Fermentation Ingredients Market Analysis

Global Fermentation Ingredients Market Overview

The Fermentation Ingredients Market Size was USD 63.17 billion in 2023. The Fermentation Ingredients industry is projected to grow from USD 66.40 Billion in 2024 to USD 94.19 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.47% during the forecast period (2024 - 2032). The growing interest in fermented plant-based meals and beverages and rising healthcare are the key market drivers enhancing the fermentation ingredients' growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fermentation Ingredients Market Trends

• Growing demand for plant-based fermented foods and drinks and increased health consciousness drive market growth

More and more people, mostly members of Generation Z and millennials, are becoming health conscious. A particular demand for fermented foods and drinks has developed due to these customers' openness to experience novel flavors and textures, earning the beverage the moniker "new social trendsetter." According to the International Food Information Council's (IFICx) Food and Health Survey 2021, over 72% of Americans aim to reduce or limit their sugar intake, while 23% choose low/no-calorie sweeteners. Another important element propelling the market's revenue growth is the rising demand from people with diabetes to reduce their daily sugar intake. Thus, this factor is driving the Fermentation Ingredients market CAGR.

The industry is seeing revenue growth due to consumer desire for transparent and plant-based fermented foods and drinks. The expansion of the Fermentation Ingredients market's income is also being facilitated by many Research and Development (R&D) initiatives and financial expenditures. For instance, HealthFerm will examine how fermentation might produce novel, sustainable plant-based components starting September 1, 2022. The four-year initiative is jointly funded by the Swiss State Secretariat for Education, Research, and Innovation and the European Union's (E.U.) Horizon Europe Framework Programme for Research and Innovation. The event's planners believe it might significantly affect innovation in the plant-based economy.

A substantial part of the industry's revenue growth is also being contributed by several strategic efforts taken by major Fermentation Ingredients market players and the development of numerous startups. Companies are concentrating on research and development (R&D) efforts, working on new innovations for current product lines in response to shifting customer expectations, launching new products, establishing partnership agreements, and mergers and acquisitions, which are also significantly boosting market revenue growth. For instance, Arla Foods Ingredients introduced a whey-based solution on November 1, 2022, allowing the creation of fermented drinks that are clear and high in protein. Arla's new component purportedly provides innovative ways to infuse fermented beverages with a twist in response to the increased demand for ready-to-drink drinks. Thus, this aspect is anticipated to accelerate the Fermentation Ingredients market revenue globally.

Fermentation Ingredients Market Segment Insights

Fermentation Ingredients Type Insights

The Fermentation Ingredients market segmentation, based on type includes alcohol, amino acids, antibiotics & vitamins, polymers, industrial enzymes, organic acids and others. The amino acid segment dominated the market, accounting for 35% of the fermentation ingredients market revenue. Demand for amino acids is driven by the growing desire to enhance a food or beverage's color, texture, look, quality, and overall appearance to catch consumers' attention. enhanced microbiology and biotechnology research resulted in the development of enhanced fermented components due to the growing number of health-conscious people and the adoption of diets high in protein.

Fermentation Ingredients Form Insights

Based on Form, the Fermentation Ingredients market segmentation includes dry and liquid. The liquid category generated the most income. Preservatives are added to such preparations to protect them against deterioration and modification of the product composition. Mold control, yeast growth inhibition, and bacterial growth inhibition are the key areas where preservatives excel.

Figure 1: Fermentation Ingredients Market, by Form, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fermentation Ingredients Application Insights

Based on Application, the Fermentation Ingredients industry has been segmented into chemical, food & beverages, pharmaceutical, animal feed and others. Regarding product consumption, the food & beverage sector rules the market, accounting for more than 65.0% of worldwide sales in 2022. The two main elements influencing the segment's growth are the expanding population and the rising consumption of different ready-to-eat meals and beverages. The worldwide Fermentation Ingredients market share of the food and beverage sector is growing along with beer consumption.

Fermentation Ingredients Feedstock Insights

Based on Feedstock, the Fermentation Ingredients industry has been segmented into sugar beet, wheat, corn and other. Sugar beet held the largest segment share in 2022. The Feedstock for the manufacturing of biofuel is sugar beetroot. With less rainfall and a moderate environment, sugar beetroot can provide a yield of 20–25 tonnes per acre. Compared to sugar cane, sugar beetroot requires a higher chemical and energy input, making ethanol manufacturing more costly. For instance, Fishman and colleagues recently discussed how sugarbeet pulp might be used to produce polysaccharides and carboxyl methyl cellulose for industrial use. Sugar beets may become a feedstock for a variety of chemicals and novel biomass-derived specialty materials as modern economies transition away from or lessen their reliance on oil.

Fermentation Ingredients Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America Fermentation Ingredients market accounted for USD 27.52 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Consumption of organic and healthy ingredients is rising in North America due to consumers' increased attention to leading healthier lives and the rising prevalence of diabetes and obesity. For instance, 34.1 million persons in the United States, or 13% of all adults, have diabetes, according to the National Diabetes Statistics Report. Significant market players in this area are anticipated to fuel revenue growth. The need for enzymes and starting cultures is also driven by the growing brewing sector and the prevalence of complicated medical procedures, encouraging market expansion.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FERMENTATION INGREDIENTS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

In 2022, Europe Fermentation Ingredients market led the market share, accounting for 22% of total revenue. During the projected period, Europe is anticipated to have considerable growth. France is the fastest-growing market in Europe and a significant contributor to market growth. The high consumption of cheese, yogurt, and alcohol in Europe is a major driver of the market's expansion. The U.K. is essential in driving the demand for products in the local market. Further, the Germany Fermentation Ingredients market held the largest market share, and the U.K. Fermentation Ingredients market was the fastest-growing market in the European Region.

