Precision Fermentation Ingredients Market by Ingredient (Whey & Casein Protein, Egg White, Collagen Protein, Heme Protein), Microbe (Yeast, Algae, Fungi, Bacteria) End User, Food & Beverage Application, and Region - Global Forecast to 2030
The global precision fermentation ingredients market size is estimated to be valued at USD 2.8 billion in 2023 and is projected to reach USD 36.3 billion by 2030, recording a CAGR of 44.0% by value. Changing consumer preferences towards veganism, increasing protein consumption, and rising investments in innovations are the major factors for market growth. Substantial breakthroughs in the genetic engineering space have enabled the cost-effective and sustainable reprogramming of microorganisms (synthetic biology) through precision fermentation to create a wide range of specialized food protein constituents.
The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in May 2023, Geltor introduces CAVIANCE™, a vegan type of Il collagen polypeptide offering remarkable skin rejuvenating benefits. This innovative product stimulates six different types of collagens, exhibits potent antioxidant properties, and aids in wound healing. Other key players like MycoTechnology established a “groundbreaking” collaborative venture with Oman Investment Authority (OIA) to produce mushroom-based protein using locally cultivated dates. This joint venture will be named Vital Foods Technologies LLC. The overall Precision fermentation ingredients market is classified as a competitive market, with the top five key players, namely Geltor (US), Perfect Day, Inc. (US), The Every Co. (US), Impossible Foods Inc. (US), Motif FoodWorks, and INC. (US) occupying 25-50% of the market share.
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Precision Fermentation Ingredients Market Dynamics
Drivers: Growing adoption of vegan as well as meat-free lifestyles
According to research conducted by The Hartman Group, the landscape of the North American precision fermentation ingredients market is poised for a transformative shift Around 40% of U.S. adults, over 90 million individuals, are ready to embrace precision fermentation products, projected to reach 132 million consumers by 2027. Younger generations are receptive due to environmental concerns and sustainability, with the second most influential factor being the positive impact on the environment. This aligns with their preference for sustainable consumption. The link between precision fermentation and sustainability, including reduced greenhouse gas emissions, natural farming, and sustainable packaging, offers innovation potential. Millennials and Gen Z are willing to pay up to 10% more for such products. This technology serves as a catalyst for a more sustainable and technologically advanced market landscape shaped by evolving consumer preferences and environmental consciousness. This trend invariably is supporting the precision fermentation ingredients market growth.
Restraints: Higher manufacturing costs associated with the production of ingredients utilizing precision fermentation ingredients
Demand for microbe-based precision fermented proteins or fats has gained momentum lately due to the increasing demand for animal-free products by the rising vegan population. In addition, precision fermentation provides several benefits: it reduces land and water usage, greenhouse gas emissions, and health problems associated with animal-based products. However, higher manufacturing costs have acted as the major restraint for the industry to scale up. Specific growth media for microorganisms, large-scale fermenters, and specialized purification processes combinedly increase the production cost exponentially. Also, the risk of yield failure or contamination is high as microorganisms need a stable and sterile environment for growth.
Opportunities: Lower production and supply chain cost
Precision fermentation is expected to become a low-cost technology generating huge opportunities in the alternative protein space. The industry will reach cost parity with most animal-derived protein molecules by 2023-25. By 2030, the cost of precision fermentation-based protein is expected to be lesser than that of animal-based counterparts. Modern food developed through this method will also pave way for a new food production system- moving from farms to fermentation tanks. This sustainable production method is expected to generate more opportunities for manufactureurs for commercially launching animal-free products.
Challenges: Customer acceptance of precision fermented based products
Though exhibiting huge scope to scale-up, precision fermentation-based outputs still have knowledge gaps. Bioavailability, allergenicity, digestibility, and bioequivalence of products are all factors that must be considered when evaluating products and ingredients. This is an essential factor if customers are switching from nutritional wholesome food products to modified food products that have some specific added proteins. Therefore, accepting precision-fermented food products is projected to be one of the challenging factors for the market. This challenge can be overcome by bringing consumer awareness regarding precision-fermented food products, which will drive the precision fermentation ingredients market growth in the coming years.
