Fermented Ingredients Market

Global Fermented Ingredients Market Size (2024 To 2032)

The global fermented ingredients market size is expected to be worth USD 27.45 Billion by 2024 to achieve USD 54.70 Billion by 2032 growing at a CAGR of 9% in the forecast period 2024 to 2032. The growth of the fermentation ingredient market is driven by increased demand from a variety of application industries, such as the pharmaceutical, food and feed industries.

Fermented Ingredients add flavor or change the shape of the food. They are used to help keep food healthy longer. These ingredients can change the quality and acceptability of the product. As a result, food quality improves, becomes easy to digest, has high nutritional value, and tastes good. Fermentation ingredients are used in industries like food and beverage and pharmaceuticals. Other components are used to ferment food ingredients, such as water, salt, and sweeteners. Distilled water is the best during the fermentation process. The combination of salt and water, called brine, is widely used for fermentation. Fermentation is a biological process based on cellular enzymes and sterility, rather than inanimate catalysts that cause chemical reactions in mainly used substances. Fermentation is a natural metabolic process that regulates yeast, bacteria, and fungi to fertilize food and produce the products you need. It is the means by which bacteria convert carbohydrates into acids or alcohols. For example, yeast ferments to convert sugar into alcohol for energy. Beer, yogurt, wine, and other food products are produced through fermentation processes. The food fermentation process requires fermentation ingredients. The demand for Fermented Ingredients is growing at a significant rate as they are widely used in many applications, from tissue engineering to tissue stress.

MARKET DRIVERS

The rise in consumer awareness about the benefits related to the consumption of fermented ingredients and the growth of fermented foods and beverages has fueled the growth of the global fermented ingredient market in recent years.

Digestion problems, increased prevalence of obesity, and increased consumer awareness of health are some of the critical factors in the growth of the market. The Fermented Ingredients are acidic in nature, making them suitable for digestion problems. These ingredients are applied to food preservation, which is why many manufacturers use them to extend the shelf life of the product. This has a positive impact on the growth of the market. The global growth of alcohol consumption is one of the main factors for the growth of the industry. The most popular alcoholic beverage is beer, which is made by fermenting various products such as rice and wheat, so increasing beer consumption will eventually promote market growth.

Furthermore, the demand for products is increasing due to the environmental awareness of the products, ecological production systems and various health benefits. Growth in the biopharmaceutical industry is anticipated to lead the market during the outlook period. The biopharmaceutical industry is experiencing significant growth due to its high efficiency and is considered the most sophisticated and elegant performance innovation in modern science. The increase in the obese population, the increase in overweight people and the increase in digestive diseases are the main factors driving the growth of the world market for Fermented Ingredients. In addition, there is another factor driving growth in target markets and increasing users' awareness of Fermented Ingredients for the quality and consumption of healthy foods as demand for fermentation derivatives increases, especially in many industries, including the pharmaceutical industry. Furthermore, the growing demand for food preservation and the increasing dietary need for antibiotics in the population along with changes in dietary patterns are key factors that are foreseen to drive the growth of the global market for Fermented Ingredients.

MARKET RESTRAINTS

The high use of biodegradable plastics produced by the fermentation of sugar also affects the growth of the market.

Inconsistent availability of raw materials is a significant deterrent that can hinder long-term market growth. The high costs associated with acquiring raw materials are another critical reason to slow down market growth. However, growing demand in emerging countries like Africa, India and China will outweigh the impact of deterrents and lead the market in a positive direction. In addition to the rapid development of synthetic alcohol production, government regulations are presumed to hamper the growth of the global fermentation ingredient market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The Amino Acids segment is the largest in the fermented ingredients market. Amino acids, especially essential ones like lysine, methionine, and threonine, are widely used in animal feed, food products, and pharmaceuticals. Their importance lies in their role as building blocks for proteins and their various applications in promoting growth, improving performance, and maintaining health in both animals and humans. As the demand for high-protein diets and animal feed continues to rise, amino acids are increasingly in demand, solidifying their position as the leading product in the fermented ingredients market.

The Industrial Enzymes segment is the fastest-growing in the fermented ingredients market. Industrial enzymes are used in various applications, such as food and beverages, textiles, detergents, and biofuels, due to their efficiency and eco-friendly properties. With industries moving toward cleaner and more sustainable production processes, enzymes are replacing chemical alternatives in several sectors. The rapid growth of bio-based industries, along with the increasing demand for enzyme-driven processes in food production and renewable energy sources, is fueling the fast expansion of the industrial enzymes segment in the fermented ingredients market.

By Application Insights

The Food & Beverages segment is the largest in the fermented ingredients market. Fermented ingredients, such as yeast, lactic acid bacteria, and enzymes, play a crucial role in enhancing flavor, texture, and preservation in food products. They are used in a wide range of applications, from alcoholic beverages like beer and wine to baked goods, dairy products, and fermented foods like yogurt and sauerkraut. The growing demand for functional foods, natural preservatives, and probiotics is driving the significant share of fermented ingredients in the food and beverage industry, making it the dominant segment in the market.

