Precision Fermentation Ingredients Market Size, Share, Trends, Key Drivers, and Opportunities

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. Shifting consumer preferences towards veganism, increased protein consumption, and growing investments in innovation are driving market growth. Significant advancements in genetic engineering have made it possible to reprogram microorganisms cost-effectively and sustainably through precision fermentation, leading to the development of a diverse array of specialized food protein components.

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.

Precision Fermentation Ingredients Market Opportunities: Lower production and supply chain cost

Precision fermentation is projected to emerge as a cost-effective technology with significant potential in the alternative protein sector. By 2023-2025, it is anticipated that this technology will achieve cost parity with most animal-derived proteins. By 2030, precision fermentation-based proteins are expected to be less expensive than their animal-based equivalents. This innovative food production method will shift the focus from traditional farming to fermentation tanks, creating a more sustainable production system. As a result, manufacturers will have increased opportunities to commercially launch animal-free products.

Precision Fermentation Ingredients Market 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.

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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. The 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.

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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.

Top Precision Fermentation Ingredients Companies

Key players in this market include Geltor (US), Perfect Day, Inc. (US), Every Co. (US), Impossible Foods Inc. (US), Motif Food Works, INC. (US), Formo (Germany), Eden Brew (Australia), Mycorena (Sweden), Change Foods (US), and MycoTechnology (US).

Precision Fermentation Ingredients Market to See Major Growth by 2030

The 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% in terms of value The demand for precision fermentation ingredients is increasing due to the increasing demand for plant-based alternative products worldwide.

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.

Precision Fermentation Ingredients Market 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 a major restraint for the industry to scale up. Specific growth media for microorganisms, large-scale fermenters, and specialized purification processes combine to 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.

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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. 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.

North America holds the highest market share during the forecast period.

North America remained the largest market for precision fermentation ingredients due to increasing consumer awareness, consumption of healthy food ingredients, the 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.

Top Companies in the Precision Fermentation Ingredients Market

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).

Precision Fermentation Ingredients Market Report 2023-2030 | Size, Industry Analysis, and Forecast

 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 introduced CAVIANCE™, a vegan type of Il collagen polypeptide offering remarkable skin rejuvenating benefits. This innovative product stimulates six different types of collagen, exhibits potent antioxidant properties, and aids in wound healing. Other key players, like MycoTechnology, established a “groundbreaking” collaborative venture with the 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 Industry Oveview

The precision fermentation ingredient industry is an emerging sector that harnesses cutting-edge biotechnology and fermentation processes to produce a wide range of ingredients for various applications. This industry leverages advanced techniques to precisely engineer microorganisms such as bacteria, yeast, and fungi to produce specific compounds of interest.

Key features of the Precision Fermentation Ingredients industry include:

• Advanced Biotechnology: The industry relies on advanced biotechnological methods to engineer microorganisms at the genetic level. This allows for precise control over the fermentation process and the production of desired ingredients.
• Customized Ingredient Production: Precision fermentation enables the production of a diverse array of ingredients, including proteins, enzymes, vitamins, flavors, fragrances, and other specialty compounds. These ingredients can be customized to meet specific requirements for various industries, including food and beverage, pharmaceuticals, cosmetics, and agriculture.
• Sustainability: Precision fermentation offers significant environmental benefits compared to traditional ingredient production methods. It often requires fewer resources, generates less waste, and can be carried out using renewable feedstocks. As a result, it aligns well with sustainability goals and attracts interest from environmentally conscious consumers and businesses.
• Novel Applications: The versatility of precision fermentation enables the development of novel ingredients with unique functionalities and applications. These ingredients can be used to enhance the nutritional profile of food products, improve product stability and shelf-life, and even address specific health or dietary needs.
• Market Growth: The Precision Fermentation Ingredients market is experiencing rapid growth, driven by increasing demand for sustainable and alternative ingredients across various industries. As consumers become more aware of environmental issues and seek healthier, ethically sourced products, the demand for precision fermentation ingredients is expected to continue growing.
• Regulatory Landscape: While the regulatory landscape for precision fermentation ingredients is still evolving, regulatory bodies are increasingly recognizing the safety and efficacy of these ingredients. However, companies operating in this space must navigate regulatory requirements to ensure compliance with food safety standards and labeling regulations.

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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.

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.

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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.

Growth Strategies Adopted by Major Players in the Precision Fermentation Ingredients Market

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.

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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.

