April 24, 2024
Precision Fermentation Market

The Precision Fermentation Market is in trends by sustainable production

The precision fermentation market involves the production of food ingredients and food products using fermentation processes with genetically engineered microorganisms like yeast, fungi, bacteria and algae. Precision fermentation allows for sustainable and efficient production of a wide range of foods like dairy proteins, meat, eggs and seafood that are identical to their animal-derived counterparts in terms of taste, texture and appearance. The process is environmentally friendly as it does not require vast amounts of water, land and animal feed and can significantly reduce greenhouse gas emissions by avoiding industrial animal agriculture.

The Global Precision Fermentation Market is estimated to be valued at US$ 45.80 Bn in 2024 and is expected to exhibit a CAGR of 44% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Precision Fermentation Market Demand 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. The growing demand for sustainable and alternative protein sources is driving the precision fermentation market. Several food companies are exploring precision fermented ingredients to meet the rising demand for plant-based and cultured meat and dairy products. Further, growing investment in cellular agriculture and expanding partnerships between food tech companies and restaurants are fueling the global expansion of the precision fermentation market.

Market key trends

One of the key trends in the precision fermentation market is the rising research and development to produce novel food items. Several startups are focusing on fermenting foods like chocolate, coffee, spices and sweeteners through precision fermentation to offer more sustainable and affordable options. Additionally, companies are leveraging advanced technologies like synthetic biology and gene editing to develop microorganisms with enhanced productivity. Continuous tech innovations are enabling the large-scale commercialization of precision fermented foods.

Porter’s Analysis

Threat of new entrants: Low capital requirement and technological advancements have increased the threat of new entrants in the precision fermentation market.

Bargaining power of buyers: Large buyers have significant bargaining power due to the involvement of few biotech companies operating in the market.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of alternative raw material suppliers in the market.

Threat of new substitutes: Substitutes present low threat as precision fermentation products have distinctive properties and health benefits.

Competitive rivalry: Intense competition exists among existing players to gain higher market share through continuous innovations.

North America region accounts for the major share in terms of value in the precision fermentation market owing to rising focus on alternative proteins. Asia Pacific is projected to grow at the fastest rate during the forecast period. The region is witnessing increasing demand for cultured meat and dairy products from countries such as China, India and Australia.

Geographical regions:

North America holds the major share of the precision fermentation market in terms of value. The region witnesses increasing adoption of alternative proteins due to rising health and sustainability concerns. The U.S. is a major contributor owing to the presence of key players and growing research & development activities.

Asia Pacific is poised to grow at the highest CAGR during the forecast period. Rapid economic growth, rising health awareness, and increasing disposable income in emerging nations including China, India and Australia are fueling the demand for precision fermentation products in the region. Growing meat consumption coupled with evolving dietary preferences also stimulates the market expansion.

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