Fermentation Ingredients Market Trends

ID: MRFR/FnB/1564-CR

200 Pages

Snehal Singh

July 2025

Fermentation Ingredients Market Size, Share, Industry Trend & Analysis Research Report By Application (Food Beverages, Pharmaceuticals, Animal Feed, Biofuels), By Type (Yeast, Bacterial Cultures, Enzymes, Acids), By Source (Natural, Synthetic), By Form (Liquid, Powder, Granular), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)-Forecast to 2035

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Market Trends

Key Emerging Trends in the Fermentation Ingredients Market

The fermentation ingredients sector is currently being driven by various factors such as evolving consumer preferences towards this method of food processing; technological advancements; and markets opening up across various sectors. An example of such development is increased demand for natural or clean label fermented inputs used in making beverages and foods like fruit purees/bases/concentrates etc. This makes it an issue because customers are getting more aware about what they eat hence going for naturally obtained fermented materials from fruits, vegetables, cereal grains among others.

Additionally, people have become interested in fermented foods due to health reasons coupled with unique tastes that come along with them. For centuries this traditional preservation process has been used on different kinds of foods including yogurt cheese sauerkraut kimchi kombucha sourdough breads etc. Further awareness about gut health maintenance including the use of microbiome has led to a rise in demand for fermented products, which can provide probiotics and other beneficial microorganisms.

The increasing level of use of fermentation technology in multiple sectors such as drug manufacturing, nutraceuticals, cosmetics and bio-fuels is another notable trend in the market for fermentation ingredients. Microbial fermentation is an efficient way to produce many different types of valuable substances including bioactive molecules, vitamins and enzymes among others. Because of advancements in biotechnology and fermentation science, fermentation has become a preferred choice as a more environmentally friendly alternative to conventional chemical synthesis methods.

Besides that there have been several trends observed in the market since COVID-19 that have its impact on it. Consequently, the pandemic led to disruptions in supply chains consumer behavior changes as well as economic uncertainties that led to an increase in demand for fermentation inputs into essential goods such as foodstuffs including medicines or personal care items. At the same time food security and safety with good shelf stability are some of the attributes driving preference for using functional fermented inputs offering properties like preservation enhancement of taste texture among others when making various types of foods.

Market Highlights

Author

Snehal Singh

Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Fermentation Ingredients Market?

As of 2024, the Fermentation Ingredients Market was valued at 66.4 USD Billion.

What is the projected market size for the Fermentation Ingredients Market by 2035?

The market is expected to reach a valuation of 107.44 USD Billion by 2035.

What is the expected CAGR for the Fermentation Ingredients Market during the forecast period?

The anticipated CAGR for the Fermentation Ingredients Market from 2025 to 2035 is 4.47%.

Which application segments are driving growth in the Fermentation Ingredients Market?

The Food & Beverages segment, valued at 40.0 USD Billion in 2024, is a key driver, alongside Pharmaceuticals and Biofuels.

What types of fermentation ingredients are most prevalent in the market?

Yeast, with a valuation of 32.0 USD Billion in 2024, and Enzymes, valued at 28.0 USD Billion, are among the most prevalent types.

How does the source of fermentation ingredients impact market dynamics?

Natural fermentation ingredients, valued at 64.0 USD Billion in 2024, significantly influence market dynamics compared to synthetic sources.

What forms of fermentation ingredients are currently available in the market?

Liquid forms, valued at 48.0 USD Billion in 2024, dominate the market, followed by Powder and Granular forms.

Who are the key players in the Fermentation Ingredients Market?

Prominent players include BASF SE, DuPont de Nemours Inc, and Cargill Inc, among others.

What is the growth outlook for the Animal Feed segment in the Fermentation Ingredients Market?

The Animal Feed segment, valued at 15.0 USD Billion in 2024, is expected to grow steadily during the forecast period.

How do bacterial cultures contribute to the Fermentation Ingredients Market?

