From precision fermentation to biodegradable packaging, the food industry is cooking up new solutions with the help of emerging technologies. Find out how can SMEs prepare for a fast-evolving food innovation landscape.
As the global population approaches 10 billion by 2050 and countries face an increasing number of mouths to feed, how the food industry moves food from field to factory and onto the plate will undergo fundamental changes. In particular, shifting consumer preferences, stringent safety standards and sustainability factors are major drivers of progress.
For example, consumer demand is growing not only for more nutritious food but also for greater transparency, reduced environmental impact and innovative approaches to traditional products. Supply chains are also under strain from climate change and resource limitations. This combination of changing expectations and systemic vulnerabilities is accelerating interest in technologies that can produce more with less—faster, safer and more sustainably.
For SMEs, the challenge lies in navigating these changes while remaining cost-effective and operationally agile. It’s also an opportunity to differentiate, compete and lead in shaping the future of food and the industry.
Harnessing microbes from production to digestion
Long used in cheesemaking and brewing, fermentation has entered a new era. Precision fermentation uses engineered microbes to produce targeted food ingredients, such as proteins or fats, that are chemically identical to their animal-based counterparts. This enables more sustainable food production without compromising taste or texture — and positions microbial innovation as key to the future of food.
Unlike traditional livestock farming, which guzzles vast resources and belches out copious amounts of greenhouse gases, precision fermentation relies on highly efficient microbial ‘cell factories’ that produce fewer by-products. The technology also allows for modular, scalable production systems that can respond flexibly to market needs, transforming the food industry as we know it.
In Singapore, a supportive regulatory environment is fostering the growth of this sector. Start-ups like ScaleUp Bio, Allozymes, and The Live Green Co., are leveraging the city’s robust food innovation ecosystem to pilot and scale their offerings. Still, barriers remain, from regulatory approval timelines to a lack of specialised infrastructure for downstream processing.
For SMEs, precision fermentation offers a pathway to diversify their ingredient sources and tap into growing consumer demand for sustainable, functional foods. A good example is a plant-based collagen precursor powder, created through microbial fermentation to deliver the essential building blocks for collagen synthesis. Free from animal-derived ingredients and chemical additives, the formulation combines amino acids, vitamins and antioxidants to support skin health, immune function and muscle structure. Its versatility allows it to be incorporated into beverages, confectionery and sports nutrition products — meeting rising demand for clean-label, plant-based wellness solutions.
The gut microbiome is also increasingly understood to play a crucial role in health, immunity and even mood. Consumers are becoming more aware of this connection, spurring demand for functional foods that promote digestive well-being.
Technologies that target the gut microbiome, such as probiotics, prebiotics and synbiotics and postbiotic, are gaining traction, with fermentation playing a pivotal role in delivering these compounds effectively. The non-dairy probiotic beverage is one such example, offering a single formulation with multiple benefits: gut support, better bioactive delivery and high probiotic viability.
Looking ahead, Singapore SME’s can gear up towards fortifying with postbiotics—by-products obtained from probiotic fermentation which are stable in ambient conditions and offer health benefits. For example, companies can add specific short-chain fatty acids produced by gut bacteria into food products for anti-inflammatory properties or incorporate specific microbial enzymes to improve digestibility or create novel food textures.
“There has even been interest around understanding an individual’s gut microbial profile and seeking to customise their diet based on the information,” shared IPI Principal Manager, Adeline Chan. “In this space, SMEs can partner with microbiome testing services to develop personalise diets for the public.”
Scaling sustainably
As the spotlight turns on reducing food waste, agri-food side-stream valorisation has become an important focus area. By converting by-products, like fish trimmings, shrimp shells and fruit peels, into high-value ingredients, businesses can slash waste while tapping into new revenue streams.
“Sustainable nutrition and side-stream valorisation aren't just environmental goals—they’re innovation opportunities,” commented Dr Heng Kiang Soon, IPI Tech Expert and Senior Lecturer at Republic Polytechnic. “SMEs can start by identifying functional compounds in food by-products and rethinking how these can be recovered and transformed into high-value ingredients. With the right scientific approach and validation, these strategies can lead to healthier and functional products, cost savings and new revenue streams.”
Whether used for functional foods, feed or even biodegradable materials, valorisation technologies help unlock the potential of previously discarded resources. In Singapore, companies such as ARB Technologies have transformed shrimp shells into chitin and developed enzyme-based processes to convert side streams into edible protein.
Aside from sustainable formulation, packaging remains an exciting space for innovation. Packaging is often the first touchpoint between consumers and a product—and perhaps one of the most scrutinised. With new regulations such as the EU’s Packaging and Packaging Waste Regulation (PPWR) on the horizon, sustainable packaging has moved from a ‘nice-to-have’ to a strategic ‘must-have’.
Biodegradable and compostable materials are gaining momentum, particularly those that use agricultural by-products. However, confusion remains around terminology and effectiveness. While all compostable packaging is biodegradable, not all biodegradable materials break down safely or predictably.
Singaporean innovators are pushing the envelope here. One technology offers a fully biodegradable coating for paper packaging, which enhances moisture, grease and oxygen resistance without sacrificing recyclability. Compatible with existing manufacturing systems, it represents a practical step forward for companies looking to reduce their plastic footprint.
“Sustainable packaging is no longer just about substituting current packing solutions with sustainable materials, it’s about understanding consumer behaviour and working with manufacturers to create innovative packaging archetypes and solutions through design,” shared Low Cheaw Hwei, IPI Innovation Advisor. “Today’s consumers are more discerning, and regulations are catching up fast. SMEs need to see packaging as a strategic business advantage—one that reflects their company and brand values, innovates in user experiences, and supports both environmental and compliance goals.”
Staying ahead of the curve
As food systems evolve, SMEs must contend with rising consumer expectations for health, sustainability and transparency. Precision ingredients, microbiome-friendly products and eco-conscious packaging are quickly advancing.
But innovation comes with challenges: regulatory hurdles, high development costs and the need for robust production capabilities. The key is finding the right fit between business goals and technology readiness.
To stay informed, SMEs can benefit by plugging into innovation ecosystems, monitoring regulatory shifts and engaging with advisory platforms such as IPI. IPI’s open innovation services connect enterprises with emerging technologies, research collaborators and technical experts. Whether exploring a new food product or rethinking packaging, IPI can help guide businesses from idea concept to commercialisation.
By actively seeking insights, building strategic partnerships and leveraging platforms like IPI, SMEs can turn uncertainty into opportunity and help shape the future of food one innovation at a time.
Explore how innovation can transform your business at Food Forward 2025, IPI’s industry event for food enterprises. For tailored innovation support, reach out to us at techscout@ipi-singapore.org.
