Fermentation Enabled Alternative Protein Market to Grow With 14% CAGR – vegconomist

According to a new report by InsightAce Analytic, the global fermentation enabled alternative protein market is projected to grow with a significant CAGR of 14% over the forecast period 2023-2031. The market was valued at $370.39 million last year, and will grow to reach over $1.19 billion by 2031.

The report includes companies using traditional, biomass, and precision fermentation techniques, which involve using microorganisms such as algae, yeast, and fungi to produce food ingredients. It finds that there are over 50 players in the industry, with the majority based in the US.

The rise of flexitarianism and increased demand for sustainable proteins is driving the market and helping fermented protein companies to gain investments. However, the industry faces challenges regarding public perceptions, as many consumers have safety concerns when it comes to products made from microorganisms. There is also a lack of awareness of fermented proteins.

Currently, dairy alternatives have the largest share of the fermentation enabled alternative protein market. This is due to technological advancements, regulatory support, and growing demand for dairy alternatives.

“Strong collective effort”

By region, North America has the highest revenue share in the market. However, Europe is also a significant market, particularly the UK, Germany, and France. Considerable growth in demand is expected in this region; this is supported by a GFI report which found that Europe has the potential to become a world leader in fermented food production.

The market research comes as a new report finds that technology interventions will be very important to help bring down the price of fermented products. Scaling is also important, but to a lesser degree.

“It will take a strong collective effort to build enough infrastructure, improve technical performance and optimize facility design and operations to power the bioeconomy of the future,” says the report.