A deep dive into the microbiome market landscape

Following on from our previous article, where we covered - what is the microbiome, how it is profiled, challenges and solutions faced and the different sub-segments of the microbiome - Gut Microbiome, Oral Microbiome, Skin Microbiome and Soil Microbiome.

In this article we will do a deep dive into the various sub-segments looking at the market size, funding environment, latest trends and a list of companies in the different sub-segments. So should we get started?

Deep dive into the microbiome landscape

Human Microbiome

Mordor Intelligence estimates that the Human Microbiome  market was valued at USD 599 million in 2021 and is expected to grow at a CAGR of 15.04% through to 2027.  This increasing market size is supported by evidence of growing publications and clinical trials. The number of publications globally focusing on the human microbiome increased from 1177 in 2010 to over 20867 in 2020. Similarly, the number of clinical trials in the United States has seen strong growth going from 31 studies in 2010 to 632 in 2020.

Apart from traction seen in publications and clinical trials, acquisitions & collaborations of young companies in the microbiome space with big pharmaceutical companies is usually a good indicator of traction. The table below shows that in the Gut Microbiome space (2018-2020) multiple deals were done between smaller microbiome companies and larger pharmaceutical companies.

An additional indication would be to assess the amount of money raised by young microbiome companies in the last couple of years. On this front, a high level of activity was seen with large dollar value amounts raised by these companies.

Apart from the microbiome of the Gut, there are other microbiomes which are gaining the interest of scientist. Some of the emerging trends in the Human microbiome space are:

1) Microbiome-gut-brain axis

2) Metabolic health

3) Healthy aging

4) Women’s health and

5) Gut-skin axis.

These emerging spaces are focused on finding new therapeutics for illnesses that currently don’t have good treatments or have sub-optimal efficacy.

Soil Microbiome

Next looking at the agriculture space, Fortune business insights estimates that the agricultural microbials market will see a CAGR growth of 14.27%, with market size increasing from USD 4.64 billion in 2020 to USD 11.81 billion in 2027.

Crop production is facing many challenges such as climate change, farming intensification, and increasing demand for sustainable production. These demands have led to increased use of chemical fertilizers and growth agents to ensure sufficient production. However, the use of chemicals is resulting in poor soil quality which further increases the use of chemical agents. Furthermore, the chemical agents are also polluting the water sources, resulting in soil erosion, and reducing the nutritional quality of the crops thus creating more challenges in the long term for crop production. To address these issues, research on the soil (rhizosphere – microbe storehouse surrounding the plant root where biological & chemical features of the soil are influenced by the roots) microbiome has gained interest in the past decade. Like humans, plant roots and soil have a symbiotic relationship where each expends significant amounts of energy to help the other. The plants help to make food for the soil microbes while the soil microbes in return help to protect the plants from stress, and pathogens and in converting and holding nutrients in the soil. The diverse potential for soil microbes to significantly impact crop health and growth has thus led to R&D in various areas such as biofertilizers, biopesticides, bioprotectants, microbes, and other potential areas.

The clear benefits of using regenerative farming methods are evident from the above survey which was conducted by L.E.K consulting. Improved soil health, increased soil water retention, reduced cost of inputs and reduced use of synthetic pesticides were the top four reasons for the continued use of regenerative farming practices. This is because these are the biggest issues currently faced by the industry which need urgent solutions.

Similarly, when we look at the funding landscape, it can be seen from the graphs below that increased investments were flowing into the Biofertilizers, Bio-stimulants, and Biopesticides segments.

Other Microbiomes – Skin Microbiome & Oral Microbiome

Two other microbiome spaces which are seeing strong growth are the skin microbiome and oral microbiome. The skin microbiome space studies the microbes that live on the skin of individuals. These microbes play multiple roles in regulating skin barrier function and protecting the skin from external threats. Hence, in recent years there has been an increased interest to understand the skin microbiome better so it can be exploited for uses in skin diseases and personalized beauty & skincare products.  The increase in investments in this space is evident from the graph below.

Lastly, the oral microbiome is the study of the microbes that live in the mouth of individuals. It has been reported that after the gut microbiome the oral microbiome is the second-largest microbial community in humans. The oral cavity has two types of surfaces on which bacteria can colonize: the hard and the soft tissues of teeth and the oral mucosa, respectively. The teeth, tongue, cheeks, gingival sulcus, tonsils, hard palate, and soft palate provide a rich environment in which microorganisms can flourish. These microbes play help to ensure good mouth health by preventing tooth decay, preventing bad breath, preventing gum diseases, and might even play a role in digestion. On the investment front, numerous companies are focusing on the oral microbiome space though most are still in the early stages. This indicates a growing interest in the space and VCs such as Indie Bio and SOSV have also reported funding companies in the oral microbiome space in recent years.

Microbiome Company Landscape

Source: Company website, Pitchbook, Crunchbase, other articles

Wrapping it up

The microbiome market has seen tremendous growth in the last few years, this was driven mostly by the push toward the commercialization of microbial products. The use cases are multifold, with products seen for modulating the microbiome in the gut, microbiome in the soil, microbiome on the skin.

One good example would be the current shortage of fertilizers which has recently affected farmers around the world. Due to the shortage of fertilizers, farmers have started using a product offered by Pivot Bio (A microbe that helps in nitrogen fixation). Not only is Pivot Bio’s product a substitute for traditional fertilizers, but their products have also been reported to be cheaper and further improve corn yields compared to traditional fertilizers.

The oral microbiome is still a relatively nascent space, but it should gain traction at an increased pace as all the necessary technologies and know-how is in place to quickly determine the microbial community present in the mouth. This should then lead to new products coming to the market which could help to reduce tooth cavities, remove bad breath and address other issues.

The microbiome space is gaining traction with potential for further growth as consumers see the benefits of using microbes or modulating microbes to replace traditional offerings. The use of microbes also provides a strong sustainability angle, thus creating a push for adoption. These benefits should continue to drive the demand for new & improved bioproducts well into the future.

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Disclaimer: All opinions shared in this article are the opinions of the authors and do not constitute financial advice or recommendations to buy or sell. Please consult a financial advisor before you make any financial decisions.