The Global Fermented Ingredients Market is estimated to be valued at USD 39.2 Bn in 2024 and is expected to reach USD 112.6 Bn by 2031, growing at a compound annual growth rate (CAGR) of 14.1% from 2024 to 2031. Fermented ingredients are widely used in food and beverage applications due to their health benefits. The demand for fermented ingredients is growing due to the rising awareness among consumers about functional foods and healthy diet.

The market is witnessing significant growth driven by factors such as increasing awareness about gut health, popularity of fermented food and beverages among health-conscious consumers. Growth in the food and beverage industry has also fueled the demand for fermented ingredients. Further, advancements in fermentation technology and new product development are expected to generate lucrative opportunities for players in this market over the forecast period.

Market Driver - Growing Consumer Preference for Natural, Clean-Label Products, Especially in Food and Beverages

With growing health awareness, consumers are becoming increasingly conscious about the ingredients in their food. There is a marked shift towards natural, minimally processed products that are clean-label and offer perceived health benefits. Fermented ingredients like yogurt, kefir, kimchi are appealing to consumers as they are derived from natural processes without the use of any artificial additives, preservatives or chemicals. People are wary of foods with long, chemical-sounding ingredients lists and favor products with short, easy-to-understand labels. Fermented foods fit well into the clean label trend as the fermentation process allows production of foods rich in nutrients through a natural method without the need for synthetic ingredients.

Furthermore, consumers are skeptical of heavily processed foods and want to avoid artificial colors, flavors, sweeteners. Fermented foods have gained popularity as they provide a viable alternative to ultra-processed products. For example, fermented plant-based yogurt alternatives made from coconut or soy milk are appealing to health-conscious consumers looking for a natural dairy substitute. The formulation of fermented beverages using prebiotic fibers from fruits like coconut water as a substitute for sugar also fits well with consumer demand. Even for applications in dietary supplements, fermented ingredients derived from probiotic cultures are preferred over synthetic vitamins and minerals. With growing transparency about ingredients and manufacturing processes, clean label has become an important driver of food choices. Fermented foods capitalize on this trend with their natural image.

Market Driver - Increasing Demand for Probiotics Encourages Industry Growth

Probiotics refer to live microorganisms that when consumed in adequate amounts confer several health benefits. Research studies have established the role of gut microbiota and probiotic consumption in maintaining overall wellness and reducing risks of lifestyle diseases. With rising chronic health issues, people are looking to proactive management of gut and digestive health through diet. Fermented foods are emerging as an appealing option for everyday consumption of probiotics.

Regular intake of yogurt, kefir, kimchi and other fermented probiotic foods is growing in popularity for its ability to promote digestion, support immune function and reduce inflammation. Recent discoveries indicate that favorable gut bacteria composition may help in problems like irritable bowel syndrome, inflammation and even mental health issues. This growing understanding of links between probiotic intake, microbiome balance and overall wellness is driving more consumers to include probiotic-rich fermented foods and supplements in their diet. Even for specific population like expectant mothers, the elderly and infants, gut-nourishing foods are gaining relevance for their unique health needs. With on-going research support for benefits of fermented probiotic foods, their demand is likely to increase multifold in coming years driven by widespread health and wellness trends.

Market Challenge - Strict Regulatory Standards, Particularly in The U.S. And Europe, Impact the Entry of New Products

Strict regulatory standards set by governments in major markets like the United States and Europe pose a significant challenge for companies operating in the fermented ingredients market. These standards cover various aspects of production and product composition and aim to ensure the safety and quality of products. However, complying with differing and complex requirements across different jurisdictions involves substantial costs and effort. Companies must navigate a maze of regulations at both federal and state levels which can delay the launch of new products. Extensive documentation and certifications are required as part of the approval process. This regulatory burden acts as a barrier to entry, particularly for smaller players. Establishing production and distribution infrastructure to service major markets also requires considerable investment. Many firms avoid these regions altogether due to the compliance challenges. The stringent norms also make it difficult to quickly adapt products according to changing consumer preferences and market trends. The regulatory framework thus increases uncertainty and financial risks for companies.

