Yeast Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Baker’s Yeast, Bioethanol Yeast, Brewer’s Yeast, Wine Yeast, Feed Yeast and Others), By Application (Food (Bakery, Non- Alcoholic Beverages, Alcoholic Beverages), Feed and Others), By Form (Instant Yeast, Dry Yeast, Fresh Yeast, Genetically Modified Yeast, and Others), By Region and Competition, 2019-
Published Date: January - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Agriculture | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 4.75 Billion |
| Market Size (2029) | USD 7.79 Billion |
| CAGR (2024-2029) | 8.68% |
| Fastest Growing Segment | Baker’s Yeast |
| Largest Market | Europe |
Market Overview
Global Yeast Market was valued at USD 4.75 Billion in 2023 and is anticipated to project impressive growth in the forecast period with a CAGR of 8.68% through 2029.
Yeast is a type of fungus used primarily in baking and brewing. There are many species of yeasts, but the most commonly known is Saccharomyces cerevisiae, which is used in baking to make dough rise and in brewing to ferment sugars, creating alcohol. These processes occur due to the yeast's ability to metabolize sugars and release carbon dioxide and ethanol.
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Yeast is a key ingredient that has been utilized in food production for thousands of years. The yeast market refers to the global industry centered around the production and distribution of yeast, a key ingredient used in many sectors such as baking, brewing, and winemaking. This market encompasses various types of yeast, including baker's yeast, brewer's yeast, and nutritional yeast, each with their distinct applications. Trends within the yeast market are influenced by consumer dietary preferences, advancements in yeast fermentation technology, and global demand patterns for yeast-based products.
Key Market Drivers
Rising Demand for Baked Goods
The global demand for yeast is anticipated to surge, primarily driven by the escalating demand for baked goods. Increasing consumer preference for convenience foods and changing dietary habits have been instrumental in the growth of the bakery industry worldwide, which in turn triggers the demand for yeast. Yeast, a crucial ingredient in baking, contributes to dough leavening and imparts a unique taste to baked products. Furthermore, the rising trend of consuming fermented foods for their probiotic benefits is another factor fueling yeast market growth. Health-conscious customers are seeking bakery products with lower salt and sugar contents, and richer in fibres and grains. Yeast producers have responded by developing variations of yeast that can aid in baking such products. Additionally, the burgeoning popularity of artisanal bread and the growing interest in home baking, boosted further by the COVID-19 lockdowns, have also proliferated the demand for yeast. Hence, the global yeast market is poised for substantial growth, riding on the coattails of the expanding bakery industry.
Increased Use of Yeast as a Replacement For MSG
The global demand for yeast is anticipated to escalate as it's progressively utilized as a substitute for Monosodium Glutamate (MSG), a commonly used flavor enhancer. Yeast, known for its natural umami flavor, is gaining recognition in the food industry for its health benefits and natural origin, aligning with the growing consumer trend towards healthier, more natural food products. Scientific studies have revealed potential health risks associated with MSG, including headaches, flushing, and sweating, prompting consumers to seek healthier alternatives.
Yeast, apart from being a substitute for MSG, offers a wide range of nutritional benefits. It is rich in proteins, vitamins, and minerals, making it a valuable source of nutrition. The ability of yeast to enhance flavor in food without the potential side effects of MSG makes it an ideal choice for health-conscious consumers. In response to the increasing demand, yeast manufacturers are ramping up production to meet the burgeoning market needs. This surge in production is expected to drive robust growth in the global yeast market in the near future, as more and more food companies recognize the benefits of using yeast as a replacement for MSG.
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Growth of the Dairy Industry
The global dairy industry is witnessing an unprecedented expansion, which is predicted to surge the demand for yeast worldwide. Yeast, a key ingredient in various dairy products such as cheese and yogurt, is essential for fermentation, enhancing the taste, texture, and nutritional value of the products. As consumer preferences shift towards healthier and probiotic-rich options, the demand for these yeast-fermented products is expected to rise. Additionally, the growth in the dairy industry is fueled by increasing population, urbanization, and rising income levels, particularly in emerging markets. These factors, coupled with the introduction of innovative products by dairy companies, are likely to propel the global yeast market. Furthermore, yeast is an excellent source of protein and vitamins, meeting the nutritional needs of the burgeoning global population. Therefore, the surge in the dairy industry, coupled with these factors, is expected to significantly raise the demand for yeast on a global scale.
