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Fermentation has long been fundamental to food and beverage innovation. It is a process that has shaped global diets for millennia, from bread and beer to soy sauce and cheese. Today, advanced fermentation methods are evolving this ancient technique into a sophisticated biotechnology platform. Once primarily leveraged to replicate dairy proteins for plant-based applications, it is now entering a new phase – one defined by technical diversification, novel ingredient production and the potential to transform formulation, functionality and sustainability across the food and drink industry. Leah Smith explores.

Early developments in precision fermentation primarily focused on producing animal-identical proteins such as casein and whey, enabling plant-based brands to replicate the melt, stretch and creaminess of conventional dairy. These milestones validated the technology’s potential – but they were only the beginning.

Today, researchers and start-ups are exploring new frontiers that could reshape multiple areas of the food system, particularly in alternative fats, flavour compounds and functional ingredients.

Troels Prahl, co-founder and CEO of Swan Neck Bio, told said: “The next big wins are fats, flavours and speciality ingredients like enzymes. These products are high-value and often hard to source naturally. Fermentation can make them more reliable and affordable, while new methods help companies scale faster with fewer risks.”

Claus Lattemann, corporate director of fermentation R&D at Lesaffre Institute of Science & Technology, echoed this view: “Precision fermentation will move beyond dairy proteins toward high-value, multifunctional ingredients that improve nutrition, sustainability and resilience in the food system”.

With global supply chains under increasing pressure – from cocoa to palm oil – fermentation-derived fats and yeast-based ingredients could deliver both functional and supply chain advantages.

“Fermentation can fill shortages of rare ingredients like vanilla or citrus oils, replace animal-based functions such as foaming or emulsifying, and add vital nutrients,” Prahl enthused. “It’s also climate-friendly and, in partnership with the agricultural sector, can help restore our food system. The common denominator is microbiology.”

Boosting health, wealth and sustainability

At Lesaffre, researchers have identified several areas where advanced fermentation technologies can deliver meaningful, system-wide benefits – from sustainable protein production and enhanced nutritional profiles to improved process and resource efficiency.

“As we approach a global population of nearly 10 billion by 2050, fermentation offers scalable protein alternatives that minimise environmental impact,” said Lattemann.

A recent study by the UK Food Standards Agency (FSA) projects that next-generation fermentation technologies could contribute almost £10 billion to the national economy by 2050. To enable this growth, the FSA has launched a dedicated research programme designed to enhance regulatory clarity, strengthen scientific understanding, and streamline approval pathways for novel fermentation-derived ingredients and products.

The study found that, under current policy conditions – with only modest government support for R&D and regulatory modernisation – the UK is on course to establish a precision fermentation market valued at approximately £2.4 billion by 2050. However, with greater public and private investment in research capability, manufacturing infrastructure and regulatory frameworks, the sector’s potential value could rise to £5.9 billion – a figure comparable to the UK’s beer manufacturing industry today.

Linus Pardoe, senior UK policy manager at GFI Europe, said: “These figures reveal the value to the UK economy of a thriving fermentation sector producing familiar, tasty and nutritious food”.

He added that while the FSA’s new programme is a strong start, “government and industry need to invest in order to unlock this full potential”.

Fermentation is also becoming central to climate adaptation and circular bioeconomy models, enabling processes that lower greenhouse gas emissions, optimise resource efficiency and deliver measurable nutritional and health outcomes.

“Fermentation is essential to addressing nutrition and health challenges,” says Lattemann. “We’re developing bioactive molecules that support metabolic and gut health, as well as pre-, pro-and postbiotics that enhance immune and digestive functions.”

Yet consumer perception remains a challenge. Prahl noted: “Consumers may find fats and flavours made this way less familiar than dairy proteins. There’s a saying that any food your grandmother wouldn’t recognise is a UPF. That’s why the industry must communicate clearly, showing that clean label products often rely on biomanufacturing to deliver consistency, taste, sustainability and allergen reduction.”

