A report by Insight Ace Analytic has predicted that the fermentation-enabled alternative protein market will be worth $1191.06 million by 2031, growing with a CAGR of 14%.
Due to the rise of flexitarianism and increased demand for sustainable proteins, investments in fermentation-enabled proteins are on the rise. However, some consumers have safety concerns relating to fermented proteins, which could restrain the market. As a result, it may be necessary for companies in the space to educate consumers on the technology and its benefits through strategies such as marketing campaigns.
Precision fermentation takes the lead
By process, precision fermentation will lead the market as it can produce a wide range of end products for the food, agriculture, and pharmaceutical industries, among others. Microbial, fungal, and algal sources can multiply rapidly, meaning that precision fermentation can produce large quantities of protein. Agricultural waste can be used as a substrate for the growth of these microorganisms, increasing the sustainability of the technology.
By segment, fermentation-derived dairy proteins account for the largest market share. Precision fermentation is increasingly being used to produce proteins such as casein, which can be used in animal-free dairy alternatives.
Currently, North America has the highest revenue in the fermentation-derived protein market, largely driven by the demand for sustainable dairy alternatives. The European market is also significant, particularly in Germany, the UK, and France.
Promising future
Another report published earlier this year predicted that the biomanufacturing industry could be worth $200 billion by 2040, predominantly driven by precision fermentation. However, the authors note that a twentyfold increase in manufacturing capacity will be necessary to achieve this figure.
A Formo study conducted in 2022 found that consumers are positive about the concept of animal-free dairy products and readily see the advantages, indicating a promising future for the industry.
“It was gratifying to see consumers connect the dots on the motivation behind a new way of making dairy: better for the environment, better for animals, and urgently needed given current population growth,” said Oscar Zollman Thomas of Formo. “It also served as a needed reminder of the responsibility we have in introducing these products to the world — transparently and honestly communicating not just the science but also the rationale behind these products.”