Increased Demand of Yeast-derived Nutritional Supplements
The global yeast market is projected to witness significant growth due to the rising demand for yeast-derived nutritional supplements. These supplements, rich in essential nutrients like proteins, vitamins, and minerals, have gained popularity for their potential health benefits. The increasing understanding of gut health's importance has led consumers to seek probiotics and other dietary supplements, where yeast-based products play a prominent role. Furthermore, the awareness about maintaining a balanced diet and strengthening the immune system, especially in the wake of the COVID-19 pandemic, has fueled the demand for these supplements. As a result, yeast manufacturers worldwide are scaling up their production capacities to meet this increasing demand. Additionally, the yeast industry has also benefited from the growing trend of clean-label products, as consumers tend to prefer natural and organic ingredients in their food and dietary supplements. Therefore, the surge in demand for yeast-derived nutritional supplements is expected to drive the global yeast market's growth significantly.
Key Market Challenges
Fluctuating Raw Material Prices
Fluctuating raw material prices have a significant impact on global yeast demand. Yeast, an essential ingredient in many food and beverage industries, relies on consistent, cost-effective supply of raw materials such as molasses, sugar, and grains for its production. However, global economic instability, climate change, and trade policies are causing unpredictable shifts in these raw material costs. When costs rise, manufacturers are burdened with increased production expenses, often necessitating price hikes in their yeast-based products. Consumers, sensitive to these price changes, may decrease their consumption, accordingly, leading to a consequent drop in global yeast demand. Furthermore, the food and beverage industries, faced with these escalating costs, may explore cheaper alternatives, or adjust their production processes to use less yeast. This potential for substitution or reduction only intensifies the anticipated decrease in yeast demand. Thus, the volatility of raw material prices presents a significant challenge to the global yeast market, threatening to dampen demand in the face of escalating costs.
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Stringent Regulations
Stringent regulations worldwide are expected to pose significant challenges to the global yeast industry, potentially reducing demand. Complexities in adhering to various food safety standards and stringent regulations on the quality and type of yeast used in different food items are some of the complications. For instance, the use of genetically modified (GM) yeasts is highly regulated. As yeast is a critical ingredient in numerous food and beverage items, restrictions on GM yeasts can limit product development and innovation, thereby affecting demand. Moreover, limitations on the use of certain yeasts in organic products pose additional challenges for manufacturers aiming to capitalize on the growing popularity of organic food. The ever-evolving nature of food regulations due to consumer health concerns adds another layer of uncertainty for the yeast industry. Collectively, these factors create a more complex regulatory environment that can constrain growth and decrease yeast demand globally.
Key Market Trends
Expansion of the Bio-Ingredients Industry
The global yeast market is projected to witness significant growth in the coming years, driven primarily by the expanding bio-ingredients industry. Yeast, a versatile microorganism known for its rich content of vitamins, proteins, and minerals, plays a critical role in various biotechnological processes. As the bio-ingredients sector continues to flourish, the demand for yeast as a biocatalyst in the production of bioethanol, biofertilizers, and biopolymers is expected to surge. Moreover, the industry's increasing emphasis on sustainable practices is propelling the use of yeast in waste management, leading to the generation of bioenergy. Yeast's ability to efficiently convert organic waste into valuable resources has gained attention and is contributing to a more sustainable and eco-friendly approach. This further enhances the prospects for yeast in the market.
Additionally, yeast's significance in the food and beverage industry cannot be downplayed. Its applications in baking, brewing, and flavor enhancement have been well-established, driving its demand worldwide. The unique properties of yeast contribute to the texture, taste, and quality of various food products, making it an indispensable ingredient in the culinary world. Furthermore, yeast has gained recognition for its probiotic properties, promoting gut health and overall well-being. This has led to its increased inclusion in dietary supplements and health products aimed at improving digestive health and immune function.
With the burgeoning bio-ingredients industry, coupled with the environmental, nutritional, and health benefits associated with yeast, the global demand for this versatile microorganism is set to escalate in the coming years. As research and innovation continue to uncover new applications and benefits of yeast, its potential for various industries and sectors is vast, paving the way for a promising future in the yeast market.
