New fermentation methods could add nearly £10 billion to UK economy by 2050, research shows

New research has estimated that, given the right support, innovative ways of producing everyday foods using fermentation could add £9.8 billion (€11.2 billion) to the UK economy. 

25 September 2025

A meal prepared using fermentation-made mycoprotein

New research has estimated that, given the right support, innovative ways of producing everyday foods using fermentation could add £9.8 billion (€11.2 billion) to the UK economy. 

Fermentation has been a cornerstone of food production for millennia, but companies and researchers are now using innovative approaches to this age-old method to make foods with the distinctive flavours and textures of animal products. It can produce everyday foods and ingredients incredibly efficiently, helping to reduce climate emissions and global deforestation, and upcycling food waste like bread crusts into nutritious food.

The new analysis by systems change company Systemiq, supported by the Good Food Institute Europe, modelled a range of scenarios to assess how new fermentation techniques could fuel economic growth in the UK food and drink sector. It comes as the Food Standards Agency (FSA) announces a new programme to boost regulators’ scientific understanding of these production methods.

Systemiq’s research estimated the potential expansion of biomass fermentation processes, similar to beer or yoghurt production, that UK companies like Quorn are already using to produce large quantities of mycoprotein, which comes from fungi and has a meaty texture.

It also examined the impact of a different method known as precision fermentation – used for decades to produce ingredients such as rennet for cheesemaking, and now being used to develop animal-free fats and proteins that can bring the flavour of meat and dairy to plant-based foods. It is also being used to make sustainable palm oil alternatives, chocolate, and cotton.

While precision fermentation-made meat and dairy have yet to reach British consumers, the FSA is evaluating several applications to authorise them for sale here. The regulator is launching a one-year Innovation Research Programme to enhance its capabilities and expertise, particularly in fermentation science. 

The programme, supported by £1.4 million (€1.6 million) of funding from the Department for Science, Innovation and Technology’s (DSIT) new Regulatory Innovation Office, aims to ensure that the FSA is prepared for future innovations and that companies have a clearer understanding of how to apply for regulatory approval.

Systemiq’s analysis found that:

Unlocking this potential will require significant annual investments, mostly from companies funding the specialist equipment and large facilities needed to ramp up production.

Along with the FSA investment, the UK government has already funded a network of university research centres focused on advancing foods using fermentation, including Imperial College London’s Microbial Food Hub and the National Alternative Protein Innovation Centre (NAPIC), based at the University of Leeds.

Rupert Simons, partner at Systemiq, said: “We see huge potential for the UK to become a global leader in fermentation for food, and hope our research plays a part in making that a reality with regulators and investors.” 

Linus Pardoe, senior UK policy manager at GFI Europe, said: “Fermentation is an ancient technology being reimagined to tackle the modern-day challenges facing our food system. These figures reveal the value to the UK economy of a thriving fermentation sector producing familiar, tasty and nutritious food.

“The FSA’s new programme is an important step, helping bring new fermentation-made products to market that meet the UK’s gold standard safety regulations, but the UK government and industry need to invest in order to unlock this full potential.”