Precision Fermentation Market by Microbe (Algae, Bacteria, Fungi), Ingredient (Collagen Protein, Egg White, Enzymes), Application, End-User - Global Forecast 2024-2030

Precision Fermentation Market by Microbe (Algae, Bacteria, Fungi), Ingredient (Collagen Protein, Egg White, Enzymes), Application, End-User - Global Forecast 2024-2030

The Precision Fermentation Market size was estimated at USD 3.05 billion in 2023 and expected to reach USD 3.43 billion in 2024, at a CAGR 12.84% to reach USD 7.12 billion by 2030.

Precision fermentation refers to a novel food technology utilizing genetically modified microorganisms to produce specific proteins, enzymes, and other compounds. Precision fermentation is used in both the food industry and pharmaceutical industries to produce biopharmaceuticals and in the petroleum and diesel industries to produce microbe-based fuels. The driving growth factors for the growth of the precision fermentation industry include rising consumer awareness regarding the consumption of healthy food and increasing government regulations towards animal welfare. Additionally, expanding acceptance of vegan and vegetarian diets across the world has further cemented the adoption of precision fermentation to cater to consumer demand for alternative dairy and protein sources. However, the initial establishment cost for precision fermentation technologies is high, and challenges around scale-up often result in high production costs. Furthermore, consumer acceptance of products produced through this technology may be slow to gain momentum due to unfamiliarity and perceived artificiality of the technology. However, efforts by major manufacturers and government organizations about the health and environmental benefits of the adoption of precision fermentation can overcome challenges related to unfamiliarity with the technology. Key areas of growth include investing in technologies that increase yield or make the fermentation process more efficient and sustainable.

Regional Insights

In the Americas, the United States leads the adoption and demand for precision fermentation, primarily due to its robust biotechnology sector, extensive research and development, and investment in innovation. The market is stimulated by the food and beverage industry's urge to produce novel, sustainable, and cost-effective plant-based proteins using precision fermentation. The growing trend towards veganism and plant-based diets has further compounded this demand. Europe exhibits a significant application of precision fermentation in the brewing industry, where specific strains of yeast and bacteria are controlled to produce desired characteristics in alcoholic beverages. The shift towards personalized and health-centric products propels the use of precision fermentation. Moreover, European regulations encouraging sustainability and reduction in greenhouse gas emissions and ethical standards concerning animal cruelty have engendered interest in precision fermentation as a renewable and cruelty-free method of protein production. In the APAC region, precision fermentation's adoption is driven by the region's burgeoning food and drink sector, particularly in countries such as China, Japan, and South Korea. The utilization of precision fermentation is significant in the fermentation of traditional food and beverages, dairy alternatives, and the production of clean meat. The region is also characterized by the presence of emerging startups that are actively exploring alternative dairy products and vegan food items.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Precision Fermentation Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Growing adoption of sustainable, vegan and healthy food and beverages
Increasing demand for plant based GMO protein worldwide and changing consumer tastes and preferences
Rising demand of vegan, and animal-free cosmetics

Market Restraints

Regulatory hurdles and consumer acceptance

Market Opportunities

Development of novel protein production systems for alternative protein producers for healthcare benefit
Massive investments and funding in the precision fermentation space

Market Challenges

Commercialization and scaling up of production

Market Segmentation Analysis

Microbe: Expanding adoption of yeast in food and beverage industries
Ingredient: Utilization of precision fermentation for production of enzymes in dairy industries
Application: Inclination towards adoption of meat & seafood alternatives due to ethical considerations and veganism
End-user: Widespread application of precision fermentation in food & beverage end-users to product cruelty-free food products

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Precision Fermentation Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Precision Fermentation Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Formo to Launch “New Class of Products” With Precision Fermentation Eggs

Formo to launch its new category of products called precision fermentation eggs. These eggs are made using bio-designed microbes, providing animal-free alternatives. Through its existing protein production platform, Formo could launch their first fermented egg products as early as this year.

Novozymes and Arla Foods Ingredients partner on precision fermentation

Novozymes and Arla Foods Ingredients partnered to leverage precision fermentation to create advanced protein ingredients. Novozymes lends their expertise to developing microbial strains suitable for large-scale protein production, while Arla Food Ingredients contributes their knowledge of separation and drying processes, as well as their understanding of regulatory requirements. Initially, the partnership prioritized disease-specific medical nutrition, with the potential to expand into other areas in the future.

Cauldron Raises USD 7 Million to Expand Precision Fermentation Platform

Cauldron, an Australian startup, secured USD 7 million in a seed round of funding, with Main Sequence and Horizons Ventures leading the investment. This significant capital infusion supports Cauldron's expansion plans for its demonstration plant in Orange, New South Wales. The company focuses on establishing the largest network of smaller, smarter precision fermentation facilities in the Asia-Pacific region, operating as a contract development and manufacturing organization (CDMO).

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Precision Fermentation Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Precision Fermentation Market, highlighting leading vendors and their innovative profiles. These include Cargill, Incorporated, Cauldron Ferm, Change Foods, Inc., De Novo Foodlabs, Eden Brew Pty Ltd., Evonik Industries AG, Fonterra Co-operative Group Limited, Formo, Fybraworks Foods, Inc., Geltor, Inc., Helaina Inc., ICL Food, Imagindairy Ltd., Impossible Foods Inc., KeyLeaf Life Sciences, Koninklijke DSM N.V., Liberation Labs Holdings, Inc., Melt&Marble AB, Motif FoodWorks, Inc., Mycorena AB, MycoTechnology, Inc., Nourish Ingredients Pty Ltd., Novozymes, Onego Bio Ltd., Perfect Day, Inc., Remilk Ltd., Shiru, Inc., The Archer-Daniels-Midland Company, The Every Company, and Triton Algae Innovations, Ltd..

Market Segmentation & Coverage

This research report categorizes the Precision Fermentation Market to forecast the revenues and analyze trends in each of the following sub-markets:

Microbe
Algae
Bacteria
Fungi
Yeast
Ingredient
Collagen Protein
Egg White
Enzymes
Heme Protein
Whey & Casein Protein
Application
Dairy Alternatives
Egg Alternatives
Meat & Seafood
End-User
Cosmetic
Food & Beverage
Pharmaceutical
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year