The global precision fermentation market is on track to witness a substantial surge, with the market size expected to grow from $2.48 billion in 2023 to $3.62 billion in 2024, boasting a compound annual growth rate (CAGR) of 45.7%.
This phenomenal growth trajectory is attributed to a combination of factors, including the escalating demand for sustainable protein sources, a focus on environmental efficiency, a shift towards plant-based and cell-based products, customization demands in biomanufacturing processes, and advancements in nutrition within fermented products.
As the precision fermentation landscape evolves, the market is projected to expand even further, reaching an estimated $17.43 billion by 2028, with an anticipated CAGR of 48.1%. This growth is expected to be fueled by diversification into industries beyond food, increased economic feasibility and scalability of precision fermentation, growing interest in fermented functional ingredients, global initiatives addressing food security challenges, and the integration of precision fermentation into circular economy practices.
One of the key drivers of this market expansion is the rising prevalence of digestive issues and obesity. Precision fermentation, enriched with lactic acid bacteria, plays a pivotal role in supporting digestive health. Addressing issues such as lower blood pressure and enhanced cholesterol levels, precision fermentation ingredients contribute significantly to meeting the demand for digestive wellness. With projections indicating that by 2030, nearly half of the US adult population will grapple with obesity, the precision fermentation market is poised for further growth due to the escalating prevalence of digestive problems.
Furthermore, the market is set to experience substantial growth driven by the increasing demand for organic cosmetic products. Precision fermentation, known for its eco-friendly approach, is instrumental in producing cosmetic ingredients using microorganisms to generate specific molecules like enzymes and proteins. With organic cosmetic sales witnessing a 15% surge, amounting to approximately $175 million in 2021, precision fermentation is anticipated to play a crucial role in meeting the demand for natural and sustainable cosmetic solutions.
