Yeast and Yeast Extract Market Size, Share, Growth, and Industry Analysis, By Type (Baker's Yeast, Brewer's Yeast, Wine Yeast, Feed Yeast, Bioethanol Yeast, Others), By Application (Food, Beverage, Feed, Others) and Regional Forecast By 2031

Updated On: 15 April 2024

Yeast and Yeast Extract Market Report Overview

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The global yeast and yeast extract market size was USD 2573.9 million in 2022, as per our research, the market is expected to reach USD 3759.69 million in 2031, exhibiting a CAGR of 4.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with yeast and yeast extract market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels once the pandemic is over. 

Yeast is a single cell fungus that grows naturally on plant and soil. Yeast extract is rich blend of natural ingredient composed of a variety of glutamic acid, carbohydrates, vitamins, amino acids, and minerals. Yeast extracts are the cell culture of yeast that is being utilized as a flavouring agent and food additives. Yeast extract is a natural component that is used in a variety of food products as a flavour enhancer and a source of nutrients. The demand for yeast extract is predicted to rise as customers grow more health-conscious and seek natural and minimally processed components. It is often used in plant-based meat substitutes, soups, sauces, and other vegan and vegetarian items.

The yeast extract is highly utilized in nutritional supplements, baked products, and probiotics. Yeast is also being utilized for several medical purposes for making antibiotics which in turn boosts the market growth. The mutual demand for organic yeast offerings is one of the important developments in the yeast and yeast extract market. Demand for wholesome nutritious products made with natural ingredients is projected to increase as consumer demand to. The extracts used as ferment in various types of food products to increase flavour and texture and add dietary content.

COVID-19 Impact: Pandemic hampered production and supply chain

The coronavirus pandemic situation has created an immense disruption in the supply of yeast and yeast extract ingredients which seems to hinder the food & beverages sector growth. COVID-19 has impacted the food and beverage business with the sudden shut down of restaurants, hotels, and cafes, which in turn has adversely impacted on market growth. However, packaged food, bakery products and meat products has experienced a decline in its sale due to which the demand for yeast extract in these industries also decreased to a significant level. COVID-19 has increased the sales of traditional, healthy and staple food items. The lockdown scenario in various countries hampers the production and supply chain of the yeast extract companies. 

Latest Trends

" Rising demand to boost the market growth "

The increasing demand for organic yeast offerings is one of the key trends in the market. Organic food ingredients are gaining hold, owing to the health benefits associated with organic products. Bread is a food staple in many cultures across the world, which is majorly driving the demand for baker’s yeast, as bread is usually made from wheat flour dough and baker’s yeast. . These products are highly utilized in nutritional supplements, baked products, and probiotics. Bread and bakery product sales have been driven by the constant flow in demand for specialty bread and the impact of rise on retail price which is further driving the demand for baker’s yeast in bread and bakery product use. Demand for yeast extract as a flavour enhancer and nutritional enhancement is projected to rise as more people adopt vegan and vegetarian diets. The rising demand for convenience foods as a result of busy lifestyles and the necessity for quick and easy meal options is predicted to drive the yeast and yeast extract market.

Yeast and Yeast Extract Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Baker's Yeast, Brewer's Yeast, Wine Yeast, Feed Yeast, Bioethanol Yeast, and Others.

Baker’s yeast capture the maximum market share through forecast period.

• By Application Analysis

According to application, the market can be segmented into food, beverage, feed, and others.

Yeast and yeast extract market players cover segment like Food will dominate the market share during forecast period.

Driving Factors

" Increase in demand due to nutritional value to offer lucrative opportunities to the market"

Yeast extracts are rich sources of proteins, vitamins, and minerals, they are used as an active ingredient in many cooking uses. The growth of the market is also imputable to the changing lifestyles and growing demand for organic, healthier, and clean-labelled products. Glucan free yeast extracts helps to lower bad cholesterol level and also increases good cholesterol production. The rapid growth in food service sector has offer lucrative growth opportunities for the yeast and yeast extract market.

"Increase in demand for bakery products to boost the market growth"

Bread is a food staple in many nations across the world, which is majorly driving the demand for baker’s yeast, as bread is typically made from wheat flour dough and baker’s yeast.  Rise of nuclear families rising bread consumption as it is cost-effective and easily available staple food item has led to a boost in demand for bakery products. Bread and bakery product sales have been driven by the constant flow in demand. Baker’s yeast is an essential element in fermentation process as well as in flavouring components commonly found in pizza, bread, rolls, buns, biscuits, dough and cakes.

Restraining Factors

"High cost in setting up production plant to deplete the Market"

The high initial cost requirements associated with setting up of yeast extract production plants and other infrastructure is limiting the growth of the market.  The regulatory issues related to addition of yeast extracts to food and feed products as ingredients or flavouring agent is also restricting the yeast and yeast extract market to grow. 

Yeast and Yeast Extract Market Regional Insights

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"North America to dominate the market due to the rising consumption of bread"

North America is one of the leading regions in the global market, driven by vigorous demands for clean label ingredients. Rising consumption of bread as it is cost-effective and easily available staple food, along due to the increasing number of nuclear families, mainly in the Asia-Pacific region, has led to a boost in demand for bakery. The Asia-Pacific market for yeast and yeast extracts is driven by the growing consumption of baked goods and confectionery products. Demand for yeast extract as a flavour enhancer and nutritional enhancement is predicted to rise as more people adopt vegan and vegetarian diets.

Key Industry Players

"Key players to focus on gaining mergers and collaborations in the market"

Players focus on developing opportunities posed by emerging markets to expand their product portfolio to cater to the requirements of various product segments. The giant manufacturers have strengthened their efforts in order to develop niche and innovative products based on the requirements of the end-user industry. Key market players are focusing on expanding their manufacturing capabilities so that they can enhance the productivity.

List of Market Players Profiled

• Associated British Foods (UK)
• Chr. Hansen (Denmark)
• Angel Yeast (China)
• Leiber (Germany)
• Lallemand (Canada)
• Lesaffre (France)
• Novozymes (Denmark)

Report Coverage

The valuation includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. In the food and beverage business, yeast extract is becoming increasingly utilised as a supplement, and it will continue to attract major investment. Companies operating in market have been focusing on adopting new expansion strategies to gain an economical control over the counterparts. Yeast and Yeast Extract is anticipated to witness growth credited to expanding dairy industry and the rising demand for animal feed across the region.