Asia Pacific Fermentation Ingredients market is predicted to increase at the quickest rate, with a CAGR of 18.5% over the projected period. The main drivers of market expansion include the rising population in nations like China and India, westernization, rising per capita income, and increased awareness among young people of the health advantages of fermented foods. More than 34.0% of the world's population resides in China and India, which benefits regional market expansion. Moreover, the China Fermentation Ingredients market held the largest market share, and the India Fermentation Ingredients market was the fastest-growing market in the Asia-Pacific region.

Fermentation Ingredients Key Market Players & Competitive Insights

Leading industry companies are making significant R&D investments to broaden their product offerings, which will spur further expansion of the market for Fermentation Ingredients products. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Fermentation Ingredients industry must offer products at reasonable prices to grow and thrive in a more cutthroat and competitive environment.

One of the primary business strategies manufacturers employ in the worldwide Fermentation Ingredients industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Fermentation Ingredients industry has recently provided some of medicine's most important benefits. Major Fermentation Ingredients market players include Archer-Daniels-Midland Co., The Dow Chemical Co, Cargill Incorporated, E.I. du Pont de Nemours & Co., Evonik Industries AG, Novozymes A/S, Uquifa, and others, attempting to increase market demand by investing in research and development operations.

A nutrition and wellness enterprise called Superbrewed Food is dedicated to the creation of all-natural products made using a fermentation platform. Superbrewed Food unveiled its special microbe-based protein on March 29, 2021. This protein can be utilized to create a variety of animal-free foods with previously unheard-of levels of affordability and nutrition. Superbrewed Food is well-positioned to be a leader in the field thanks to its choice of the most nutrient-dense and cost-effective protein on the market since fermentation-derived proteins have become the most lucrative new market for high-quality animal-free meat and dairy products.

Irish-based Kerry Group plc is a publicly traded food business. It is traded on the London Stock Exchange and the Dublin ISEQ. Given the company's roots in the cooperative movement, its farmer suppliers still own a sizable stake in the business. Kerry Group, an Irish taste and nutrition firm, purchased c-LEcta GmbH in February 2022 for €137 million ($226 million). By acquiring Kerry's, innovative fermentation, bioprocess development, and enzyme engineering capabilities are accelerated. Through the agreement, Kerry Group will have access to the whole precision fermentation portfolio of c-LEcta GmbH for the production of high-value tailored enzymes and components. Germany-based biotechnology business c-LEcta GmbH.

Key Companies in the Fermentation Ingredients market include

• Archer-Daniels-Midland Co.


• The Dow Chemical Co


• Cargill Incorporated


• E.I. du Pont de Nemours & Co.


• Evonik Industries AG


• Novozymes A/S


• Uquifa

Fermentation Ingredients Industry Developments

• February 2024- Swiss multinational Nestlé SA has entered its first precision fermentation dairy protein powder, lactose-free and an animal-free whey isolate product dubbed Better Whey under the Orgain brand, which it attained a majority stake in back in early 2022 to reinforce its foothold in the functional nutrition space. The limited edition product was disclosed in a social media postby the organization's Research & Development team, which built its R&D Center for Nestlé Health Science in collaboration with Orgain. The product comprises a precision fermented whey ingredient that is bio-identical to whey protein, lactose-free, and simpler to digest. Consumers can order Orgain's Better Whey on the firm's website, and a Nestlé spokesperson told Green Queen there will be a small in-store local test in the US, though the organization has no further details to share at this stage. It is priced at USD 29.99 for a 13.3-ounce tub, nearly USD 2.3 per ounce. The brand's plant-based whey, which has the same quantity of protein per portion, costs around USD1.2 per ounce, almost half of the fermented whey version. Its grass-fed & pasture-raised whey protein powder, whose items are about the same as the Better Whey product and which also encompasses 21 grams of protein per portion, costs about USD1.4 per ounce. The whey appears in a Creamy Chocolate Fudge flavor. Other ingredients include organic guar gum, alkalized cocoa, and Orgain's organic creamer base, which is made with sunflower lecithin, acacia, and sunflower oil. As per Statista, the global whey protein market was worth USD19.6 billion as of 2022, and pundits think the sector will continue to expand as health-forward consumers in geographies like Asia-Pacific boost demand for personal nutrition products.

• December 2022: Fabea+, a fermented fava bean, is a novel ingredient created by Nordic food inventor Foodiq. The business asserted that this fermented component was more nutritious, sustainable, and marketable than other plant proteins like soy, peas, and oats.


• November 2022: Lacprodan Hydro.365 and Nutrilac FO-8571, which may be used as a substitute for protein in high-protein fermented drinks, are two of Arla Food Ingredients' whey-based products.


• July 2022: A fermented turmeric ingredient with antibacterial capabilities and bioactive components including postbiotics and probiotics, was introduced by Cellevant. The component is used in Food and nutraceuticals and is certified organic by the European Union.

Fermentation Ingredients Market Segmentation

Fermentation Ingredients Type Outlook

• Alcohol


• Amino acid


• Antibiotics & Vitamins


• Polymer


• Industrial Enzymes


• Organic acid


• Others

Fermentation Ingredients Form Outlook

• Dry


• Liquid

Fermentation Ingredients Application Outlook

• Chemical


• Food & beverages


• Pharmaceutical


• Animal Feed


• Others

Fermentation Ingredients feedstock Outlook

• Sugar beet


• Wheat


• Corn


• Other

Fermentation Ingredients Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America