YEAST INGREDIENTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Yeast Ingredients Market Size and Forecast – 2024-2031

The global yeast ingredients market is estimated to be valued at USD 2.98 Bn in 2024 The market is expected to reach USD 5.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031.

Key Takeaways of the Yeast Ingredients Market:

• The yeast extracts segment is expected to account for 28.2% of the market share in 2024.
• The baking segment is expected to represent 50.5% of the market share in 2024.
• Europe is projected to lead the global market with a 34.4% share in 2024, followed by the Asia Pacific region, which is expected to hold a 26.8% share.

Market Overview:

The market has been witnessing steady growth over the past few years driven by factors such as rising demand from various end-use industries such as food and beverages, animal feed, pharmaceuticals, etc. The rising health-consciousness among consumers is expected to drive the demand for nutritional and healthy yeast extracts and ingredients in food and dietary supplements. Additionally, the growth of the convenient and packaged food industry is also expected to support the market growth during this period.

Segmental Insights

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Product Insights - Yeast Extracts are Dominating the Market with Diverse Applications and Robust Demand in Food and Beverage Processing

In terms of product, the yeast extracts segment is expected to contribute 28.2% share of the market in 2024, owing to its wide range of applications in food and beverage processing. Yeast extracts offer notable nutritional value by providing concentrated source of amino acids, vitamins, and minerals. Their saltiness and savory umami taste make yeast extracts a popular flavor enhancer and texture modifier in various culinary preparations. The robust demand from the soups and sauces sector has been a primary factor propelling the yeast extracts segment.

Application Insights – Baking Segment is Leading the Application Landscape for Yeast Ingredients in the Bakery Industry

In terms of application, the baking segment is expected to contribute 50.5% share of the market in 2024. Yeast extracts and autolysates are extensively used as flavor enhancers in breads, pizza dough, bagels, and specialty baked goods to accentuate their desirable qualities. Yeast derivatives especially find applicability as dough conditioners and strengthening agents to improve handling, texture, and shelf-life of bakery items. The global baked goods industry has maintained steady growth over the past few years, driven by the expanding base of retail bakeries and in-store bakery chains.

Regional Insights

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Europe Yeast Ingredients Market Trends

Europe is projected to dominate the market in 2024, capturing approximately 34.4% of the global market share. This leadership is driven by substantial production and consumption levels within the region. Europe's stronghold in the yeast ingredients market is supported by the presence of leading manufacturers, an advanced food processing sector, and favorable government policies that encourage innovation and industry development.

Asia Pacific Global Yeast Ingredients Market Trends

The Asia Pacific region is anticipated to be the fastest-growing market in 2024, representing around 26.8% of the global market share. This rapid growth is driven by increasing incomes, the adoption of westernized diets, and growing populations in major countries such as China and India. Additionally, rapid industrialization and government efforts to enhance food value chains have strengthened production capacities and attracted investments in the region.

Yeast Ingredients Market Outlook for Key Countries

U.S. Yeast Ingredients Market Trends

The U.S. yeast ingredients market is experiencing notable expansion, fueled by shifting consumer preferences, broader industry applications, and innovations in fermentation processes. A key trend driving this growth is the increasing demand for natural and clean-label products. Consumers are showing a stronger preference for minimally processed and natural food options, which has boosted the popularity of yeast-based ingredients as flavor enhancers, texturizers, and sources of nutritional value.

China Yeast Ingredients Market

The China yeast ingredients market is growing rapidly, driven by the increasing adoption of yeast-based products in food, beverages, nutraceuticals, and other industrial applications. This growth is underpinned by factors such as rising health consciousness, advancements in food technology, and China's expanding processed food industry. The livestock industry in China is adopting yeast-based additives for animal nutrition to enhance gut health, improve immunity, and reduce the reliance on antibiotics, aligning with global trends in sustainable livestock farming.

Germany Yeast Ingredients Market

Germany is the largest market for yeast ingredients in Europe, accounting for a significant share due to its robust bakery industry. The market is projected to expand as consumer preferences shift towards organic and natural ingredients. Recent investments in local production facilities are aimed at meeting the increasing demand for yeast-based products.

India Yeast Ingredients Market

The India yeast ingredients market is experiencing rapid growth, driven by a shift in consumer preferences toward healthier and more natural food options, advancements in food processing technologies, and increasing applications of yeast-derived products across diverse industries such as food, beverages, nutraceuticals, and animal feed. With urbanization and changing lifestyles, the consumption of processed and convenience foods is growing, leading to increased use of yeast-based ingredients as natural flavor enhancers and preservatives.

Brazil Yeast Ingredients Market

The Brazil yeast ingredients market is growing due to its large agricultural base and increasing demand for bakery products. The market is expected to benefit from local manufacturers innovating their product offerings. Government initiatives aimed at promoting sustainable agricultural practices, such as the Low Carbon Agriculture Plan (Plano ABC), are also contributing to market growth. This initiative encourages sustainable farming practices, including better management of agricultural by-products, which can be repurposed in yeast production, supporting both environmental goals and market development.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In February 2023, AngelYeast Co., Ltd. unveiled its brand development strategy, focusing on introducing innovative products to the market. This strategy also includes forming strategic partnerships and making investments to enhance its research and development capabilities and strengthen its global supply chain. These measures aim to broaden the company’s market presence and reach.
• In 2023, Lallemand Inc. expanded the application of its Lalmin Vitamin D Yeast within the European Union. After receiving approval in May 2020 for its use in baked goods and food supplements, the company gained authorization to incorporate Lalmin Vitamin D Yeast into 22 additional categories. These new categories include a range of products such as milk-based items and processed fruits and vegetables, in line with EU Regulation (EU) 2022/196.

