Fermented Ingredient Market

Fermented Ingredient Market Outlook (2024 to 2034)

The global fermented ingredient market is projected to expand at a 4.9% CAGR from 2024 to 2034. The market is estimated at US$ 25.67 billion in 2024 and is expected to reach US$ 41.23 billion by the end of 2034.

Rising consumer interest in natural and clean-label food ingredients, technological developments in food processing, and growing consumer knowledge of the health advantages of fermented foods are driving up demand for fermented ingredients.

The capacity of microorganisms to enhance food through fermentation has made food more appealing and nutritious, with a longer shelf life. Probiotics, or live microorganisms that offer health advantages when ingested in sufficient quantities, are among the main factors driving the fermented ingredient market expansion. This expansion is not confined to a single category but includes functional dairy ingredients, bakery products, condiments, and other products. Consumer demand for healthier choices that do not sacrifice flavor has pushed the integration of fermented ingredients into a wide range of culinary products.

Key Market Growth Drivers

• Consumers are increasingly adopting healthier lifestyles, seeking natural and functional foods.
• Ongoing technological advancements in fermentation technology have resulted in the development of more economical and efficient manufacturing techniques, thereby accelerating market expansion.
• Companies invest in R&D to generate novel formulas and flavors using fermented ingredients to meet evolving consumer demands.
• Fermentation introduces complex flavors and textures, appealing to adventurous taste preferences. The market is witnessing an increase in demand for fermented ingredients in the food and beverage industry, catering to a diverse consumer palate.
• Fermentation aligns with the sustainability ethos, offering eco-friendly alternatives in food production. This eco-conscious approach has further boosted the market as consumers seek environmentally responsible choices.

Report Attributes	Details
Fermented Ingredient Market Size (2023A)	US$ 24.47 Billion
Estimated Market Value (2024E)	US$ 25.67 Billion
Forecasted Market Value (2034F)	US$ 41.23 Billion
Global Market Growth Rate (2024 to 2034)	4.9% CAGR
East Asia Market Share (2034F)	26%
North America Market Growth Rate (2024 to 2034)	5.1% CAGR
Food & Beverages Segment Share (2024E)	54.2%
Key Companies Profiled	Ajinomoto Corporation Inc. Allied Bakeries Koninklijke DSM N.V. Lallemand Inc. CSK Food Enrichment Dawn Food Products Angelyeast Co., Ltd. Associated British Food (ABF) Bakels BASF SE Cargill, Incorporated CHR. Hansen A/S Lonza Döhler Group

Why is Revenue from Sales of Fermented Ingredients Rising Steadily?

“Growing Consumer Interest in Clean Label Products”

The trend toward clean-label products, characterized by transparency in ingredients and minimal processing, has amplified consumers’ interest in the process. Fermented ingredients align well with this consumer demand for transparency and naturalness. They are viewed as inherently healthy due to their association with probiotics, aiding gut health and overall well-being. As consumers become more conscious of their dietary choices, fermented ingredients present an attractive option, being versatile and applicable across various food and beverage categories.

The quest for functional foods that offer both nutrition and taste has significantly bolstered the fermented ingredients market growth. With consumers increasingly seeking alternatives to artificial additives, fermented ingredients have emerged as a viable and sought-after solution, driving their upward trajectory in the market.

“Rising Health Consciousness among Consumers across Regions”

People are becoming more aware of the connection between nutrition and overall well-being, which is prompting a shift in dietary preferences. Probiotics present in yogurt, kimchi, kombucha, and other fermented foods have been linked to improved gut health, digestion, and immune system function. The increased understanding of the gut-brain connection and the necessity of a healthy microbiome have increased the demand for fermented plant proteins.

Consumers actively seek out functional foods that offer tangible health benefits, and the probiotics present in fermented ingredients perfectly align with this demand. Due to the growing emphasis on preventive healthcare, consumers actively look for food products that offer health benefits. The market for fermented foods is thriving, with consumers increasingly adding these items to their regular meals to help them achieve their health goals.

What is Impeding the Growth of the Fermented Ingredient Market?

“Supply Chain Disruptions Affecting Reliability, Efficiency, and Cost-effectiveness of Production”

The intricate nature of the supply chain in this industry, involving the sourcing of diverse raw materials, fermentation processes, and transportation of finished products, makes it susceptible to various disruptions. Any disturbance, whether caused by natural disasters, geopolitical tensions, or unforeseen events, can lead to shortages of critical raw materials, affecting production schedules and causing delays in delivering finished products to consumers.

Reliance on certain raw materials, which are frequently produced in limited geographic regions, is a major contributor to supply chain disruptions. Any disturbance in these locations, such as severe weather conditions lowering crop yields or geopolitical conflicts influencing trade, can cause shortages and blockages in the supply chain.

What Should New Companies Do to Successfully Enter This Market?

“Focus on Embracing Eco-Friendly Practices in Production Processes”

Developing novel fermentation techniques, exploring unique microbial cultures, or creating proprietary blends can set start-ups apart, offering distinctive products that cater to evolving consumer preferences. Collaborating with research institutions or partnering with experts in fermentation science can provide start-ups with valuable insights, aiding in the development of innovative products and processes. Consumers increasingly prioritize sustainability and ethical sourcing.

