Precision fermentation, the use of yeast, fungi, or bacteria to produce specific, high-value ingredients, has been accelerating in the nutrition world. Key industry players are investing heavily in proprietary precision fermentation platforms, specializing in proteins, antioxidants, and other fermented compounds with enhanced functionality, purity, and environmental impact.

What is Precision Fermentation?

Precision fermentation is older than some might realize, according toAnton Woo, senior director for food innovation at Cargill.

It’s the same biological principle as that of beer brewing, cheese-making, and more, however, it utilizes genetically programmed microbes like yeast, fungi, or bacteria to produce specific functional molecules. If a given molecule exists in organic biology,  researchers can likely determine the gene that encodes it. That gene is then inserted into a specific microbe, causing it to produce that molecule. 

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To remove unwanted substrates and microbes from a finished product and make it highly purified, manufacturers rely on techniques such as solid-liquid and liquid-liquid separation, micro-, ultra-, and nanofiltration, cell disruption, evaporation, crystallization, and lyophilization, according to Evonik.

Today, many organic acids, vitamins, amino acids, proteins, and antioxidants are manufactured through this process.

“The principles are very much the same [as ancient methods], but we apply them in a carefully-controlled, resource- and waste-efficient environment, producing consistent results year-round with very small land, water, and agricultural inputs,” said Woo. “It’s already the established way to produce many organic acids like citric acid, enzymes, sweeteners, and postbiotics … It allows us to work with nature in a scalable and cost-effective way.”

Typically, sugars are used as a substrate for a specific microbe, he continued, “transforming feed stock into a finished ingredient or product.”

“Microbes are then removed via filtration or centrifugation, resulting in something that is purified, free from remaining cultures or residual sugars, resulting in an ingredient that’s identical to what you’d find in nature, via a food-grade process that’s been used for thousands of years.”

Today, proteins can also be made through precision fermentation, noted Riccardo LoCascio, head of partnering for precision proteins at Novonesis. “Some people have specific protein needs that can’t be easily achieved through an everyday diet,” he said.

How Precision Fermentation Works

Precision fermentation is a controlled biomanufacturing process that uses engineered microorganisms to produce specific, high-value molecules at scale. According to Evonik’s precision fermentation overview, the process combines strain engineering, fermentation, and downstream purification to deliver consistent, high-purity outputs.

• Microbe Selection and Engineering: Scientists identify the gene responsible for producing a desired compound and insert it into a host organism such as yeast or bacteria, effectively programming the microbe to produce that molecule.
• Feedstock Input: The engineered microbe is fed a carbon source, typically glucose or other sugars derived from widely available agricultural inputs.
• Controlled Fermentation: The organism grows in a bioreactor under tightly regulated conditions, converting feedstock into the target compound with high efficiency and repeatability.
• Separation and Recovery: Biomass and residual substrates are removed through centrifugation or filtration.
• Purification and Finishing: Downstream processing, including ultrafiltration, crystallization, and drying, yields a purified ingredient that is molecularly identical to its naturally occurring counterpart.

This level of control allows manufacturers to decouple production from environmental variability and achieve consistent, scalable output across batches.

Applications in Nutraceutical Manufacturing

For certain ingredients, precision fermentation can attain levels of purity that can’t be achieved through agricultural inputs, LoCascio said. For instance, the purity of soy or dairy proteins doesn’t compare to those produced by microbes, and this is especially important for product categories like elderly care, medical nutrition, and infant formulas.

A new generation of precision-fermented proteins can also be suitable as supportive therapies for GLP-1 drug treatment, particularly for patients experiencing digestive issues, severe appetite decline, and other dietary challenges.

Cargill and dsm-firmenich have created a joint venture, Avansya, to produce precision-fermented Reb-M, a trace molecule found in stevia that offers a more desirable flavor profile than other commonly used compounds.

“Most stevia, around 90%, comes from China, so the entire industry is dependent on one regional source,” noted Srini Subramanian, PhD, senior director of global sugar reduction at dsm-firmenich. “At the same time, most people are scarred by how bad stevia tasted a decade ago. Reb M, the most desirable component, makes up less than 1% of the stevia leaf, so extraction isn’t feasible.”

Subramanian noted that, more broadly, this manufacturing technique will enable greater global access to expensive, sought-after health ingredients. “The affordability aspect of fermentation … is understated,” he said.

Fermentation can also be used to enhance ingredients derived from other inputs. For example, fermenting milk or soy proteins can enhance solubility, flavor intensity, bioavailability, and texture, said Woo.

