Farnesene Market – Global Industry Analysis, Market Size Estimation and Growth Forecast By Types (α-farnesene and β-farnesene), By Application (Cosmetics & Personal Care, Performance Chemical, Fuels, Crop Protection, Flavors & Fragrances etc) & By Regions (North America, Europe, Asia Pacific, Middle East & Africa, Latin America), 2017 – 2025

Farnesene Market - Introduction

The global farnesene market is expected to grow at an exponential rate during the forecast period 2017 to 2025. Farnesene market is segmented in terms of types, application, and geography. Farnesene is set of sesquiterpenes, primarily hydrocarbons acting as aroma constituents of different fruits including apple, quinces and berries among others. α-farnesene and β-farnesene are two isomeric variants of farnesene. Farnesene is used as building block for cosmetics, perfumes, transportation fuels, detergents and industrial lubricants. Increase in application of farnesene as biofuel for aeroplane and transportation vehicles is acting as major push factor for the growth of the market. Rise in acceptance of farnesene in elastomer production is acting driver for growth of the market.

Report Overview
Aspect Details
Base Year of Estimation 2016
Value Estimation Year 2017
Forecast Period 2017 - 2025
Market Segmentations By types, application, and geography
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America
Report Coverage Technology Analysis, Market Dynamics, Market Trends, Segmentation Overview and Competitive Landscape of the market

 

Technology Analysis

Farnesene is produced by fermentation of sugars through the usage of yeast. Selection of target genes is done to change the yeast’s metabolism, in order to convert the yeast to produce hydrocarbon instead of ethanol. Oxidation of Farnesene is also associated with deterioration of fruits, and is known as chilling injury and superfical scald respectively. Farnesene producers genetically change the yeast for converting the sugar into isoprenoids which include farnesene. Produced farnesene is separated and recovered from the fermented sugar. The acyclic sesquiterpene α-farnesene functions as aroma constituents in fruits such as apple, berries, pears etc. Furthermore, α-farnesene can also be isolated from flowers and dufour’s gland of myrmicine ant. β-farnesene is isolated from plant essential oil, including lavandine, marijuana, orange. β isomer of farnesene can also be extracted from insect pheromone.

Production and commercialization of trans-β-farnesene have significantly boosted growth opportunity for the farnesene market.

Some leading players have started producing farnesene from methane through bioconversion method. In recent years, production and commercialization of trans-β-farnesene has increased owing to technology advancement of producers and rising demand for biofuels.

 

Market Dynamics

Recent development in the field of metabolic engineering and synthetic biology has led to commercial production of different renewable building block that can replace petroleum derivatives such as fuels, lubricants, polymers etc. Rising environmental concern, depletion of fossil fuel sources and volatility of oil market have influenced stakeholders in automotive and aviation sector to opt for biofuels. Initiatives such as FQD (Fuel Quality Directive) and CAAFI (Commercial Aviation Alternative Fuels Initiative) has increased the usage limit of biofuels in aviation sector. On the other hand, farnesene has been identified as prospective source for producing biofuels. Expansion of biofuels applications has significantly boosted growth opportunity for farnesene market.

Squalene derived from farnesene has application as anti-aging ingredients in cosmetics and beauty care industry. In North America and some Asian countries, demand for farnesene based fragrances is growing significantly in recent years. These mid-term push factors are expected to drive the growth of the farnesene industry size in coming years.

Applications of farnesene as surfactants and emulsifier is projected to emerge in the future markets.

Lack of commercialization of farnesene as a renewable building block in most of the countries; comparatively higher production cost and concern over the toxicity of farnesene have negatively affected the growth of the market. In coming years, application of farnesene as surfactants and emulsifier is expected to emerge as growth opportunity for the global farnesene industry during the forecast period 2017 to 2025.

 

Market Trends

As of 2016, the market size for farnesene is pretty small as compared to most of the renewable building block chemicals. Lack of penetration of farnesene is attributed to the premature stage of commercially viable technology for production of the compound, lack of awareness among stakeholders regarding different farnesene based applications and nascent stage of biofuels production. Furthermore, limited availability of major feedstock for farnesene production across most of the countries has also caused tight supply situation. In last 2-3 years, the scope of commercialization for farnesne has increased due to application specific product innovation by leading producers and supportive government initiatives.

The consolidated nature of farnesene market is resulted due to the presence of small numbers of big market players sharing significant slices of the market.

Latin America is expected to remain one of the major feedstock source for farnesene production while Europe contributes largest consumption base for farnesene based products. In terms of market structure, the consolidated nature for farnesene market is resulted due to presence of small numbers of large players commanding significant share of the market.

 

Segmentation Overview

By types, the farnesene market has been segmented as α-farnesene and β-farnesene. In terms of revenue, β-farnesene and its different verities contributed largest share of the market in 2016. By farnesene based applications, the market has been segmented into cosmetics & personal care, performance chemical, fuels, crop protection, flavors & fragrances and others.

By geography, the market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America. In terms of revenue, Europe held the largest share of the farnesene market owing to large consumer base and supportive environment norms. In North America, volume consumption of farnesene is driven by expansion of application market through targeted product innovation by producers, rising demand of biofuels and rising demand of farnesene in cosmetics & personal care sector.

Market Segmentation Overview
By Term Segments
By Type α-farnesene and β-farnesene
By Application Cosmetics & personal care, performance chemical, fuels, crop protection, flavors & fragrances and others
By Geography North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Latin America

 

Competitive Landscape

Leading players operating in the farnesene market are Amyris Biotechnologies (the U.S.), Intrexon (the U.S.) and Chromatin, Inc (the U.S.). In North America, concentration of farnesene producer is significantly high owing to close proximity to feedstock, supportive environment norms and technological advancement achieved by producers. In terms of concentration of producers of farnesene, Asia Pacific ranks lower as compared to North America and Europe.

 

Conclusion

Considering the growth stage for product lifecycle of farnesene, product innovation by leading players and rising demand of biofuels in aviation and transportation sector, it has been estimated that the market for farnesene is about to experience high growth phase in coming years. Due to conjoint impact of mentioned push factors, farnesene market is estimated to experience exponential growth during the forecast period.

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KEY QUESTIONS ANSWERED BY THE REPORT
What will be the nature of growth of the market till 2025?
What are the major push factors that will affect the growth of the market?
What are the growth possibilities in different segments of the market?
Who are the leading market players?
What are the key strategies implemented by the market leaders to sustain growth in the market?
What are the major restraining factors for the market?
What are the ways to generate new revenue streams?
In-depth analysis of the competitive landscape and competitor behavior in the market

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