June 20, 2024
Precision Fermentation Market

Precision Fermentation is Estimated to Witness High Growth Owing to Increased Consumer Preference for Sustainable and Affordable Proteins

Precision fermentation involves fermenting micro-organisms like microbes, fungi or yeast to develop proteins, fats and other ingredients commonly found in meat, dairy and eggs. The process is environment friendly as it requires less water, land and energy resources as compared to conventional animal farming and has potential to significantly reduce the carbon footprint.

The Global Precision Fermentation Market is estimated to be valued at US$ 4.21 Bn in 2024 and is expected to exhibit a CAGR of 40% over the forecast period 2024 To 2031.

Key Takeaways

Key players: Key players operating in the Precision Fermentation market are Change Foods, Geltor, Helania Inc, Formo, FUMI Ingredients, Fybraworks Foods, Imagindairy Ltd, Eden Brew, Impossible Foods Inc, Melt Marble, Motif Foodworks, Inc, Mycorena, Myco Technology, New Culture, Nourish Ingredients, Perfect Day Inc, Remilk Ltd, Shiru Inc, The Every Co., and Triton Algae Innovations.

Key opportunities: The growing demand for sustainable and affordable sources of proteins presents significant opportunities for the Precision Fermentation Market Growth. Additionally, advancements in precision fermentation technologies are further widening its applications in producing various food ingredients.

Global expansion: Precision fermentation companies are expanding their operations globally due to the rising awareness about its environmental benefits. They are also investing significantly in setting up large-scale production facilities to cater to the surging demand.

Market Drivers

The growing consumer preference for plant-based and cellular agriculture-based food products owing to concerns over animal welfare and sustainability is a major driver for precision fermentation market. Other key drivers include lower costs of production compared to conventional meat and proteins, growing investments in developing new precision fermented ingredients, and ability to combat climate change.

PEST Analysis

Political: Precision fermentation regulations are still evolving, with laws and guidelines focused on food safety and sustainability. Positive changes may encourage market growth.

Economic: The precision fermentation market is projected to experience substantial growth as costs decrease. Consumers increasingly demand sustainable, accessible proteins.

Social: Younger generations especially value products aligned with ethics of sustainability and animal welfare. Precision fermentation appeals by producing familiar foods through modern biotechnology with minimal environmental impact.

Technological: Precision fermentation is an engineered process utilizing biosynthesis to produce targeted food compounds. Advancements in gene editing, bioreactors and cellular agriculture enable mass production of established and novel ingredients.

The precision fermentation market in terms of value is concentrated in North America and Western Europe. These regions have established biotech sectors and populations receptive to innovative sustainable foods addressing health, environmental and ethical concerns. Asia Pacific is experiencing rapid expansion as well, driven by growing middle classes and government support for technological solutions to food security challenges.

Fastest growth for the precision fermentation market is projected in Asia and Latin America through 2031. Heightened awareness of issues like climate change is boosting demand for sustainable protein alternatives across these regions. Significant investments in cellular agriculture from both public and private entities aim to capitalize on rising consumption and production opportunity as precision fermented products diversify and prices decrease.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it