Market Opportunity- Rising Demand for Plant-based Fermented Ingredients Creates New Avenues in the Coming Years

The fermented ingredients market is witnessing considerable opportunities due to the rising popularity of plant-based diets globally. Consumers are increasingly shifting towards vegan and sustainable food options driven by health, ethics and environmental concerns. Fermented plant-based ingredients provide alternatives to animal-derived products and satisfy this growing demand. Food companies have responded by launching a wide variety of vegan dairy and meat alternatives that use fermented plant proteins, such as those derived from soy, nuts and grains. The addition of these cultures enhances the taste and nutritional properties of vegan options. They help mimic textures of traditional products. The market has also observed innovation around herbs, vegetables and fruits that are naturally fermented. This expanding portfolio of plant-centered offerings presents lucrative opportunities for ingredient suppliers. The development of more natural preservation techniques further boosts appeal for health-conscious buyers. The trends of veganism and sustainability thus bode well for long term growth prospects of plant-based fermented ingredients.

Product Innovation and Development:

• Key players are heavily investing in R&D to create novel fermented products that cater to health-conscious consumers. Innovations include new fermentation techniques, cleaner labels, and plant-based ingredients.
• Companies like New Culture are using precision fermentation to create animal-free dairy alternatives, tapping into the growing vegan and sustainable food markets.

Strategic Partnerships and Collaborations:

• Collaborations with biotechnology firms and food manufacturers help streamline product development and scale up production, as seen with partnerships like New Culture and ADM.
• Partnerships with AI technology providers are being leveraged to improve production efficiency, optimize fermentation processes, and ensure product consistency.
• Collaborations with academic and research institutions are common for advancing fermentation technologies, particularly in developing new strains and processes.

Geographic Expansion and Market Penetration:

• Expanding into high-growth markets, especially Asia Pacific and Europe, where demand for natural and fermented foods is increasing. For instance, many companies are setting up production facilities or partnering with local suppliers to strengthen their presence in these regions.
• Localized Production and Distribution: To cater to specific consumer preferences, companies are adapting product formulations and distribution channels to align with regional tastes and regulatory requirements.

Sustainability and Clean Labeling:

• Emphasizing sustainable practices in ingredient sourcing, production, and packaging to appeal to eco-conscious consumers.
• Transparency in labeling, ensuring that products are free from synthetic additives and preservatives, is a major selling point for today’s health-aware consumers.

Expansion of Product Applications:

• Beyond food and beverages, fermented ingredients are being introduced into pharmaceuticals, cosmetics, and personal care products. This diversification allows companies to tap into various industries and reduce dependence on any single market.
• Developing multi-functional ingredients that serve diverse industries (e.g., amino acids for both nutraceuticals and cosmetics) expands the market reach of fermented ingredients.

Digitalization and E-Commerce:

• Leveraging e-commerce platforms and direct-to-consumer (D2C) models to make fermented ingredients more accessible to a broad audience, especially in the health and wellness segment.
• Using digital tools and AI-driven analytics to monitor consumer trends, allowing companies to swiftly respond to changing preferences and introduce new products based on real-time demand analysis.

Insights, By Type, Organic Acids Meets Growing Demand for Natural Food Ingredients

By Type, Organic Acids is expected to contribute 39.6% in 2024 owing to their versatile applications and growing demand from food producers. Organic acids like lactic acid, citric acid and acetic acid are widely used as preservatives, acidulants and flavor enhancers in various food products. As consumers increasingly prefer natural food ingredients, organic acids produced through fermentation provide a more sustainable alternative to chemically synthesized products.

Fermented organic acids help extend the shelf-life of foods without artificial preservatives. They inhibit the growth of harmful bacteria and prevent spoilage. In bakery products, organic acids help regulate acidity and leavening. In meat and dairy, they suppress pathogenic microorganisms. The growing processed food industry relies on organic acids to control pH and impart a tangy taste. Food manufacturers favor organic acid fermentation due to consistency in quality and taste.

With rising health consciousness, organic acids from probiotic cultures attract huge interest. Lactic acid bacteria fermentation benefits digestive health and provides calorie-free acidity. Fermented citric acid enhances absorption of minerals. The clean label trend boosts demand for unrefined acetic acid in condiments and snacks. Expanding food applications especially in developing markets will sustain growth of the organic acids segment in the fermented ingredients market.