Bacterial cultures, valued at 25.0 USD Billion in 2024, play a crucial role in various applications, enhancing market growth.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per Market Research Future analysis, the Fermentation Ingredients Market was estimated at 66.4 USD Billion in 2024. The fermentation ingredients industry is projected to grow from 69.37 USD Billion in 2025 to 107.44 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4.47% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Fermentation Ingredients Market is experiencing robust growth driven by health trends and technological advancements.

The market is witnessing a rising demand for natural ingredients, particularly in North America, which remains the largest market. Technological innovations in fermentation are enhancing production efficiency and product quality across various sectors. The expansion of plant-based fermentation is particularly notable in the Asia-Pacific region, which is the fastest-growing market. Key drivers include growing health consciousness and sustainability concerns, significantly impacting the food and beverage sector.

Fermentation Ingredients Market

CAGR

4.47%

Market Size & Forecast

2024 Market Size	66.4 (USD Billion)
2035 Market Size	107.44 (USD Billion)
CAGR (2025 - 2035)	4.47%
Largest Regional Market Share in 2024	North America

Major Players

BASF SE (DE), DuPont de Nemours Inc (US), <a href="https://www.cargill.co.in/">Cargill Inc (US)</a>, Evonik Industries AG (DE), DSM Nutritional Products (CH), Kerry Group plc (IE), Archer Daniels Midland Company (US), Novozymes A/S (DK)

Market Trends

The Fermentation Ingredients Market is currently experiencing a dynamic evolution, driven by a growing consumer preference for natural and organic products. This shift is largely influenced by increasing awareness regarding health benefits associated with fermented foods and beverages. As consumers become more health-conscious, the demand for fermentation ingredients, such as probiotics, enzymes, and organic acids, appears to be on the rise. Additionally, the food and beverage industry is increasingly incorporating these ingredients to enhance flavor, texture, and nutritional value, thereby expanding their applications beyond traditional uses. Moreover, the Fermentation Ingredients Market is likely to witness advancements in technology that facilitate more efficient production processes. Innovations in fermentation techniques may lead to improved yields and reduced costs, making these ingredients more accessible to manufacturers. Furthermore, the growing trend of plant-based diets is expected to bolster the demand for fermentation ingredients derived from non-animal sources. This evolving landscape suggests that the market will continue to adapt to changing consumer preferences and technological advancements, positioning itself for sustained growth in the foreseeable future.

Rising Demand for Natural Ingredients

There is an observable trend towards the use of natural fermentation ingredients as consumers increasingly seek healthier alternatives. This inclination is prompting manufacturers to explore organic sources and traditional fermentation methods, which are perceived as more wholesome.

Technological Innovations in Fermentation

Advancements in fermentation technology are reshaping the Fermentation Ingredients Market. New methodologies and equipment are enhancing production efficiency, allowing for the development of novel ingredients that meet diverse consumer needs.

Expansion of Plant-Based Fermentation

The growing popularity of plant-based diets is influencing the Fermentation Ingredients Market. Ingredients derived from plants are gaining traction, as they align with consumer preferences for sustainable and ethical food choices.

Fermentation Ingredients Market Market Drivers

Growing Health Consciousness

The increasing awareness of health and wellness among consumers appears to be a pivotal driver for the Fermentation Ingredients Market. As individuals become more health-conscious, there is a notable shift towards natural and organic products. This trend is reflected in the rising demand for fermented foods, which are often perceived as healthier alternatives due to their probiotic content. According to recent data, the market for fermented foods is projected to grow at a compound annual growth rate of approximately 8% over the next five years. This growth is likely to be fueled by the increasing popularity of gut health, as consumers seek products that promote digestive wellness. Consequently, manufacturers in the Fermentation Ingredients Market are focusing on developing innovative fermentation processes to cater to this health-driven demand.