Start-ups can leverage this by adopting eco-friendly practices in their production processes, utilizing organic or locally sourced ingredients, and ensuring transparency in their supply chains. By identifying underserved niches or addressing particular dietary needs through fermented products, startups can carve out a dedicated customer base. Whether targeting health-conscious consumers with specialized probiotic formulations or catering to specific dietary preferences such as gluten-free or vegan ingredients, tailoring products to meet specific demands can lead to a loyal customer base.

Country-wise Insights

Fermented ingredients are in high demand in North America owing to the growing interest in functional foods, particularly in the United States. In the East Asia region, countries such as Japan, South Korea, and China contribute significantly to the fermented ingredient market size, capitalizing on cultural heritage and rising consumer awareness about the health benefits of fermented products.

Why is the United States a Promising Market for Suppliers of Fermented Ingredient Products?

“Evolving Consumer Preferences and Growing Trend toward Health-conscious Eating Habits”

Attribute	United States
Market Value (2024E)	US$ 3.18 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 5.15 Billion

Fermented ingredients well-known for their probiotic nutrients and associated health benefits are perfectly suited for altering customer preferences. This growing awareness among Americans about the beneficial effects of fermented ingredient products on gut health and overall well-being has influenced market growth. The United States has a thriving food and beverage business. To suit consumer demands, this industry is constantly looking for new components and product formulations.

Fermented ingredients have piqued the interest of industry players due to their versatility and wide-ranging applications in the food and beverages industry. Manufacturers and food companies are actively introducing fermented ingredients into their products, leveraging the health benefits associated with these ingredients to attract health-conscious consumers.

How is the Market Progressing in China?

“Convergence of Cultural Heritage and Growing Health Consciousness”

Attribute	China
Market Value (2024E)	US$ 4.43 Billion
Growth Rate (2024 to 2034)	4.7% CAGR
Projected Value (2034F)	US$ 7.04 Billion

The rising Chinese economy, combined with altering consumer preferences toward healthier and functional meals, presents an ideal setting for fermented ingredient market growth. The rich culinary heritage of China, where fermented foods have played a significant role for generations, is one of the main forces behind this rise. Traditional fermented food consumption, such as pickled vegetables, tofu, and various fermented soybean products, has instilled a cultural appreciation for these products, thereby laying a solid foundation for the acceptance and adoption of modern fermented ingredients.

The vast market potential of China and its sheer population size present an enticing opportunity for both domestic and international players in the market. The evolving retail landscape, with the rapid expansion of supermarkets, e-commerce platforms, and specialty stores, provides ample avenues for the distribution and accessibility of fermented products across China.

Category-wise Insights

Within the global market, several categories exhibit notable growth and consumer interest. As per a study published by Fact.MR, a market research and competitive intelligence provider, the liquid form segment accounts for 50% of the fermented ingredient market share. The fermented feed segment accounts for a one-third share of the global market.

Which Application Generates Significant Revenue in This Market?

“Versatility and Widespread Applicability of Fermented Ingredients in Food & Beverages Industry”

Attribute	Food & Beverages Segment
Segment Value (2024E)	US$ 13.91 Billion
Growth Rate (2024 to 2034)	4.6% CAGR
Projected Value (2034F)	US$ 21.89 Billion

Fermented ingredients enhance the taste, texture, and nutritional profile of varied food and beverage products. Fermented ingredients serve as natural preservatives that prolong shelf life and add distinct flavors and aromas to food products. The rising consumer demand for healthier, natural, and functional foods has prompted the incorporation of fermented ingredients rich in probiotics and bioactive compounds into various food formulations.

The incorporation of probiotic-rich fermented ingredients in functional food items that boost immunity, digestive health, and overall well-being has surged owing to its health benefits. Many different kinds of beverages can be made from fermented ingredients, from traditional fermented drinks such as kombucha and kefir to alcoholic beverages such as beer, wine, and spirits. Non-alcoholic fermented beverages are gaining popularity due to their perceived health benefits and distinct flavor profiles, which appeal to health-conscious customers looking for substitutes for sugary drinks.

Competitive Landscape

Key players in the fermented ingredient industry include companies such as Chr. Hansen Holding A/S, Lonza, and Döhler Group. These companies invest significantly in research and development to introduce innovative products and gain a competitive edge. Technological advancements, shifts in consumer preferences, and the need for more sustainable and healthier food options are all driving changes in the competitive landscape of the global market.

To preserve their competitive edge as the market develops and diversifies, both established companies and startups manage this dynamic terrain by investing in innovation and strategic relationships due to a strong awareness of consumer preferences and fermented ingredient market trends.

• Döhler, a leader in natural fruit and vegetable flavors, joined Flavourtech in April 2021 to continue its expansion in this sector and provide the finest of nature to its consumers.
• In October 2021, Hansen and UPL established a long-term collaboration to develop and market microbial solutions for sustainable agriculture.

Segmentation of Fermented Ingredient Market Research

• By Form :

  • Dry
  • Liquid

• By Product Type :

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

• By Process :

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

• By Application :

  • Food & Beverages
  • Pharmaceuticals
  • Feed
  • Personal Care
  • Biofuel
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa