Yeast Ingredients Market Size and Trends

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.

Yeast Ingredients Market Concentration By Players

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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.