Yeast Ingredients Market Overview
Yeast Ingredients Market Size was estimated at 8.79 (USD Billion) in 2022.The Yeast Ingredients Market Industry is expected to grow from 9.06(USD Billion) in 2023 to 12.0 (USD Billion) by 2032. The Yeast Ingredients Market CAGR (growth rate) is expected to be around 3.17% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Yeast Ingredients Market Trends Highlighted
The yeast ingredients market is expected to grow significantly due to the increasing popularity of processed and ready-to-eat food products and beverages. The trend of using yeast ingredients is increasing as a natural flavoring agent, nutritional ingredient and preservative. Consumers are becoming more health-conscious and hence, there is an increasing demand for natural as well as organic ingredients for their food preparation. Further, the soaring trend of vegan and vegetarian diets has also increased the market for yeast products. Some of the leading factors contributing to the market growth are expansion of the food and beverage sector, improvement of technology for yeast production, and increase in consumer awareness of the health benefits presented by yeast to the body. There is scope for expansion through the development and marketing of more consumer-specific yeast products, as well as venturing into new markets with better potential. Some of the current developments are the development of yeast strains with improved fermentation, the application of yeast in the production of alternative protein sources and the increased use of yeast-derived ingredients for functional foods and beverages.
Yeast Ingredients Market Drivers
Shifting Consumer Preferences towards Natural and Organic Ingredients
Consumers are increasingly seeking out natural and organic products, driven by concerns about health and well-being. This trend is particularly evident in the food and beverage industry, where consumers are opting for products that are free from artificial additives and preservatives. Yeast ingredients, which are naturally derived, are well-positioned to benefit from this trend. They offer a clean and simple label solution for food and beverage manufacturers while also meeting the growing demand for natural and organic products.The Yeast Ingredients Market Industry is expected to witness a significant growth in demand for natural and organic yeast ingredients in the coming years.
Rising Demand for Functional Foods and Beverages
The demand for functional foods and beverages is on the rise as consumers become more aware of the health benefits associated with certain ingredients. Yeast ingredients are a rich source of nutrients, including vitamins, minerals, and antioxidants. They can be used to enhance the nutritional value of a wide range of food and beverage products, making them more appealing to health-conscious consumers. The Yeast Ingredients Market Industry is poised to benefit from this trend as food and beverage manufacturers seek to meet the growing demand for functional products.
Expansion of the Bakery and Confectionery Industry
The main consumer of yeast ingredients is the bakery and confectionery industry. The industry requires yeast for the preparation of bread, pastries, and other similar products. Generally, yeast helps dough rise and acquire the needed texture. A rise in the bakery and confectionery industry will lead to an increased demand for yeast. This is an opportunity for the Yeast Ingredients Market Industry. This is because the group has various yeast ingredients with baking and confectionery solutions.
Yeast Ingredients Market Segment Insights
Yeast Ingredients Market Product Type Insights
The Yeast Ingredients Market is segmented by product type into active dry yeast, instant dry yeast, fresh yeast, nutritional yeast, and autolyzed yeast extract. In 2023, the active dry yeast segment held the largest market share, accounting for over 40% of the market. The instant dry yeast segment is expected to grow at the highest CAGR during the forecast period, owing to its convenience and longer shelf life. Active dry yeast is a type of yeast that has been dried and deactivated. It is typically used in baking and brewing. Instant dry yeast is a type of yeast that has been dried and granulated.It is more convenient to use than active dry yeast and does not require activation before use. Fresh yeast is a type of yeast that is sold in a moist form. It is typically used in baking and brewing. Nutritional yeast is a type of yeast that is grown on a substrate of molasses or whey. It is a good source of protein, vitamins, and minerals. Autolyzed yeast extract is a type of yeast extract that is made by breaking down yeast cells. It is used as a flavor enhancer in food and beverages. The Yeast Ingredients Market is driven by the growing demand for convenience foods, the increasing popularity of home baking, and the rising awareness of the health benefits of yeast.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Yeast Ingredients Market Application Insights
The application segment plays a pivotal role in driving the Yeast Ingredients Market revenue. Bakery and Confectionery Products is expected to dominate the Yeast Ingredients Market with a significant market share in 2023, valued at around 4.02 (USD Billion). The growth is primarily attributed to the rising consumption of baked goods, such as bread, pastries, and cakes. The Beverages segment is projected to witness a steady growth rate during the forecast period, owing to the increasing popularity of fermented beverages, such as beer and wine.Dairy and Frozen Desserts are another key application segment, with a market valuation of around 1.27 (USD Billion) in 2023, driven by the demand for yeast in cheesemaking and yogurt production. Snacks and Savory Products is also expected to experience notable growth, reaching a market value of around 0.86 (USD Billion) in 2023. Meat Products is another significant segment, with a market valuation of approximately 0.68 (USD Billion) in 2023, owing to the use of yeast in meat preservation and flavor enhancement.
