US cannabinoid ingredient firm Creo has successfully produced rare cannabigerolic acid (CBGA) at demonstration scale, the company announced on 28 January.

San Diego-based Creo, which produces natural rare cannabinoids without the cannabis plant, said it had produced CBGA and cannabigerol (CBG) through fermentation processes at 12,500 litre scale.

Rare cannabinoids, such as CBGA, were difficult to produce at scale as they were only found in small quantities in the plant and could be challenging to extract, Creo said.

The company had partnered with San Diego-based biotech company Genomatica to create a patented fermentation technology platform that produced consistent high-quality rare cannabinoids.

Commercial production and supply are expected to begin in Q2 2021, according to the company.

“With this demo run, Creo has cemented its leadership position in the emerging market for fermentation-based cannabinoids,” said Creo CEO Roy Lipski.

“This is a very significant milestone for Creo and a major step towards enabling cannabinoid ingredients to reach every household, through wellness, beauty, food and beverage products.”

The global market for cannabinoids produced by fermentation was estimated to grow from US$10bn in 2025 to US$115bn by 2040, according to a recent report by financial services firm Raymond James.

“We’re excited to be with Creo at the forefront of innovation in this fast-moving industry,” Genomatica’s senior vice president, research and development, Nelson Barton said.

Genomatica is involved in developing more sustainable key ingredients for everyday products, using plants and waste rather than fossil fuels.

The company has produced products in the plastics, spandex and personal care sectors, and is working on nylon and household cleaning products among others.