Precision Fermentation Ingredients Market Analysis

Global Precision Fermentation Ingredients Market Overview

Precision Fermentation Ingredients Market Size was valued at USD 1.7 Billion in 2022. The Precision Fermentation Ingredients Market industry is projected to grow from USD 2.4 Billion in 2023 to USD 46.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 44.50% during the forecast period (2023 - 2032). Increasing consumer demand for sustainable alternatives and the growing adoption of plant-based diets are the key market drivers enhancing the market growth.

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

Precision Fermentation Ingredients Market Trends

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  Growing customer desire for sustainable and eco-friendly products is driving the market growth
  

The growing customer desire for sustainable and eco-friendly products is driving the market CAGR for Precision Fermentation Ingredients. People are exploring options that decrease resource usage and reduce greenhouse gas emissions as they become more cognizant of their environmental impact. Precision fermentation ingredients provide a solution by producing diverse compounds utilized in food, beverage, pharmaceutical, and cosmetic applications in a sustainable and efficient manner.

Precision fermentation is the practice of employing microbes to manufacture specified ingredients via regulated fermentation processes. This technology avoids the need for traditional agricultural practices like farming or animal-based extraction, which frequently necessitate vast amounts of land, water, and energy. Companies can lower their carbon footprint and contribute to a more sustainable future by using precision fermentation components. Furthermore, precision fermentation enables the creation of substances that would be difficult or expensive to get using standard methods. This creates potential for product development innovation, resulting in a broader choice of options for producers and consumers alike.

Growing awareness and use of plant-based and alternative protein sources is another driver of the Precision Fermentation Ingredients market. As more people choose vegetarian, vegan, and flexitarian lifestyles, the need for plant-based components that can match the flavour, texture, and nutritional profile of animal-based products is increasing. Precision fermentation provides a sustainable and scalable alternative to traditional agriculture and animal farming for the production of these substances. This driver is propelling the market ahead as food and beverage firms work to accommodate consumers' changing dietary preferences and produce innovative plant-based products. Manufacturers can use precision fermentation to generate a wide range of plant-based products that meet the growing demand for sustainable and cruelty-free alternatives, boosting market growth.

Precision Fermentation Ingredients Market Segment Insights

Precision Fermentation Ingredients By Microbe Insights

The Precision Fermentation Ingredients Market segmentation, based on Microbe include yeast, algae, fungi and bacteria. Bacteria account for the majority of the market due to their ability to optimize the growth and production of certain strains of yeast that are customized to diverse uses. Precision fermentation, for instance, can yield yeast strains specialized for beer production, resulting in a more consistent and high-quality output.

Figure1:Precision Fermentation Ingredients Market, by Microbe, 2022&2032(USD Billion)

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

Precision Fermentation Ingredients By Ingredients Insights

The Precision Fermentation Ingredients Market segmentation, based on Ingredients, includes whey & casein protein, egg white, collagen protein, heme protein, enzymes and others. Whey & casein protein account for the majority of the market. This is due to the fact that whey protein is a popular nutritional supplement among athletes, fitness enthusiasts, and anyone seeking to improve their health and fitness. It is high in essential amino acids and is believed to aid in muscle growth and repair. Precision fermentation allows for the synthesis of high-quality whey protein in a more sustainable and cost-effective manner than older approaches, fueling the precision fermentation market. Rising demand for dairy alternatives, health and nutrition, technological improvements, and increased regulatory backing are major driving factors for the growth of the precision fermentation market's whey and casein sector.

Precision Fermentation Ingredients By End-Use Insights

The Precision Fermentation Ingredients Market segmentation, based on Ingredients, includes food & beverage, pharmaceutical, cosmetics & others. The food and beverage category is the fastest expanding category in the Precision Fermentation Ingredients market. The food and beverage sector is combining precision fermentation components to generate new and eco-friendly products as customer demand for sustainable and plant-based alternatives grows. These components provide a variety of benefits, including better flavour, texture, and nutritional profiles, which is driving their acceptance in the food and beverage industry and contributing to the growth of the Precision Fermentation components market.

Precision Fermentation Ingredients By Food & Beverage Application Insights

The Precision Fermentation Ingredients Market segmentation, based on Food & Beverage Application, includes meat & seafood, dairy alternatives, egg alternatives and others. The meat & seafood section accounts for the majority of the market. Precision fermentation creates plant-based meat replacements, cultured meat, and seafood substitutes. These products have the potential to disrupt the traditional animal husbandry business while also meeting the increasing need for sustainable and healthful protein sources. As a result, demand for meat and seafood in the application category is increasing.