Rising Popularity of Plant-Based Products

The surge in plant-based diets is significantly influencing the Fermentation Ingredients Market. As more consumers adopt vegetarian and vegan lifestyles, the demand for plant-based fermentation ingredients is on the rise. This trend is driven by a combination of health benefits associated with plant-based diets and ethical considerations regarding animal welfare. Data suggests that the plant-based food market is projected to grow at a rate of 10% annually, which is likely to bolster the demand for fermentation ingredients derived from plant sources. Manufacturers are responding to this trend by developing innovative plant-based fermentation products, which not only cater to the dietary preferences of consumers but also align with broader sustainability goals. This shift towards plant-based fermentation is expected to reshape the landscape of the Fermentation Ingredients Market.

Sustainability and Environmental Concerns

Sustainability has emerged as a critical factor influencing consumer choices, thereby impacting the Fermentation Ingredients Market. As environmental concerns escalate, consumers are increasingly favoring products that are produced through sustainable practices. Fermentation processes often utilize renewable resources, which can reduce waste and lower carbon footprints. This shift towards sustainability is prompting companies to adopt eco-friendly fermentation methods, which not only appeal to environmentally conscious consumers but also align with regulatory trends favoring sustainable production. The market for sustainable fermentation ingredients is expected to witness substantial growth, as businesses strive to meet the demands of a more eco-aware consumer base. This trend indicates a potential for innovation in the Fermentation Ingredients Market, as companies explore new ways to enhance sustainability in their production processes.

Technological Advancements in Fermentation

Technological advancements are playing a crucial role in shaping the Fermentation Ingredients Market. Innovations in fermentation technology, such as precision fermentation and bioprocess optimization, are enhancing the efficiency and quality of fermentation processes. These advancements enable manufacturers to produce high-quality fermentation ingredients at a lower cost, thereby increasing competitiveness in the market. Furthermore, the integration of artificial intelligence and machine learning in fermentation processes is likely to streamline production and improve yield. As a result, the Fermentation Ingredients Market is expected to benefit from reduced production times and enhanced product consistency. This technological evolution not only meets the growing demand for diverse fermentation products but also positions companies to respond more effectively to market trends.

Increased Application in Food and Beverage Sector

The food and beverage sector continues to be a dominant force driving the Fermentation Ingredients Market. The versatility of fermentation ingredients allows for their application in a wide range of products, from dairy alternatives to alcoholic beverages. As consumer preferences evolve, there is a growing interest in unique flavors and health benefits associated with fermented products. Recent market analysis indicates that the food and beverage segment accounts for over 60% of the total demand for fermentation ingredients. This trend is likely to persist as manufacturers innovate to create new products that appeal to diverse consumer tastes. Additionally, the rise of craft beverages and artisanal foods is expected to further propel the demand for fermentation ingredients, as consumers seek authentic and high-quality options in their food and drink choices.

Market Segment Insights

By Application: Food Beverages (Largest) vs. Pharmaceuticals (Fastest-Growing)

The Fermentation Ingredients Market exhibits a diverse landscape with applications predominantly in Food Beverages, Pharmaceuticals, Animal Feed, and Biofuels. Among these, the <a href="https://www.marketresearchfuture.com/reports/food-and-beverages-global-market-32019">Food Beverages</a> segment holds the largest share, driven by the increasing consumer preference for fermented drinks like kombucha and craft beers. Conversely, the Pharmaceuticals sector is rapidly gaining traction as bio-based therapies and probiotics become prevalent, leading to a notable uptick in its demand and market participation.

Food Beverages (Dominant) vs. Pharmaceuticals (Emerging)

The Food Beverages segment remains dominant in the Fermentation Ingredients Market, leveraging its wide-ranging appeal and established consumer base. With trends favoring health and wellness, this segment incorporates a vast array of ingredients that enhance flavor and functional benefits in beverages. In contrast, the Pharmaceuticals sector is emerging strongly, spurred by innovations in biotech and the rising awareness of gut health. This segment focuses on integrating fermentation processes to produce high-demand ingredients for health supplements, highlighting the pivotal role of fermentation in developing next-generation pharmaceuticals.

