Precision Fermentation Ingredients Market by Type (Whey & Casein Protein, Egg White, Collagen Protein, Enzymes), Microbe (Yeast, Algae, Filamentous Fungi), End User (Food and Beverage {Dairy Products}, Pharmaceutical Industry) - Global Forecast to 2031

The Precision Fermentation Ingredients Market was valued at $2.12 billion in 2023. This market is expected to reach $38.02 billion by 2031, from an estimated $3.03 billion in 2024, at a CAGR of 43.5% during the forecast period 2024-2031.

The growth of this market is mainly driven by the growing population and rising awareness about the benefits of alternative protein, increasing inclination towards a vegan diet, and growing focus on animal welfare. However, the high preference for animal-sourced products restricts the market growth to some extent.

Moreover, the rising demand for sustainable foods provides significant growth opportunities for the stakeholders operating in this market. However, the high production cost of ingredients is a major challenge for the players in this market.

Key Players

The key players operating in the global precision fermentation ingredients market are Perfect Day, Inc. (U.S.), Impossible Foods Inc. (U.S.), Geltor, Inc. (U.S.), The EVERY Company (U.S.), Motif FoodWorks, Inc. (U.S.), MycoTechnology, Inc. (U.S.), MYCORENA AB (Sweden), Eden Brew Pty Ltd (Australia), Change Foods (U.S.), Formo (Germany), Remilk Ltd (Israel), Triton Algae Innovations (U.S.), Nourish Ingredients Pty Ltd. (Australia), and Imagindairy Ltd. (Israel), among others.

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Growing Population and Rising Awareness about the Benefits of Alternative Protein to Spur the Growth of the Precision Fermentation Ingredients Market

The global population is predicted to reach around 10 billion by 2050, which is creating the biggest challenge to figure out a way to feed the world. Moreover, according to the Population Reference Bureau (PRB), the global population is expected to increase by 75 million annually, or 1.1% per year. This growth is expected to create a need for excess food to fulfill the growing population, including alternative proteins.

Rising population and urbanization are further creating demand for proteins as a food-nutritional component. Also, there is rising awareness regarding the benefits of protein intake in improving muscle health, maintaining energy balance, weight management, and cardiovascular function. For instance, according to the Food and Agriculture Organization (FAO), the demand for protein will double by 2050.

In the last few years, governments of several countries have significantly focused on the alternative sourcing of proteins. These governments have been investing in research and development of alternative protein sources such as plant-based proteins, insect proteins, and lab-grown proteins. For instance, in 2020, Singapore became the first country to authorize to sale of cultivated meat. Additionally, the United States Department of Agriculture (USDA) announced plans to provide funding to cultivated-protein research centers operating in the U.S.

Thus, the surge in the popularity of plant-based diets and veganism has further increased the demand for alternative protein sources. As a result, the alternative protein industry is experiencing significant growth and is expected to play a crucial role in meeting future protein demand while addressing sustainability and environmental concerns. All these factors are expected to drive demand for precision fermentation, as it is an emerging alternative protein technology that uses microbes to produce functional food ingredients, including proteins, enzymes, flavor molecules, vitamins, pigments, and fats. The derived ingredients are typically combined with existing alternative protein products to improve taste, texture, and nutritional value.

Key Findings in the Precision Fermentation Ingredients Market Study:

In 2024, the Whey & Casein Protein Segment is Expected to Dominate the Precision Fermentation Ingredients Market

Based on type, the global precision fermentation ingredients market is segmented into whey & casein protein, egg white, collagen protein, heme protein, enzymes, and other ingredient types. In 2024, the whey & casein protein segment is expected to account for the largest share of the global precision fermentation ingredients market. The large market share of this segment is attributed to the presence of a wide range of applications of whey & casein proteins in several food and beverage products. Moreover, the rising demand for dairy ingredients, consumer awareness towards a healthy diet, rising trend of health clubs and fitness centers, an increasing percentage of older age people, and keen interest of youngsters towards sports and nutrition are some of the factors that further support the growth of this market.

However, the egg white segment is projected to register the highest CAGR during the forecast period of 2024–2031 due to egg whites providing a low-fat and high-protein option, its increasing demand due to its uses in various food products, and egg whites being allergen free. In addition, growing vegetarianism and increasing preference for sustainably sourced products are driving the growth of the segment.

In 2024, the Yeast Segment is Expected to Dominate the Global Precision Fermentation Ingredients Market

Based on microbe, the global precision fermentation ingredients market is segmented into yeast, algae, filamentous fungi, and bacteria. In 2024, the yeast segment is expected to account for the largest share of the global precision fermentation ingredients market. The large market share of this segment is attributed to the need for high-quality proteins and enzymes, the high secretion capabilities of some filamentous fungi, and its high usage in food and beverages due to its higher digestible properties and containing all the 20 essential amino acids.

In 2024, the Food and Beverage Industry Segment is Expected to Dominate the Global Precision Fermentation Ingredients Market

Based on end user, the global precision fermentation ingredients market is segmented into food and beverage industry, pharmaceutical industry, and other end users. In 2024, the food and beverage industry segment is expected to account for the largest share of the global precision fermentation ingredients market. The large market share of this segment is attributed to the growing demand for food and beverage products due to rapid population growth, increasing consumer preference for foods and beverages containing natural ingredients, shifts in consumer eating patterns and changes in diet trends, and rising demand for dairy alternative due to increasing milk allergies and lactose intolerance cases. Based on end user, the food and beverage industry is further segmented into meat & seafood products, dairy products, and other food and beverage products.

North America to Dominate the Global Precision Fermentation Ingredients Market, While Asia-Pacific Leads in Growth

Based on geography, the precision fermentation ingredients market is majorly segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2024, North America is expected to account for the largest share of the global precision fermentation ingredients market. The large share of this market is mainly attributed to the huge presence of key stakeholders in the region, the rising health awareness among the people, and their shift towards veganism. Moreover, increasing consumer preference towards meat alternatives to reduce animal-sourced meat consumption, focus on producing protein using sustainable methods due to the environmental concerns, and ethical aspects associated with animal protein further support the growth of this market.

However, Asia-Pacific is slated to register the fastest growth rate during the forecast period of 2024–2031 owing to the increasing number of people preferring a vegetarian diet, health benefits such as low cholesterol and high-protein content offered by egg alternative protein ingredients, and increasing demand for fermented products in India, China, and Japan. Further, various companies in the region are focusing on precision fermentation technology and are raising funding. For instance, in March 2023, Cauldron (Australia), a precision fermentation company, raised USD 7.18 million (AUD 10.5 million). Moreover, Indian biotech Zero Cow Factory (India) has developed a patented technology to produce precision fermentation-derived casein, which will further support the market growth in the region.

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