June 22, 2024
Precision Fermentation Market

Precision Fermentation Market is transforming the Global Food Industry

The precision fermentation market is in trends by the alternative to traditional meat and dairy production. Precision fermentation, also known as cultured meat or fermentation provides a more sustainable option to produce proteins like meat, dairy, eggs without the need to raise and slaughter animals. By using fermentation technologies, common microorganisms like yeast or bacteria are cultivated in large fermentation tanks to produce proteins, fats, and other food ingredients that are similar in taste and texture to traditional meat and dairy products.

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.

Precision fermentation provides solutions for animal welfare, land conservation, and environmental issues associated with industrial animal agriculture by using less land and water compared to traditional meat production. Brands are developing novel meat and dairy alternatives produced through precision fermentation that deliver the same sensory experience as traditional products.

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.

Growing demand: Continuous growth in global meat consumption coupled with increasing awareness about environmental sustainability and animal welfare is propelling the demand for precision fermentation based meat and dairy alternatives. Rising health consciousness and shifts towards vegan and flexitarian diets are further complementing the market growth.

Global expansion: Leading players are expanding their production capacities globally and partnering with fast food chains and retailers to increase the availability of Precision Fermentation Market Demand products. Several companies are also establishing production plants in key regions like North America, Europe, and Asia Pacific to cater to the growing international demand.

Market Key Trends

One of the key trends gaining traction in the precision fermentation market is “branding and marketing”. Companies are developing brand strategies, sophisticated tasting experiences, and marketing campaigns to position cultured meat and dairy products as mainstream choices. Players are focusing on packaging design, product storytelling, distribution expansion to improve consumer accessibility and perception of these novel foods. Precision fermentation provides opportunities to produce customized foods aligned with evolving consumer preferences for health, sustainability and animal welfare.

Porter’s Analysis

Threat of new entrants: Precision fermentation involves advanced technology and high capital investments which act as barriers for new players. Bargaining power of buyers: Buyers have low bargaining power as there are very few substitutes for precision fermented ingredients. Bargaining power of suppliers: Suppliers have moderate bargaining power with established players having technologies and expertise. Threat of new substitutes: Alternatives like plant-based and cultured meat have potential but precision fermented ingredients offer distinct benefits. Competitive rivalry: Intense competition expected among major players to gain market share through innovations, scale and supply chain integration.

Geographical regions

North America currently dominates the market accounting for over 50% share in 2024. Abundance of precision fermentation startups and venture capital funding in the U.S. and Canada drive the region’s growth.

Asia Pacific is poised to be the fastest growing region during the forecast period. Increasing meat consumption in China and India coupled with government funding for food science research will accelerate regional expansion. Countries like Singapore, South Korea are also emerging as precision fermentation hubs.

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