Precision Fermentation Ingredients Market Ecosystem
By end-use industries, the pharmaceuticals segment is projected to grow with the second-highest CAGR in the precision fermentation ingredients market during the forecast period.
This growth is supported by pioneering strides in biotechnology, where precision fermentation serves as a cornerstone to produce complex pharmaceutical compounds. The tailored manipulation of microorganisms enables the cost-effective synthesis of intricate APIs, propelling drug development. Moreover, this approach curtails reliance on traditional extraction methods, streamlining production, reducing environmental impact, and ensuring consistent product quality. As the pharmaceutical industry seeks efficient avenues for sustainable and regulated drug manufacturing, precision fermentation emerges as a pivotal driver in reshaping pharmaceutical landscapes.
By food & beverage application, the egg alternatives segment is projected to grow with the second-highest CAGR in the precision fermentation ingredients market during the forecast period.
The rising inclination toward vegan food has led manufacturers to introduce a variety of egg alternatives. Precision fermentation derived egg alternatives find use in baking, cooking, and food formulation. The Every Company introduced an egg protein called ClearEgg via precision fermentation in collaboration with Pressed Juicery in November 2021. In April 2021, the company increased its production capacity of egg alternatives further. In 2022, Shiru streamlined animal-free egg prototype creation using AI and machine learning. This innovative method accelerated the replication of egg properties within a plant-based framework.
By ingredient type, the whey & casein protein segment accounted for the second largest share.
The burgeoning awareness of animal-free options, veganism, and plant-based lifestyles has driven manufacturers to introduce an array of dairy-free ingredients. In the precision fermentation ingredients market, whey and casein play pivotal roles with versatile applications across industries. Companies like Modern Kitchen, based in the US, utilize precision fermentation-based whey protein from Perfect Day to produce animal-free cream cheese. Brazilian company Up Dairy specializes in precision fermentation to create dairy ingredients, with a focus on whey protein and casein. Up Dairy employs advanced technologies such as Cell Line Development, Host Strain Development, Target Molecule Selection, Bioprocess Design, and Ingredient Optimization. Formo Bio's approach to crafting animal-free cheese through precision fermentation showcases the intersection of traditional practices and innovative technology. By sourcing whey and casein from microorganisms inspired by cow DNA, they tap into both heritage and innovation, providing a sustainable alternative to traditional dairy cheese.
By microbe type, the fungi segment constitutes around one-fourth of the global demand.
Extensive research and development activities in the field of precision fermentation helped food producers in evolving the landscape of animal-free protein alternatives using microbes such as bacteria, yeast, and fungi. One advantage of utilizing fungi metabolic engineering is that their eukaryotic origin allows them to tolerate and functionally express heterologous eukaryotic proteins and enzymes, resulting in proper protein folding and post-translational modifications. Better Meat Co., a US based company, developed a process for biomass protein from the filamentous fungi Neurospora crass In February 2022, VTT Technical Research Centre of Finland developed egg white protein (ovalbumin) from fungi using precision fermentation.
North America: Precision Fermentation Ingredients Market Snapshot
North America holds the highest market share during the forecast period.
North America remained the largest market for precision fermentation ingredients due to the increasing consumer awareness, consumption of healthy food ingredients, and veganism trend etc. The landscape of North American precision fermentation ingredients market is poised for a transformative shift; around 40% of U.S. adults, over 90 million individuals, are ready to embrace precision fermentation products, projected to reach 132 million consumers by 2027 (The Hartman Group). Younger generations are receptive due to environmental concerns and sustainability, with the second most influential factor being the positive impact on the environment. This aligns with their preference for sustainable consumption. The link between precision fermentation ingredients and sustainability, including reduced greenhouse gas emissions, natural farming, and sustainable packaging, offers innovation potential. Millennials and Gen Z are willing to pay up to 10% more for such products. This technology serves as a catalyst for a more sustainable and technologically advanced market landscape shaped by evolving consumer preferences and environmental consciousness.
