Yeast Ingredients Market Size Forecast to Reach US$4.66 Billion by 2027

Yeast Ingredients Market
Rising consumption of bakery goods and growing health consciousness consumers are some of the factors driving the Yeast Ingredients Market.

Yeast Ingredients Market Overview

The Yeast Ingredients Market size is estimated to reach $4.66 billion by 2027. Furthermore, it is poised to grow at a CAGR of 8.60% over the forecast period of 2022-2027. Yeast are the kind of microorganisms that helps to produce enzymes, carbon dioxide (CO2), and other metabolites from carbohydrates which are used in the process of fermentation, baking, increasing value of the nutritional property, and flavoring foods. Yeasts are natural nutrients that are employed in the food processing industry as one of the key food ingredients. Fermentation is the process through which yeast transforms food into alcohol and carbon dioxide. As a result, yeast is essential in the production of wine and beer, as well as in the baking process. As yeast extract is of natural origin, it is beneficial to food manufacturers and consumers as a food ingredient as it is lightly processed. Autolysates are made in the same way that yeast extracts are made, except the cell walls aren’t removed. As a result, they are only partially water-soluble. Autolysates combine the beneficial properties of yeast extracts and cell walls to produce smaller peptides that improve flavor, texture, and viscosity. Yeast beta-glucan is found in the cell wall of yeast and is well-known for its immune-boosting, anti-infection, and anti-tumor properties. Yeast cell walls, often known as MOS, are frequently employed as natural antibiotic substitutes in the feed business. Mannan oligosaccharides (MOS) and ß-glucans are two functional polysaccharides with proven health-promoting effects. Baker’s yeast is a yeast that is often used as a leavening agent in baking bread and bakery items. When baking with yeast, wheat flour is the most commonly used flour. Furthermore, rising consumer interest in organic food items made with natural food additives, as well as increasing use of yeast components as nutritional supplements and in pharmaceuticals, are expected to contribute to market expansion. The robust growth of yeast ingredients in various applications such as food and beverages, feed & pet food, pharmaceuticals, etc. are some of the factors driving the Yeast Ingredients Industry forward in the projected period of 2022-2027.

Yeast Ingredients Market Segmentation Analysis- By Product Type

The Yeast Ingredients market based on product type can be further segmented into Yeast Extracts, Yeast Autolysates, Yeast Beta-Glucan, Yeast Derivatives, and Others. Yeast Extracts held a dominant market share in the year 2021. Yeast extract contains glutamates, an amino acid that can be found naturally in a variety of foods. They’re sometimes removed and added to ready-to-eat foods like spreads, soups, and other prepared foods. Most producers are following the FDA’s regulatory rules and employing yeast extract as a natural component, as well as including it on labels. Baker’s yeast extracts are typically gluten-free because no gluten derivatives are utilized in the manufacturing process. Recently, about 72% of Americans are suffering from gluten intolerance that rising its use in the food and beverage industry.

However, Yeast Derivatives is estimated to be the fastest-growing, with a CAGR of 9.2% over the forecast period of 2022-2027. Yeast derivatives Owing to their comparatively high protein and amino acid, calorie, and vitamin content compared to standard feed grains and oilseed meals, yeast derivatives are utilized as supplements in animal diets. This factor is enhancing the use of yeast derivatives that helps animals to get healthy food.

Yeast Ingredients Market Segmentation Analysis- By End-Users

The Yeast Ingredients market based on end-users can be further segmented into Food & Beverages, Feed & Pet Food, Pharmaceuticals, and others. Food and Beverages held a dominant market share in the year 2021. The demand for low-salt, low-fat, and no-glutamate food items is being driven by rising consumer health consciousness and rapidly expanding indulgence. Consumers desire balanced diets and foods that help them enhance their immunity, as well as novelties in terms of variants and flavors, therefore demand for the product for culinary applications is expected to increase in the future years. To improve sales in a stagnant and matured sector, processed food manufacturers are targeting consumers with better-for-you low-salt goods. In the baking industry, the demand for yeast increases as it is used for making bread, pastries, and cakes and recently baking industry growing at a rate of 6% further increasing the adoption of yeast ingredients.

However, Pharmaceuticals is estimated to be the fastest-growing, with a CAGR of 9.5% over the forecast period of 2022-2027. Yeast ingredients are also utilized in feed to boost milk supply, accelerate animal growth, improve weight, and reduce bacterial diarrhea susceptibility. Furthermore, they aid in the promotion of animal performance, particularly in young animals, as well as the improvement of animal metabolism by increasing defense mechanisms against infections, which is driving the market.