Insights, By Form, Liquid Form Dominates Owing to its Advantages

By Form, the liquid form of fermented ingredients is expected to account for 59.1% in 2024 for its advantages in handling and application over dry form. Liquid ingredients are diluted to the required concentration and easily blended or mixed into formulations. This improves process efficiency in food, beverage, pharma and other manufacturing industries.

Fermented product lines catering to specific customer needs are conveniently developed and distributed in liquid form. Probiotic cultures and enzyme solutions customized for different applications can be packed for just-in-time usage. Liquid ferments are also suitable for continuous processes with automated dosing systems. Their homogeneous consistency allows for accuracy in quality control testing.

The liquid segment has grown owing to therapeutic applications of metabolites produced via fermentation. Amino acids, vitamins and other bioactives find increasing usage in dietary supplements, infant formulas and clinical nutrition. Their stability and solubility in liquid eco-friendly delivery systems boosts bioavailability. Liquid fermented ingredients minimize oxygen exposure risks during storage and transportation compared to dry powders. Overall, ease of application and handling drives continued preference for liquid over dry fermented products.

Insights, By Process, Continuous Fermentation Steadily Replaces Batch Processing

In terms of By Process, continuous fermentation has emerged as the dominant segment by steadily replacing traditional batch fermentation methods. Many fermented food and beverage companies now use continuous stirred tank reactors for production. Compared to batch, continuous fermentation offers higher throughput, lower manufacturing costs and greater process control.

Continuous fermentation maintains a steady state with uninterrupted substrate feed and product harvest. It maximizes space, energy and labor utilization for a more compact plant footprint and higher asset turnover. Careful control of pH, temperature and substrate-to-microorganism ratios achieves stable and consistent quality over long runs. Continuous fermentation mitigates risks of contamination between batches for highly controlled sterile environments.

Reliable data-driven process optimization is easier with online sensors and automation in continuous systems. Tight process control allows developing fermented products with new functionality. Some examples are value-added biosurfactants, biopolymers and nutraceuticals. Continuous stirred tank reactors enable scaling fermentation to an industrial level for commodity ingredients like organic acids and amino acids. Their steady output meets burgeoning demand from the food and pharma industries. Overall, the process benefits establish continuous fermentation as the technology of choice for large-scale fermented ingredient manufacturing.

The fermented ingredients market is rapidly expanding as consumers increasingly value health-promoting, natural ingredients. Functional foods and beverages drive growth, particularly as clean-label and probiotic-rich products gain traction. Fermented ingredients are integral to achieving these health benefits, with organic acids and amino acids in high demand for their roles in food preservation and nutrition. Technological advancements in fermentation and AI-driven process optimization enhance product quality, enabling manufacturers to meet consumer expectations for sustainable and efficient production. Europe and Asia Pacific lead the market, with robust growth seen in the demand for fermented ingredients across food, pharmaceutical, and nutraceutical applications. This shift is bolstered by regulatory support and innovations, making fermented ingredients central to the future of health-focused dietary solutions.

The major players operating in the Fermented Ingredients Market include Chr. Hansen A/S, AngelYeast Co., Ltd., DuPont, Lonza, Lallemand Inc., Vander Mill, LLC, Citizen Cider LLC, Indiacocoa, Red Boat and Squid.

• In October 2023, New Culture announced plans for vegan mozzarella using precision fermentation, backed by USD 25 million Series A funding, in partnership with ADM.
• In October 2023, De Novo Foodlabs commercialized NanoFerrin, a sustainable, nature-identical alternative to lactoferrin, positioning it as a more affordable and sustainable option to traditional animal-derived lactoferrin.

• By Type
  • Organic Acids
  • Amino Acids
  • Antibiotics
  • Industrial Enzymes
• By Form
  • Liquid
  • Dry
• By Process
  • Continuous Fermentation
  • Batch Fermentation
  • Anaerobic Fermentation
  • Aerobic Fermentation
• By Application
  • Feed
  • Food and Beverages
  • Pharmaceuticals
  • Personal Care
  • Paper
  • Others