Global Precision Fermentation Market by Application (Meat, Seafood, Dairy, Egg and Others), Microbe (Bacteria, Yeast, Algae, Fungi, and Others), Ingredient (Egg White, Whey and Casein Protein, Collagen Protein, and Heme Protein), End User (Food and Beverage, Pharmaceutical, Cosmetic, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast 2022–2031

Global Precision Fermentation Market Analysis

The Global Precision Fermentation Market Size was $1,277.8 million in 2021 and is predicted to grow with a CAGR of 40.5%, by generating a revenue of $34,868.1 million by 2031.

Global Precision Fermentation Market Synopsis

Precision fermentation technology is used in environmentally friendly cosmetic and personal care products. Fermentation ingredients such as amino acids, polymers, industrial enzymes, and others are being used by personal care ingredient manufacturers to develop new products and processes such as high bioavailability actives, bioconversion of fragrance to water-soluble natural fragrance, whitening, bioactive for anti-aging, and moisturizing, UV-blocking effect. Additionally, the pharmaceutical business is utilizing precious fermentation products in the development of new concepts and products utilizing specialty components. Vitamins, and amino acids, as well as industrial enzymes, are extensively used as fermented components in the pharmaceutical industry for applications such as antiviral medications, therapeutic recombinant proteins and DNA, and pharmaceutical formulations. These factors are anticipated to boost the precious fermentation industry growth in the upcoming years.           

However, some of the disadvantages of precision fermentation include high cost of technology and chemical use for fermentation such as lactic acid used for fermentation is costly, which limits its use in the dairy industry. This factor is expected to hamper the growth of the precision fermentation market throughout the forecast period.

Rising demand for protein across the globe, changing preferences and tastes of consumers, and rise in the number of both advancements and investments are some of the key drivers propelling the development within the global precision fermentation market. Additionally, increasing preference and acceptance of meat-free and vegan lifestyles is also driving demand in the global precision fermentation market. These trends can be attributed to an increase in consumer awareness of unfair and cruel treatment of animals in the food industry, as well as the growing vegan population. These factors are driving the excellent opportunity for the market during the upcoming year.

According to regional analysis, the North America precision fermentation market accounted a dominating market share in 2021. This is because in the US, the need for high-quality fermented foods is expanding in tandem with rising consumer disposable income, a growing population, and a growing demand for precision fermentation.

Precision Fermentation Overview

Precision fermentation is the process of producing complex organic compounds using biological microbes. It is a new food technology that is entering the marketplace. Precision fermentation uses microbial hosts as "cell factories" for the production of specialized functional components that have higher purity standards than main protein ingredients and are integrated at lower quantities. These ingredients typically require greater purity than the primary protein ingredients and are incorporated at much lower levels. These functional ingredients can improve sensory characteristics and functional attributes of plant-based products or cultivated meat. Precision fermentation can produce enzymes, flavoring agents, vitamins, natural pigments, and fats.

COVID-19 Impact on Global Precision Fermentation Market

The COVID-19 pandemic delivered a significant impact on various businesses all over the world. One of the most affected industries due to the pandemic was the food and beverage industry. As a result of supply chain disruptions, facility closures, and a global economic slowdown, demand for precision fermentation decreased. Moreover, import-export restrictions were imposed on significant precision fermentation manufacturing nations such as the United States and China. For instance, sanitization of goods being exported from China was imposed by several countries. In addition, the food and beverages sector faced the highest impact in terms of sales and acquisition of new projects due to which the protein demand reduced significantly. The pandemic impacted the manufacture of precision fermentation products, and the demand for processed food substantially dropped. The lockdown imposed by several governments within their countries played a major role in hampering food production and distribution. The precision fermentation industry was also devastated as a consequence of the impacted food and beverage sector. While individuals were advised to stay home by governments during the early stages of the pandemic, only the food and beverage supermarkets and grocery stores across the country were open. Customers avoided going out, going out to eat, and going to crowded supermarkets and other places to eat and drink. Consumer products companies that sell food and beverages witnessed a sharp decline in sales and disruptions in their supply networks. Out-of-home consumption, that historically generated the biggest profit margin, decreased as at-home consumption increased. However, in order to maintain the inventories for a longer period of time, the demand for precision fermentation products remained constant.

Rising Investment in Precision Fermentation Technology as well as Growing Consumer Preference for Plant Based Meat to Drive Market Growth

One of the major factors driving the growth of the precision fermentation industry is the shift in consumer preferences towards plant-based protein and shifting eating habits. In addition to animal proteins derived from plants, animal proteins may also be synthesized through fermentation techniques. In precise fermentation, bioreactors serve as microbial hosts. These bacteria produce a variety of useful components, including enzymes present in proteins, flavorings, vitamins, natural colors, and so on. Precision fermentation, because of its distinct manufacturing properties, also allows for the production of pure forms of protein. Precision farming results in the production of more effective proteins and other organic compounds that are processed at minor quantities.

To know more about global precision fermentation market drivers, get in touch with our analysts here.

The High Cost of Producing Protein Ingredients Using Precision Fermentation to Restrict Market Growth

Precision fermentation for the production of animal-free protein or fats has gained traction as a result of the growing vegan population's demand for animal-free products. In this approach, yeast bacteria such as bacteria or fungus are genetically caused to produce the genetic factor that is normally encoded by animal DNA. These microbes are then used to produce a desirable product that mimics the texture, and nutritional profile of real animal products. For instance, every company that produces animal-free egg white uses genetically modified yeast cells. Additionally, precision fermentation has various benefits, including reduced land water consumption, greenhouse gas emissions, and health issues connected with animal-based products, all of which are expected to hinder the precision fermentation market's growth.

Development of Novel Protein Production System to Drive Excellent Opportunities

Identifying innovative protein-generation approaches through focused R&D and infrastructure investment will remain critical in capturing value, optimizing resources, and establishing precision fermentation competitive advantages. Various new protein production systems are being scaled up and industrialized in order to generate animal-free meat and microalgae and to use novel and unusual feedstock such as CO2. These innovative production techniques are likely to become as important as traditional food systems.

To know more about global precision fermentation market opportunities, get in touch with our analysts here.

Global Precision Fermentation Market, by Application

Based on application, the market has been divided into meat, seafood, dairy, egg and others. Among these, the dairy sub-segment accounted for the highest market share in 2021, whereas the meat sub-segment is estimated to show the fastest growth during the forecast period.

Global Precision Fermentation Market Size, by Application, 2021

Source: Research Dive Analysis

The dairy sub-type accounted for a dominating market share in 2021. Dairy products are one of the precision fermentation's most attractive potential uses. The majority of companies that have been successful in producing dairy plant-based cheese products, such as Treeline and Miyoko's, have done it over cream fermentation. Several companies have also surfaced to produce dairy fats and proteins that would bring in a wave of plant-based, fermentation-enabled dairy, including New Culture, Change Foods, Cultivated, and Legen Dairy.

The meat sub-type is anticipated to show the fastest growth during the forecast period. The demand for plant-based proteins in the meat alternatives category is expected to rise significantly in the coming years, as the global plant-based meat industry expands significantly. Precision-fermented meat-alternative burgers, fats, and proteins have been introduced by companies such as Impossible Foods, and Melt & Marble, which is projected to drive the growth of the meat & seafood category in the precision fermentation market.

Global Precision Fermentation Market, by Microbe

Based on microbe, the market has been divided into bacteria, yeast, algae, fungi, and others. Among these, the algae sub-segment accounted a dominating market share in 2021.

Global Precision Fermentation Market Share, by Microbe, 2021

Source: Research Dive Analysis

The algae sub-segment accounted a dominating market share in 2021. Algal cultivation is complex and requires optimization to achieve large biomass yields. Algal biomass production is affected by nutrient intake as well as other environmental factors like temperature, pH, salt content, and so on. Algae are also being researched for gaseous fermentations to produce high value chemicals and also for upgradation of biogas. Additionally, the concept of eating algae has been around for more than fifty years. As a substitute protein source, it has not been very popular among consumers.

Global Precision Fermentation Market, by Ingredient

Based on ingredient, the market has been divided into egg white, whey and casein protein, collagen protein, and heme protein. Among these, the egg white sub-segment is accounted a dominating market share.

Global Precision Fermentation Market Growth, by Ingredient, 2021

Source: Research Dive Analysis

The egg white sub-segment accounted a dominating market share in 2021. The demand for plant-based egg and dairy alternatives has increased in recent years across a variety of food types and applications. Several factors have contributed to the development, including sustainability, allergenicity, and consumer movements towards flexitarian diets. The opting of egg white substitutes is motivated by a number of variables, some of which are more important for customers and others of key significance to food producers.

Global Precision Fermentation Market, by End User

By end user, the market has been divided into food and beverage, pharmaceutical, cosmetic, and others. Among these, the food and beverage sub-segment is accounted a dominating market share in 2021.

Global Precision Fermentation Market Forecast, by End User, 2021

Source: Research Dive Analysis

The food and beverage sub-segment accounted a dominating market share in 2021. Fermented foods & beverages products have been associated with several favorable health effects, including improved digestive health, higher immunity, and greater nutritional availability.. Fermented substances may be found in a variety of foods and drinks, such as beer, bread, yoghurt, and cheese. Fermented amino acids, specially, are extensively utilized in food products, and different amino acids provide diverse flavors to the food products in which they are used. The increasing usage of fermented items in bakeries and dairy products is expected to increase global demand for fermented food and beverage products. With the advancement of microbiology and biotechnology, the demand for precision fermentation products has resulted in the rise of a new sector the food and beverage industry.

Global Precision Fermentation Market, Regional Insights

The precision fermentation market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Global Precision Fermentation Market Size & Forecast, by Region, 2021-2031 (USD Million)

Source: Research Dive Analysis

The Market for Precision Fermentation in North America was the Most Dominant

The North American precision fermentation market accounted a dominating market share. Increasing awareness of the health advantages of eating healthy and vegan food items, as well as an increase in the trend of weight control and veganism among regional consumers, are driving the growth of the North American precision fermentation market. Additionally, reduced meat consumption and the resultant increase in consumption of meat substitute products is assisting in market development. Furthermore, rising demand for protein products derived from precision fermentation processes for applications such as dairy alternatives, meet extenders, and meat analogues is driving expansion in this regional market.

Competitive Scenario in the Global Precision Fermentation Market

Investment and agreement are common strategies followed by major market players. For instance, in Dec-2021 HEMAMI, a plant-based protein, was launched by Motif Food Works. By precise fermentation, the new product aims to add a meaty fragrance as well as umami flavor to sausages, burgers, and other plant-based meat alternatives.

Source: Research Dive Analysis

Some of the leading precision fermentation market players are geltor inc., Imagindairy Ltd, Change Foods, Eden Brew, Impossible Foods Inc, Motif Foodworks, Inc, Nourish Ingredients, Shiru Inc, FUMI Ingredients, and Perfect Day Inc