Are bioproducts made from precision fermentation processes—long predicted to disrupt industries from pharmaceuticals to food to chemicals—finally on the verge of achieving their potential?

Key Takeaways

Demand is solidifying for products that use biological processes and genetically modified microorganisms in place of traditional production methods. But for change to happen, costs must come down.

• Optimized large-scale facilities can lower production costs by as much as 50% on existing strains.
• More and larger facilities and improved strains could reduce production costs by up to 90%, achieving or surpassing price parity with incumbent methods for most products.
• The market for biomanufactured ingredients in three industries—specialty chemicals, food, and chemical precursors—could reach $200 billion by 2040.

For the market to take hold, corporate customers—which need to meet sustainability and net zero pledges—must commit to offtake agreements for future delivery of new ingredients and must adapt their supply chains and product formulations accordingly.

February 2024
By Jean-François Bobier, Tristan Cerisy, Anne-Douce Coulin, Crystal Bleecher,
Victoria Sassoon, and Brentan Alexander