“It can also provide clean label simplification,” he said. “It provides acidity for preservation and flavor, so you can take off the flavor modifiers, masking agents, or artificial stabilizers from labels.”

Woo added: “Our understanding has increased dramatically, and we know much more about the microbes that are the greatest producers. Certain microbes can make 80% of their dry weight in lipids, with similar figures for carbohydrates and polysaccharides, which can be great for fiber enrichment and bulking agents. At this point, it’s about organism discovery.”

Several new, precision-fermented nutraceutical ingredients have been commercialized in recent years, showcasing what can be achieved in terms of novel sourcing, purity/quality, and environmental performance.

Helaina has developed and scaled Effera, a yeast-derived, human-identical lactoferrin ingredient positioned for supplements targeting women’s health, active nutrition, gut health, and more.

Vivici, a specialist in fermentation-derived proteins, also highlighted its lactoferrin and beta-lactoglobulin, which is the primary protein fraction in whey isolate.

Onego Bio introduced Bioalbumen, an egg protein made through precision fermentation capable of delivering functional egg whites without the need for animals.

Layn Natural Ingredients introduced a precision-fermented NAD ingredient at the event. This coenzyme plays a role in mitochondrial function, ATP production, and cellular repair, and the ingredient is intended to pair with the company’s precision-fermented NMN (NAD precursor), which was launched in 2025. Layn also offers a precision-fermented resveratrol ingredient, which achieves purity levels of more than 98%, offering enhanced consistency compared to traditional plant extraction.

Maypro showcased NeoAxt, a marine-free fermented astaxanthin ingredient with significantly lower lipid content. Algae-derived astaxanthin’s lipid content limits its potency, creates a fishy taste and odor, and raises purity concerns. The yeast-derived alternative has 70-times more free-form astaxanthin than microalgae extracts; is in the 3S, 3’S isomeric form as found in wild Atlantic salmon, and has a 55% astaxanthin concentration, compared to the 10-20% typical for algae-derived ingredients.

Gnosis by Lesaffre recently introduced Landkind Pure Salidroside. Salidroside is the bioactive found in Rhodiola rosea, an adaptogenic plant. The fermentation process bypasses the need to harvest the plant, which was added to the CITES list of protected species due to concerns about over-exploitation.

Sustainability

A life cycle analysis found that, compared to sugar production, precision-fermented Reb M required 96% less land, 97% less water, and had 81% lower net greenhouse gas emissions,” Subramanian said. “There’s no dependence on agricultural commodities besides corn sugar, which is available everywhere with virtually no limits.”

Based on its sustainability merits, consumers have expressed generally positive attitudes about precision-fermented products, noted Julie Robey, director of sustainability for Cargill’s North American business.

Consumers are increasingly aware of the climate-related challenges the food industry faces and report experiencing sticker shock at the grocery store amid broader cost-of-living increases. If the industry can effectively communicate the cost and environmental benefits of precision-fermented nutrients and ingredients, consumers are likely to accept them, Robey said.

In a consumer survey commissioned by Cargill, 85% of respondents reported feeling the disruptive effects of climate change in their daily lives, with 64% agreeing that crop quality has decreased due to climate change, and 60% anticipating extreme impacts on food and beverage prices.

Fermentation as a whole is positively viewed by consumers thanks to its long history and recognition for its wellness benefits in the foods and beverages people consume every day.

“Consumers associate fermentation with wellness, resourcefulness, and curiosity,” said Robey. “It’s increasingly seen as a wellness practice, and one that is resource-efficient … 61% agree that science and technology are our best hope to address climate change, and 60% agree that science and technology innovations can make food more sustainable.”

Future of Precision Fermentation in Manufacturing

The potential to transform the business model in the nutraceuticals industry can’t be overstated, observers noted.

“These high-purity ingredients can be completely detached from supply chain constraints,” noted LoCascio. Novonesis has invested $300 million in a manufacturing site co-located with Cargill, which is now one of the world’s largest production sites for precision-fermented proteins. “This is a tool we can use to create brand-new opportunities.”

Ultimately, Novonesis’ model will rest on asking and answering questions about nutritional and health needs that can’t be met through agriculture, creating solutions like milk polysaccharides, which are exclusively produced through fermentation.

Precision fermentation is less a novel ingredient trend than a structural shift in how high-value compounds are sourced and manufactured. As the technology scales, it offers nutraceutical brands and manufacturers a pathway to reduce dependence on volatile agricultural inputs and geographically concentrated supply chains. In its place emerges a more controlled sourcing model, one defined by programmable biology, consistent output, and greater resilience across the value chain.