Yeast Ingredients Market Strain Insights
The Strain segment of the Yeast Ingredients Market is anticipated to exhibit substantial growth in the coming years. Saccharomyces cerevisiae, Pichia pastoris, Kluyveromyces marxianus, Candida utilis, and Hansenula polymorpha are the key strains used in the production of various yeast ingredients. Saccharomyces cerevisiae, commonly known as baker's yeast, holds a significant share in the market due to its extensive applications in the baking, brewing, and fermentation industries. It accounted for over 60% of the Yeast Ingredients Market revenue in 2023 and is projected to maintain its dominance throughout the forecast period.Other strains, such as Pichia pastoris, Kluyveromyces marxianus, and Hansenula polymorpha, are gaining traction due to their unique properties and applications in the production of biofuels, pharmaceuticals, and food additives. The growing demand for sustainable and cost-effective alternatives to traditional feedstocks is driving the adoption of these strains in various industries. The Yeast Ingredients Market segmentation provides valuable insights into the specific growth drivers and challenges associated with each strain, enabling manufacturers and investors to make informed decisions and capitalize on emerging opportunities.
Yeast Ingredients Market Form Insights
The Yeast Ingredients Market is segmented on the basis of form into dry, liquid, powder, granulated, and flakes. The dry segment is expected to hold the largest share of the market in 2023 due to its ease of handling, storage, and transportation. The powder segment is expected to grow at a CAGR of 2.7% from 2024-2032 due to its use in baking and confectionery applications. The granulated segment is expected to grow at a CAGR of 2.3% from 2024-2032 due to its use in food processing and brewing applications. The flakes segment is expected to grow at a CAGR of 1.9% from 2024-2032 due to its use in food and beverage applications.
Yeast Ingredients Market Regional Insights
The Yeast Ingredients Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market for yeast ingredients, accounting for over 40% of the market. The region is home to a large number of food and beverage manufacturers, as well as a growing population of health-conscious consumers. Europe is the second-largest regional market, followed by APAC. The APAC region is expected to experience the fastest growth in the coming years due to the rising demand for yeast ingredients in emerging economies such as China and India.South America and MEA are smaller regional markets, but they are also expected to experience growth in the coming years. The Yeast Ingredients Market is segmented into several sub-segments, including Type The market is segmented into active dry yeast, instant dry yeast, fresh yeast, and other types. Active dry yeast is the most popular type of yeast ingredient, accounting for over 50% of the market. Application The market is segmented into bakery, brewing, food, and other applications. Bakery is the largest application segment, accounting for over 60% of the market. Distribution Channel The market is segmented into direct and indirect distribution channels. The direct distribution channel is the most popular distribution channel, accounting for over 70% of the market.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Yeast Ingredients Market Key Players And Competitive Insights
Major participants across the Yeast ingredient market industry are currently focusing on retaining the competitive edge through strategic collaboration, acquisition, and new product development. Prominent partners across the Yeast Ingredients Market space are imposing significance on R investment to develop new value-added products that meet the evolving consumer populace. The emergence of budding players across the Yeast Ingredients Market sector has intensified the competition. Leading participants are engaged through new product launches and product portfolio expansion to stay relevant among intensifying competition. Partnering with key suppliers and distributors is a major approach adopted by prominent players to optimize their supply chain. Investing in digital sales is another initiative taken by leaders to connect with customers and grow their sales.Among the players covered, AB Mauri is a key player operating across a wide range of yeast and bakery ingredients. The company has a wide presence and operates several manufacturing units to cater to diversified customer needs. The company adopts a partnership approach to reach a wider customer base value. Additionally, the company has a strong emphasis on innovation and therefore, launches several specialty products for varied applications, such as gluten-free baking. The company’s strong distribution network, in combination with its technical support services to customers will continue to provide AB Mauri a competitive edge going forward.Another prominent player operating across the Yeast Ingredients Market Space recognized above is Lesaffre. The company has a strong presence in several regions and holds strong expertise in yeast production. The company also holds a strong strategy emphasis on sustainability and innovation. Innovation has led to the company developing eco-friendly yeast ingredients with several functional properties. Like the first company, Lesaffre also operates through a wide product portfolio comprising active dry yeasts, baker’s yeasts, and specialty products. The strong customer-based value orientation of the company, such as technical assistance and training programs combined with its extensive network presence and innovation focus, will continue to drive Lesaffre’s competitiveness across the Yeast Ingredients Market going forward.
