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The precision fermentation market size is projected to increase by USD 8,414.85 million and the market size is estimated to grow at a CAGR of 41.5% between 2022 and 2027.
This precision fermentation market report extensively covers market segmentation by type (yeast, algae, fungi, and bacteria), end-user (food and beverage, pharmaceuticals, cosmetics, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
One of the key factors driving the precision fermentation market growth is the increasing popularity of the vegan lifestyle. There is an increasing consumption of vegan food across the world. Veganism can be referred to as the practice of abstaining from the use of all animal products in all areas of life, particularly from the diet. There is an increasing adoption of vegan diets among people due to their health benefits, such as a reduced risk of obesity, better heart health, and others. In addition, several food services are promoting the growth of veganism and are adding different options to their menus to attract vegan consumers. Hence, such factors are expected to positively impact the market which in turn will drive the market growth during the forecast period.
The Precision Fermentation Market shows an accelerated CAGR during the forecast period.
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A key factor shaping the precision fermentation market growth is the increasing health consciousness. There is a growing health consciousness among consumers which is significantly influencing the growth of the global precision fermentation market. The main reason which is fuelling the health consciousness among consumers is the increasing prevalence of obesity and related diseases across the globe and they are seeking food and beverage products that are natural and low in fat and calories.
Moreover, several market players are launching new animal-free-based food products that have lower fat and calorie content in order to cater to the changing consumer demand. As a result, this health and wellness trend is gaining traction among consumers, particularly young consumers in the age group of 18-32 years which is positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Increasing consumption of animal meat is one of the key challenges hindering the precision fermentation market growth. There is an increasing consumption of animal meat and related products due to the e growing global population, increasing disposable income, and the rising demand for protein-rich food products. For instance, there is a growing consumption of different types of meats such as pork, beef, and chicken across many countries including the US, China, India, and Russia.
Moreover, there has been a significant consumption of beef and veal in the US over the last few years. The rising consumption of beef can significantly impact the demand for precision fermentation for animal-free food products which can negatively impact the market. Therefore, it is expected to hinder the market growth during the forecast period.
The increased consumer awareness about healthy diets will fuel the food and beverage segment which, in turn, will increase the market growth. The main process of precision fermentation-based food and beverages is through an anaerobic process that leverages bacteria in the food. The growth of this segment is fuelled by the increasing importance of cellular agriculture. In addition. there is an increasing adoption of sustainable food and beverages among consumers due to the increasing concerns among consumers about animal welfare and the increasing focus on environmental sustainability. Moreover, the global precision fermentation market in the food and beverage segment launches a broad range of innovative foods and flavors, influencing consumer eating preferences. Therefore, factors such as product innovation, taste and flavor improvements, and rising consumer awareness about healthy diets are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The yeast segment is estimated to witness significant growth during the forecast period. One of the main factors that is significantly contributing to the growth of this segment is the high demand for specialized yeast to improve the quality of food and beverage products. There is an increasing adoption of the yeast segment to accelerate the fermentation process in food and beverages and to retain the aroma, flavor, and texture of food and beverage products.
The yeast segment was the largest segment and was valued at USD 105.74 million in 2017
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For instance, there is an extensive use of yeast segment by bakers in bread production, whereas brewers utilize yeast for beer production, and wine yeast is used for fermentation to produce wine. Several factors such as new product launches and mergers and acquisitions are significantly influencing the food and beverage industry and market players are leveraging yeast to cater to the increasing demand. For example, the demand for low-alcohol content beverages or non-alcoholic beverages is increasing at a fast rate, especially in the US and UK, due to the rising incidence of alcohol abuse and drunken driving accidents, particularly among the younger population. As a result, there are several public campaigns against the consumption of alcohol across different countries. Hence, several manufacturers are utilizing a process called arrested fermentation to manufacture non-alcoholic beer. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
North America is estimated to contribute 42% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors which are significantly contributing to the growth of the precision fermentation market in North America are the growing adoption of animal-free protein products and increasing awareness about the health benefits of plant-based protein products. The US is one of the main countries in North America which has significantly contributed to the market growth in the region. Other factors such as the growing number of new product launches and investments as the increasing popularity of plant-based meat products among Millennials are positively impacting the market growth in the region. Hence, such factors are expected to drive the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global precision fermentation market witnessed a significant slowdown due to lockdown and travel restrictions, resulting in a halt in business operations in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of business operations. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The precision fermentation market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The precision fermentation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Precision Fermentation Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 41.5% |
Market growth 2023-2027 |
USD 8,414.85 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
41.25 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Better Diary Ltd., Change Foods, Clara Foods Co., Eden Brew Pty Ltd., Formo Bio GmbH, FUMI INGREDIENTS BV, Geltor Inc., Ginkgo Bioworks Holdings Inc., Imagindairy Ltd., Impossible Foods Inc., Laurus Labs Ltd., Melt and Marble AB, Mycorena AB, New Culture, Nourish Ingredients Pty Ltd., Perfect Day Inc., Remilk Ltd., Shiru Inc., Triton Algae Innovations, and HENI INNOVATION PVT. LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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