Yeast Ingredients market size is expected to reach $10.7 billion by 2030 after growing at a CAGR of 4.0% during the forecast period 2024-2030 according to the latest market research report published by IndustryARC. Growing demand for ready-to-eat food, growing demand for natural and clean-label ingredients and production of alternative proteins, including plant-based meats and dairy substitutes are poised to propel the demand, finds IndustryARC in its recent report, titled “Yeast Ingredients Market – By Type (Baker’s Yeast, Wine Yeast, Brewer’s Yeast, Feed Yeast, Bioethanol Yeast and Others), By Form (Liquid Yeast, Fresh Yeast, Crumbled Yeast, Active Dry Yeast, Instant Dry Yeast, Frozen Semi Dry Yeast, Genetically Modified Yeast, and Others), By Product Type (Yeast Extracts, Yeast Autolysates, Yeast Beta-Glucan, Yeast Derivatives and Others), By Application (Food, Pharmaceuticals, Bio Fuels, Animal Feed and Others), By Geography – Global Opportunity Analysis & Industry Forecast, 2024-2030”
Growing Demand for Natural and Clean-Label Ingredients is Driving the Market Growth:
- Consumers are increasingly prioritizing healthier dietary choices, leading to a heightened preference for naturally sourced ingredients. According to the ATLAS 2023 survey by Ingredion, 42% of consumers look for clean label/natural ingredients before making a purchase. Yeast ingredients ate widely employed in the production of snacks, seasonings and ready-to-eat meals to intensify flavors and provide a richer taste experience. This growing trend towards natural and clean-label ingredients in food products boosts the demand for yeast ingredients as they are often perceived as a healthier alternative to synthetic flavor enhancers.
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Yeast Ingredients Market 2024-2030: Segmentation
By Type
- Baker’s Yeast
- Wine Yeast
- Brewer’s Yeast
- Feed Yeast
- Bioethanol Yeast
- Others
By Form
- Liquid Yeast
- Fresh Yeast
- Crumbled Yeast
- Active Dry Yeast
- Instant Dry Yeast
- Frozen Semi Dry Yeast
- Genetically Modified Yeast
- Others
By Product Type
- Yeast Extracts
- Yeast Autolysates
- Yeast Beta-Glucan
- Yeast Derivatives
- Others
By Application
- Food
- Pharmaceuticals
- Bio Fuels
- Animal Feed
- Others
By Region
- North America
- South America
- Europe
- Asia-Pacific
- Rest of the World
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Yeast Ingredients Market Report – Key Takeaways:
- Food is the Largest Segment
- Food is the largest segment, in terms of application. Yeast ingredients are widely employed in the production of snacks, seasonings, and ready-to-eat meals to intensify flavors and provide a richer taste Yeast ingredients are mainly used in the bakery industry to enhance fermentation and improve the texture and volume of the final product. Yeast ingredients also play a significant role in the wine industry by enhancing the fermentation process and improving the overall quality of the final product. According to the International Organization of Vine and Wine (OIV), wine production reached 237.3 million hectoliters in 2023.
- Active Dry Yeast is the Largest Segment
- The active dry yeast segment is the largest segment in the Yeast Ingredients market, in terms of form. Active dry yeast is mainly used in baking where it is added to dough to enhance fermentation and improve the texture and volume of the final product. Baked goods are considered staple breakfast particularly in the Americas and Europe. According to Waitrose, on an average more than 98% of British shoppers buy bread. The growing demand for bread and other baked goods boosts the yeast ingredients market.
