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Food And Beverage
CIO Bulletin
27 June, 2025
Precision fermentation is transforming the food and beverages sector by enabling the use of sustainable, ethical and scalable versions of traditional ingredients.
Precision fermentation is now prevailing in the food and beverage industry, which poses sustainable, ethical alternatives to traditional ingredients. In a recent report consultancy Roland Berger points to the increasing importance of the technology to transform the production of proteins, fats and enzymes.
Precision fermentation is mainly used in the food and beverage sector, and it is a programmed process of microorganisms, such as yeast or fungi, to produce ingredients as animal or plant materials without engaging with them. Some of the firms adopting this innovation include DSM-Firmenich and Fonterra.
Roland Berger estimated the percentage of precision fermentation projects to be about 75 on dairy protein production and the remaining are on ingredients such as palm oil and cocoa butter. Nevertheless, as promising as it is, the industry encounters some problems with the level of costs and scaling. Another issue is its economic efficiency, particularly where it enters into a competition with the traditional and commoditized products.
The report is of the opinion that precision fermentation may become price competitive following improved yield rates, downstream processes, and regulatory levels. Further, strained resources and the use of waste materials as well as the reduction in the purity levels of specific applications can also lengthen the expenses of production.
Roland Berger states that precise fermentation has the potential to change the global food and beverages industry with adequate strategic innovation and investments.