The global demand for sustainable, high-functional proteins is growing across industries, driven by their diverse uses in biotechnology, novel foods, medicine, and advanced materials. Existing production methods, however, remain tied to resource-intensive biological systems, leaving gaps that demand new approaches. Precision fermentation (PF) holds untapped potential, enabling controlled and scalable microbial production of proteins with tailored nutritional and functional profiles that match or even outperform their animal-derived counterparts. Although prokaryotic hosts offer distinctive advantages over yeast and fungi, including rapid growth, genetic accessibility, and process scalability, their use in industrial-scale protein production is still limited. In particular, the insufficient capacity for post-translational modifications (PTMs) and protein secretion restricts their applicability for structurally complex eukaryotic proteins. Recent advances in genetic and host engineering, molecular process control, and downstream processing have evolved to address these challenges. Combined integrated strategies improve protein folding, enable dynamic regulation of production, and reduce overall process costs. Early results show that industrially relevant titers (>50 g/L) are achievable, and techno-economic analyses support competitiveness and sustainability. Nonetheless, further innovations in host development, PTM integration, scalable purification, and sustainability assessment are needed. Overcoming these challenges will establish PF as a scalable, affordable, and sustainable platform for next-generation protein biomanufacturing.