Precision Fermentation Market Research, 2031
The global precision fermentation market was valued at $1.3 billion in 2021, and is projected to reach $34.9 billion by 2031, growing at a CAGR of 40.5% from 2022 to 2031. Precision fermentation is a technique used to create complex organic chemicals from living microbes. New food products that use precise fermentation are currently available in retail stores.
Microorganisms like yeast, fungi, and mycelium are prepared to produce proteins that are biologically comparable to those found in animal products using a variety of in-vitro nucleic acid procedures, including Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR), gene editing, or cloning.
Increasing protein demand worldwide, changing consumer preferences and tastes, and rising innovation and investment are some of the primary reasons driving the growth of the global precision fermentation market. In addition, the growing preference for the acceptance of meat-free and vegan lifestyles is driving the precision fermentation market demand. These changes can be attributed to an increase in customer awareness of unfair and cruel animal treatment in the food industry, as well as the growing vegan population.
The high cost of producing protein ingredients using precision fermentation technology is projected to restrict the growth of the global precision fermentation market in the future. Also, the challenges faced in scaling up production capacity and commercialization are expected to cause significant barriers to the expansion of the global precision fermentation market in the upcoming years. Also, health risks associated with precision fermentation are expected to hinder the market growth.
The market players are making significant investments in the infrastructure, research, and technological advancement of precision fermentation, as well as in the development of value-added products and competitive advantages. Furthermore, they are also increasing the production of complex organic compounds and microalgal proteins. Precision fermentation is used in production as well as manufacturing operations that are weather-independent and carried on a large scale in bioreactors under particular circumstances. Thus, significant financial support for the technological development of this technology is anticipated to drive the precision fermentation market growth.
The key players profiled in this report include geltor inc., Imagindairy Ltd, Change Foods, Eden Brew, Impossible Foods Inc, Motif Foodworks, Inc, Nourish Ingredients, Shiru Inc, FUMI Ingredients, and Perfect Day Inc.
The precision fermentation market is segmented on the basis of application, microbe, ingredient, end user, and region. By application, the market is divided into meat, seafood, dairy, egg, and others. By microbe, the market is classified into bacteria, yeast, algae, fungi, and others. By ingredient, the market is classified into egg white, whey & casein protein, collagen protein, and heme protein. By end user, the market is classified into food & beverage, pharmaceutical, cosmetic, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The precision fermentation market is segmented into Ingredient, End User, Application and Microbe.
By ingredient, the egg white sub-segment dominated the global precision fermentation market share in 2021. Vegan egg whites offer a number of health benefits. Without the use of animals or poultry, plant-based eggs are produced using only natural ingredients. They are also free of cholesterol and allergens. This factor is especially beneficial for people with allergies to albumin and eggs. These are the major factors further expected to drive the market growth.
By end user, the food and beverages sub-segment dominated the global precision fermentation market share in 2021. Food and beverages including wine made from fruit juice and beer made from grains are all produced through fermentation. Starch-rich potatoes have the potential to be fermented and distilled to create gin and vodka. Precision fermentation is being used more frequently in the food and beverage industry. In the process of making dough using sugar, yeast, flour, and water, yeast consumes the sugar and releases carbon dioxide, which makes the bread rise.
By application, the meat sub-segment is anticipated to show the fastest growth during the forecast period. The demand for plant-based proteins in the meat alternatives market is anticipated to increase significantly in the upcoming years owing to the precision fermentation market extraordinary growth. Precision-fermented meat substitute burgers, fats, and proteins have been released by companies including Impossible Foods, Motif FoodWorks, and Melt & Marble. This is anticipated to help the meat section of the precision fermentation market grow. These are predicted to be the major factors driving the precision fermentation market during the forecast period.
By microbe, the bacteria sub-segment is anticipated to show the fastest growth during the forecast period. Fermentation-based techniques provide a great amount of opportunity for novel alternative protein solutions because of the vast biological diversity of microbial species and their nearly limitless biological synthesis capabilities. These are predicted to be the major factors boosting the precision fermentation market size during the forecast years.
By region, North America dominated the global market in 2021. The rising demand for protein-rich products generated by precision fermentation technology for applications such as dairy substitutes, meat extenders, and meat analogs is also contributing to the growth of the North America precision fermentation market. In addition, the growing popularity of vegetarian diets is driving demand for precisely fermented egg alternatives in North America.
Impact of COVID-19 on the Global Precision Fermentation Industry
- The COVID-19 pandemic had a significant impact on numerous enterprises throughout the world. It had the greatest impact on the food and beverage industries. Due to the pandemic and awareness regarding consuming healthy food, demand for processed foods and other food products decreased significantly.
- Food production and distribution were greatly affected by the lockdowns that various governments imposed within their nations. As a result of the impacted food and beverage sector, the precision fermentation market also suffered significant disadvantages.
- Economic slowdown affected the setup of new precision fermentation projects across the world as most of the government funding was diverted toward the healthcare sector, owing to the rapid spread of the COVID-19 virus, impacting the market to the great extent.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the precision fermentation market analysis from 2021 to 2031 to identify the prevailing precision fermentation market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the precision fermentation market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global precision fermentation market forecast period.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global precision fermentation market trends, key players, market segments, application areas, and market growth strategies.
Precision Fermentation Market Report Highlights
Market Size By 2031
USD 34.9 billion
CAGR of 40.5%
2021 - 2031
By End User
Key Market Players
Perfect Day Inc, Eden Brew, Nourish Ingredients, Imagindairy Ltd, Change Foods, geltor inc., FUMI Ingredients, Shiru Inc, Impossible Foods Inc, Motif Foodworks, Inc
The increase in use of precision fermentation across various industries for creating a variety of desired end products is expected to drive the market expansion. Rising investment and funding in precision fermentation process and technologies, rising consumer interest in consuming a plant-based diet, increasing food allergy cases, unparalleled food safety, increasing global protein demand, changing consumer tastes, and more investment in precision fermentation are some of the primary factors predicted to drive the market growth. However, high initial investments and environmental concerns associated with precision fermentation are the key factors expected to hamper the market growth during the forecast period. It is one of the alternate methods used to produce and provide a substitute for meat as a result of the growing population and increased meat consumption. The protein has a neutral sensory profile, optical clarity, and high solubility, and can be used in hot or cold beverages. The sensory profile and useful qualities of replacement proteins are enhanced with precision fermentation technology. There is a rising demand for alternative meat analogs amongst health-conscious consumers, which is anticipated to provide lucrative opportunities for key players to maintain the precision fermentation market in the upcoming years.
Among the analyzed regions, North America is expected to account for the highest revenue in the market by the end of 2031, followed by Asia-Pacific, Europe, and LAMEA. The growing prevalence of cultured meat amongst consumers is the key factor responsible for the leading position of North America and Asia-Pacific in the global precision fermentation market.