<div> Bacteria, yeast and microalgae can act as producers or catalysts for the production of food ingredients, enzymes and nutraceuticals. With the current trend towards natural ingredients, there is renewed interest in microbial flavors and colors and bioprocessing using enzymes. Microbial production of substances such as organic acids and hydrocolloids also remains important. Part one reviews developments in the metabolic engineering of industrial microorganisms and advances in fermentation technology in the production of fungi, yeasts, enzymes and nutraceuticals. Part two discusses the production and application in food processing of substances such as carotenoids, flavonoids and terponoids, enzymes, probiotics and prebiotics, bacteriocins, microbial polysaccharides, polyols and polyunsaturated fatty acids.</div>