By Type: Yeast (Largest) vs. Bacterial Cultures (Fastest-Growing)

In the Fermentation Ingredients Market, the type segment showcases yeast as the predominant player, commanding a significant market share. This segment is mainly driven by the rising demand for yeast in various applications including food and beverage, nutrition, and pharmaceuticals. On the other hand, bacterial cultures are emerging rapidly, attributed to their increasing utilization in <a href="https://www.marketresearchfuture.com/reports/dairy-market-11483">dairy </a>products and probiotic formulations. The growth of functional foods is further propelling the need for efficient fermentation processes, thus expanding the bacterial cultures segment.

Yeast (Dominant) vs. Bacterial Cultures (Emerging)

Yeast remains a dominant ingredient in the fermentation market due to its extensive application in bread, <a href="https://www.marketresearchfuture.com/reports/beer-market-1647" target="_blank">beer</a>, and wine production. It is favored for its ability to enhance flavor, texture, and nutritional value of food products. Meanwhile, bacterial cultures are gaining traction as an emerging segment, particularly with the growing interest in gut health and probiotics. These cultures are instrumental in producing yogurt, <a href="https://www.marketresearchfuture.com/reports/cheese-market-2213" target="_blank">cheese</a>, and other fermented products that offer health benefits. Together, they illustrate a dynamic interplay in the fermentation ingredients landscape as consumers lean toward both traditional and health-oriented options.

By Source: Natural (Largest) vs. Synthetic (Fastest-Growing)

In the Fermentation Ingredients Market, the source segment is primarily dominated by natural ingredients, which command a significant share due to their increasing demand in health-oriented products. Natural fermentation ingredients are favored by consumers for their perceived benefits, such as organic health claims and sustainability. In contrast, synthetic ingredients, although currently smaller in market share, are quickly gaining traction as manufacturers seek cost-effective solutions and scalability in production.

Source: Natural (Dominant) vs. Synthetic (Emerging)

Natural fermentation ingredients are revered in the market for their authenticity and alignment with consumer preferences for clean-label products. They are primarily derived from naturally sourced raw materials, catering to health-conscious consumers and trends toward organic products. On the other hand, synthetic fermentation ingredients are emerging rapidly, driven by advancements in technology and the need for efficient production methods. While natural ingredients remain the dominant choice, synthetic alternatives are being increasingly integrated within the industry due to their consistency, cost-effectiveness, and ability to meet large-scale demands.

By Form: Liquid (Largest) vs. Powder (Fastest-Growing)

In the Fermentation Ingredients Market, the segment distribution reveals that Liquid forms dominate the landscape, appealing to various applications due to their ease of use and superior solubility. The prevalence of Liquid fermentation ingredients is attributed to their versatility in numerous end-use industries, including food, beverages, and pharmaceuticals, where seamless implementation is crucial for production efficiency. Conversely, the Powder segment is steadily gaining traction, marking its position as the fastest-growing area, driven by increasing consumer preferences for convenience and storage stability. Growth trends for the Form segment indicate a noticeable shift towards Powder fermentation ingredients, as they cater to the rising demand for ready-to-use products in home brewing and food manufacturing processes. Additionally, advancements in production technologies and the expansion of distribution networks have further fueled this demand, allowing manufacturers to reach a broader customer base seeking innovative and diverse fermentation solutions.

Liquid (Dominant) vs. Powder (Emerging)

Liquid fermentation ingredients have established themselves as the dominant form in the market, mainly due to their dynamic applicability across various industries. Their liquidity enhances mixing abilities and allows for efficient transportation within manufacturing systems. In contrast, Powder fermentation ingredients, recognized as an emerging category, offer significant advantages in terms of storage and shelf life. This form is increasingly favored by manufacturers seeking to optimize their processes and reduce operational costs. The growth in the Powder segment is indicative of a broader trend towards convenient, user-friendly fermentation products that align with consumer lifestyles, which demand flexibility and efficiency. As a result, while Liquid remains the go-to choice, Powder is swiftly carving out its own niche.

