Fermentation as a Service Market By Type of Fermentation (Aerobic Fermentation, Anaerobic Fermentation), By Process (Batch Fermentation, Continuous Fermentation, Fed-Batch Fermentation), By Application (Antibiotics, Probiotics Supplements, Monoclonal Antibodies, Recombinant Proteins, Biosimilars, Vaccines, Enzymes, Others), and By End-User (Healthcare, Industrial, Agricultural, Consumer Goods), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Fermentation as a Service Market accounted for USD 1.08 Billion in 2024 and USD 1.37 Billion in 2025 is expected to reach USD 15.23 billion by 2035, growing at a CAGR of around 27.2% between 2025 and 2035. Fermentation as a Service Market is an emerging business model where companies outsource their fermentation processes to specialized service providers. It serves biotech, pharma, food, and sustainable chemicals companies with access to large-scale fermentation capabilities and know-how without the hassle of in-house installation. That lowers costs, hastens R&D, and shortens the time-to-market of new products, such as alternative proteins, biofuels, and enzymes. As the demand for sustainable and bio-based products rises, Fermentation as a Service will grow fast, particularly in synthetic biology, precision fermentation, and biopharma. Its flexibility, scalability, and innovation supportiveness qualify it as an important enabler in the bioeconomy. 

Industry Experts Opinion

"FaaS is democratizing biomanufacturing. By providing scalable fermentation infrastructure, we’re enabling startups to bypass capital-intensive setups and accelerate bio-based product development."

• Dr. Jennifer Holmgren, CEO of LanzaTech

"The FaaS model is the 'AWS of biomanufacturing'; it lowers barriers for synthetic biology companies. Expect a 30% annual growth in FaaS adoption as more firms outscale in-house fermentation."

• Dr. John Cumbers – Founder & CEO of SynBioBeta

Report Scope:

Market Dynamics

Rising demand for bio-based and sustainable alternatives across major industrial sectors.

The Fermentation as a Service Market is witnessing significant growth due to the increasing global shift toward sustainability and bio-based alternatives. Pharmaceutical industries, the food and beverage industry, the agriculture industry, and the chemical industries are feeling the heat to lessen their influence on the environment and to shift towards non-fossil-based procedures. Fermentation can provide a cleaner, more renewable way of making a host of different products, such as proteins, enzymes, and biofuels. With the demand of consumers and governments towards greener products, companies are now actively exploring flexible and scalable fermentation solutions.

Fermentation as a Service Market providers eliminate this divide by providing the infrastructure and expertise needed without the need for companies to build their facilities. This shift is increasing the rate of adoption, especially by startups and medium-sized companies. Innovations in synthetic biology also apply to the market, where they allow the creation of tailored microorganisms to improve the efficiency of fermentation. These developments are fueling steady demand, making sustainability a core driver for the Fermentation as a Service Market.

High cost-saving potential by outsourcing fermentation infrastructure and technical expertise.

A major driver behind the growth of the Fermentation as a Service Market is its cost-efficiency. The establishment and running of a fermentation plant are capital-intensive, involving special equipment, trained personnel, with maintenance. This is not economically feasible for many companies, especially the small and mid-sized ones. FaaS providers have provided an answer as they enable businesses to externalize such operations, which saves a lot of initial capital cost and operational expenses. This type of service helps companies, so they can concentrate on R&D and product development, leaving infrastructure management aside.

Furthermore, FaaS providers usually add to the mix industry-level quality control, regulatory compliance know-how, and cutting-edge bioprocessing technology. Such benefits predispose outsourcing as an appealing prospect, especially when it comes to high-paced and innovation-oriented markets. With flexible batch sizes and faster time-to-market, the Market is becoming the go-to option for companies aiming to scale quickly and efficiently. Global all-time investment in fermentation-focused alternative protein companies has reached $4.8 billion to date.

High initial investment for setting up large-scale fermentation service facilities.

While the FaaS model reduces costs for its clients, the Fermentation as a Service Market itself faces significant financial barriers during its initial stages. Large-scale fermentation facilities are expensive to construct and install. The facility should comply with stringent biosafety, contamination control, scalability, and regulatory requirements. As well as construction, it has expenses on skilled labor force, usage of utilities (with reference to energy and water), and automation systems. All of this makes it very difficult to enter the market as a new player and reduces competition and innovation in the market.

 In addition, they may experience lengthy development cycles as well as unpredictable returns on investment, making it challenging to obtain funding. This is a financial challenge, especially in regions that have either an underdeveloped biotech ecosystem or where venture capital is not interested. As a result, the growth and geographical expansion of the Market may be slower than anticipated, especially in emerging economies.

Expansion of contract fermentation services for alternative protein and specialty chemicals.

The increasing global demand for alternative proteins and specialty bio-based chemicals offers a strong opportunity for the Fermentation as a Service Market. With the increase in the popularity of plant-based and cell-based food products, there has been a demand for effective fermentation processes to produce functional ingredients. A lot of those products can only be produced using precision fermentation, which needs specific infrastructure and skills. FaaS providers have a particularly good opportunity to facilitate this transition, providing on-demand, high-quality fermentation capacity.

The specialty chemicals market (specialty chemicals are used in cosmetics and pharmaceuticals as well as in high-tech materials) is also shifting towards more environmentally friendly and more tailor-made production processes. This leaves a gap for FaaS providers to come in and provide customized fermentation services. The unpredictability and risk of startups and innovators in these areas favor flexibility and reduced risk of outsourcing rather than developing in-house capacity. As demand surges, the Market is expected to become an essential enabler in producing the next generation of sustainable, functional products.

Collaborations with startups for rapid product development and scale-up support.