Top Strategies Followed by Global Yeast Ingredients Market Players

• Established Players: Leading companies in the market extensively focus on research and development to innovate new high-performance products. They invest sizable portions of their annual revenue in R&D to develop customized solutions and cutting-edge ingredients.
  • For instance, companies like Lesaffre and Angel Yeast have state-of-the-art R&D centers developing gluten-free, organic and non-genetically modified organisms yeast products.
• Mid-Level Players: Mid-tier companies in the industry implement strategies focused on delivering quality yeast ingredients at affordable price points. They target the price-sensitive consumer segment by optimizing production processes to reduce manufacturing costs. Some players also collaborate with local agriculturists and farmers to procure raw materials at lower prices. This helps them offer cost-competitive products without compromising on quality standards.
• Small-Scale Players: Emerging small-scale players in the yeast ingredients domain focus on niche specialty segments left untapped. They develop unique solutions catering to specific industrial or consumer needs. For example, smaller companies introduced organic and halal-certified yeast products for the health-conscious and religious demographic respectively. This niche strategy aids their market penetration.

Emerging Startups - Global Yeast Ingredients Industry Ecosystem

• Innovative Technologies: Several startups are introducing cutting-edge technologies like artificial intelligence (AI) and Internet of Things (IoT) sensors. For example, 'Growsentials' utilizes AI to automatically monitor and control fermentation environments, enhancing yeast cultivation efficiency. 'Peptidic' employs smart sensors to quickly detect microbial contamination in food-grade yeast. Such innovative startups uphold technological advancements benefiting the industry.
• Sustainable Solutions: Some startups focus on sustainability. 'Sporos' produces yeast derived from food waste, diverting organic material from landfills. 'Ynsect' cultivates insects like crickets using by-products from the yeast industry as feed, establishing a circular bioeconomy model.

Market Report Scope

Market Dynamics

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Yeast Ingredients Market Growth Factors

Increasing demand for convenience foods and baked goods

The consumption of convenience foods and baked goods is increasing rapidly across the globe due to changes in lifestyle and eating habits of consumers. In today's fast paced world, people have less time to cook meals from scratch and prefer ready-to-eat packaged foods which can be easily prepared or heated. Busy consumers look for meals and snacks that are convenient to access and consume on the go. This has led to immense growth in various convenience food categories such as frozen pizza, frozen snacks, ready meals, packaged bread, and bakery items. Yeast ingredients play a vital role in improving the texture, flavor, and shelf life of these convenience foods and baked goods. For instance, yeast extracts and yeast autolysates are commonly used as flavor enhancers in ready meals to make them more appetizing.

Yeast Ingredients Market Opportunity - Expansion of the vegan and plant-based food market

The global vegan and plant-based food market has witnessed tremendous growth over the past few years and offers significant opportunities for yeast ingredient manufacturers. With increasing health and environmental consciousness, more people are switching to a vegan or flexitarian diet. Yeast extracts and yeast autolysates provide essential amino acids, vitamins and flavors and are widely used as ingredients in vegan cheese, meat alternatives, dressings, sauces etc. Their usage enhances the taste, texture and nutritional profile of vegan foods. As the demand for plant-based substitutes of animal products is rising exponentially, the need for yeast ingredients is also growing.

Yeast Ingredients Market Challenge - Fluctuating prices of raw materials affecting production costs

One of the major challenges currently being faced by companies operating in the market is the fluctuating prices of raw materials which have a significant impact on production costs. Yeast ingredients mainly comprise wheat, corn, barley, sugar beets, etc. which are agricultural commodities and their prices change frequently depending on seasonal harvests, demand and supply forces, shortage of crops, changes in government policies, etc. Any increase in prices of these raw materials directly increases the cost of production for yeast manufacturers. With thin profit margins in this market, fluctuating raw material costs make operations unpredictable and planning difficult. It also affects the pricing strategies of companies.

Analyst Opinion (Expert Opinion)

• This market is projected to exhibit steady growth over the forecast period driven by increasing demand from the food and beverage industry. Rising consumption of bakery and processed food worldwide will boost the sales of yeast extracts and autolysates. Furthermore, growing health-consciousness among consumers has led to higher demand for nutrition-rich yeast extracts. The market is expected to gain from increasing utilization of yeast ingredients as flavor enhancers and protein sources in plant-based meat analogs.
• Europe currently dominates the market and is likely to continue its dominance supported by well-established food processing industry in the region. Asia Pacific is poised to witness the fastest growth owing to growing food processing sector and rising disposable incomes in developing countries like China and India.
• The price fluctuations in raw material such as sugar may pose challenges to market players. Rising preference for clean label and non-GMO products among health-conscious consumers is opening new opportunities for organic and natural yeast extracts in the market. Players are investing in R&D to develop value-added yeast ingredients with enhanced functionalities.

Market Segmentation

•  Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Yeast Extracts
  • Yeast Autolysates
  • Yeast Beta-glucan
  • Yeast Derivatives
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Baking
  • Beverages
  • Animal Feed
  • Nutraceuticals
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Lesaffre
  • Associated British Foods plc (ABF)
  • Archer Daniels Midland Company (ADM)
  • Lallemand Inc.
  • Angel Yeast Co., Ltd.
  • Koninklijke DSM N.V.
  • BASF SE
  • BioCare Copenhagen
  • Synergy Flavors
  • Alltech, Inc.
  • Nutraceutical Corporation
  • AAK AB
  • Hain Celestial Group, Inc.
  • Kemin Industries, Inc.
  • Yeast & Co. Ltd.