Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 24.82 billion

CAGR (2023-2028)

8.15%

Fastest Growing Segment

Recombinant Proteins

Largest Market

North America

Market Overview

Global Biopharmaceutical Fermentation Market has valued at USD 24.82 billion in 2022 and is anticipated to project impressive growth in the forecast period with a CAGR of 8.15% through 2028. COVID-19 has impacted the growth of the biopharmaceutical fermentation market. The pandemic resulted in an unprecedented demand for enzymes essential for innovative point-of-care diagnostic kits and mRNA vaccines. For instance, according to the report published by Mass Bio, in December 2022, it has been observed that the COVID-19 epidemic has increased and reinforced the demand for complex fermentation products in the pharmaceutical and biotechnology industries. Globally, companies and populations benefited from crucial supplies of enzymes produced by fermentation. Moreover, the production of new biologic drugs during the pandemic period for the treatment of COVID-19 infection increased which has impacted the market growth. For instance, in December 2021, Samsung Biologics and AstraZeneca expanded a strategic biopharmaceutical production partnership to include therapies for Covid-19. However, the emergence of a new variety of viruses accelerates vaccine production which involves the fermentation step. For instance, in July 2022, CEPI funded USD 30 million to bring a new nanoparticle vaccine offering protection against a range of coronaviruses to clinical trials. Thus, with such initiatives, the studied market is expected to grow and regain its full potential in the coming years.

Factors such as the increasing demand for biotech-based drugs and rising research and development activities to produce novel biological drugs are boosting market growth. For instance, according to the 2021 annual report of AbbVie, Humira is one of the top-selling biotechnology drugs in the world which accounted for net revenues of USD 20.7 billion and approximately 37% of AbbVie's total net revenues in 2021. Globally, Humira sales increased by 4% in 2021 compared with the previous year. Similarly, as per the 2021 annual report of Merck & Co, the sales of Keytruda, one of the major biotech-based drugs of the company, grew by 20% to USD 17.2 Billion, compared to USD 14.9 Billion in the year 2020. Thus, the increasing sales of biotech-based drugs in the market indicates the increasing demand for these drugs in the market which in turn is anticipated to fuel the market growth over the forecast period.

Furthermore, the rising company focus on developing novel biological drugs is also expected to fuel the demand for fermentation services and products which is anticipated to propel the market growth. For instance, in November 2022, Eikonoklastes Therapeutics, a preclinical biotech company, and Forge Biologics, a gene therapy-focused contract development and manufacturing organization entered a manufacturing partnership that will advance Eikonoklastes' AAV-based gene therapy, ET-101, into clinical trials for the treatment of patients with amyotrophic lateral sclerosis (ALS). Also, in August 2022, Sanofi and Innovent Biologics entered a strategic collaboration to accelerate the development of two biologic oncology medicines (tusamitamab ravtansine, SAR444245) and expand their presence in China.

Therefore, owing to the factors, such as the rising company activities and increasing demand for biotech-based drugs, the studied market is anticipated to grow over the forecast period. However, the high cost of biopharmaceutical fermentation and installation is likely to impede the growth of the biopharmaceutical fermentation market over the forecast period.

Key Market Drivers

Growing pipeline of biopharmaceuticals

The dominant driver for the Biopharmaceutical Fermentation market is the growing pipeline of biopharmaceuticals. This trend is driven by several key factors that highlight its centrality to the market: Biopharmaceuticals offer innovative solutions for a wide range of diseases, including cancer, autoimmune disorders, and rare diseases. The expanding therapeutic landscape necessitates the development of new biopharmaceuticals, fueling the pipeline. Biologics, a subset of biopharmaceuticals, are gaining prominence due to their specificity and effectiveness. As research uncovers new targets and mechanisms of action, biologics with diverse applications are being developed. The emergence of biosimilars, which are highly similar to approved biopharmaceuticals, but often more cost-effective, contributes to the growing pipeline. These products aim to provide affordable alternatives to existing biopharmaceuticals.

Biopharmaceutical companies are heavily investing in R&D to bring novel therapies to market. This includes monoclonal antibodies, vaccines, gene therapies, and cell-based therapies. Emerging markets are increasingly adopting biopharmaceuticals, creating new opportunities for drug development. This global expansion of the biopharmaceutical market drives research and innovation. Stringent regulatory approvals necessitate thorough research and testing, encouraging a continuous stream of biopharmaceutical candidates in the pipeline. The shift towards precision medicine, where therapies are tailored to individual patients based on their genetics and biology, requires a diverse array of biopharmaceuticals for various genetic profiles. In summary, the growing pipeline of biopharmaceuticals is dominant in the Biopharmaceutical Fermentation market because it reflects the industry's dynamism and its commitment to addressing unmet medical needs. As biopharmaceutical companies seek to develop more effective and personalized treatments, fermentation processes remain essential for producing these complex and life-changing therapies.

Expanding biosimilars market

The dominance of the expanding biosimilars market in the Biopharmaceutical Fermentation market is a testament to its pivotal role in shaping the biopharmaceutical landscape. Several key factors underline its dominance: Biosimilars are highly similar versions of approved biopharmaceuticals. They offer cost-effective alternatives to expensive reference biologics, increasing patient access to essential therapies. This economic advantage is driving the demand for biosimilars. Many blockbuster biopharmaceuticals have reached or are approaching patent expiration, opening doors for biosimilar manufacturers. As patents expire, biosimilar competition intensifies, encouraging the development and production of these products. Biosimilars are instrumental in containing rising healthcare costs. Governments and healthcare systems globally are incentivized to promote biosimilar adoption to reduce expenditures on biopharmaceuticals. The biosimilars market is expanding rapidly, encompassing a diverse range of therapeutic areas, including oncology, autoimmune diseases, and diabetes. This growth fuels the need for efficient biopharmaceutical fermentation processes to meet rising demand. Regulatory agencies worldwide have established clear pathways for biosimilar approval. This regulatory clarity has boosted confidence in biosimilars and encouraged investment in their development.

Biosimilars have the potential to provide essential medicines to a global patient population. This accessibility aspect is crucial for improving healthcare outcomes and addressing unmet medical needs. Intense competition in the biosimilars market is driving innovation in biopharmaceutical fermentation technologies. Manufacturers are continually optimizing processes to enhance product quality and cost-effectiveness. In summary, the expanding biosimilars market is dominant in the Biopharmaceutical Fermentation market because it epitomizes the convergence of economic viability, regulatory support, and the imperative to provide affordable and accessible biopharmaceuticals. As biosimilars continue to gain traction and enter new therapeutic areas, fermentation processes play a central role in their production, solidifying their significance in the biopharmaceutical industry.