Startups continue to be one of the most important forces of innovation in the biotech and food tech arena, yet they commonly do not have the facilities to expand their fermentation-derived products. This presents a significant opportunity for the Fermentation as a Service Market to form strategic partnerships and collaborations. FaaS providers can be both a technical partner and a growth driver through providing pre-built biomanufacturing platforms. Such partnerships enable startups to test faster, refine, and commercialize their products at a much lower cost.

FaaS companies, in turn, get access to revolutionary innovations and prospective long-term customers early. Such a mutually reinforcing ecosystem is giving rise to the emergence of biotech clusters globally, with FaaS facilities integrated into innovation clusters. Second, as investors are increasingly focusing on capital-light business models, FaaS offerings assist startups in keeping light on their feet. These partnerships are likely to become more common, strengthening the position of the Market as a backbone for industrial biotechnology innovation. By the end of 2024, there were 165 fermentation companies focused exclusively or predominantly on alternative proteins.

Segment Analysis

Based on the Type of Fermentation, the Fermentation as a Service Market has been classified into Aerobic Fermentation and anaerobic Fermentation. Aerobic fermentation involves the use of oxygen and is extensively applied in enzymes, amino acids, and active pharmaceutical ingredients production, which implies that it can be effectively applied in pharmaceutical and food processes.

Conversely, Anaerobic fermentation is the process that is done in the absence of oxygen and is widely employed in the creation of biofuels, organic acids, and some bioplastics. Of these, aerobic fermentation dominates as a segment because of its wider industrial relevance, better product yield, and scalability of the bioprocess. Its versatility and integration with advanced bioreactor technologies further strengthen its position in the Market.

Based on the Process, the Fermentation as a Service Market has been classified into Batch Fermentation, Continuous Fermentation, and Fed-Batch Fermentation. The most common is batch fermentation, which is simple and flexible but limited in scale, which is why it is favored by early-stage R&D and startups.

Continuous fermentation is more efficient but must be carefully controlled and is commonly adapted to large-scale, high-demand production when the consistency of the product quality is extremely important. Fed-batch fermentation has more control of nutrient feeds and product yield, and hence complex bioproducts can use this process. Among these, Batch Fermentation is taking the market share due to its simple implementation, cheaper cost, and broad scope of usage in various industries using FaaS platforms.

Regional Analysis

North America Fermentation as a Service Market holds the largest share, driven by its strong biotechnology and pharmaceutical industries. The area already has developed infrastructure, a large density of FaaS providers, and favorable regulations. The availability of key players, excellent research institutes, and a regular investment in synthetic biology and industrial biotechnology also leads to dominance of the market. The U.S., specifically, is on the front end due to the strength of its startup ecosystem and the need for sustainable, bio-based solutions. The presence of FaaS models in North America early has reinforced its status as the main player in this market.

Asia-Pacific Fermentation as a Service Market is emerging as the fastest-growing region, fueled by rapid industrialization, increasing investments in biotech, and government support for bioeconomy initiatives. Other countries, such as China, India, and South Korea, are actively building fermentation capacity and forming partnerships with international companies. An increase in demand for alternative proteins, sustainable chemistry, and affordable pharmaceutical manufacturing is driving the regional advancement. Moreover, access to a skilled labor force and reduced operational expenses also make the location favorable to establish FaaS facilities. These are the drivers of the fast growth of the Asia-Pacific region in the global FaaS market.  

Competitive Landscape

The Fermentation as a Service Market is moderately fragmented, with a mix of established biotech firms, contract manufacturing organizations (CMOs), and emerging specialized service providers competing for market share. Notable actors are Ginkgo Bioworks, Evonik Industries, Cargill, Cambrium, and 21st Century.BIO, Zymergen (acquired by Ginkgo Bioworks), and Arzeda. These firms are prioritizing their fermentation capacity expansion, strategic partnerships, and investment in robust synthetic biology platforms.

Ginkgo Bioworks uses its foundry and codebase model to make custom organism design at scale possible. Evonik is growing its contract fermentation business via its Health & Care and Nutrition & Care businesses. 21st.BIO provides turnkey development and scale-up of precision fermentation, particularly of proteins and enzymes. Meanwhile, companies such as Cambrium and Arzeda are pushing the field by integrating machine learning with metabolic engineering to speed up strain development. There is widespread strategic tie-up with food tech and pharma startups, which enables the players to get long-term service contracts. Overall, innovation, capacity expansion, and flexible service models are the main strategies shaping the landscape.

Fermentation as a Service Market, Company Shares Analysis, 2024

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Recent Developments:

• In May 2024, Motif FoodWorks unveiled its “Plant Base” bioprocessing center in Northborough, Massachusetts, offering bench‑scale fermentation and ingredient prototyping services to startups in the plant‑based and fermented food space.

Report Coverage:

       By Type of Fermentation

• Aerobic Fermentation
• Anaerobic Fermentation

By Process

• Batch Fermentation
• Continuous Fermentation
• Fed-Batch Fermentation

By Application

• Antibiotics
• Probiotics Supplements
• Monoclonal Antibodies
• Recombinant Proteins
• Biosimilars
• Vaccines
• Enzymes
• Others

By End-User

• Healthcare
• Industrial
• Agricultural
• Consumer Goods

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Evonik Industries AG
• Lonza Group AG
• Fujifilm Diosynth Biotechnologies
• Cambrex Corporation
• Ajinomoto Bio-Pharma Services
• Novozymes A/S
• Boehringer Ingelheim BioXcellence
• Cargill, Inc.
• DSM-Firmenich
• Ginkgo Bioworks
• Zymergen Inc.
• Conagen Inc.
• 23andMe
• Tate & Lyle PLC
• Danisco

Frequently Asked Questions (FAQs)