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Regional Insights

North America : Innovation and Demand Surge

North America is the largest market for fermentation ingredients, holding approximately 40% of the global share. The region's growth is driven by increasing consumer demand for natural and organic products, alongside stringent regulations promoting sustainable practices. The rise in health-conscious consumers and the expansion of the food and beverage sector are significant catalysts for market growth. The United States is the dominant player, with key companies like DuPont and Cargill leading the charge. Canada also contributes significantly, focusing on innovative fermentation technologies. The competitive landscape is characterized by a mix of established players and emerging startups, all vying for market share in this rapidly evolving sector.

Europe : Sustainability and Innovation Focus

Europe is the second-largest market for fermentation ingredients, accounting for around 30% of the global market share. The region's growth is fueled by a strong emphasis on sustainability and innovation, with regulations encouraging the use of bio-based ingredients. The European Green Deal and various national policies are pivotal in shaping market dynamics, promoting eco-friendly practices across industries. Germany and France are the leading countries in this market, with significant contributions from companies like BASF and Evonik. The competitive landscape is robust, featuring a mix of multinational corporations and local firms. The presence of research institutions further enhances innovation, driving the development of new fermentation technologies and applications.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is witnessing rapid growth in the fermentation ingredients market, holding approximately 20% of the global share. The region's expansion is driven by increasing urbanization, rising disposable incomes, and a growing preference for processed foods. Countries like China and India are at the forefront, with significant investments in food and beverage sectors, further propelling market demand. China is the largest market in the region, supported by local giants like Novozymes and DSM. India is also emerging as a key player, with a focus on innovative fermentation processes. The competitive landscape is evolving, with both domestic and international companies striving to capture market share in this burgeoning sector, driven by consumer trends and technological advancements.

Middle East and Africa : Untapped Market Opportunities

The Middle East and Africa region is gradually emerging in the fermentation ingredients market, holding about 10% of the global share. The growth is primarily driven by diversification in food production and increasing investments in biotechnology. Countries like South Africa and the UAE are focusing on enhancing their food security through innovative fermentation technologies, which are gaining traction in various sectors. South Africa leads the market in the region, with a growing number of local players entering the fermentation space. The competitive landscape is characterized by a mix of established companies and new entrants, all aiming to leverage the region's untapped potential. As awareness of fermentation benefits increases, the market is expected to expand significantly in the coming years.

Key Players and Competitive Insights

The Fermentation Ingredients Market is currently characterized by a dynamic competitive landscape, driven by increasing consumer demand for natural and sustainable products. Key players are actively engaging in innovation and strategic partnerships to enhance their market positioning. Companies such as BASF SE (DE), DuPont de Nemours Inc (US), and Novozymes A/S (DK) are at the forefront, focusing on developing advanced fermentation technologies and expanding their product portfolios. Their collective strategies not only foster competition but also contribute to the overall growth of the market, as they seek to meet the evolving needs of various industries, including food and beverage, pharmaceuticals, and biofuels.In terms of business tactics, companies are increasingly localizing manufacturing to reduce supply chain vulnerabilities and enhance responsiveness to regional market demands. The competitive structure of the market appears moderately fragmented, with several players vying for market share. However, the influence of major companies like Cargill Inc (US) and DSM Nutritional Products (CH) is substantial, as they leverage their extensive distribution networks and technological capabilities to maintain a competitive edge.

In September DuPont de Nemours Inc (US) announced a strategic partnership with a leading biotechnology firm to co-develop next-generation fermentation processes aimed at producing sustainable ingredients for the food industry. This collaboration is likely to enhance DuPont's innovation capabilities and strengthen its position in the market, as it aligns with the growing consumer preference for environmentally friendly products.

In August Novozymes A/S (DK) launched a new line of enzymes specifically designed for plant-based protein fermentation. This initiative not only reflects Novozymes' commitment to sustainability but also positions the company to capitalize on the burgeoning plant-based food sector. The introduction of these enzymes could potentially revolutionize the production processes for plant-based products, thereby increasing efficiency and reducing costs.