Key Market Players
Key players in this market include Geltor (US), Perfect Day, Inc. (US), The Every Co. (US), Impossible Foods Inc. (US), Motif FoodWorks, INC. (US), Formo (Germany), Eden Brew (Australia), Mycorena (Sweden), Change Foods (US), and MycoTechnology (US).
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Report Metric |
Details |
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Market size value in 2023 |
USD 2.8 billion |
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Revenue Forecast in 2028 |
USD 36.3 billion |
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Growth Rate |
CAGR of 44.0% from 2023-2028 |
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Market size estimation |
2023–2030 |
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Base year considered |
2022 |
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Forecast period considered |
2023–2030 |
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Units considered |
Value (USD), Volume (Billion Units) |
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Segments Covered |
Microbe, Ingredients, End-use, Food & beverage application, and Region |
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Regions covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
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Key Companies Profiled |
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Precision fermentation ingredients market Report Scope:
By Microbe
- Yeast
- Algae
- Fungi
- Bacteria
By Ingredients
- Whey & Casein Protein
- Egg White
- Collagen Protein
- Heme Protein
- Enzymes
- Others
By End Use
- Food & Beverages
- Pharmaceutical
- cosmetics & Others
By Food & Beverage Application
- Meat & seafood
- Dairy alternatives
- Egg alternatives
- Others
By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
Recent Developments
- In May 2023, The EVERY Company and Alpha Foods officially entered into a Joint Development Agreement with the shared objective of bringing next-generation alt-meat products to the market. This collaboration aims to leverage EVERY's trailblazing expertise in animal-free protein production and Alpha Foods' renowned chef-crafted plant-based foods to accelerate advancements in taste and texture for non-animal products.
- In March 2023, the partnership between The Hartman Group, Perfect Day, and Cargill enabled Perfect Day to gain valuable insights into consumer attitudes and preferences related to precision fermentation ingredients. This data has helped Perfect Day strengthen its position in the market, spearhead the Precision fermentation Alliance
- In October 2022, Impossible Foods' collaboration with Domino's Australia, introducing Impossible™ Beef on their pizzas, strategically expands their market presence, boosts brand exposure, and appeals to environmentally conscious consumers.
Frequently Asked Questions (FAQ):
Which are the major precision fermentation ingredients applications considered in this study, and which segments are projected to have a promising growth rate in the future?
All the major precision fermentation ingredients applications such as meat & seafood, dairy alternatives, egg alternatives, and others such as condiments and dressings, bars, snacks, and sauces. Dairy alternatives are currently accounting for the dominant share in the precision fermentation ingredients market, followed by meat & seafood.
I am interested in the Asia Pacific market for dairy alternatives and meat & seafood. Is customization available for the same? What would all information be included in the same?
I am interested in the Asia Pacific market for dairy alternatives and meat & seafood. Is customization available for the same? What would all information be included in the same? Yes, customization for the Asia Pacific market for various segments can be provided on various aspects, including market size, forecast, market dynamics, company profiles & competitive landscape. Exclusive insights on below Asia Pacific countries will be provided:
- China
- India
- Japan
- Australia
- Singapore
- Rest of Asia Pacific (Thailand, Australia, New Zealand, Malaysia, and Vietnam)
What are some of the drivers fuelling the growth of the precision fermentation ingredients market?
Global precision fermentation ingredients market is characterized by the following drivers:
- Production of precision-fermented ingredients to have a less carbon footprint
- Growing adoption of vegan as well as meat-free lifestyles
I am interested in understanding the research methodology on how you arrived at the market size and segmental splits before making a purchase decision. Can you provide me with an explanation for the same?
A detailed explanation of the research methodology is provided in the report and can be explained over a scheduled call. For a brief overview and knowledge: Multiple approaches have been used to understand the holistic view of the precision fermentation ingredients market, including:
- Bottom-up approach
- Top-down approach (Based on the global market)
- Primary interviews with industry experts
- Data triangulation
What kind of information is provided in the competitive landscape section?