Precision Fermentation Ingredients Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America dominates the market, owing to the region's growing desire for sustainable and plant-based products. The market is separated into two parts: the United States and Canada, with the United States being the region's major market. Furthermore, there is a growing need in the region for plant-based meat replacements. Dairy substitutes are also fast expanding, owing to rising demand for cheese, plant-based milk, and other dairy products.

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

Figure2:PRECISION FERMENTATION INGREDIENTS MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe Precision Fermentation Ingredients Market accounts for the second-largest market share because there is a growing need for alternate and sustainable protein sources. The production of proteins without the use of industrial animal agriculture, which considerably increases greenhouse gas emissions and other environmental problems, is made possible in Europe by precision fermentation. Further, the German Precision Fermentation Ingredients Market held the largest market share, and the UK Precision Fermentation Ingredients Market was the fastest growing market in the European region

The Asia-Pacific Precision Fermentation Ingredients Market is expected to grow at the fastest CAGR from 2023 to 2032. This is a result of rising consumer demand for sustainable and ecologically friendly products, rising R&D spending, and expanding knowledge of the health benefits of plant-based diets. Moreover, China’s Precision Fermentation Ingredients Market held the largest market share, and the Indian Precision Fermentation Ingredients Market was the fastest growing market in the Asia-Pacific region.

Precision Fermentation Ingredients Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Precision Fermentation Ingredients Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Precision Fermentation Ingredientsindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Precision Fermentation Ingredients industry to benefit clients and increase the market sector. In recent years, the Precision Fermentation Ingredients industry has offered some of the most significant advantages to medicine. Major players in the Precision Fermentation Ingredients Market, including geltor inc., Imagindairy Ltd, Change Foods, Eden Brew, Impossible Foods Inc, Motif Foodworks, Inc, Nourish Ingredients, Shiru Inc, FUMI Ingredients, and Perfect Day Inc. and others, are attempting to increase market demand by investing in research and development operations.

Koninklijke DSM N.V. was a Dutch multinational firm that specialized in health care, nutrition, and materials. DSM, headquartered in Heerlen, employs 21,054 employees in about 50 countries at the end of 2017 and reported net revenues of €8.632 billion in 2018 and €9.204 billion in 2021. In May 2023, it combined with the Swiss business Firmenich to establish DSM-Firmenich.  In March 2021, DSM, a Dutch biotech business, has acquired Biomeva, a precision fermentation company specializing in the production of microbial-based components for the food and beverage industries.

BASF SE is a European multinational corporation and the world's largest chemical producer. The company's headquarters are in Ludwigshafen, Germany. BASF has subsidiaries and joint ventures in over 80 countries, with six integrated manufacturing facilities and 390 other manufacturing locations spread across Europe, the Americas, Asia, Australia, and Africa. BASF has customers in over 190 countries and serves a wide range of sectors. Despite its size and reach, BASF has gotten little public notice since it stopped manufacturing and selling BASF-branded consumer electronics items in the 1990s. In September 2020, BASF, a German chemical corporation, has purchased Isobionics, a precision fermentation company that specializes in manufacturing natural flavours and perfumes using microbes.

Key Companies in the Precision Fermentation Ingredients market include

• geltor inc.,


• Imagindairy Ltd


• Change Foods


• Eden Brew


• Impossible Foods Inc


• Motif Foodworks, Inc


• Nourish Ingredients


• Shiru Inc


• FUMI Ingredients


• Perfect Day Inc.

Precision Fermentation Ingredients Industry Developments

 February 2020, ADM, a worldwide nutrition and biosciences company, has introduced Protexin, a new range of plant-based proteins that uses precision fermentation to manufacture high-quality proteins for use in food and beverage products.

February 2021, Geltor, a biotech business based in the United States, has announced a collaboration with Shiseido, a Japanese cosmetics company, to develop and commercialize a line of sustainable and high-performance beauty products utilizing precision fermentation.

Precision Fermentation Ingredients Market Segmentation

Precision Fermentation Ingredients Market Microbe Outlook

• Yeast


• Algae


• Fungi


• Bacteria

Precision Fermentation Ingredients Market Ingredients Outlook

• Whey & Casein Protein


• Egg White


• Collagen Protein


• Heme Protein


• Enzymes


• Others

Precision Fermentation Ingredients Market End-Use Outlook

• Food & Beverage


• Pharmaceutical


• cosmetics


• Others

Precision Fermentation Ingredients Market Food & Beverage Application Outlook

• Meat & seafood


• Dairy alternatives


• Egg alternatives


• Others

Precision Fermentation Ingredients Regional Outlook

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  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
  
  
  
  

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