Global Precision Fermentation Market by Application (Meat, Seafood, Dairy, Egg and Others), Microbe (Bacteria, Yeast, Algae, Fungi, and Others), Ingredient (Egg White, Whey and Casein Protein, Collagen Protein, and Heme Protein), End User (Food and Beverage, Pharmaceutical, Cosmetic, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast 2022–2031

Agriculture & Agri Products

FO23038650

Pages: 240

Mar 2023

Reports Overview

Global Precision Fermentation Market Analysis

The Global Precision Fermentation Market Size was $1,277.8 million in 2021 and is predicted to grow with a CAGR of 40.5%, by generating a revenue of $34,868.1 million by 2031.

Global Precision Fermentation Market Synopsis

Precision fermentation technology is used in environmentally friendly cosmetic and personal care products. Fermentation ingredients such as amino acids, polymers, industrial enzymes, and others are being used by personal care ingredient manufacturers to develop new products and processes such as high bioavailability actives, bioconversion of fragrance to water-soluble natural fragrance, whitening, bioactive for anti-aging, and moisturizing, UV-blocking effect. Additionally, the pharmaceutical business is utilizing precious fermentation products in the development of new concepts and products utilizing specialty components. Vitamins, and amino acids, as well as industrial enzymes, are extensively used as fermented components in the pharmaceutical industry for applications such as antiviral medications, therapeutic recombinant proteins and DNA, and pharmaceutical formulations. These factors are anticipated to boost the precious fermentation industry growth in the upcoming years.

However, some of the disadvantages of precision fermentation include high cost of technology and chemical use for fermentation such as lactic acid used for fermentation is costly, which limits its use in the dairy industry. This factor is expected to hamper the growth of the precision fermentation market throughout the forecast period.

Rising demand for protein across the globe, changing preferences and tastes of consumers, and rise in the number of both advancements and investments are some of the key drivers propelling the development within the global precision fermentation market. Additionally, increasing preference and acceptance of meat-free and vegan lifestyles is also driving demand in the global precision fermentation market. These trends can be attributed to an increase in consumer awareness of unfair and cruel treatment of animals in the food industry, as well as the growing vegan population. These factors are driving the excellent opportunity for the market during the upcoming year.

According to regional analysis, the North America precision fermentation market accounted a dominating market share in 2021. This is because in the US, the need for high-quality fermented foods is expanding in tandem with rising consumer disposable income, a growing population, and a growing demand for precision fermentation.

Precision Fermentation Overview

Precision fermentation is the process of producing complex organic compounds using biological microbes. It is a new food technology that is entering the marketplace. Precision fermentation uses microbial hosts as "cell factories" for the production of specialized functional components that have higher purity standards than main protein ingredients and are integrated at lower quantities. These ingredients typically require greater purity than the primary protein ingredients and are incorporated at much lower levels. These functional ingredients can improve sensory characteristics and functional attributes of plant-based products or cultivated meat. Precision fermentation can produce enzymes, flavoring agents, vitamins, natural pigments, and fats.

COVID-19 Impact on Global Precision Fermentation Market

The COVID-19 pandemic delivered a significant impact on various businesses all over the world. One of the most affected industries due to the pandemic was the food and beverage industry. As a result of supply chain disruptions, facility closures, and a global economic slowdown, demand for precision fermentation decreased. Moreover, import-export restrictions were imposed on significant precision fermentation manufacturing nations such as the United States and China. For instance, sanitization of goods being exported from China was imposed by several countries. In addition, the food and beverages sector faced the highest impact in terms of sales and acquisition of new projects due to which the protein demand reduced significantly. The pandemic impacted the manufacture of precision fermentation products, and the demand for processed food substantially dropped. The lockdown imposed by several governments within their countries played a major role in hampering food production and distribution. The precision fermentation industry was also devastated as a consequence of the impacted food and beverage sector. While individuals were advised to stay home by governments during the early stages of the pandemic, only the food and beverage supermarkets and grocery stores across the country were open. Customers avoided going out, going out to eat, and going to crowded supermarkets and other places to eat and drink. Consumer products companies that sell food and beverages witnessed a sharp decline in sales and disruptions in their supply networks. Out-of-home consumption, that historically generated the biggest profit margin, decreased as at-home consumption increased. However, in order to maintain the inventories for a longer period of time, the demand for precision fermentation products remained constant.

Rising Investment in Precision Fermentation Technology as well as Growing Consumer Preference for Plant Based Meat to Drive Market Growth

One of the major factors driving the growth of the precision fermentation industry is the shift in consumer preferences towards plant-based protein and shifting eating habits. In addition to animal proteins derived from plants, animal proteins may also be synthesized through fermentation techniques. In precise fermentation, bioreactors serve as microbial hosts. These bacteria produce a variety of useful components, including enzymes present in proteins, flavorings, vitamins, natural colors, and so on. Precision fermentation, because of its distinct manufacturing properties, also allows for the production of pure forms of protein. Precision farming results in the production of more effective proteins and other organic compounds that are processed at minor quantities.

To know more about global precision fermentation market drivers, get in touch with our analysts here.

The High Cost of Producing Protein Ingredients Using Precision Fermentation to Restrict Market Growth

Precision fermentation for the production of animal-free protein or fats has gained traction as a result of the growing vegan population's demand for animal-free products. In this approach, yeast bacteria such as bacteria or fungus are genetically caused to produce the genetic factor that is normally encoded by animal DNA. These microbes are then used to produce a desirable product that mimics the texture, and nutritional profile of real animal products. For instance, every company that produces animal-free egg white uses genetically modified yeast cells. Additionally, precision fermentation has various benefits, including reduced land water consumption, greenhouse gas emissions, and health issues connected with animal-based products, all of which are expected to hinder the precision fermentation market's growth.

Development of Novel Protein Production System to Drive Excellent Opportunities

Identifying innovative protein-generation approaches through focused R&D and infrastructure investment will remain critical in capturing value, optimizing resources, and establishing precision fermentation competitive advantages. Various new protein production systems are being scaled up and industrialized in order to generate animal-free meat and microalgae and to use novel and unusual feedstock such as CO2. These innovative production techniques are likely to become as important as traditional food systems.

To know more about global precision fermentation market opportunities, get in touch with our analysts here.

Global Precision Fermentation Market, by Application

Based on application, the market has been divided into meat, seafood, dairy, egg and others. Among these, the dairy sub-segment accounted for the highest market share in 2021, whereas the meat sub-segment is estimated to show the fastest growth during the forecast period.