Fermented Ingredients Market Size, Share and Trends 2024 to 2034

Fermented Ingredients Market Size and Forecast 2024 to 2034

The global fermented ingredients market size accounted for USD 39.25 billion in 2024 and is predicted to surpass around USD 112.65 billion by 2034, growing at a CAGR of 11.12% from 2024 to 2034. The fermented ingredients market growth is attributed to the increasing consumer demand for natural, healthy, and functional food products that incorporate fermented ingredients.

Fermented Ingredients Market Key Takeaways

• Europe dominated the fermented ingredients market with the largest market share of 36% in 2023.
• Asia Pacific is expected to expand at a notable CAGR of 12% during the forecast period.
• By type, the organic acid segment held a dominant presence in the market in 2023.
• By type, the amino acids segment is expected to grow at the fastest rate in the market during the forecast period. 
• By form, the liquid segment accounted for a considerable share in 2023.
• By form, the dry segment is anticipated to grow with the highest CAGR in the market during the studied years.  
• By process, the batch fermentation segment led the global market in 2023. 
• By process, the continuous fermentation segment is projected to expand rapidly in the market in the coming years.
• By application, the food & beverage segment dominated the global market in 2023.
• By application, the pharmaceuticals segment is projected to grow at the fastest rate in the market in the future years.

Europe Fermented Ingredients Market Size and Growth 2024 to 2034

The Europe fermented ingredients market size is exhibited at USD 14.13 billion in 2024 and is anticipated to be worth around USD 41.12 billion by 2034, representing a CAGR of 11.25% from 2024 to 2034.

Europe dominated the market in 2023, capturing the largest share of 36%. This is mainly due to increasing sustainability concerns. However, fermentation processes reduce energy consumption, aligning well with sustainability goals. Fermentation also extends the shelf life of foods, making it indispensable for food production. In addition, the adoption of probiotics has increased as a result of growing concerns about gut health, which further boosts the demand for fermented foods.

Asia Pacific is expected to expand at the fastest growth rate throughout the forecast period. Consumers are rapidly shifting toward natural preservatives and fermented food products, which encourages food and beverage manufacturers to develop and use fermented ingredients. The increasing awareness about gut health has also increased the consumption of probiotics. In addition, the rapid expansion of the food and beverage industry and the rising demand for healthy food further contribute to regional market growth.

Market Overview

Rising demand among consumers to consume fermented ingredients for the health benefits they proffer, such as boosting nutrition and the improvement of gut health, further contributes to boosting the fermented ingredients market. This trend is facilitated by the growing popularity of functional foods, as consumer diet trends are shifting towards the clean label. The new trend in diets also includes plant-based, and therefore, there is market potential in plant-derived fermented products that are expected to gain market acceptance.

• The market for functional foods and beverages has increased and continues to be anticipated to rise at a CAGR of 7.5% in the global market in 2020. It may likely reach over USD 50 billion, based on WHO’s estimation, by 2025.
• The U.S. Department of Agriculture revealed a 27% year-on-year sales growth of plant-based foods for the year 2021/2022, which also supported the changed consumer trend.

Impact of Artificial Intelligence (AI) on the Fermented Ingredients Market

In the fermented ingredients market, using analytical tools with artificial intelligence makes it possible to monitor and analyze the fermentation process conditions continuously. This makes informed decisions to reduce waste and increase the yield. AI assists firms in creating new fermented products to suit changing market needs. The use of the machine learning algorithm to check the quality of products ensures the quality of batches. They are not only increasing production rates and speeds but also reducing costs. Thus, the versatility of fermented ingredients is now being expanded to the food, beverage, pharmaceutical, and many more industrial sectors.

Fermented Ingredients Market Growth Factors

• Rising consumer awareness: Growing awareness about the health benefits of fermented products fuels demand among health-conscious consumers.  
• Expansion of e-commerce: The increasing prevalence of e-commerce platforms enhances accessibility and convenience for purchasing fermented ingredients.  
• Technological advancements: Innovations in fermentation technology improve production efficiency and product quality, driving market growth.
• Regulatory support: Government initiatives promoting the use of fermented ingredients in food products bolster market expansion.
• Rising demand for functional foods: The growing trend towards functional foods that provide health benefits beyond basic nutrition supports the demand for fermented ingredients. 
• Increased interest in probiotics: The rising popularity of probiotics among consumers encourages the incorporation of fermented ingredients in dietary supplements.  
• Culinary trends: Evolving culinary trends that emphasize unique flavors and health benefits encourage the use of diverse fermented products in food and beverage formulations.

