US Precision Fermentation Market 2025–2034

Reports Description

As per the current market research conducted by the CMI Team, the US Precision Fermentation Market is expected to record a CAGR of 28.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 924.2 Million. By 2033, the valuation is anticipated to reach USD 8,584.7 Million.

The graph above shows that the number of fermented plant-based food launches worldwide increased between 2018 and 2021, peaking at 611 in the latter. It helps create this profile by showing increasing consumer interest in sustainable, plant-based alternatives through innovations such as precision fermentation.

Precision fermentation is a key technology for alternative proteins and improving the quality of plant-based foods, mainly in the US. The slight 453 product fall in 2022 reflects market adjustments. Still, it does not detract from overall momentum because companies continue to invest in precision fermentation technologies to meet soaring demand for sustainable, animal-free food products.

US Precision Fermentation Market – Significant Growth Factors

Significant Growth Opportunities in the US Precision Fermentation Market include:

• Alternative Proteins: The growing demand for alternative proteins and up-and-coming markets for plant and laboratory-based proteins are new emerging tides pushing more organizations towards precision fermentation technologies that are healthy, sustainable, and of higher quality than similar counterparts in the animal sector.

• Technological Advancements: Advanced technology such as genetic engineering, metabolic engineering, and advanced fermentation will boost the potential and intensity of production processes to make them stronger and of superior quality across industries. Therefore, this would also accelerate the demand of the market and its application.

• Focus on Sustainability: This alone will make the need more pronounced by considerations such as lower environmental impact and resource utility, with concepts of precision fermentation populating increasingly to replace more environmentally and resource-heavy options in food production or other industries.

• Growing biotechnology projects and related public funding: Increase investment in sustainable food production methods, opening opportunities for developing and scaling precision fermentation technologies and products.

US Precision Fermentation Market – Key Developments

Developments of the market are:

• In September 2024, Plant-based whole cut startup Juicy Marbles plans a US retail launch 2025, aiming for profitability by year end.

• In August 2024, Superlatus, a US food technology company that merged with pharmaceutical platform provider Trxade Health, agreed to acquire Perfect Day’s consumer-facing subsidiary, The Urgent Company. The deal will enable the combined company to enter new markets, expand market share, and accelerate the expansion of the retail footprint of the acquired brands. The acquired brands’ products are sold in more than 6,000 stores across the US, including Whole Foods, Thrive Market, Kroger, and Costco, as well as many independent markets nationwide.

• In July 2024, Onego Bio of the United States and Finland, which is developing an animal-free egg protein replacer, received €14 million in funding from the European Innovation Council Accelerator Programme and other Series A investors. The company is a US-Finland-based precision fermentation company.

These developments are expected to transform and emerge in the US Precision Fermentation Market to upgrade the offerings of the products into more market-friendly ones. They are likely to help companies achieve maximum growth opportunities in the US Precision Fermentation Market as firms seek to gain a competitive edge.

US Precision Fermentation Market – Significant Threats

Significant Threats of the US Precision Fermentation Market:

• Regulatory Uncertainty: The uncertainty and delays in bringing genetically modified organisms and novel food products into the market affect the timely commercialization of precision fermentation technologies under development.

• High Research and Development Costs: High investment in R&D and scaling precision fermentation processes may discourage new entrants and small players, thus limiting competition and market growth.

• Supply Chain Disruptions: Interruptions related to fermentation substrates or specific equipment in the supply chain may interfere with production plans and cost; hence, stability and growth in the markets may be impacted.

• Consumer Acceptance: While increasing interest is encouraging, most consumers are still wary of novel food technologies and products with genetic modifications. This will only serve as an additional barrier to adopting precision fermentation products.

• Intellectual Property Challenges: Patent issues and ownership disputes will be some of the legal and financial challenges these new players in the precision fermentation space can expect to face.

Category-Wise Insights

By Ingredient:

• Whey & Casein Protein: These are delicious quality dairy proteins used in various food and beverage applications. Precision fermentation is widely applied to make these proteins without relying on traditional dairy sources. There is an increasing trend towards making whey and casein proteins through fermentation as the demand for dairy alternatives and sustainable protein sources is rising daily.

• Egg White: Egg white proteins are a functional and nutritional ingredient in baked goods and food products. Egg whites are produced through fermentation from egg-free sources. An increase in vegan and allergen-free diets promotes the fermentative production of egg whites. Texture and function better than those of egg whites obtained through traditional routes is an area that offers scope for improvement in this area of nutrition science.

• Collagen Protein: Essential to maintain the good health of your skin, joints, and connective tissues, collagen proteins can now be sourced through a novel method known as precision fermentation. With no animal-derived source of the substance available, the production of lab-grown collagen sees increasing demand, giving a new face to an alternative that is not just ethically produced but also sustainable. An enhanced ability in the production of fermentation technology is improving the purity and functionality of collagen, thus expanding its applications in a wide range of health supplements, cosmetics, and medical applications.

• Heme Protein: From precision fermentation, heme proteins have gone into developing plant-based meat alternatives for taste and color associated with meat. With the growing popularity of plant-based diets comes an increasing demand for heme proteins. Innovation is instead oriented towards refining and perfecting the taste and texture of a meat substitute, with precision fermentation leading to realistic and appealing plant-based alternatives.

• Enzymes: Enzymes are biological catalysts applied in numerous industrial processes, particularly food and pharmaceuticals and biofuels. Specific enzymes can be manufactured using precision fermentation with fantastic efficiency. Precision fermentation allows high-purity enzymes tailored with properties, and the market for the production of enzymes is now open due to it. Solutions in the enzymatic applications in the food processing and bioengineering sector are becoming a strong, growing demand, given their importance for sustainability and cost efficiency of the enzyme solution.

• Others: This category includes an entire gamut of other products from precision fermentation, such as flavor ingredients, vitamins, and specialty chemicals. Novel ingredients and bioactive compounds being developed through precision fermentation are increasing. Companies are finding new uses and optimized production processes to fulfill the significant needs of the food and beverage, pharmaceutical, and cosmetics industries.

By Application

• Meat & Seafood: Meat and seafood precision fermentation includes the creation of alternative proteins meant to replace actual animal products in terms of flavor and texture. Examples include lab-grown meat and seafood alternatives that are made through fermentation. Consumer demand for sustainable, more ethical alternatives to traditional meat and seafood is rising. Improvement in flavor and texture makes the product more appealing, thus driving adoption in the market.

• Dairy Alternatives: Precision fermentation is applied to generate plant-based or lab-grown dairy products like milk, cheese, and yogurt, similar to traditional dairy. A significant trend that has risen over the years, that of consumers opting for dairy-free alternatives, was driven by health, environmental, and ethical reasons. So, advancements in fermentation technology advance the taste and functionality of dairy alternatives, driving market growth.

• Egg Alternatives: Precise fermentation for egg alternatives creates egg proteins and substitutes through fermentation and focuses on replacing traditional eggs in various food products. It will support the rise in the demand for vegan and allergen-free products, ensuring that the overall market of alternatives to eggs will improve functionality and versatility in cooking and baking applications.

• Others: Precision fermentation finds applications other than meat, dairy, or eggs, including biofuels, specialty chemicals, and pharmaceuticals. Precision fermentation technologies have opened up the market to various diversified areas. Innovations are now focused on sustainable new products, sustainable production, and new applications that trigger investment and multiple growth sectors.

By Microbe

• Yeast: These are unicellular fungi used in precision fermentation to produce proteins, enzymes, and bioactive compounds. Applications range from foods and beverages to biofuels. The trend is to improve yeast strains via genetic modification to raise yield and efficiency. More recently, yeasts have been used in the sustainable production of proteins and flavorings with a thrust in scale-up for application at industrial levels.

• Algae: Algae are simple photosynthetic organisms used in precision fermentation to produce nutrients, biofuels, and specialty chemicals. They provide high growth rates with efficient nutrient conversion. The trends for currently optimized algae strains for improved productivity and sustainability in higher productivity are found. Recently, there has been an upsurge of interest in algae-based biofuels and nutritional supplements, mainly caused by a thrust for sustainable and renewable resources.

• Fungi: Fungi, encompassing both molds and mushrooms, are utilized in precision fermentation for the production of various compounds, including enzymes, antibiotics, and alternative proteins. The emphasis here would be upon utilization of fungi for their unique metabolic characteristics able to synthesize complicated molecules and process efficiency improvement. To that extent, some innovations include developing new fungal strains and optimizing fermentation conditions for increased yield.

• Bacteria: Bacteria are microorganisms used in precision fermentation to produce pharmaceuticals, food ingredients, and chemicals. They are most valued for their amenability to genetic modifications and their high production rates. There is a trend to engineer bacteria to produce high-value compounds and optimize fermentation processes. Recent advances in synthetic biology and metabolic engineering are thus improving bacterial fermentation for diverse industrial applications.

• Others: This category for less classical microorganisms used in precision fermentation, such as archaea and cyanobacteria, may have specific applications in industrial and environmental processes. Emerging trends include the exploration of less conventional microbes for new applications and processes, ecological bioremediation, and specialized chemical production. Research centers on their specific properties and advantages as well as possible over conventional microorganisms.

Report Scope

Competitive Landscape – US Precision Fermentation Market

The US Precision Fermentation Market is highly competitive, with many manufacturers operating in the US. Some of the key players in the market include:

• Perfect Day Inc.
• Ginkgo Bioworks Inc.
• Beyond Meat Inc.
• Impossible Foods Inc.
• Arzeda Corporation
• Evolva Holding SA
• Amyris Inc.
• Zymergen Inc.
• Novozymes A/S
• BASF SE
• DSM Biotechnology Center
• Kiverdi Inc.
• Synlogic Inc.
• Deep Branch Biotechnology
• Genomatica Inc.
• Others

These companies operate in the market through various strategies such as innovation, mergers and acquisitions, and partnerships.

Companies such as Ginkgo Bioworks Inc. and Arzeda Corporation are joining the U.S. precision fermentation market innovatively, with improved genetic engineering and optimized fermentation processes, building products never seen before or enhancing production efficiency.

Giants like Perfect Day Inc. and Impossible Foods Inc. would lead alternative proteins by dominating technologies in scaling alternative proteins while being produced. These are matched with high-value R&D investments, successful product commercialization, and strategic partnerships, which set the industry standards and drive market growth.

The US Precision Fermentation Market is segmented as follows:

By Ingredient

• Whey & Casein Protein
• Egg White
• Collagen Protein
• Heme Protein
• Enzymes
• Others

By Application

• Meat & Seafood
• Dairy Alternatives
• Egg Alternatives
• Others

By Microbe

• Yeast
• Algae
• Fungi
• Bacteria
• Others