Precision Fermentation Market Size, Share, Trends, Growth 2032

Precision Fermentation Industry Prospective:

The global precision fermentation market size was worth around USD 3.95 billion in 2023 and is predicted to grow to around USD 106.56 billion by 2032 with a compound annual growth rate (CAGR) of roughly 44.20% between 2024 and 2032.

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Precision Fermentation Market: Overview

Precision fermentation is a commonly used biotechnology process with specific applications in the pharmaceutical and food & beverages industries. It deals with using microbial hosts to produce a wide range of end-products. Precision fermentation is also known as microbial and bacterial fermentation. The key difference between traditional fermentation and precision fermentation is that the latter deals with using microorganisms to produce specific end products. It is a more advanced process than traditional fermentation where living organisms are used for converting organic chemicals derived from feedstock into more usable components.

In the precision fermentation process, certain enzymes are used to produce large volumes of biomass. This step is followed by extensive multiplication of microbes bred in smaller factories. Once the target product is recovered, it is refined to produce a more functional solution upon reaching the critical mass. The production of chymosin is a widely known application of precision fermentation. Chymosin is used for producing cheese.

Similarly, the growing end-user application of precision fermentation is expected to drive market demand rate in the coming years. Concerns over product safety and quality produced using precision fermentation may impact the precision fermentation industry’s overall revenue rate.

Key Insights:

• As per the analysis shared by our research analyst, the global precision fermentation market is estimated to grow annually at a CAGR of around 44.20% over the forecast period (2024-2032)
• In terms of revenue, the global precision fermentation market size was valued at around USD 3.95 billion in 2023 and is projected to reach USD 106.56 billion by 2032.
• The precision fermentation market is projected to grow at a significant rate due to the rising demand for sustainable protein alternatives.
• Based on ingredients, the whey & casein proteins segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on microbe, the yeast segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Precision Fermentation Market: Growth Drivers

Rising demand for sustainable protein alternatives to drive market demand rate

The global precision fermentation market is expected to grow due to the rising demand for sustainable protein solutions. According to market analysis, protein is an essential part of the human diet required for optimal nutrition. However, the majority of protein-rich elements of human food are derived from animals. This is especially true for food components that provide maximum and clean protein.

In addition to this, several types of plant-based sources are also popular as protein providers. For instance, soy-based and legume products are excellent sources of plant-based proteins. Additionally, food products such as eggs, fish, and chicken are popular among the general population as animal-based proteins. However, recent studies indicate the negative effect of the animal and plant-based protein industry on the environment.

For instance, the global meat industry is one of the largest environmental pollutants caused by the extensive release of greenhouse gasses. In addition to this, the meat sector is also associated with animal cruelty. According to official estimates, more than 200 million chickens are killed worldwide every day to meet the food requirements of humans. The growing consumer awareness regarding the impact of the animal and plant-based protein industry on the ecological system has created a demand for more sustainable alternatives. Precision fermentation is used extensively to produce proteins that are neither derived from animals nor plants.

Increasing consumption of cheese worldwide to generate new growth possibilities for industry leaders

One of the major applications of precision fermentation is in the production of cheese which is an essential component of the global food & beverages sector. According to market research, an average US citizen will consume over 40 pounds of cheese in 2022. Europe is a leading producer and consumer of cheese-based products. The growing focus of regional governments to amplify cheese production worldwide will be further essential for the growth rate in the global precision fermentation market.

In December 2024, leading cheese and dairy-producing companies Vache Bleue and FFP announced their collaboration to form the  European Dairy Company, thus strengthening their presence in the cheese production sector. Furthermore, factors such as rapid urbanization, changes in consumer lifestyle, and growing global & regional tourism will instigate greater demand for cheese.

Precision Fermentation Market: Restraints

High cost of technology development and application will limit the industry’s expansion rate

The global industry for precision fermentation is expected to be restricted by the high cost of technology development and further application. Precision fermentation is a more advanced version of traditional fermentation. In large-scale settings, the scaling of genetically modified organisms with specific applications can be resource-intensive. Furthermore, the infrastructure required to support precision fermentation applications can lead to additional costs. In addition, the growing number of groups against using genetically modified organisms in medicines and food products can lead to restricted expansion in the industry.