For the list of the below-mentioned players, company profiles provide insights such as a business overview covering information on the company’s business segments, funding status, geographic presence, and business mix. The section also provides information on product offerings, key developments associated with the company, strategy analysis, and MnM view to elaborate analyst view on the company. Some of the key players in the market include Geltor (US), Perfect Day, Inc. (US), The Every Co. (US), Impossible Foods Inc. (US), Motif FoodWorks, INC. (US), and Formo (Germany).
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
This research involves the extensive use of secondary sources, directories; and databases (Bloomberg and Factiva) to identify and collect information useful for a technical, market-oriented, and commercial study of the Precision fermentation ingredients market. In-depth interviews were conducted with various primary respondents, such as key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various sources, such as Good Food Institute (GFI), Precision fermentation Alliance, RethinkX, Commonwealth Scientific and Industrial Research Organization (CSIRO), Institute of Food Technologists (IFT), Food and Agricultural Organization (FAO), Plant Based Foods Association (PBFA), Alternative Proteins Association (APA), United States Department of Agriculture (USDA), U.S. Food and Drug Administration (FDA), European Food Safety Authority (EFSA), World Health Organization (WHO), Consumer Healthcare Products Association (CHPA), European Federation of Associations of Health Product Manufacturers (EHPM), Canadian Health Food Association (CHFA), and Health Food Manufacturers' Association (HFMA), and other associations were referred to identify and collect information for this study. The secondary sources also include journals, press releases, investor presentations of companies, whitepapers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Primary Research
The Precision fermentation ingredients market encompasses various stakeholders involved in the supply chain, raw material manufacturers, raw material suppliers, regulatory organizations, and research institutions. To gather comprehensive information, primary sources from both the supply and demand sides were engaged. Primary interviewees from the supply side consisted of manufacturers, distributors, importers, and technology providers involved in the production and distribution of Precision fermentation ingredients. On the demand side, key opinion leaders, executives, and CEOs of companies in the Precision fermentation ingredients industry were approached through questionnaires, emails, and telephonic interviews. This approach ensured a comprehensive and well-rounded understanding of the Precision fermentation ingredients market from various perspectives.
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Precision Fermentation Ingredients Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the market’s and various dependent submarkets’ size. The research methodology used to estimate the market size includes extensive secondary research of key players, reports, reviews, and newsletters of top market players, along with extensive interviews from leaders, such as CEOs, directors, and marketing executives.
Global Precision fermentation ingredients market size: Bottom-Up Approach
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Global Precision fermentation ingredients market size: Top-Down Approach
Data Triangulation
The data triangulation and market breakdown procedures explained above were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
Precision fermentation uses microbial host cells as factories for producing specific functional ingredients that can enhance and enable end products predominantly made of plant proteins, cultivated animal cells, or even other microbial biomass.
Stakeholders
- Food & beverage manufacturers, suppliers, and processors
- Research & development institutions Bakery product manufacturers
- Traders & Retailers
- Distributors, importers, and exporters
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Regulatory bodies
- Organizations such as the Food and Drug Administration (FDA), United States Department of Agriculture (USDA), European Food Safety Agency (EFSA), EUROPA, Food Safety Australia New Zealand (FSANZ) American Bakers Association (ABA)
- Government agencies
- Intermediary suppliers
- Universities and industry bodies
- End users
Report Objectives
- To define, segment, and project the global market for precision fermentation ingredients market on the basis of microbe, ingredients, end-use, food & beverage application, and region
- To provide detailed information regarding the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyze the micro markets with respect to individual growth trends, future prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape of the market leaders
- To project the size of the market and its submarkets, in terms of value with respect to the regions (along with the key countries)
- To strategically profile the key players and comprehensively analyze their market position and core competencies
- To analyze competitive developments in the precision fermentation ingredients market, including joint ventures, mergers & acquisitions, new product developments, and research & development activities
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the Rest of the European Precision fermentation ingredients market, by key country
- Further breakdown of the Rest of the Asia Pacific Precision fermentation ingredients market, by key country
- Further breakdown of the Rest of South America Precision fermentation ingredients market, by key country
Company Information
- Detailed analyses and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Precision Fermentation Ingredients Market