Market Scope

Market Dynamics

Driver

Increasing demand for natural ingredients

Growing consumer preference for natural and clean-label products is expected to drive the demand for the fermented ingredients market. High awareness of the importance of health means that consumers are looking for food products that do not contain additives and preservatives. Since fermentation is a natural process, it fits into this pattern of promoting ingredients, such as enzymes, amino acids, and organic acids, fermentation. This change in trend has become apparent, especially within the food and beverages industries, where manufacturers are adding these ingredients to their products to improve their quality and nutrients.  This pattern is expected to boost the fermented ingredients sector, which plays a vital role in companies utilizing the technique of fermentation to introduce natural substitutes for synthetic compounds in products.

• A recent report from the Organic Trade Association shows that sales of organic foods in the U.S. rose by 12.4% in 2021 and crossed USD 60 billion, indicating the ever-rising need for products from organic sources. 
• Eurobarometer 2022 survey discovered that more than 75% of Europeans prefer natural, organic, and minimally processed foods, thus needing to advance clean-label convenience food.

Restraint

Stringent regulatory standards

Stringent regulatory standards are projected to hamper the fermented ingredients market growth, especially in regions with strict food safety and quality control requirements. Countries, including the United States, the FDA, the European Union, and the EFSA, bear great policies restricting the use of fermented ingredients in foods, drugs, and cosmetics. Bureaucracy is a major issue in business; approval processes take time, and all new products come with paperwork that takes a lot of time and frequent audits, which slows operational gradients and hikes up the costs considerably. Furthermore, this constant regulatory pressure affects small manufacturers and limits their progress in the industry.

Opportunity

High demand for plant-based fermented ingredients

High demand for plant-based fermented ingredients is expected to create favorable opportunities for the players competing in the fermented ingredients market. Businesses are finding new fermentation products from soy, peas, and rice sources as people shift towards veganism. These categories or ingredients, as used in plant-based meat & dairy products, have better nutritional values, better mouthfeel, and better shelf stability. In North America and Europe, this trend is expected to propel the desire for plant-based fermented products, as the uptake of plant-based foods is increasing in the world market.

• In a report on the plant-based food market in the U.S. published in 2021, the plant-based fermented products market grew by 27%, topping USD 7 billion.

The role of the fermented ingredients market is integral to improving the quality of new proteins. Moreover, the United Nations Food and Agriculture Organization (FAO) has appreciated how fermentation technologies enhance the quality of plant-based food products while cutting the dependency on animal-derived feeds. Increasing consumption of these items is anticipated to continue further.

Type Insights

The organic acid segment held a dominant presence in the fermented ingredients market in 2023 due to their usage in numerous sectors that offer services, such as food and beverages, pharmaceuticals, and agriculture. Natural acids, including citric acid, lactic acid, and acetic acid, are widely used in food processing. They function by preserving food, giving food flavor, and regulating pH levels, which is important in food production to control quality and safety. As per the report from the Food and Additionally, the increased use of fermentation in health supplements and functional foods where organic acids support gastrointestinal functions or metabolism.

• Agriculture Organization of the United Nations in 2021, the consumption of organic acids has risen notably because of the rising trend for clean-label products. 

The amino acids segment is expected to grow at the fastest rate in the fermented ingredients market during the forecast period of 2024 to 2034, owing to its importance in nutritional supplements and its remarkable functions in numerous fields. Essential amino acids are needed for human nutrition, and their popularity has risen in dietary supplements, functional food products, and animal feed. 

• The FAO in 2022 revealed that the consumption of amino acids has risen, the reason being the concern shown by consumers on health, fitness, and wellbeing. The FAO noted that this segment fits with the new global trends of a healthy and sustainable food value chain. 
• Improvements in fermentation technologies, which improve the efficacy and quality of amino acids, are expected to fuel the market in a 2023 report presented by the United Nations Environment Programme (UNEP), amino acids’ therapeutic nutrition and contribution to combatting malnutrition.

Form Insights

The liquid segment accounted for a considerable share of the fermented ingredients market in 2023 due to the growing consumption of liquid-fermented ingredients in foods and beverages. These fermented components help to enhance the flavors, extend the shelf-life, and improve the functional properties of the products. Concentrated liquid fermented products, such as vinegar and kombuchas, have received a boost in consumer preference from health-conscious consumers looking for natural products that have gone through the fermentation process.

