Fermented Ingredients Market By Type (Amino Acids, Organic Acids, Biogas, Polymer, Vitamins, Antibiotics, Other), By Form (Liquid, Dry), By Source (Microbial Fermentation, Plant Fermentation, Animal-based Fermentation, Others), By Application (Food & Beverages, Pharmaceuticals, Paper, Feed, Personal Care, Biofuel, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles, And Market Forecast, 2025 – 2035

Industry Outlook

The Global Fermented Ingredients Market accounted for USD 38.7 Billion in 2024 and is expected to reach USD 101.9 Billion by 2035, growing at a CAGR of around 9.2% between 2025 and 2035. Fermented ingredients Market is the component that refers to products that occur because of a chemical reaction of a substrate by some microorganisms which include bacteria, yeast, or fungi to simplify the organic compounds so that they can be absorbed easily in the body with improved nutritional values. Fermented products, especially the ingredients, are growing since the customer has a new trend of seeking natural, bioactive functional, and healthy foods.

It is widely used in different industries, enhancing the quality and health value of foods by improving the nutrients and digestibility of foods. In foods, use of probiotics, enzymes, and organic acids, undergoing fermentation to better the taste, texture, and shelf life. The use of fermented ingredients in skincare enhances effectiveness, as well as fighting aging signs, hydration, and inflammation. For this reason, there is heightened demand for products, more specifically for gut health, products with clean labels, and plant-based or improved sustainability products.

Report Scope:

Market Dynamics

Growing Consumer Demand for Gut Health and Probiotic-Enhanced Food Products

A recent increase in the study of gut health, and its implications for a wide variety of chronic diseases including inflammation, obesity, and even mental health issues, has led to an increase in consumer demand for foods that contain probiotics. The positive effects of probiotics thus go beyond the digestive tracts and encompass not only immune system functions but also skin conditions which should help extend its appeal to other targeted consumers.

Consumption of all products containing live cultures is on the rise with an increased focus not only on dairy products but also on plant-based products which undergo fermentation to improve nutrient bioavailability and taste. This has resulted in many variations of probiotic-containing foods including plant-based yogurt, probiotic-containing fermented juices, and even chocolate. With increasing consumer knowledge of the potential of the microbiome, the global supplementation of probiotics in daily diets is likely to persist, placing fermented ingredients on the steering wheel of the approaching functional food frontier.

Increasing Preference for Natural and Clean Label Ingredients in the Food Industry

The consumer is now opting for clean-label natural ingredients that are easily recognizable and with the least process. This change is a result of people developing concerns about the synthetic additives, preservatives, and artificial flavors present in the foods. Fermented ingredients perfectly fall into this narrative, as they are associated with being natural, nutritional, and less destructive to digest than chemically processed counterparts.

Organic fermentation processes, which involve the use of inherent enzymes from microorganisms to alter and improve foods, fit well with today’s consumers’ preferences for food that contains minimal processing and is devoid of hazardous chemicals. Therefore, consumption of fermented products such as beverages, snacks, and dairy product substitutes has increased among conscious consumers due to the health benefits of fermented products and the desire to incorporate healthy sustainable foods and beverages. This trend is a boon for brands to increase their market share by exploring opportunities to add fermented elements to clean-label food products.

High Costs and Complex Production Processes Limiting Mass-Scale Adoption

Fermented Ingredients Market is coupled with the environmental factors including temperature, pH, and oxygen level that influence the result of fermentation and the safety of the final product. This entails considerable development of specialized infrastructure, adding to capital requirements and expense lines for manufacturing enterprises. In addition, fermentation is a slow process and might take several days or even weeks to complete and this hurts the production timeline and high cost of labor.

Fermented products’ legal requirements are stringent, and companies need to undergo various testing and certifications to address safety issues adding costs. Such barriers contribute to difficulties encountered by small to medium-scale enterprises upon entering the market, the growth of fermented ingredients is thus limited. These challenges warrant improvements considering the technological sophistication in the field of fermentation more especially in the aspects of process automation and optimization so that its instantiation at a large scale is economically viable.

