Fermented Ingredients Market Report 2025

The fermented ingredients market size has grown strongly in recent years. It will grow from $38.11 billion in 2024 to $41.41 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to increased consumer demand for natural and clean label ingredients, growth awareness of the health benefits of fermented foods, rising demand for functional and nutrient-rich ingredients, expansion of food and beverage industry and product innovation, need for food preservation and shelf-life extension, demand for alternative protein sources (e.g fermented plant-based proteins).

The fermented ingredients market size is expected to see strong growth in the next few years. It will grow to $59.9 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to adoption of fermented ingredients inThe pharmaceutical and nutraceutical industries, emphasis on sustainable and eco-friendly food production practices, research and development in fermented ingredients for personalized nutrition, need for reduced sugar and salt alternatives in food formulations, expansion of fermented ingredients in animal feed and pet food industries. Major trends in the forecast period include fermented plant-based proteins, artisanal and small-batch fermentation, clean label and minimal processing, precision fermentation and biotechnology, fermented ingredients in personal care and cosmetics.

The anticipated rise in digestive problems and obesity is poised to drive the growth of the fermented ingredient market. These ingredients serve as a rich source of lactic acid bacteria, known for their capacity to restore and support the digestive system. Additionally, fermented ingredients play a role in reducing blood pressure and improving cholesterol levels. Notably, in March 2022, the World Health Organization, based in Switzerland, reported that the global prevalence of obesity is on the upswing, with projections indicating that 650 million adults, 340 million teenagers, and 39 million children will be affected. This concerning trend is expected to persist, with the WHO estimating that by 2.02 trillion adults and children will be classified as overweight or obese. Heightened health concerns and a shift in consumer preferences toward fermented and health-focused foods are anticipated to drive the demand for fermented ingredients in the coming years.

The fermented ingredients market is set to experience growth fueled by the increasing demand from the food and beverage industry. Encompassing businesses involved in the production, distribution, and sale of edible goods and beverages, the food and beverage industry relies on fermented ingredients to meet consumer expectations for unique flavors, improved nutritional profiles, and extended shelf life. For instance, in 2023, the Food and Drink Federation, a UK-based organization representing and advising UK food and drink manufacturers, reported a substantial 31% increase in food and drink exports in 2022 compared to the previous year. Moreover, the industry contributed significantly to Scotland's manufacturing output, reaching a remarkable turnover of $10.84 billion (£10.3 billion) in 2022, constituting 33% of the total manufacturing output. Therefore, the escalating demand from the food and beverage sector emerges as a driving force behind the growth of the fermented ingredients market.

A noteworthy trend gaining traction in the market is the use of sustainable alternatives in fermented ingredients. The adoption of bioreactors over traditional methods involving animals and fields minimizes environmental inputs, particularly water and land. As an example, Finland-based VTT Technical Research Centre utilizes fungus to produce nature-identical egg white protein. Fermentation techniques extend to cultivating plant cells, enabling the creation of various foods such as avocado, cocoa, or berries. Additionally, Netherlands-based The Protein Brewery contributes to sustainable practices by crafting meat alternatives from fungi under its Fermotein brand. This focus on sustainable alternatives underscores a growing trend in the fermented ingredients market.

Leading companies in the fermented ingredients market are concentrating on developing innovative products, such as new fermented red beet ingredients, to expand their product range and meet evolving consumer preferences. Fermented red beet ingredients are produced through the fermentation of beets, resulting in products with distinctive flavors and potential health advantages. For example, in April 2023, Insempra, a Germany-based company, introduced a 100% natural alpha-ionone flavor and fragrance ingredient. This ingredient, sourced entirely from natural origins, is typically obtained through the extraction or distillation of plant materials, like essential oils from flowers or fruits. Known for its signature floral and woody aroma, it is widely used in perfumery and flavor applications. As a natural compound, alpha-ionone is particularly favored in clean-label products and formulations that emphasize sustainability and environmentally friendly ingredients. Its adaptable scent profile enhances the sensory appeal of various products, including cosmetics, personal care items, and food applications, catering to consumer demand for natural and organic options.

In a noteworthy move in February 2022, the Ireland-based taste and nutrition company, Kerry Group, made a significant acquisition by obtaining c-LEcta GmbH for €137 million ($226 million). This strategic acquisition enhances Kerry Group's innovation capabilities in enzyme engineering, fermentation, and bio-process development. The deal also provides Kerry Group with access to c-LEcta GmbH’s robust precision fermentation portfolio, empowering them to create high-value targeted enzymes and ingredients. c-LEcta GmbH, based in Germany, is a prominent biotechnology company contributing to the advancements in the field.

Major companies operating in the fermented ingredients market include Lallemand Inc., Chr. Hansen Holding A/S, Ajinomoto Co. Inc., BASF SE, DuPont de Nemours Inc., Döhler Plc, Cargill Inc., Angel Yeast Co. Ltd., Vander Mill LLC, Citizen Cider LLC, India Cocoa Pvt. Ltd., Red Boat Trading Co. Ltd., Squid Ltd., Angel Yeast Co. Ltd., E.I. du Pont de Nemours and Company, Kerry plc, DIANA Group Ltd., Olam International Ltd., Koninklijke DSM NV, Associated British Foods plc, Angel yeast Co. Ltd., Bakel Group, Chr. Hansen Holding A/S, Orkla ASA, Kyowa Hakko Kirin Co. Ltd., Evonik Industries AG, Riken Vitamin Co. Ltd., Zhengzhou Honest Food Co. Ltd., Stepan Company, Dohler Group SE.

Fermented ingredients serve as additives employed to induce fermentation in both food and non-food products, facilitating the attainment of desired chemical properties such as taste, aroma, texture, and appearance. These ingredients are incorporated to instigate controlled microbial growth and the transformation of components through enzymatic activities inherent in the fermentation process.

The primary categories of fermented ingredients encompass amino acids, organic acids, polymers, vitamins, industrial enzymes, and antibiotics. Amino acids are generated through the fermentation of ingredients with microorganisms like probiotic bacteria. These microorganisms play a crucial role in converting the ingredients into various substances, including amino acids. Fermented ingredient formulations are available in both liquid and dry forms, catering to applications in the realms of food and beverage, pharmaceuticals, and other industries.

The fermented ingredients research report is one of a series of new reports that provides fermented ingredients statistics, including fermented ingredients industry global market size, regional shares, competitors with fermented ingredients share, detailed fermented ingredients segments, market trends and opportunities, and any further data you may need to thrive in the fermented ingredients industry. This fermented ingredients research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the fermented ingredients market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fermented ingredients market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the fermented ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The fermented ingredients market consists of sales of polymers, amino acids, vitamins, industrial enzymes, organic acids, antibiotics, and other fermented ingredients. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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