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Forecast Period
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2025-2029
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Market Size (2023)
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USD 4.75 Billion
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Market Size (2029)
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USD 7.79 Billion
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CAGR (2024-2029)
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8.68%
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Fastest Growing Segment
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Baker’s Yeast
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Largest Market
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Europe
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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. 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.
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.
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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.
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.
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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.
Furthermore, Europe's position as a global leader
in yeast is reinforced by the increasing consumer preference for natural food
ingredients. As health-conscious consumers increasingly seek out products made
with natural and clean-label ingredients, the demand for yeast in this thriving
market continues to grow. European bakeries and breweries, leveraging their
expertise and adherence to high-quality standards, are well-positioned to meet
this demand and provide consumers with yeast products that meet their
expectations for taste, quality, and naturalness. Europe's dominance in the
Global Yeast Market is a result of its strong presence in the bakery and
brewery sectors, its rich heritage in artisanal baking and brewing, and its
ability to cater to the growing demand for natural food ingredients. With its
unparalleled expertise, commitment to quality, and innovative spirit, Europe
continues to lead the way in the yeast industry, setting new standards for
excellence and inspiring the world with its remarkable yeast products.
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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By Type
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By Application
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By Form
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By Region
|
- Baker’s Yeast
- Bioethanol Yeast
- Brewer’s Yeast
- Wine Yeast
- Feed Yeast
- Others
|
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- Instant Yeast
- Dry Yeast
- Fresh Yeast
- Genetically Modified Yeast
- Others
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- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
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Report Scope:
In this report, the Global Yeast Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
o Baker’s Yeast
o Bioethanol Yeast
o Brewer’s Yeast
o Wine Yeast
o Feed Yeast
o Others
- Yeast Market, By Application:
o Food
o Feed
o Others
o Instant Yeast
o Dry Yeast
o Fresh Yeast
o Genetically Modified Yeast
o Others
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Yeast Market.
Available Customizations:
Global Yeast market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Yeast Market is an upcoming report to be
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the date of release, please contact us at [email protected]