Engineering flavour at the molecular level

Authentic flavour has long been a key challenge for plant-based and fermentation-derived foods, where off-notes or a lack of depth can limit consumer acceptance. Advanced fermentation, such as precision and biomass methods, offers a powerful new toolkit, enabling the biosynthesis of flavour molecules that are chemically identical to those found in meat, coffee, vanilla and even hops.

Brewers are already exploring hop-free beer formulations, using engineered yeast strains to produce hop-like aromatic compounds without relying on traditional agricultural inputs. Similarly, fermentation-derived vanilla and citrus terpenes promise consistent sensory performance and price stability compared to volatile crop-based supply chains.

“As consumers increasingly prioritise health and wellness, they’re seeking functional foods with added benefits,” noted Daria Pashkova, product and marketing manager at Ohly, a company specialising in yeast-based flavour solutions. “While consumers are willing to pay more for these products, taste remains the biggest driver of repeat purchase. The challenge is delivering nutrition without compromising flavour.”

The scope of precision fermentation now extends beyond food and beverage applications into nutraceuticals and functional ingredient systems, including rare sugars, bioactive peptides, vitamins and natural colourants. These high-value compounds can be produced at industrial scale with lower environmental impact, supporting cleaner labels, enhanced nutritional functionality and new formulation opportunities.

Challenges ahead

Despite its promise, significant hurdles remain. Scaling fermentation is capital- and resource-intensive, regulatory pathways can be lengthy and complex, and consumer acceptance will depend heavily on transparency and trust-building.

“Costs of feedstock, contamination control, oxygen delivery and reactor space are among the hardest problems,” explained Swan Neck Bio’s Prahl. “Scaling up adds complexity, especially around cleaning validation and changeovers. Outsourcing seed-train steps and ingredient conversion can help streamline operations and reduce downtime.”

Lesaffre’s Lattemann agreed: “The main obstacle remains the costly transition from pilot to demonstration and pre-commercialisation phases”.

Strategic partnerships will be critical to overcoming these barriers. As Prahl told FoodBev: “Start-ups invent, ingredient suppliers handle quality and regulatory compliance, and large food brands bring products to market”.

Swan Neck Bio, for example, recently partnered with Tetra Pak to accelerate pilot testing. “Working together speeds up trials, reduces risk and ensures ingredients meet both factory needs and consumer tastes,” said Prahl. “It’s about adapting commercial fermentation from pharma-derived techniques into scalable food-grade manufacturing systems.”

Still, marketing presents a delicate challenge. “Used alone, words like ‘fermentation’ or ‘biomanufacturing’ can sound too technical,” Prahl added. “We need simple narratives and familiar examples to show these foods are safe, tasty and planet-friendly.”

Lattemann, however, remains optimistic: “Fermentation carries inherently positive associations – naturalness, tradition, health. The key challenge is regulatory labelling, where even fermentation-derived compounds may appear under additive names, conflicting with clean label expectations.”

He continued: “But aligning messaging around safety, natural origins and sustainability can build consumer trust. Fermentation is both a heritage and innovation asset.”

The bigger picture

If the first wave of precision fermentation was about proof of concept through animal-identical proteins, the next is defined by diversity and functionality – spanning fats, flavours, enzymes and nutraceuticals. These innovations are set to influence every corner of the industry, from bakery and beverages to confectionery and dietary supplements.

Prahl summed it up: “Expect improvements in bakery textures, plant-based dairy and eggs, savoury flavours, speciality fats, nutrition supplements and even animal feed. At first, these ingredients will be quietly integrated, then they’ll become visible selling points once production is consistent and affordable.”

For food and beverage manufacturers, the message is clear: advanced fermentation methods have moved beyond their meat and dairy origins. They are evolving into a versatile biomanufacturing platform capable of reshaping ingredient supply chains, stabilising raw material costs and driving the next wave of formulation innovation.

Progress may still be constrained by production costs and uneven regulatory frameworks, but with crosssector collaboration, investment and clear consumer communication, the pace of transformation is accelerating. The question now is not if fermentation will reshape the industry, but how fast companies can adapt to harness this next frontier.

As Lattemann concluded: “Lesaffre foresees precision fermentation becoming a core enabling technology across the entire food value chain – from agricultural biosolutions to finished consumer products”.