The Pharmaceuticals segment is the fastest-growing in the fermented ingredients market. Fermented ingredients, particularly those like probiotics, enzymes, and vitamins, are increasingly used in pharmaceutical applications for health supplements, therapeutic products, and functional medicines. With rising consumer awareness about health and wellness, the demand for fermented ingredients in pharmaceuticals is expanding rapidly, particularly for probiotics and enzymes used in digestive health, immunity, and other treatments. The growth of the nutraceutical industry and increased focus on natural, bioactive ingredients are contributing to the fast-paced growth in this segment.

By Form Insights

The Dry Form segment is the largest in the fermented ingredients market. Dry fermented ingredients, such as dried yeast, enzymes, and probiotics, are preferred for their longer shelf life, ease of transportation, and versatility in application across various industries, including food, beverages, and pharmaceuticals. The stability of dry forms allows them to be easily stored and used in large-scale production without compromising their effectiveness. The demand for convenient and durable products is driving the dominance of dry forms in the fermented ingredients market.

The Liquid Form segment is the fastest-growing in the fermented ingredients market. Liquid fermented ingredients, such as liquid yeast and enzymes, are in increasing demand due to their ease of use and faster integration into production processes. In industries like food and beverages, liquid forms are ideal for high-speed manufacturing, providing quicker activation and greater consistency in product quality. With growing trends toward fresh, functional food and beverage formulations, liquid forms are rapidly gaining traction, making them the fastest-growing segment in the market.

By Process Insights

The Batch Fermentation segment is the largest in the fermented ingredients market. This process involves fermenting a fixed amount of raw material in a controlled environment, typically in batches, allowing for high flexibility and control over the fermentation process. It is widely used in the production of ingredients like yeast, enzymes, and organic acids, particularly in industries like food, beverages, and pharmaceuticals. The popularity of batch fermentation can be attributed to its ability to produce small to medium quantities of high-quality products with consistent results, making it the dominant process in the market.

The Continuous Fermentation segment is the fastest-growing in the fermented ingredients market. This process allows for the continuous addition of raw materials and the removal of products during fermentation, enabling high efficiency and scalability. As industries demand large-scale production of fermented ingredients with minimal downtime, continuous fermentation is increasingly favored due to its cost-effectiveness, productivity, and consistency. The growth of the global food and beverage industry, alongside the need for more sustainable production methods, is driving the rapid adoption of continuous fermentation, making it the fastest-growing process in the market.

REGIONAL ANALYSIS

Depending on the region, the market is distributed in North America, Europe, Asia Pacific, the Middle East and Africa (MEA) and Latin America. The Asia Pacific is a leading market for fermented ingredients, and China is believed to have experienced the highest growth rate. The Asia Pacific region is expected to grow at a higher growth rate during the projection period due to increased demand for high-quality fermented foods and beverages, and the need for high-quality fermented ingredients in the region has increased. The presence of various end industries and the increased consumption of fermentation ingredients by these multiple industries are supporting the growth of markets in the Asia Pacific region.

The growth of the North American fermentation ingredient market is primarily driven by the high growth of the fermented beverage and pharmaceuticals market in the United States. In North America, environmental concerns are increasing, and environmentally sound production systems and the health benefits of fermentation play a key role in market growth. In the food and beverage industry, the convenient and advanced production process of bioactive biomolecules, which have a variety of industrial applications, is driving market growth in Europe. The other promising areas for the development of the global fermentation ingredients business are the Middle East and Africa and Latin America.

KEY PLAYERS IN THE GLOBAL FERMENTED INGREDIENTS MARKET

Major key players in the global fermented ingredients market are Lallemand Inc, E. I. du Pont de Nemours and Company, Angel Yeast Co. Ltd, Ajinomoto Corporation Inc, Koninklijke DSM N.V, Chr. Hansen A/S, Dohler Group, Lonza and Others.

RECENT HAPPENINGS IN THE MARKET

• In 2016 Green Plains acquired Fleischmann's Vinegar Company, a leading vinegar producer.
• In 2016, PepsiCo acquired KeVita, a probiotic beverage maker, and launched the Tropicana Essentials line of Probiotics.
• August 2017: Ajinomoto Co. Inc. has signed a subcontracting agreement with Meihua Holdings Group in China to produce amino acids for feed.
• March 2018: Novozymes signed a cooperation agreement with Boehringer Ingelheim to develop the market and sell a portfolio of probiotic products.

DETAILED SEGMENTATION OF THE GLOBAL FERMENTED INGREDIENTS MARKET INCLUDED IN THIS REPORT

This research report on the global fermented ingredients market has been segmented and sub-segmented based on type, application, form, process, and region.

By Type

• Amino Acids          
• Organic Acids        
• Biogas      
• Polymers
• Vitamins  
• Industrial Enzymes

By Application

• Food & Beverages              
• Feed
• Pharmaceuticals  
• Paper      

By Form

• Dry Form 
• Liquid Form 

By Process

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

By Region

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