Unlocking the Potential of Precision Fermentation: advancing sustainable, resilient food systems in Europe

Precision fermentation provides a tool to address the urgent challenges facing today’s animal-based food system – including environmental degradation, food security, and questions of adequate nutrition.^{1 2} By harnessing the power of microorganisms – often referred to as cell factories – precision fermentation can produce functional ingredients such as animal-identical milk and egg proteins without the need for farmed animals.³ Such ingredients can further enhance the taste, texture, and nutritional content of food products, including plant-based alternatives. In doing so, they build on the strengths of current options and help them better align with consumer expectations.^{4 5}

How precision fermentation works

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“By integrating fermentation technologies into the EU’s policy agenda, Europe can position itself as a global leader in sustainable food production, ensuring long-term economic and environmental success in the agrifood landscape.”⁹

Food Fermentation Europe

At present, the core focus for precision-fermentation companies and researchers is on driving innovation and optimizing processes in order to reach commercial viability – and ultimately price-competitiveness – with animal-based products.^{10 11} Getting to the next phase will require continued commitment from both the public and 
private sector.

While Europe is currently a leader in the plant-based sector, governments and investors need to continue stepping up with transparent regulatory frameworks and sustained financial support, respectively, in order to accelerate the industry’s growth and unlock the potentially huge benefits of precision fermentation.¹² In this evolving and financially intensive industry, cooperation and knowledge-sharing are likely to be key to improving current technologies and scaling production efficiently.^{13 14 15}

Small cells, big impact

“Precision fermentation is paving the way for a transformation of the food industry, offering a new method to produce food by harnessing the power of microorganisms.”³⁵

Food and Agriculture Organization

Precision fermentation: road to market

Despite its transformative potential, the EU’s precision-fermentation sector still faces several technical, financial, and regulatory barriers.

1. R&D

Researchers can already modify microbes in order to produce complex proteins such as casein and whey. However, moving from the lab to an industrial scale requires time, resources, and deep expertise.³⁶

2. Scaling up

Fermentation infrastructure such as bioreactors and production facilities can cost hundreds of millions of euros, forcing many companies to rely on a limited number of contract manufacturers who themselves may have restricted capacity, equipment, and expertise.^{37 38}

6. Commersialisation 
and impact

The final step is securing consumer trust through tasty, nutritious products – supported by clear labeling, education, and effective marketing.^{46 47}

3. Financing gaps

Slow returns may deter private investors,³⁹ while public funding might not be tailored to precision fermentation but rather available under generalized climate-change and bioeconomy programs.⁴⁰

4. Feedstock and process sustainability

Many precision-fermentation processes still rely on sugar and high energy inputs, raising concerns about land use and carbon intensity.^{41 42 43}

5. Regulatory delays

Regulations and regulatory support vary across regions. The EU’s EFSA novel-food approvals can take several years, impacting the speed of market entry for precision-fermented products in Europe, even as similar products gain approval elsewhere.^{44 45}

6. Commersialisation 
and impact

The final step is securing consumer trust through tasty, nutritious products – supported by clear labeling, education, and effective marketing.^{46 47}

“Public-private partnerships can help accelerate innovation by kickstarting research and development in areas of emerging technology, facilitating talent exchange and minimizing duplications in investments…Doing so will enable more viable pathways to translation, commercialisation, and scaling for impact.”⁴⁸

Heng Swee Keat, former Deputy Prime Minister of Singapore

The path forward is clear

A growing number of examples, including from Denmark, Singapore, the US, and the UK, can be drawn upon to help Europe overcome key barriers and lay the groundwork for long-term success.

Despite the challenges, precision fermentation is advancing rapidly. As of May 2025, there were 186 companies around the world working in the precision-fermentation space, with 88 operating in Europe.⁴⁹ And technological progress is continuing, with improved strains and higher protein yields making production more efficient and scalable.^{50 51} Industry collaboration is also gaining momentum, as reflected in the growing number of partnerships and the emergence of networks such as the Precision Fermentation Alliance, the Protein Club, and, most recently, Food Fermentation Europe.^{52 53 54 55 56 57}

In 2024, European precision-fermentation companies raised €120 million – more than three times the amount raised in 2023.⁵⁸ Meanwhile, regulatory clarity is improving, with the EFSA’s novel food policy having been updated in early 2025, helping to unlock further progress.^{59 60}