Innovative Product Development in Fermented Plant-Based Alternatives for Diverse Diets

Increased health value of fermented plant-based products. During microbial fermentation, undesirable compounds whose presence limits nutrient absorption are also degraded and nutrients such as minerals and proteins are released and can be readily eaten. This is particularly so for individuals with gastrointestinal problems or those who practice vegan diets since it is sometimes hard for his/her body to assimilate some nutrients from raw plant products.

The fermentation process also contributes towards a reduction of the glycemic index of foods of plant origin, making them ideal for the market, especially for those who have an issue with blood sugar. The probiotics that are produced during fermentation are also beneficial to the gut and therefore the usage of these products in the marketplace among health-conscious customers is highly likely.

The upward trend in plant-based diets is expected to see further development of fermented plant-based substitutes which will create new subsegments in the food industry such as fermented plant-based seafood, ice cream, and baked goods. Also, the use of fermentation can increase the shelf life of plant-based products which will in turn save food from going to waste thus creating a more circular economy in the food system.

Expanding Applications in Beauty, Personal Care, and Nutritional Supplements Markets

Fermented ingredients are going into other application areas like shampoos, conditioners, and deodorants. Sour spiced products invested in hair treatment assist in feeding the scalp enhance hair filaments and improve general scalp condition. Fermented plant extracts and oils also give extra nourishment and brilliance to hair than the normal-use shampoos containing silicon that damages hair and isolates its natural glow by using chemicals.

Also, fermentation increases the active compounds’ shelf-life, which means that products in the personal care industry do not require artificial additives for preservation. This characteristic responds to ecological purchasing, which aims at finding effective products without adverse substances.

Most of the ingredients used in the formulation of nutritional supplements are in the fermented form since it improves the efficiency of vitamins, minerals, and amino acid absorption. They also support the synthesis of healthy bacteria in the stomach, which is generally good for the body and enhances immunity. The shift towards natural and clean label claims across sectors works fermented ingredients perfectly into the emerging wellness factor.

Industry Experts Opinion

“Probiotic drinks and naturally fermented foods like yogurt can be beneficial for gut health. Probiotic drinks often contain specific strains of beneficial bacteria in concentrated amounts, which can help target gut issues. However, these products may also contain added sugars or artificial ingredients. Naturally fermented foods like yogurt, on the other hand, offer a wider variety of probiotic strains and additional nutritional benefits.”

• Dr Rakesh Gupta, senior consultant, internal medicine, Indraprastha Apollo Hospitals

“Throughout fermentation, the microorganisms generate substances like alpha hydroxy acids, amino acids, and peptides. These ingredients can also be directly added to skincare without the need for fermentation. These ‘bioferments’ can play a role in restoring the natural balance of the skin’s microbiome, contributing to skin health.”

• Dr. Ellie Rashid, Klira Pro medical director 

Segment Analysis

Based on Type, the fermented ingredients market is classified into major categories for assorted industries. Many of them like amino acids, organic acids, and biogas are applied in food industries or pharmaceuticals or energy industries. Polymer fermentation like PLA revealed the aspect of sustainable packaging while vitamins and antibiotics in feeding supplementation and medicines respectively.

The other category involves unique products such as enzymes and flavoring compounds that also fall under the market segment. They have applications across the food spectrum, especially in product enhancement, such as quality, functionality, and nutritional profile, and catering to the emerging trends of clean-label natural ingredients.

Based on Source, substrate converters of fermented ingredients are microbes, plants, animals, and anything else available. Microbial fermentation is the most widespread, it yields amino acids, enzymes, and probiotics and finds uses within the food chain, pharmaceuticals, and other industries. Plant fermentation offers more product variety to meet the global trend of increased consumption of plant-based products such as probiotics, drinks, and functional food ingredients.

Animal-based fermentation focuses on the production of dairy products such as yogurt, cheese, enzymes, and others that are a traditional and lactose market. Others such as Algae and marine organisms provide sustainable bioactive compounds that are opportunities to drive the market and functional/innovative and sustainable ingredients.