- Europe Leads the Market
- Europe held the major share of 36% in 2023 in the Yeast Ingredients market owing to the sales of alcoholic beverages, demand for plant-based food and the demand for clean label ingredients in the region. According to the International Organization of Vine and Wine (OIV), in 2023 France regained its position as the world’s biggest wine producer and the volume of wine increased by 4% in the country. According to the Statistics Report 2023 prepared by The Brewers of Europe, beer sales in the Spain increased from 39.5 million hectolitres (hl) in 2019 to 41.1 million hl in 2022. Thus, the growing sales of beer drives the yeast ingredients market growth
- Production of Alternative Proteins
- The demand for plant-based products is growing driven by consumer demand for healthier or free-from ingredients, aligning with evolving lifestyles and dietary preferences. But mimicking the flavor and texture of conventional meat and dairy is not easy. In a survey carried out by the Plant Based Food Association, 73% of consumers associate the taste and texture of plant-based cheese with plastic, unnatural or having a grainy texture, while lacking the melt capabilities of dairy cheese. In alternative dairy products, yeast extract is used to enhance the savory umami taste and improve their nutritional attributes. As a microbial protein, yeast can be used in non-dairy cheese formulations to simulate the maturation process and flavor development of conventional dairy cheese.
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Key Opportunity Analysis:
Demand for Plant-Based Dietary Supplements
The growing focus on clean and sustainable living and a desire for natural alternatives to traditional supplements are boosting the demand for plant-based dietary supplements. Yeast ingredients can be used in dietary supplements and functional foods to boost nutritional content and support specific health goals. According to the US National Institute of Health, vitamin B12 is the only vitamin that must be sourced from animal-derived foods or supplements as it can’t be produced in the body. Yeast is a rich source of B vitamins, especially B12, which is essential for energy production and neurological function.
Use of Natural Ingredients in Cosmetics
- Yeast Ingredients are gaining traction in the cosmetics industry due to their benefits. For example, yeast extract is rich in beta-glucans, which soothe and protect the skin. Additionally, it has mild antioxidant properties and helps strengthen the skin’s natural barrier. This has the potential to mitigate allergy triggers. As a result, yeast extract can be incorporated into a variety of skincare products, from moisturizers and serums to anti-aging formulations. Consumers across the world are becoming more conscious about ingredients used in cosmetics and personal care products. Due to increasing skin irritations from the chemicals, they prefer cosmetics and personal care products manufactured using natural products and ingredients. As the skincare industry continues to prioritize natural ingredients, the use of yeast is expected to expand.
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The Report also Covers the Following Areas:
- Yeast Ingredients Market size and Forecast
- Yeast Ingredients Market trends
- Yeast Ingredients Market analysis by type
Yeast Ingredients Market 2024-2030: Key Highlights
- CAGR of the market during the forecast period 2024-2030
- Value Chain analysis of key stake holders
- Detailed analysis of market drivers and opportunities during the forecast period
- Yeast Ingredients market size estimation and forecast
- Analysis and predictions on end user behavior and upcoming trends
- Competitive landscape and Vendor market analysis including offerings, developments, and financials
- Comprehensive analysis of challenges and constraints in the Yeast Ingredients Market
Covid and Ukrainian Crisis Impact:
- The COVID-19 pandemic affected every industry. Restaurant and food & beverage manufacturing shutdowns caused a decline in demand for bulk yeast. However, a surge in home baking created a huge demand for consumer-packaged yeast. According to data from the Home Baking Association, home baking frequency shot higher by 75% in the early weeks of the pandemic and new bakers made up 92% of purchases. This led to temporary shortages with stores struggling to keep shelves stocked as flour and yeast were in high demand.
- Both Ukraine and Russia are major wheat producers. Wheat is a key ingredient for molasses used in yeast production. Disruptions to wheat exports due to the conflict have pushed up molasses prices thus impacting yeast manufacturing costs. Additionally, the cost pressure and supply chain disruptions led to price increases for yeast ingredients, thereby, affecting the market.
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Yeast Ingredients Market Players:
The companies profiled in the Yeast Ingredients market include:
- Kerry Group PLC
- Synergy Ltd.
- Associated British Foods PLC
- DSM
- Angel Yeast Co. Ltd
- Lesaffre Yeast Corporation
- Lallemand Inc.
- Alltech Inc.
- Wyeast Laboratories Inc.
- Danisco A/S
Related Reports:
Brewer’s Yeast Market is experiencing growth due to its increasing applications in health supplements, animal feed, and the brewing industry.
Bakers Yeast Market is expanding due to rising demand for baked goods and the growing trend toward clean-label and organic food products.
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