• Food & Beverages
• Agriculture

By Region

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Denmark
  • Sweden
  • Norway
• Asia Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Kuwait