Rising Demand for Natural & Clean Label Products
The global yeast market is poised for significant growth, driven primarily by the rising demand for natural and clean label products. As consumers become increasingly health-conscious, there is a dramatic shift towards foods that are free from artificial additives and chemicals. Yeast, being a natural ingredient, fits perfectly into this paradigm. It is considered an excellent source of vitamins, proteins, and minerals, making it a preferred choice for health-conscious consumers. Additionally, yeast provides natural flavors to foods without the use of synthetic additives, aligning with the clean label trend. The baking industry, in particular, heavily utilizes yeast in various products, and its demand is expected to surge with the increasing consumption of bakery products around the world. Moreover, the burgeoning trend of veganism and vegetarianism is further propelling the market. As yeast is a plant-based ingredient, it's an ideal fit for vegan and vegetarian diets. Furthermore, yeast's potential as a probiotic and its role in improving gut health are creating new avenues for its application in the global food & beverage industry. Thus, the holistic shift towards natural, clean, and health-beneficial ingredients is anticipated to significantly boost the global demand for yeast.
Segmental Insights
Type Insights
Based on the Type, the Baker’s Yeast segment currently dominates the Global Yeast Market, holding a significant market share. This is primarily attributed to its widespread use in bakery products worldwide, ranging from bread to pastries and more. The demand for bakery products continues to surge, especially with the rising trend of online food delivery services and the convenience of ready-to-eat food products. Not only is Baker's Yeast widely utilized in traditional bakery items, but its versatility extends to various other culinary applications as well. Its unique ability to ferment dough and enhance the texture and flavour of baked goods has been instrumental in driving its growth and popularity in the global market. This has led to its incorporation in a wide array of products, including pizza crusts, donuts, cakes, bagels, and even certain types of alcoholic beverages like beer and wine.
The exceptional properties of Baker's Yeast, such as its natural leavening ability and its contribution to the overall sensory experience of baked goods, make it an indispensable ingredient for bakers and food manufacturers alike. Its use can result in soft, fluffy bread with a delightful aroma and flavour, making it a highly sought-after component in the industry. As consumers increasingly seek delicious and high-quality bakery products, the Baker's Yeast segment is well-positioned to meet their demands and further expand its market presence. With continuous advancements in yeast production techniques and ongoing research to develop innovative yeast strains, the potential for growth and diversification within this segment is immense. Overall, the dominance of the Baker's Yeast segment in the Global Yeast Market is not only a testament to its current market share but also a reflection of its adaptability, versatility, and the ever-increasing demand for delectable bakery products worldwide.
Application Insights
Based on the Application, the food segment is currently dominating the yeast market. The widespread use of yeast in various food products, such as bread, pastries, cakes, alcoholic beverages, and non-alcoholic beverages, is driving the growth of this segment. Yeast plays a crucial role in fermentation, contributing to the flavour, texture, and overall quality of these food and beverage products. Furthermore, the rising demand for bakery products, including artisan bread and specialty pastries, as well as the increasing consumption of alcoholic beverages across the globe, is expected to continue fuelling the dominance of the food segment in the yeast market. With its versatility and wide range of applications, yeast remains a key ingredient in the food industry, supporting innovation and satisfying the evolving tastes and preferences of consumers worldwide.
Regional Insights
Europe stands out as the unrivaled leader in the Global Yeast Market, driven by its dominant presence in the bakery and brewery industries. The region's extensive network of traditional bakeries and renowned breweries, known for their time-honored craftsmanship and dedication to excellence, has propelled Europe to the forefront of yeast production. The European yeast industry boasts a rich heritage in artisanal baking and brewing, with centuries of experience and expertise passed down through generations. This deep-rooted tradition, combined with a commitment to innovation and quality, has enabled Europe to set the benchmark for yeast production worldwide.
Recent Developments
- In February 2024, Novonesis, previously known as Novozymes launched New Yeast Technology Innova Delta. Within the Bioenergy sector, the Innova yeast platform has established itself as the foremost and most relied-upon yeast platform. Innova Delta ADY expands this portfolio by introducing a much-needed non-GM yeast solution, addressing a critical industry demand. This innovation enables facilities employing non-GM yeasts to achieve operational performance levels comparable to those utilizing the most advanced GM yeasts on a global scale. Innova Delta represents a significant advancement in ethanol production, enhancing both reliability and efficiency. This empowers ethanol producers to redefine their standards for production, business operations, and sustainability objectives.
Key Market Players
- Nutreco N.V.
- The Kerry Group plc
- Associated British Foods plc
- Angel yeast Co. Ltd.
- Lallemand Inc.
- ADM Company
- Oriental Yeast Co., Ltd.
- Lesaffre Yeast Corp.
- Leiber GmbH
- Synergy Flavors, Inc.
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