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Yeast Ingredients Market Segmentation Analysis- By Geography

The Yeast Ingredients market based on Geography can be further distributed into North America, Europe, Asia-Pacific, South America, and the rest of the World. North America held a dominant yeast ingredients market share of 48% in the year 2021 as compared to its other counterparts. It is owing to the robust demand of the food and beverage industry. Yeast ingredients are growing rapidly owing to excessive intake of functional foods as well as rising growth in the dairy industry.

Moreover, North America is expected to offer lucrative growth opportunities to marketers in the projected period of 2022-2027. It is owing to the demand for fresh bread and rolls, which were the most popular bakery products in the United States in 2020, with sales totaling around 14 billion U.S. dollars. So, the use of yeast ingredients increases with the rising growth in the bakery industry.

Yeast Ingredients Market Drivers

Rising consumption of bakery goods has readily aided market growth

One of the most widely consumed foods is bread. Because consumers’ hectic schedules are increasing that increasing the usage of packaged bread, producers are focusing on manufacturing additional bakery items. Because of their ready availability and high nutritional value, bakery products have become one of the most important foods in the modern human diet. According to the American Bakery Association, around 62 percent of bakery sales in the United States are increasing. Furthermore, the evolution of value-added bread items is boosting the market growth.

Growing health consciousness consumers have readily aided the market growth

As consumers become more conscious of their diet and food choices so, yeast extract is improving appeal as a versatile ingredient used for savory flavor and high-quality meals. Veganism is becoming more popular as people become more conscious of their health and everyday habits. As consumer awareness of environmental issues grows, food companies are being driven to use natural resources such as yeast extract instead of animal-derived raw ingredients to improve product quality. Veganism usually entails avoiding animal-based goods, prompting food manufacturers to shift their focus to yeast extracts. The demand for yeast extracts will be aided by the health benefits connected with their intake in the next years. According to the Plant-Based Foods Association, sales of plant-based foods raised by 11% in 2019 further accelerating the demand for yeast extract.

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Yeast Ingredients Market Challenges

Rising prices of yeast ingredients are some of the factors impeding the market growth

Owing to supply chain distribution, the prices of yeast increases continuously. Recently, the prices of yeast increased by $0.20 per pound. Also, in Canada prices of cream yeast increased by 10.2 cents per kg and 17 cents per kg on block yeast. Also, the price of dry yeast increased by $C 0.57per kg. Owing to this, the manufacturer reduces the use of yeast ingredients that impede the market growth.

Yeast Ingredients Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Yeast Ingredients Market. Yeast Ingredients Market top 10 companies include

Kerry Group PLC,

Synergy Ltd.,

Associated British Foods PLC,


Angel Yeast Co. Ltd,

Lesaffre Yeast Corporation,

Lallemand Inc.,

Alltech Inc.,

Wyeast Laboratories Inc.,

Danisco A/S

Recent Developments

In August 2021, Angel Yeast Co. Ltd. established a joint venture to invest $15.4 million to acquire Shandong Bio Sunkeen Co., Ltd. This acquisition helps in focusing on yeast biotechnology, nutrition and health products, and food ingredients that allow Angel Yeast to increase its production capacity by 15,000 tons for yeast and yeast extracts.

In May 2020, Lallemand expands categories of use for vitamin D yeast in the EU. Lallemand provided the European Food Safety Authority (EFSA) with a detailed food intake assessment including all food categories and intended population groups, and the agency published an opinion that the use of vitamin D yeast in a wide range of food categories is safe for all intended populations.

In January 2019, Kerry launched Non-GMO yeast as a natural solution for acrylamide reduction. Non-GMO yeast has the ability to reduce acrylamide levels by up to 90% across a broad range of food and beverage products, including biscuits, crackers, French fries, potato crisps, coffee, and infant food. Acrylamide is fast becoming a big concern for the food industry, due to the growing body of evidence of its role as a potential carcinogen.

Key Takeaways

Geographically, North America held a dominant market share in the year 2021. In North America, the number of product launches raised by 11% in 2019. About 28% of products are launched from the bakery market that growing the adoption of yeast ingredients. Moreover, consumers are becoming increasingly concerned about the composition and quality of the things they consume i.e naturalness, nutrition, and pleasure are all important considerations when making a purchase. Thus, the demand for yeast ingredients increases.

Rising consumption of bakery goods and growing health consciousness consumers are some of the factors driving the Yeast Ingredients Market. However, rising prices of yeast are some of the factors impeding market growth.

A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Yeast Ingredients Market Report.

Relevant Titles

Yeast Extracts Market- Forecast (2022-2027)

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