Food Cultures Market to Observe Strong Growth: $75.8 Billion by 2032: E&O Laboratories, Lallemand, Wyeast Laboratories

The food cultures market size was valued at $47.7 billion in 2022, and is estimated to reach $75.8 billion by 2032, growing at a CAGR of 4.8% from 2023 to 2032.

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Microorganisms such as yeast, molds, and bacteria which are used during food production are called food cultures or microbial food cultures. These cultures are used in a wide range of applications such as in dairy, beverages, meats and many others. Manufactures use these for different purposes such as preservation, flavor retention and texture improvement. Food cultures are categorized as starter cultures, preventive cultures and probiotics.

Consumers have become more health conscious owing to the onset of COVID-19 pandemic. Consumers are seeking food and beverages which satisfy various requirements such as their calorie intake, nutritional value while meeting their taste and flavor expectations to maintain these changes. Manufacturers are innovating their food offerings which match consumer preferences to address such demands. People are making informed choices regarding food with widespread information about nutrition rich food through different social media platforms. This includes yogurt, cheese, meat and beverages.

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The food cultures market has witnessed numerous developments focused on addressing various challenges that producers and consumers are facing. Companies are investing majorly in research and development of food cultures, to develop functional strains, which in turn strengthens their market position. These developments also play a major role in expanding their consumer base through enhancing marketing and packaging strategies. Chr. Hansen which has developed Lactobacillus rhamnosus, LGG, which is a proprietary probiotic strain, used by companies for marketing and brand recognition as logo on their packaging. These strategies help in building consumer trust. Focus on overcoming challenges related to formation of undesired flavors and gas formation is increasing. Many companies have introduced strains which primarily focus on combating these issues with new food cultures. These include Choozit Vintage, a culture developed by International Flavors & Fragrances, Inc. (IFF) to improve the production process of cheese.

In developed economies food preferences are shifting towards more luxury and customizable food. This increases the demand for food cultures as these are largely used in increasing and retaining flavor. According to Chr. Hansen 75% of consumers are aware of probiotics. Developed nations like Germany, Japan, Italy and France have high demand personalized food and beverages, which allows consumers to make their own recopies that meet their personal nutritional requirements. In regions like Asia-Pacific, the increasing trend towards adoption of more luxury lifestyles is also contributing to marketing demand for food cultures. As the per capita income rises in these regions, consumers show preferences towards food which not only meet their basic food requirement but also provides high nutritional value.

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Global trends in food and beverages is changing due to consumer perception towards the environment, animal-welfare, and awareness about diseases associated with unmonitored food consumption. People are now more aware of what they want to eat and how their food was produced. This increases demand for food and beverages which are plant-based and adhere to sustainable practices. Food cultures are largely used during the production of these food products such as alternative dairy and meat products, to maintain and increase flavors and texture to make these indistinguishable natural food. In addition, the food cultures market is experiencing growth due to many new companies becoming aware about the opportunities in the alternative dairy and meat category.

There are many innovations in the technologies that are used for development of microbial food cultures. Use of technologies such as synthetic biology is anticipated to assist in bringing advancement in innovation of food cultures. Including cellular engineering which is used to improve existing strains and to further develop new cultures, which help in reducing waste generated during manufacturing process. These technologies also help companies to deal with changing climate and resulting land degradation, as microorganisms have lower carbon footprint, they are anticipated to increase in demand due to the benefits they offer to manufacturers.

The food cultures market growth is fueled due to the rise in various fermented beverages like kombucha, yogurt and food like kimichi. These food and beverages are associated with various health benefits and help in reducing heart risks, diabetes and many other health concerns. Furthermore, yogurt is witnessing rise in popularity due to awareness about the associated health benefits. Positive trends in these food collectively contribute to surge in market demand for food cultures.

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However, the supply changes and geopolitical unrest are affecting the production and distribution of food cultures. Microorganisms like yeast can affect food which have low pH and low water activity, which increase spoilage problems. This contamination results in food borne illnesses and demands more attention during the production process. Companies engaged in fermented dairy food, confectionary and baked goods are prone to such problems which can be handled with use of sanitized equipment and hygienic environments. These fungi affect the taste and smell of final products. In addition, production and integration challenges surrounding probiotics are expensive and complex, and thus lead to numerous difficulties like infusion of bacterial ingredients results in shortening shelf life and also compromises taste. Many organizations are collaborating to overcome these challenges including APC Microbiome Ireland and Kraft Heinz, that collaborated to increase focus on food safety, infant formula and infant formula and sustainability aspects.

Chr. Hansen Holding A/S, Angel Yeast Co., Ltd., E&O Laboratories, Lallemand, Inc., Wyeast Laboratories, Koninklijke DSM N.V., International Flavors & Fragrances Inc., Lactina Ltd., Dohler GmbH, and LB Bulgaricum Ltd. are the major companies profiled in the food cultures industry report. These players are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing food cultures market opportunities.

Key findings of the study

As per the food cultures market analysis, the food cultures market was valued at $47,664.1 million in 2022 and is estimated to reach $75,844.9 million by 2032, growing at a CAGR of 4.8% during the forecast period.
According to the food cultures market trends, on the basis of the product, the starter cultures segment is estimated to witness the fastest growth, registering a CAGR of 6.0% during the forecast period. The probiotic cultures segment accounted for major food cultures market share in 2022.
As per the food cultures market forecast, by application, the dairy segment is expected to remain dominant during the forecast period.
As per function, the flavoring segment is estimated to witness the fastest growth, registering a CAGR of 5.4% during the forecast period.
According to region, the U.S. was the most prominent market in North America in 2022 and is projected to grow at a CAGR of 3.9% during the forecast period.

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