In July BASF SE (DE) expanded its fermentation ingredient offerings by acquiring a small biotech firm specializing in microbial fermentation technologies. This acquisition is indicative of BASF's strategy to enhance its technological capabilities and diversify its product range, which may lead to increased market share and improved competitive positioning.

As of October the Fermentation Ingredients Market is witnessing significant trends such as digitalization, sustainability, and the integration of artificial intelligence in production processes. Strategic alliances are becoming increasingly important, as companies recognize the value of collaboration in driving innovation and efficiency. Looking ahead, competitive differentiation is expected to evolve, with a shift from traditional price-based competition towards a focus on innovation, technological advancements, and supply chain reliability. This transition may redefine the competitive landscape, compelling companies to invest in research and development to stay ahead.

Key Companies in the Fermentation Ingredients Market include

Industry Developments

China's Ministry of Agriculture and Rural Affairs approved Calysta's FeedKind® single-cell protein for use in aquaculture feeds in January 2024, allowing its Chongqing factory to provide sustainable protein for shrimp and fish farming.

Just over a year after its establishment, Fonterra and DSM's joint company Vivici declared in February 2024 that it could provide the U.S. market with animal-free whey protein produced by fermentation. Nestlé expanded its functional nutrition portfolio in February 2024 by launching Better Whey, a lactose- and animal-free whey protein powder under the Orgain brand.

Chr. Hansen Holding A/S introduced a next-generation probiotic strain in March 2024 with the goal of improving immunological and intestinal health, in line with the rising demand from consumers for functional foods and supplements.

Ajinomoto increased its capacity to produce amino acids by fermentation in April 2024 in response to growing demand in the biopharma, sports nutrition, and food fortification industries. Lesaffre introduced a new yeast-based bioactive component in June 2024 that is intended for use in plant-based food applications and is intended to enhance the nutritional profiles and texture of substitute protein products.

As part of a larger industry trend toward sustainability and efficiency, Ferm Solutions and Cargill forged a strategic alliance in July 2023 to enhance fermentation processes. Lesaffre and DSM-Firmenich teamed together in February 2024 to integrate yeast-extract processing technology, opening the door to new fermentation-based and savory product developments.

Future Outlook

Fermentation Ingredients Market Future Outlook

The Fermentation Ingredients Market is projected to grow at a 4.47% CAGR from 2025 to 2035, driven by increasing demand for natural ingredients and sustainable production methods.

New opportunities lie in:

Expansion into plant-based fermentation products</p><p>Development of customized fermentation solutions for niche markets</p><p>Investment in advanced fermentation technologies for efficiency gains

By 2035, the market is expected to be robust, reflecting strong growth and innovation.

Market Segmentation

Fermentation Ingredients Market Form Outlook

Liquid
Powder
Granular

Fermentation Ingredients Market Type Outlook

Yeast
Bacterial Cultures
Enzymes
Acids

Fermentation Ingredients Market Source Outlook

Natural
Synthetic

Fermentation Ingredients Market Application Outlook

Food Beverages
Pharmaceuticals
Animal Feed
Biofuels

Report Scope

MARKET SIZE 2024	66.4(USD Billion)
MARKET SIZE 2025	69.37(USD Billion)
MARKET SIZE 2035	107.44(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.47% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	BASF SE (DE), DuPont de Nemours Inc (US), Cargill Inc (US), Evonik Industries AG (DE), DSM Nutritional Products (CH), Kerry Group plc (IE), Archer Daniels Midland Company (US), Novozymes A/S (DK)
Segments Covered	Application, Type, Source, Form, Regional
Key Market Opportunities	Growing demand for plant-based proteins drives innovation in the Fermentation Ingredients Market.
Key Market Dynamics	Rising demand for plant-based products drives innovation in fermentation ingredients and enhances competitive market dynamics.
Countries Covered	North America, Europe, APAC, South America, MEA