Precision Fermentation Ingredients Market: Driving the Future of Food and Sustainability
MarketsandMarkets™, 06 Aug 2025
The precision fermentation ingredients market is expected to grow significantly, rising from USD 5.02 billion in 2025 to USD 36.31 billion by 2030, registering a remarkable CAGR of 48.6% during the forecast period. This rapid expansion is fueled by increasing consumer demand for sustainable, ethical food production and the rising popularity of plant-based and alternative protein sources.
Advancements in biotechnology and molecular engineering have greatly enhanced the efficiency and scalability of precision fermentation processes, enabling the cost-effective production of high-purity ingredients such as specialized proteins, enzymes, and flavor compounds. Additionally, growing environmental concerns and the urgent need to lower the carbon footprint of traditional agriculture are encouraging food and beverage manufacturers to integrate precision-fermented ingredients into their product lines.
Supportive regulatory frameworks and increasing investments in research and development are further propelling the market forward, positioning precision fermentation as a critical technology for improving global food security and promoting sustainable food systems.
What is Precision Fermentation?
Precision fermentation leverages advanced biotechnology to program microorganisms—like yeast, bacteria, or fungi—to produce highly specific ingredients, including proteins, enzymes, fats, and other bioactive compounds. Unlike traditional fermentation, which is used mainly to enhance flavors or preserve food, precision fermentation enables the creation of pure, tailor-made molecules used in foods, beverages, pharmaceuticals, and more.
- Rising Demand for Plant-Based & Alternative Proteins: Consumers are shifting toward sustainable, ethical, and animal-free food sources. Precision fermentation enables the creation of animal-free dairy, egg, and meat proteins that closely mimic their animal-derived counterparts, appealing to vegans, vegetarians, and flexitarians alike.
- Sustainability & Reduced Environmental Impact: Producing ingredients via precision fermentation requires fewer natural resources and yields a lower carbon footprint than traditional agriculture—an answer to the food industry’s urgent need to address environmental and ethical issues.
- Technological Advancements: Strides in synthetic biology, strain engineering, and process optimization improve scalability and reduce costs, making precision fermentation increasingly attractive for large-scale applications—especially in food, beverage, and pharma sectors.
- Regulatory & Investment Support: Regulatory agencies worldwide are laying frameworks for commercialization and safety, while both startups and established players are pouring investments into R&D and production capacity.
Main Applications
- Food & Beverages: The largest end-use segment. Precision fermentation provides animal-free whey and casein for dairy alternatives, egg-white proteins for baking, and specialized fats and flavors for functional foods and beverages.
- Pharmaceuticals & Cosmetics: Used for bioactive molecules, enzymes, and specialty ingredients, enabling more precise and sustainable drug development and personal care products.
- Expansion Beyond Food: Precision fermentation ingredients are gaining ground in cosmetics, pharmaceuticals, and specialty chemicals, diversifying the technology’s potential.
- Microbial-Based Dominance: Microbial fermentation holds the largest ingredient segment, accounting for up to 70.6% market share, due to versatility and efficiency in producing various proteins and functional compounds.
- Customization and Innovation: Companies are rapidly developing novel ingredients to enhance taste, nutrition, and functionality—enabling healthier, cleaner-label products for eco-conscious consumers.
Europe to Hold a Prominent Share in the Precision Fermentation Ingredients Market
Europe is expected to account for a significant share of the global precision fermentation ingredients market, driven by strong regulatory support for sustainable food innovation, growing demand for plant-based and animal-free products, and rising consumer awareness around environmental and ethical issues. Countries such as Germany, the Netherlands, and the United Kingdom have emerged as key hubs for research institutions and startups pioneering developments in this space.
The region's well-established food and beverage industry is rapidly adopting precision-fermented ingredients to meet evolving consumer preferences. Strategic collaborations between major food producers and biotechnology companies, along with a shift toward clean-label and cost-effective formulations, are accelerating market growth. Moreover, Europe’s ambitious climate targets are further encouraging the use of sustainable ingredient technologies like precision fermentation.
- Perfect Day, Inc. (US)
- Geltor (US)
- The EVERY Company (US)
- Impossible Foods Inc. (US)
- ImaginDairy Ltd. (Israel)
- Shiru, Inc. (US)
- FORMO FOODS GMBH (Germany)
- EDEN BREW (Australia)
- Change Foods (US)
- New Culture (US)
Recent Developments of Precision Fermentation Ingredients Industry:
- In April 2025, Formo Foods launched its animal-free cheeses made with koji protein across more than 2,000 REWE, BILLA, and Metro retail locations in Germany and Austria.
- In March 2025, Shiru partnered with GreenLab, a specialist in plant-based protein expression, to accelerate the commercialization of novel food proteins.
- In February 2025, ImaginDairy, an Israel-based food-tech company specializing in sustainable animal-free dairy proteins, entered into a multi-year collaboration with Ginkgo Bioworks, a leader in cell programming and biosecurity. The partnership aims to accelerate the development of cost-effective, animal-free, non-whey dairy proteins for global markets.
- In January 2025, Valio formed a long-term research and development collaboration with Swedish startup Melt&Marble to improve the texture, taste, and mouthfeel of plant-based products using precision fermentation fats.
Key Questions Addressed by the Precision Fermentation Ingredients Market Report:
- What is precision fermentation?
- What is driving the growth of the precision fermentation ingredients market?
- What is the current size of the precision fermentation ingredients market?
- What is the outlook for the market in the coming years?
- How big is the precision fermentation ingredients market?
- What are the main applications and end-use industries?
- Who are the leading companies in the precision fermentation ingredients market?
- What are the market trends and opportunities?
- What are the challenges or restraints faced by the market?
- What future trends are expected for this market?
About
80% of the Forbes Global 2000 B2B companies rely on MarketsandMarkets to identify growth opportunities in emerging technologies and use cases that will have a positive revenue impact.
RECENT POST
- Food Packaging Market Size Set for Strong Growth Through 2030 Amid Rising Demand for Convenience Foods
- Fertilizers Industry Set to Grow at 4.1% CAGR Through 2030
- Leading Automated Guided Vehicle Companies 2024: An In-depth Analysis
- CHARGED UP: SHIFT TO E-MOBILITY AND THE EVOLUTION OF TRANSPORTATION
- Global Automotive Market: Predictions For 2024
Emerging Trends and Growth Opportunities in the Precision Fermentation Ingredients Market
For In-depth Analysis on Precision Fermentation Ingredients Market
