Precision Fermentation Gains Ground in US Protein Markets

Fermentation-based proteins see targeted adoption, offering food makers greater supply control as global CPG interest grows

17 Dec 2025

A modest shift is under way in parts of the US food industry as precision fermentation moves from an experimental idea to a practical sourcing option in select protein categories.

The technology uses microorganisms, programmed through biotechnology, to produce proteins identical to those found in products such as milk or eggs. Instead of animals, the proteins are made in controlled fermentation tanks. While early interest focused on environmental benefits, food companies are now paying closer attention to economics and supply stability.

Manufacturers have been hit by volatile feed costs, climate-related disruptions and fragile supply chains. Precision fermentation offers a degree of predictability that conventional agriculture often lacks. Inputs can be managed tightly, output is consistent and production is less exposed to weather patterns or animal disease.

That cautious confidence is visible in the market. Companies such as Perfect Day are working with food brands to incorporate fermentation-derived proteins into specific products where consistency and functional performance are critical. These are not high-profile product launches, but targeted integrations that suggest a move beyond pilot projects into limited commercial use.

The supporting ecosystem is also developing. Platforms including Ginkgo Bioworks provide tools to help companies design and optimise microorganisms without building large in-house biotechnology teams. This lowers the barrier to entry and allows food manufacturers to test fermentation-based inputs alongside existing agricultural supply chains.

Most companies involved are careful not to position precision fermentation as a replacement for farming. Instead, it is presented as a hedge against disruption, a way to smooth supply gaps, manage risk and reduce exposure to shocks while continuing to rely on traditional producers.

Significant hurdles remain. Building fermentation facilities requires heavy upfront investment, and regulatory approvals can be slow. Energy use and cost efficiency are under scrutiny, and consumer understanding of the technology is still limited.

Even so, adoption is advancing where the value proposition is clearest. As partnerships deepen and capital continues to flow, the discussion is changing. The focus is shifting from whether precision fermentation can work to where it fits best in the food system and how quickly it can scale.