Precision Fermentation Market: Opportunities

Ongoing applications in the pharmaceutical sector to provide expansion opportunities to industry players

The global precision fermentation market is projected to generate growth opportunities due to the rising applications of the technology in the pharmaceutical sector. Precision fermentation has been widely used in the production of therapeutic proteins, vaccine-related research, and drug innovation or production.

For instance, according to market analysis, precision fermentation has shown promising results in the production of insulin, which is used to treat patients with diabetes and other forms of blood sugar-level-related medical conditions such as pancreatic conditions and hyperglycemia. The surging investments in the development of more robust and high-functioning drug manufacturing and vaccine development sectors are projected to create opportunities for precision fermentation technology producers. New-age technologies such as Artificial Intelligence (AI), metabolic engineering, high-throughput screening, gene editing, digital twin technology, and 3D bioprinting are expected to play a crucial role in shaping the industry demand rate.

Precision Fermentation Market: Challenges

Regulatory hurdles and popularity of alternate technologies to challenge market expansion

The global precision fermentation industry is expected to be challenged by the presence of a highly complex regulatory environment surrounding the development and application of bacterial fermentation. In addition, alternate technologies, including traditional fermentation processes, are expected to dilute the industry’s final revenue during the forecast period.

Furthermore, supply chain limitations and ethical concerns over the use of microorganisms for producing food products could further limit the final revenue in the industry.

Precision Fermentation Market: Report Scope

Precision Fermentation Market: Segmentation

The global precision fermentation market is segmented based on ingredients, application, microbe, and region.

Based on the ingredients, the global market segments are enzymes, heme proteins, whey & casein proteins, collagen proteins, egg white, and others. In 2023, the highest growth was listed in the whey & casein proteins segment. It dominated nearly 40.01% of the final market share. Whey and casein proteins are derived from milk. Whey, for instance, is superior quality and widely popular among the general population. In addition to this, it is one of the common proteins required for producing cheese, further driving the segment’s overall popularity.

Based on application, the global precision fermentation industry was divided into egg alternatives, dairy alternatives, meat & seafood, and others.

Based on the microbe, the global market divisions are bacteria, yeast, fungi, and algae. In 2023, the highest growth was listed in the yeast segment. It is also expected to continue dominating the industry during the forecast period. The segment enjoys the presence of a mature, studied market in terms of yeast-based research. In addition, yeast has shown high tolerance to a diverse range of external conditions, including pH levels. The yeast species of Saccharomyces cerevisiae has over 1500 strains that are used for several end-user applications.

Precision Fermentation Market: Regional Analysis

North America to continue dominating the industry during the projection period

The global precision fermentation market is projected to be led by North America during the forecast period. In 2023, it accounted for nearly 44.01% of the global revenue, with the US leading the regional market. During the forecast period, the US market is expected to deliver a CAGR of more than 46.75% with increasing advancements in improving the efficiency of the microbial fermentation process.

In June 2024, US-based Hydrosome Labs announced the launch of a new innovative technology that is expected to resolve problems associated with the existing prevision fermentation methods. The company has developed a chemical-free and natural process leveraging the growing science of ultrafine bubbles that are known to improve the power of water.

In December 2024, Onego Bio, a US-Finnish company providing food ingredients, announced that it submitted a Generally Recognized as Safe (GRAS) notification to the U.S. Food and Drug Administration (FDA) department for its non-animal ovalbumin. The protein is produced using Trichoderma reesei and categorized under the brand name Bioalbumen. The surge in demand for non-animal-based protein across North America is projected to aid regional market expansion in the coming years.

Precision Fermentation Market: Competitive Analysis

The global precision fermentation market is led by players like:

• Planetary
• Perfect Day
• Eden Brew
• The EVERY Company
• Zero Cow Factory
• MycoTechnology
• Motif FoodWorks
• Mycorena
• ReMilk
• ReMilk
• Geltor
• TurtleTree
• Formo
• Imagindairy
• MeliBio and Melt & Marble

The global precision fermentation market is segmented as follows:

By Ingredients

• Enzymes
• Heme Proteins
• Whey & Casein Proteins
• Collagen Proteins
• Egg White
• Others

By Application

• Egg Alternatives
• Dairy Alternatives
• Meat & Seafood
• Others

By Microbe

• Bacteria
• Yeast
• Fungi
• Algae

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa