U.S. Microbial Fermentation Technology Market (By Application: Antibiotics, Probiotics Supplements; By End-user: Biopharmaceutical Companies, Contract Research Organizations) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. microbial fermentation technology market size was estimated at around USD 7.25 billion in 2023 and it is projected to hit around USD 11.97 billion by 2033, growing at a CAGR of 5.14% from 2024 to 2033.

Key Pointers

• By Application, the antibiotics segment held the largest revenue share of 33% in 2023.
• By End-user, the Contract Manufacturing Organizations (CMOs) and Contract Development and Manufacturing Organizations (CDMOs) segment generated the maximum market share 43% in 2023.
• By End-user, the biopharmaceutical companies also held a significant market share in 2023 and are expected to witness the grow at the noteworthy CAGR from 2024 to 2033.

U.S. Microbial Fermentation Technology Market Overview

Microbial fermentation technology has emerged as a pivotal component of various industries, ranging from pharmaceuticals and biotechnology to food and beverage production. In the United States, the microbial fermentation technology market is witnessing significant growth, driven by advancements in bioprocessing techniques, increasing demand for bio-based products, and growing emphasis on sustainable manufacturing practices. 

U.S. Microbial Fermentation Technology Market Growth Factors

The growth of the U.S. microbial fermentation technology market is propelled by the technological advancements in bioprocessing techniques have enhanced the efficiency and scalability of microbial fermentation processes, driving increased adoption across various industries. Additionally, the rising demand for bio-based products, driven by growing environmental concerns and consumer preferences for sustainable alternatives, has spurred the utilization of microbial fermentation for the production of bio-based chemicals, materials, and ingredients. Moreover, the expansion of the biopharmaceutical sector, fueled by advancements in genetic engineering and bioproduction technologies, has further contributed to market growth, with microbial fermentation serving as a vital method for the production of therapeutic proteins, enzymes, and vaccines. Furthermore, initiatives aimed at promoting sustainability and reducing carbon emissions have led to the integration of eco-friendly fermentation practices, further augmenting market growth.

U.S. Microbial Fermentation Technology Market Trends:

• Expansion of Biopharmaceutical Production: The U.S. market witnesses a significant expansion in biopharmaceutical production, driven by the growing demand for therapeutic proteins, enzymes, antibiotics, and vaccines produced through microbial fermentation processes.
• Adoption of Sustainable Practices: There is a notable shift towards sustainable fermentation practices, with manufacturers increasingly utilizing renewable feedstocks, optimizing resource utilization, and minimizing waste generation to align with environmental regulations and consumer preferences.
• Diversification of Applications: Beyond traditional sectors like pharmaceuticals and food production, microbial fermentation technology finds diverse applications in industries such as biofuel production, agriculture, waste management, and bioremediation, indicating a broadening market scope.
• Rising Demand for Functional Ingredients: Consumer preferences for natural, functional ingredients are driving demand for microbial fermentation products, such as probiotics, enzymes, and amino acids, in sectors like food and beverage, personal care, and dietary supplements, fueling market expansion.
• Emergence of Synthetic Biology: The integration of synthetic biology approaches, such as metabolic engineering and genome editing, is revolutionizing microbial fermentation processes, enabling the production of novel compounds and fine-tuning metabolic pathways for enhanced productivity and yield optimization.            

U.S. Microbial Fermentation Technology Market Challenges:

• Regulatory Compliance: Stricter regulatory requirements governing product quality, safety, and manufacturing practices pose challenges for companies in the microbial fermentation sector, necessitating adherence to standards such as Good Manufacturing Practices (GMP) and Current Good Manufacturing Practices (cGMP).
• Scale-Up Complexity: Scaling up microbial fermentation processes from laboratory-scale to commercial production entails technical and economic challenges, including the optimization of fermentation conditions, capital investment for large-scale facilities, and ensuring consistent product quality and yield at scale.
• Cost Considerations: The capital investment required for establishing fermentation facilities, along with operational costs associated with raw materials, utilities, and downstream processing, presents financial challenges for companies, particularly small and medium-sized enterprises (SMEs), affecting their competitiveness in the market.
• Process Optimization: Achieving optimal fermentation conditions, such as pH, temperature, and oxygen levels, to maximize product yield and quality while minimizing production costs requires extensive experimentation, expertise, and resource allocation, posing challenges for process optimization and efficiency improvement.
• Supply Chain Disruptions: Disruptions in the supply chain, including shortages of raw materials, equipment, and skilled labor, can impact production continuity and hinder market competitiveness, especially during unforeseen events such as natural disasters, pandemics, or geopolitical tensions.

Application Insights

In 2023, the antibiotics segment emerged as the dominant application of microbial fermentation technology, capturing nearly 33% of the total revenue share. This segment is projected to exhibit the fastest Compound Annual Growth Rate (CAGR) over the forecast period, driven by several factors. These include the persistent prevalence of infectious diseases, heightened attention to antibiotics following the pandemic, and the segment's inherent profitability. The urgency of this growth is underscored by data from the Centers for Disease Control and Prevention (CDC), which reports approximately 1.3 million cases of antibiotic-resistant infections annually, resulting in roughly 19,000 deaths. This emphasizes the critical need for sustained investment in antibiotic research and development to combat the escalating threat of antibiotic resistance.

Moreover, there is a notable surge in demand for Monoclonal Antibodies (mAbs), with projections indicating lucrative growth from 2024 to 2033. Recognizing this opportunity, numerous manufacturers are entering the market to meet the escalating demand for mAbs. To navigate the intricate regulatory landscape associated with mAbs, these companies are forging partnerships with Contract Development and Manufacturing Organizations (CDMOs) and Contract Manufacturing Organizations (CMOs).

End-user Insights

In 2023, Contract Manufacturing Organizations (CMOs) and Contract Development and Manufacturing Organizations (CDMOs) emerged as market leaders, commanding over 43% of the revenue share. They are projected to experience the fastest segment growth during the forecast period. This growth is fueled by the increasing demand for manufacturing biologics, which is driven by a surge in outsourcing to CMOs. To bolster productivity, CMOs are adopting advanced technologies like microbial fermentation. Additionally, they are employing various strategies such as mergers, acquisitions, and collaborations to expedite market approvals and facilitate rapid product launches for commercial use.

Biopharmaceutical companies also held a significant market share in 2023 and are expected to witness the second-fastest compound annual growth rate (CAGR) from 2024 to 2033. This growth is attributed to strategic initiatives undertaken by these companies, including product development, mergers and acquisitions, product approvals and launches, and global expansion efforts. Moreover, several players in the industry are collaborating to enhance their offerings in the microbial fermentation technology market. For instance, in March 2023, Cytovance Biologics partnered with Phenotypeca, merging Cytovance’s microbial fermentation capabilities with Phenotypeca’s yeast strain development technology. This collaboration aimed to strengthen Cytovance Biologics's leadership in microbial-derived Active Pharmaceutical Ingredients (APIs).

U.S. Microbial Fermentation Technology Market Key Companies

• Biocon Ltd.
• BioVectra Inc.
• Danone
• F. Hoffmann-La Roche AG
• Koninklijke DSM NV
• Lonza
• Novozymes A/S
• TerraVia Holdings, Inc. (Corbion)
• BIOZEEN
• Biovian Oy

Recent Developments

• In May 2023, DSM completed the acquisition of Firmenich International SA, leading to the establishment of DSM-Firmenich AG. This merger significantly bolstered the nutrition, health, and beauty sector, accelerating innovation efforts for both companies.
• In April 2022, Curia Global, Inc., a prominent Contract Development and Manufacturing Organization (CDMO) specializing in biologics, invested in two new Good Manufacturing Practice (GMP) standard suites at its Albany site. These suites, compliant with European Union (EU) Class C standards and equipped with 200-L/100-L fixed reactor trains, enhanced Curia's production scalability, thereby positively impacting market revenue.
• In March 2022, BIO-CAT Microbials, LLC, a leading microbial solutions company, announced a USD 35 million investment for the expansion of its facility in Troy, Virginia. This expansion project aims to incorporate fermentation capabilities into the facility, further enhancing BIO-CAT Microbials' operational capabilities.
• In February 2022, Thermo Fisher Scientific, Inc. inaugurated a new single-use manufacturing facility in Millersburg, U.S., with a USD 40 million investment. This expansion of the existing facility is geared towards meeting the growing demand for critical vaccines and biologics, underscoring Thermo Fisher Scientific's commitment to addressing healthcare needs.

U.S. Microbial Fermentation Technology Market Segmentations:

By Application

• Antibiotics
• Probiotics Supplements
• Monoclonal Antibodies
• Recombinant Proteins
• Biosimilars
• Vaccines
• Enzymes
• Small Molecules
• Other Applications

By End-user

• Biopharmaceutical Companies
• Contract Research Organizations
• CMOs & CDMOs
• Academic & Research Organizations