Key Companies in the Yeast Ingredients Market Include
- Pakmaya
- Cargill
- Leiber Group
- Ebro Foods
- Tate Lyle
- Lesaffre
- DSM
- Pinnacle Foods
- Kerry Group
- AB Mauri
- Hansen Holding A/S
- Novozymes
- Biospringer
- Lallemand
- ANGEL YEAST CO.,LTD.
Yeast Ingredients Market Industry Developments
The yeast ingredients market is projected to reach USD 12.0 billion by 2032, exhibiting a CAGR of 3.17% during the forecast period 2024-2032. Increasing demand for natural and clean-label ingredients in the food and beverage industry is driving market growth. Rising health consciousness among consumers is fueling the demand for yeast-based products, particularly in bakery and confectionery applications. Technological advancements in yeast fermentation and genetic engineering are enabling the development of new and improved yeast strains with enhanced functionality and nutritional value. Key market players are focusing on strategic partnerships, acquisitions, and product innovations to expand their market presence and cater to evolving consumer preferences.
Yeast Ingredients Market Segmentation Insights
Yeast Ingredients Market Product Type Outlook
- Active Dry Yeast
- Instant Dry Yeast
- Fresh Yeast
- Nutritional Yeast
- Autolyzed Yeast Extract
Yeast Ingredients Market Application Outlook
- Bakery and Confectionery Products
- Beverages
- Dairy and Frozen Desserts
- Snacks and Savory Products
- Meat Products
Yeast Ingredients Market Strain Outlook
- Saccharomyces cerevisiae
- Pichia pastoris
- Kluyveromyces marxianus
- Candida utilis
- Hansenula polymorpha
Yeast Ingredients Market Form Outlook
- Dry
- Liquid
- Powder
- Granulated
- Flakes
Yeast Ingredients Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
8.79(USD Billion) |
| Market Size 2023 |
9.06(USD Billion) |
| Market Size 2032 |
12.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.17% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Pakmaya, Cargill, Leiber Group, Ebro Foods, Tate & Lyle, Lesaffre, DSM, Pinnacle Foods, Kerry Group, AB Mauri, Chr. Hansen Holding A/S, Novozymes, Biospringer, Lallemand, ANGEL YEAST CO., LTD. |
| Segments Covered |
Product Type, Application, Strain, Form, Regional |
| Key Market Opportunities |
Increasing demand for clean label food products, bakery products innovation, rising demand for pet food, growing health concerns, and expanding plant-based applications |
| Key Market Dynamics |
Increased demand for fermented food and beverages Rising health consciousness Growing awareness of nutritional benefits Technological advancements in yeast production Expansion of applications in food beverage and animal feed industries |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Yeast Ingredients Market is currently valued at 9.06 Billion USD in 2023.
The Yeast Ingredients Market is expected to grow at a CAGR of 3.17% from 2023 to 2032.
The Asia-Pacific region is expected to hold the largest market share in the Yeast Ingredients Market, accounting for over 40% of the total market size in 2023.
The bakery segment is expected to be the largest application segment, accounting for over 50% of the total market size in 2023. The growing demand for baked goods, particularly in developing countries, is expected to drive the growth of this segment.
Some of the key competitors in the Yeast Ingredients Market include Lallemand Inc., ABF Ingredients, DSM, Novozymes, and Angel Yeast.
The COVID-19 pandemic had a significant impact on the Yeast Ingredients Market, particularly in the food and beverage industry. The closure of restaurants and reduced demand for baked goods led to a decline in the demand for yeast ingredients. However, the market is expected to recover as the pandemic subsides.
Some of the key trends in the Yeast Ingredients Market include the growing demand for clean-label products, the increasing use of yeast ingredients in functional foods and beverages, and the development of new yeast strains with improved functionality.
Some of the challenges facing the Yeast Ingredients Market include the rising cost of raw materials, the increasing competition from alternative ingredients, and the regulatory challenges associated with the use of genetically modified yeast strains.
Some of the opportunities for growth in the Yeast Ingredients Market include the growing demand for plant-based meat alternatives, the increasing use of yeast ingredients in pet food, and the expansion of the market in developing countries.
The future outlook for the Yeast Ingredients Market is positive. The growing demand for convenient and healthy food products, the increasing use of yeast ingredients in functional foods and beverages, and the development of new yeast strains with improved functionality are expected to drive the growth of the market in the years to come.
