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Innovative methods of producing food through fermentation could add nearly £10 billion to the UK economy by 2050, according to new analysis.

The study, conducted by systems-change company Systemiq with support from the Good Food Institute (GFI) Europe, modelled several scenarios to assess the potential impact of next-generation fermentation on the food and drink sector.

Fermentation has long been a staple of food production, but companies and researchers are now adapting the process to create animal-free proteins, fats and other ingredients. These can replicate the taste and texture of meat and dairy, as well as produce alternatives to palm oil, chocolate and cotton.

Systemiq estimated that under current policies the UK fermentation market could reach £2.4 billion by 2050. More ambitious interventions, such as increased research and infrastructure investment, could raise this to £5.9 billion – comparable to the size of the UK beer manufacturing industry. Factoring in equipment, raw materials and exports, the overall market value could rise to £8.2 billion, with up to £2.4 billion in exports.

The research suggested that under the most ambitious scenario, fermentation could contribute £9.8 billion annually to the economy by 2050. Around a third of this growth would come from precision fermentation ingredients such as animal-free dairy and egg proteins.

The findings come as the Food Standards Agency (FSA) launches a one-year Innovation Research Programme to build regulatory expertise in new food production methods, particularly precision fermentation. Backed by £1.4 million from the Department for Science, Innovation and Technology’s Regulatory Innovation Office, the programme aims to support regulatory readiness and provide businesses with clearer approval pathways.

The UK government has also invested in academic research hubs including Imperial College London’s Microbial Food Hub and the National Alternative Protein Innovation Centre (NAPIC) at the University of Leeds.

Rupert Simons, partner at Systemiq, said: “We see huge potential for the UK to become a global leader in fermentation for food, and hope our research plays a part in making that a reality with regulators and investors.” 

Linus Pardoe, senior UK policy manager at GFI Europe, added: “Fermentation is an ancient technology being reimagined to tackle the modern-day challenges facing our food system. These figures reveal the value to the UK economy of a thriving fermentation sector producing familiar, tasty and nutritious food.

“The FSA’s new programme is an important step, helping bring new fermentation-made products to market that meet the UK’s gold standard safety regulations, but the government and industry need to invest in order to unlock this full potential.”