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The Asia Pacific region is projected to grow at the highest CAGR in the precision fermentation ingredients market during the forecast period

The key factors driving the Asia Pacific precision fermentation ingredients market are the rapid urbanization and changing lifestyles that have led to an increased demand for specialized products, such as alternative proteins and sustainable ingredients, which precision fermentation excels in producing. The region's focus on technological advancements and innovation aligns with precision fermentation ingredient's cutting-edge nature, fostering a thriving ecosystem for research and development. Additionally, Consumer willingness to adopt innovative products is evident across countries, extending beyond curiosity to active purchasing intent. Also, investments and expansions in the region drive the growth of the Asia Pacific market.

Upcoming Growth Trends in the Precision Fermentation Ingredients Market

According to a research report "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 Region - Global Forecast to 2030" published by MarketsandMarkets, 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% in terms of value. Production of precision-fermented ingredients with a less carbon footprint is expected to drive the precision fermentation ingredients market. Growing demand for precision fermentation ingredients stems from its capacity to meticulously craft precise molecules and ingredients, fostering innovation across food, pharmaceutical, and cosmetics sectors, and enabling distinct and unparalleled product development.

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The Cosmetics & others segment is projected to grow at the highest CAGR in the precision fermentation ingredients market

The cosmetics & others segment is poised for remarkable growth, projected to achieve the highest CAGR in the precision fermentation ingredients market. This growth aligns with the 2022 cosmetic trend, driven by its profound and lasting benefits. Fermented cosmetic products offer deeper nourishment as the breakdown of substances enhances skin absorption of vital nutrients. Unlike non-fermented alternatives, these products ensure more nutrients effectively penetrate the skin. Geltor emerges as a key player in this domain, specializing in fermented cosmetics catering to hair and skincare needs.

The meat & seafood segment is expected to witness the highest CAGR in the food & beverages precision fermentation ingredients market.

Precision fermentation employs microorganisms like yeast, bacteria, fungi, and algae to create plant-based proteins and fats for meat alternatives. These alternatives offer meat-like tenderness, juiciness, and improved nutrition, aligning with the rising demand for sustainable and health-conscious food choices. The segment's growth implies the market's shift towards sustainable and healthier dietary choices, reflecting consumers' preferences for environmentally friendly and nutritious options.

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The heme protein segment is projected to experience the highest CAGR in the precision fermentation ingredients market

Precision fermentation ingredients harnesses microbial processes, predominantly employing genetically modified yeast strains such as Saccharomyces cerevisiae, to synthesize heme proteins. This method presents an eco-friendly and effective route for heme production, eradicating the need for animal-derived sources. The United States stands as a focal point for research and development in precision fermentation ingredients, notably in producing heme proteins for plant-based meat alternatives. Industry frontrunners like MycoTechnology Inc. and Impossible Foods, both US-based, exemplify the nation's leadership in propelling precision fermentation ingredients market progress. Driven by the expanding alternative protein realm, fermentation experiences a surge in demand due to robust technological strides across various food industry applications.

The bacteria segment is projected to grow at the highest CAGR in the precision fermentation ingredients market

Within microbe categories like yeast, fungi, bacteria, and algae, bacteria are extensively utilized in both anaerobic fermentation for organic acids and alcohols and aerobic fermentation for enzyme production. Lactic acid bacteria (LAB) and Bacillus species, including B. subtilis, B. amyloliquefaciens, B. licheniformis, and B. megaterium, contribute to lactic acid, antibiotics, enzymes, biopolymers, and surfactins production. Companies like Perfect Day incorporate microbes, even archaebacteria, into their products. Archaebacteria differ chemically, reproducing asexually and utilizing diverse energy sources, dating back to Earth's earliest life forms, preceding bacteria.

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The Asia Pacific region is projected to grow at the highest CAGR in the precision fermentation ingredients market during the forecast period

The key factors driving the Asia Pacific precision fermentation ingredients market are the rapid urbanization and changing lifestyles that have led to an increased demand for specialized products, such as alternative proteins and sustainable ingredients, which precision fermentation excels in producing. The region's focus on technological advancements and innovation aligns with precision fermentation ingredient's cutting-edge nature, fostering a thriving ecosystem for research and development. Additionally, Consumer willingness to adopt innovative products is evident across countries, extending beyond curiosity to active purchasing intent. Also, investments and expansions in the region drive the growth of the Asia Pacific market.

This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Geltor (US), Perfect Day, Inc. (US), The Every Co. (US), Impossible Foods Inc. (US), and Motif FoodWorks, Inc. (US).