Precision fermentation represents a frontier in biotechnology, offering a sustainable method for producing high-value compounds. However, its widespread adoption beyond high-value compounds hinges on achieving cost parity with traditional production methods (and/or better performance). Identifying and leveraging strategic pathways and levers is essential to making precision fermentation economically viable.

Understanding Cost Dynamics

The current biopharma inherited cost structure of precision fermentation presents a barrier to its adoption. To overcome this, a detailed understanding of cost dynamics is required. This involves fundamentally challenging its assumptions and scrutinizing every aspect of the production process, from raw materials to energy consumption, to identify opportunities for cost reduction and efficiency improvements.

Strategic Levers for Cost Parity

© Advanced Biotech For Sustainability Coalition / *Harnessing the economic and environmental benefits of advanced biotechnology* Report – March, 2025

Achieving cost parity involves several strategic levers:

Process Optimization: Continuous refinement of fermentation processes is essential. By employing advanced technology and data-driven insights, processes can be optimized to ensure high yields and reproducibility.
Rethinking Scale-Up: The ability to scale efficiently from lab to industrial production is critical. Inverting the process, going from industrial conditions to the lab, and not vice versa, is key, together with modular and adaptable biomanufacturing platforms.
Resource Management: Effective management of resources, such as energy and raw materials, can significantly impact production costs. Sustainable resource management integrates energy-efficient technologies and renewable feedstocks into processes.
Automation and Monitoring: Advanced automation and real-time monitoring enhance process control and reduce variability, leading to cost savings. AI-driven analytics and real-time monitoring ensure optimal process conditions.

Conclusion

Precision fermentation holds significant promise for the biotechnology sector, but achieving cost parity and/or value supremacy is crucial for its success. Only by focusing on process optimization, efficient scale-up, and resource management, precision fermentation can become a viable economic option. These strategic levers are essential for driving down production costs and positioning precision fermentation as a sustainable and competitive alternative.

Cost-parity is only the first necessary step to achieve economic viability. The true potential of industrial biotechnology will be unleashed only and only when we can use the power of biology to design and produce better products, which are beyond our imagination today.

About the AB4S Coalition

Advanced Biotech for Sustainability is a Coalition of industry-leading organizations from across the ecosystem (incl. incumbent, start-up, scale-up and non-profit) that are committed to unlocking the full potential of advanced biotechnology through thought leadership, actionable recommendations and cross-industry collaboration.

Until recently, unlocking the full potential of biotechnology has been challenged by insufficient scale. Therefore, in 2025, we joined forces with eleven industry players (incumbents and scale ups) and non-profits to foster cross-industry collaboration, provide fact-based insights and actionable roadmaps, and support decisions that accelerate the adoption of advanced biotechnology solutions.