The dry segment is anticipated to grow with the highest CAGR in the fermented ingredients market during the studied years, owing to their easier-to-transport horticultural produce and hence have a longer shelf life compared to fresh produce. Powder and granular products have become popular in modern food products and dietary supplements.

They are easy to incorporate into other products without affecting the quality. This factor plays a great role for manufacturers and consumers by using the dry forms, as they are easier to store and measure, thereby bringing down costs. Furthermore, the rising consumer consciousness of health and nutrition and, conversely, the adaptability of those ingredients in a diverse method.

• According to the FDA report in 2023, dry fermented ingredients were increasingly added to functional foods and supplements as consumers continued to seek products that promote their health benefits. 

Process Insights

The batch fermentation segment led the global fermented ingredients market. Batch fermentation enables close control of local conditions that are required for achieving predictable and high-quality fermented products like yogurt, cheese, and fermented alcoholic beverages. This explains why FAO supports batch fermentation as one of the most popular among artisanal producers who insist on quality and traditional ways of producing. Furthermore, batch fermentation is suitable for developing new products, as producers change the factors affecting fermentation to obtain the necessary characteristics easily.

The continuous fermentation segment is projected to expand rapidly in the fermented ingredients market in the coming years, owing to its economy, especially while used in mass production.  Continuous fermentation is especially preferred in industries that need high quantities of products, including bio-fuel industries and the production of organic acids. Fermentation is an essential process that the World Health Organization WHO has greatly prioritized to meet the increasing global concern for the development of sustainable and environmentally friendly systems. This technique also reduces operational costs since it optimizes time spent between breakdowns and improves productivity. Additionally, development in bioreactor systems offers enhanced control over the fermentation parameters.

Application Insights

The food & beverage segment dominated the global fermented ingredients market in 2023 due to the shifting trends among the consumers’ demand for healthy and functional foods. A global shift towards natural and organic products forces companies to include fermented elements, including probiotics, enzymes, and organic acids, in their products. Furthermore, the general public's awareness of the process of fermentation and the benefits attached to the production of fermented products.

• FAO has reported in its market research that the global demand for probiotics has grown to nearly USD 50 billion in 2022 due to the increased focus on healthy food and nutraceuticals. 

The pharmaceuticals segment is projected to grow at the fastest rate in the fermented ingredients market in the future years, owing to the general trend in applying fermented ingredients in the formulation and development of drugs. During the process of fermentation, valuable bioactive compounds, such as antibiotics, amino acids, and essential vitamins for developing sound pharmaceutical products, are produced. Furthermore, continuous advancements in the fields of biotechnology and pharmaceuticals continue to stress the use of fermented substrates for production to increase the efficiency of the drugs.

Fermented Ingredients Market Companies

• Vander Mill, LLC
• Citizen Cider LLC
• Indiacocoa
• Red Boat
• Squid
• Lallemand Inc.
• Chr. Hansen A/S
• AngelYeast Co., Ltd.
• DuPont.
• Lonza

Recent Developments

• In October 2023, New Culture announced plans to launch its vegan mozzarella cheese, which is made using precision fermentation, by early 2024. The company recently secured USD 25 million in Series A funding aimed at advancing its innovative cheese products. New Culture is collaborating with ADM for production, focusing on creating a mozzarella that replicates the taste and texture of traditional cheese using animal-free casein.
• In October 2023, De Novo Foodlabs announced the commercialization of its flagship ingredient, NanoFerrin, a nature-identical alternative to bovine lactoferrin, recognized for its health benefits. The company has raised new funding to expedite the launch of NanoFerrin, positioning it as a more affordable and sustainable option compared to traditional lactoferrin derived from animal sources.

Segments Covered in the Report

By Type

• Organic Acids
• Amino Acids
• Antibiotics
• Industrial Enzymes
• Polymer
• Vitamins
• Biogas

By Form

• Liquid
• Dry

By Process

• Continuous Fermentation
• Batch Fermentation
• Anaerobic Fermentation
• Aerobic Fermentation

By Application

• Feed
• Food and Beverage
• Pharmaceuticals
• Personal Care
• Paper
• Biofuel
• Textile and Leather

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa