Innovative approaches to food production are becoming more and more important as global concerns over environmental effects, public health, and food longevity continue to increase. One of the cutting-edge technologies called, precision fermentation is emerging as an essential component in the field of sustainable food production. This blog is dedicated to exploring the capability and growth aspects of the precision fermentation market.
Precision Fermentation Explained
Precision fermentation is a biotechnological process that involves using microbial hosts such as bacteria or fungi to produce functional ingredients in a controlled and precise manner. It this process, scientists produce microorganisms that are multiplied and reproduced in small factories. The target product is recovered and refined to produce desired compounds. It is also used to create plant-based alternatives as well as animal-derived proteins like dairy alternatives or meat substitutes. Cheese, ice cream, yogurt, and other foods produced through precision fermentation taste like their animal-based equivalents but lack the main component of dairy milk: cruelty to cows.
Why Is Precision Fermentation Industry Growing Rapidly?
- The global precision fermentation market was valued at USD 1,674.57 million in 2022 and is expected to obtain USD 73,764.20 million with a CAGR of 46.0% during the forecast period.
- The growing awareness of animal welfare and the rising vegan population are the prominent factors propelling the market growth. Increasing demand for renewable energy, initiatives for eco-friendly foods and drink products, and increasing demand for advanced pharmaceutical treatments are fueling market growth.
- Changing consumer tastes and preferences toward plant-based animal protein is one of the crucial factors supporting the industry’s growth. Precision fermentation is used to create animal-free, plant-based, and environmentally friendly ingredients through microbial hosts.
- For instance, in 2021, dedicated alternative protein fermentation firms raised $1.69 billion, or 60% of total sector funding and 33% of funding for the alternative protein market 2021.
How Precision Fermentation Will Change the Future of Dairy?
The welfare of animals directly impacts planet! When precision fermentation is used to brew dairy, it creates a smaller environmental footprint compared to its animal-secreted counterpart because it produces fewer greenhouse gases and doesn’t need a large amount of water and land for the production. Thus, Precision Fermentation for dairy brewing is far better than other procedures.
Which Region Dominates the market?
In 2022, North America witnessed the largest precision fermentation market share and is expected to continue to dominate the market during the forecast period. This market share can be attributed to the growing investments in precision fermentation-based firms coupled with rising advancements in precision fermented foods in terms of taste, accessibility, and price. Many precision fermentation companies have recently established operations in the United States in order to commercialize animal-free products in various supermarkets, convenience, and restaurant chains. For instance, according to the Good Food Institute, the retail market for plant-based foods in the U.S. was estimated to be worth 7.4 billion USD in 2021.
Precision fermentation Are Commonly Used to Produce
- Alternative proteins
- Various sustainable food ingredients
- Medicinal and therapeutic products
- Biofuels and chemicals
- Sustainable textiles
- Nutrients and supplements
Recent Developments
- In October 2022, Change Foods had a deal with KEZAD Group to develop a specialized commercial manufacturing plant in Abu Dhabi for the manufacture of its animal-free dairy, with backing from the UAE Ministry of Economy under the NextGen FDI initiative.
- In December 2022, Bel Brands USA partnered with Perfect Day to launch Nurishh Incredible Dairy Animal Free Cream Cheese Spread Alternative.
Summary
The precision fermentation market is expected to transform various industries, including pharmaceuticals, biofuels, food and beverages, textiles, and waste management. This is because the process has the ability to create a positive impact on environmental sustainability and human health, thereby creating immense opportunities across these sectors. With ongoing research and development in this field, we can expect more innovations and growth in the market.