Global Precision Fermentation Market to Generate $34,868.1 Million by 2031, Owing to Development of Novel Protein Production Systems

Precision fermentation is a bio-chemical process wherein a microbe’s cell structure is used as a “factory” to produce specific products. As opposed to traditional fermentation techniques where microorganisms convert food items into fermented products, precision fermentation techniques employ the microorganisms themselves to produce specific enzymes. For this purpose, microorganisms are cultured for producing large quantities of enzymes and chemicals.  These enzymes then undergo purification processes which then gives out the final product.

Forecast Analysis of the Precision Fermentation Market

In recent years, there has been an increase in the investment for development of novel protein production systems which is predicted to be the primary growth driver of the global precision fermentation market in the forecast period. Additionally, growing consumer preferences towards plant-based protein and shifting eating habits are anticipated to push the market forward. Along with this, surge in use of precision fermentation technology for manufacturing of environmentally friendly cosmetic and personal care products is projected to offer numerous growth and investment opportunities to the market in the analysis timeframe. However, the high cost of producing protein ingredients is estimated to create hurdles in the full-fledged growth of the precision fermentation market in the coming period.

Regionally, the precision fermentation market in the North America region is expected to be highly dominant by 2031. Increasing awareness of the health advantages of eating healthy and vegan food items is expected to be the leading factor behind the growth of the market.

According to the report published by Research Dive, the global precision fermentation market is expected to gather a revenue of $34,868.1 million by 2031 and grow at 40.5% CAGR in the 2022–2031 timeframe. Some prominent market players include geltor inc., Impossible Foods Inc, Shiru Inc, Imagindairy Ltd, Motif Foodworks, Inc, FUMI Ingredients, Change Foods, Nourish Ingredients, Perfect Day Inc, Eden Brew, and many others.

Covid-19 Impact on the Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The precision fermentation market, too, faced a negative impact of the pandemic. The decline in the growth rate of the precision fermentation market was mainly on the account of disruptions in global supply chains which hampered the production cycles of various companies. The import-export restrictions across the globe further worsened the condition of the market.

Significant Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the precision fermentation market to flourish. For instance:

• In December 2022, Perfect Day, a biotechnology company, announced the acquisition of Sterling Biotech Limited, a global pharmaceutical company. This acquisition is predicted to help Perfect Day to scale up its precision-fermented protein manufacturing in India and thus increase its market share in the next few years.
   
• In December 2022, Agronomics, a leading venture capital firm, announced that it was investing $7 million in Liberation Labs, a commercial precision fermentation company. This investment partnership by Agronomics is expected to help both the partners in the long run as they will be able to scale up their global operations and expand their presence in the market in the coming period.
   
• In February 2023, nine leading precision fermentation companies announced the establishment of the Precision Fermentation Alliance which aims at promoting sustainable precision fermentation techniques. This collaboration between nine companies, viz., Change Foods, Remilk, Imagindairy, Onego Bio, The EVERY Co., New Culture, Helaina, Perfect Day, and Motif FoodWorks is expected to be a gamechanger for the precision fermentation market in the near future.