Regional Analysis

North America is leading in the fermented ingredients market due to activities from key players such as Ajinomoto, DSM, and Cargill. This is so because functional foods, probiotics, and plant-based products are in high demand, especially in the United States and Canada. The worldwide increase of health-conscious consumers and the development of biotechnology and fermentation technology have played an added role in the expansion of the market.

According to industry data, the food and beverage sector in North America relies on fermentation in more products, such as dairy substitute products, meat substitutes, and even natural food preservatives, leading to the enhancement of its market leadership even further.

Asia-Pacific region is the most rapidly developing region since an elevated interest in the use of fermented ingredients in both traditional and modern foods can be identified. Due to an increase in disposable income and an increase in awareness about the health benefits of products such as probiotics, bioactive compounds, and plant proteins, the food industry is shifting towards these ingredients.

Further, the food and beverage services industry is growing consistently, and there is an increased focus on green and environmentally friendly products. The region is experiencing increases in investment and technology development, making it the best-growing market.

Competitive Landscape

The competition in the fermented product market is rather intensive because it comprises many market players from international companies to up-and-coming startups. Some of the leading players, which have a strategic focus on the fermented ingredients market include Ajinomoto Co., Inc., Chr. Hansen A/S, BASF SE, Cargill Incorporated, DSM, Lonza Group Ltd, and others. Many of them build on their already networked global presence, research assets, and vast financial base to capture the market in question.

Other industry major players include Kerry Group, Lallemand Inc., and Angel Yeast Co., Ltd, which hold significant stakes in yeast and functional ingredients for health and wellness products relying on fermentation technology development. Besides these market giants, there’s increased market activity and the coming up of new inventions from new entrants because of the development of small players and start-ups.

Current key players focusing on incremental and groundbreaking advancements in plant-based, sustainable, and high-added-value fermented products include Döhler Group, CSK Food Enrichment, Baker Perkins Ltd., Change Foods, and Green Spot Technologies. These are usually smaller players who focus on specific or specialty category products such as plant-based fermented dairy products, functional drinks, probiotic foods, and beverages.

The existence of new entrants, Bakels Group and Dawn Food Products provides a variation on the bakery and food service markets where the use of fermentation agents in baking enhances taste and texture. The fluid competitive environment is partly characterized by an increasingly health-conscious consumer base, rising sustainability demands, and cleaner labeling, which represents both opportunities and risks for players across the value chain.

Fermented Ingredients Market, Company Shares Analysis, 2024

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Recent Developments:

• In November 2024, IFF launched TEXSTAR, an advanced enzymatic texturizing solution the company stated poised to revolutionize the texture of both dairy and plant-based fresh fermented products. This enzyme provided the necessary viscosity in fresh fermented products, without the use of added stabilizers.
• In September 2024, The French plant-based ingredients company Ingood by Olga unveiled a new product: LENGOOD, a fermented lentil powder for clean-labelled, egg-free bakery and pastry products. Derived from French green lentils and fermented with a natural and solvent-free process that took the company more than two years of R&D to establish, the innovative ingredient is said to offer functional, nutritional, economic, and environmental benefits.

Report Coverage:

By Type

• Amino Acids
• Organic Acids
• Biogas
• Polymer
• Vitamins
• Antibiotics
• Other

By Form

• Liquid
• Dry

By Source

• Microbial Fermentation
• Plant Fermentation
• Animal-based Fermentation
• Others

By Application

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

 By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Ajinomoto Co., Inc.
• Chr. Hansen A/S
• BASF SE
• Cargill Incorporated
• DSM
• Lonza Group Ltd.
• Kerry Group
• Lallemand Inc.
• Angel Yeast Co., Ltd.
• Associated British Foods (ABF)
• Döhler Group
• DowDuPont Inc.
• CSK Food Enrichment
• Baker Perkins Ltd.
• Change Foods (startup)
• Green Spot Technologies (startup)
• Bakels Group
• Dawn Food Products

Frequently Asked Questions (FAQs)