Global Yeast Market 2024–2033

Reports Description

As per the current market research conducted by CMI  Team, the global Yeast market is expected to record a CAGR of 9.7% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 5.73 billion. By 2032, the valuation is anticipated to reach USD 7.65 billion.

The yeast market refers to the global industry involved in the production, distribution, and sale of yeast, a type of single-celled microorganism that is widely used in various applications, especially in the food and beverage industry.

Yeast is used as a leavening agent in baking to make bread, cakes, and other baked goods rise. It is also used in the fermentation process for brewing beer, making wine, and producing spirits. Additionally, yeast is used in the production of biofuels, animal feed, pharmaceuticals, and various other industrial applications.

The yeast market encompasses both commercial yeast producers and suppliers, as well as end-users in different sectors. The yeast market is experiencing growth due to increased utilization by various end-user industries.

Yeast finds extensive application in the production of diverse food and beverage products, including alcoholic and non-alcoholic beverages, yeast extract, animal feed, and probiotic drinks. The bakery industry, in particular, relies heavily on yeast to enhance the quality of its products.

The escalating demand from multiple end-user sectors is a significant driver for the yeast market’s expansion, and this trend is expected to continue during the forecast period. Furthermore, the yeast industry is benefiting from the rising consumer expenditure on organic food, which is considered healthier.

Organic food products, including yeast, offer numerous health benefits such as skin rejuvenation, improved vision, strengthened immune system, cholesterol reduction, and antioxidant properties to prevent oxidative damage. These advantages contribute to the growth of the yeast market.

Yeast Market – Significant Growth Factors

The yeast market is witnessing significant growth due to several key factors:

• Increasing Demand from Food and Beverage Industry: The food and beverage industry is a major consumer of yeast, utilizing it for various applications such as baking, brewing, fermentation, and flavor enhancement. The rising global population, changing dietary preferences, and growing demand for processed and convenience foods are driving the need for yeast in this industry.

• Growing Awareness of Health Benefits: Yeast products, particularly nutritional yeast and yeast extracts, are gaining popularity due to their health benefits. They are rich in essential nutrients, vitamins, minerals, and amino acids, making them attractive to health-conscious consumers. The increasing awareness of these benefits is driving the demand for yeast-based products.

• Technological Advancements in Yeast Production: Advances in biotechnology and fermentation processes have led to improved yeast production methods. These advancements have increased the yield, quality, and efficiency of yeast production, making it more cost-effective and accessible for various industries.

• Rising Demand for Biofuels: Yeast plays a crucial role in biofuel production, specifically in ethanol fermentation. With the growing emphasis on renewable energy sources and the need to reduce greenhouse gas emissions, there is an increasing demand for yeast as a key component in biofuel production, contributing to the growth of the yeast market.

• Expansion of Industrial Applications: Apart from the food and beverage industry, yeast is widely used in various industrial applications such as pharmaceuticals, animal feed, cosmetics, and agriculture. The expanding scope of these industries and their reliance on yeast for specific processes and products are driving the growth of the yeast market.

• Geographical Expansion and Increasing Investments: Yeast manufacturers are expanding their presence in emerging markets and investing in research and development activities to enhance their product portfolios. This expansion and investment are fueling the growth of the yeast market globally.

Overall, the increasing demand from the food and beverage industry, growing awareness of health benefits, technological advancements, rising biofuel production, expanding industrial applications, and strategic investments are the significant growth factors contributing to the development of the yeast market.

Yeast Market – Mergers and Acquisitions

The yeast market has witnessed several mergers and acquisitions that have influenced its dynamics and contributed to its growth. Some notable mergers and acquisitions in the yeast industry include:

• Lesaffre Group Acquires Sensient’s Strasbourg Yeast Extract Facility: In 2020, Lesaffre Group, a key player in the yeast market, acquired Sensient’s yeast extract facility in Strasbourg, France. This acquisition aimed to expand Lesaffre’s yeast extract production capabilities and strengthen its position in the savory ingredients market.

• Lallemand Acquires Lien Hwa Industrial Corp: In 2020, Lallemand, a global yeast manufacturer, acquired Lien Hwa Industrial Corp, a Taiwanese yeast producer. This acquisition allowed Lallemand to expand its presence in the Asian market and strengthen its yeast production capacity.

• Angel Yeast Acquires DuPont’s Xinghe Yeast: Angel Yeast, a leading yeast manufacturer in China, acquired DuPont’s Xinghe Yeast in 2019. This acquisition helped Angel Yeast expand its yeast production capacity and enhance its product portfolio.

• Lesaffre Group Acquires Gnosis: In 2018, Lesaffre Group acquired Gnosis, an Italian biotech company specializing in the production of yeast-based ingredients for the nutraceutical and pharmaceutical industries. This acquisition allowed Lesaffre to strengthen its position in the functional ingredients market.

• Associated British Foods Acquires Lallemand’s UK Yeast Business: In 2018, Associated British Foods acquired Lallemand’s UK yeast business, including the Fleischmann’s yeast brand. This acquisition helped Associated British Foods expand its yeast product offerings and strengthen its market presence. 

COMPARATIVE ANALYSIS OF THE RELATED MARKET

 Yeast Market – Significant Threats

While the yeast market presents numerous growth opportunities, there are also significant threats that can impact its dynamics. Some notable threats to the yeast market include:

• Substitute Products: The yeast market faces competition from substitute products that can perform similar functions or offer alternative solutions. For example, in baking applications, alternative leavening agents such as baking soda or baking powder can be used instead of yeast. The availability of substitute products can pose a threat to the demand for yeast in certain applications.

• Regulatory Challenges: The yeast market is subject to various regulations related to food safety, labeling, and health claims. Stringent regulations can increase compliance costs and pose challenges for yeast manufacturers and suppliers. Changes in regulations or the introduction of new regulations can impact the market by affecting production processes, product formulations, and labeling requirements.

• Volatile Raw Material Prices: The cost and availability of raw materials used in yeast production, such as molasses or sugar, can fluctuate significantly. Volatile raw material prices can impact the profitability of yeast manufacturers and result in price fluctuations in the market. This can pose challenges for both producers and end-users in managing costs and maintaining stable pricing.

• Adverse Weather Conditions: Yeast production can be influenced by adverse weather conditions, particularly those that affect agricultural crops used as raw materials. Natural disasters, droughts, floods, or extreme weather events can disrupt the supply chain and impact the availability and cost of raw materials. Such disruptions can have a ripple effect on the yeast market.

• Economic Factors: Economic downturns, fluctuations in exchange rates, and unstable market conditions can have an impact on the yeast market. Reduced consumer spending power during economic downturns may lead to a decrease in demand for yeast-based products. Currency fluctuations can affect the import and export of yeast, impacting market dynamics and pricing.

• Increasing Competition: The yeast market is highly competitive, with several established players and new entrants vying for market share. Increasing competition can lead to price pressures, aggressive marketing strategies, and an innovation race, which may impact the profitability and growth prospects of individual companies.

Report Scope

Category-Wise Insights

By Type:

• Baker’s Yeast: Baker’s yeast, also known as Saccharomyces cerevisiae, is widely used in the bakery industry as a leavening agent. It helps dough rise by fermenting sugars and producing carbon dioxide. Baker’s yeast is a key ingredient in the production of bread, cakes, pastries, and other baked goods.
• Brewer’s Yeast: Brewer’s yeast, also derived from Saccharomyces cerevisiae, is primarily used in the brewing industry for beer production. It plays a crucial role in the fermentation process, converting sugars into alcohol and carbon dioxide. Brewer’s yeast contributes to the flavor, aroma, and alcohol content of beer.
• Wine Yeast: Wine yeast, also a strain of Saccharomyces cerevisiae, is specifically selected for the fermentation of grapes to produce wine. Different wine yeast strains offer unique fermentation characteristics, influencing the flavor, aroma, and overall quality of the wine.
• Bioethanol Yeast: Bioethanol yeast is used in the production of biofuels, particularly ethanol. It efficiently converts sugar or starch from feedstocks such as corn, sugarcane, or wheat into ethanol through fermentation. Bioethanol yeast plays a vital role in the biofuel industry as a sustainable alternative to fossil fuels.
• Feed Yeast: Feed yeast, often referred to as yeast additives or yeast supplements, is used in animal nutrition. It is rich in proteins, vitamins, and minerals, enhancing the nutritional value of animal feed. Feed yeast promotes animal growth, improves digestion, and boosts immune function.
• Others: This category includes other types of yeast used in various applications. This may include specialty yeast strains used in the production of specific food and beverage products, yeast extracts for flavor enhancement, yeast-based nutritional supplements, and yeast used in pharmaceutical and industrial applications.

Yeast Market – Regional Analysis

The yeast market can be analyzed based on regional segmentation to understand its dynamics and growth patterns across different geographical regions. Here is a regional analysis of the yeast market:

• Europe: Europe holds a significant share of the yeast market. The region’s dominance can be attributed to the high consumption of processed foods, including bakery and fermented products. Countries like Germany, France, Italy, and the United Kingdom are major consumers of yeast in Europe. The presence of well-established food and beverage industries, coupled with the growing demand for healthy and organic food products, contributes to the growth of the yeast market in this region.
• North America: North America is another prominent market for yeast. The United States and Canada are the key contributors to the region’s yeast market. The demand for yeast in North America is driven by the well-established bakery and brewing industries. Additionally, the increasing popularity of specialty and craft beers, along with the rising awareness of health benefits associated with yeast consumption, fuels market growth in this region.
• Asia Pacific: The yeast market in Asia Pacific is experiencing significant growth due to several factors. The region has a large population and a growing middle-class segment, leading to increased consumption of processed foods and beverages. Countries like China, India, Japan, and South Korea are major contributors to the yeast market in this region. Rapid urbanization, changing lifestyles, and increasing disposable income are driving the demand for yeast in various applications, including bakery, brewing, and animal feed.
• Latin America: Latin America is an emerging market for yeast, with countries like Brazil, Argentina, and Mexico at the forefront. The growing food and beverage industry, urbanization, and changing dietary patterns are driving the demand for yeast in this region. Additionally, the expanding biofuel industry in Brazil contributes to the growth of the yeast market.
• Middle East and Africa: The Middle East and Africa region also present opportunities for the yeast market. Countries like Saudi Arabia, South Africa, and Egypt are witnessing growth in the food and beverage industry, which fuels the demand for yeast. The region’s growing population, urbanization, and increasing consumer awareness regarding the health benefits of yeast contribute to market growth.

List of the prominent players in the Yeast Market:

• Conagra Brands Inc. (US)
• London Dairy Co. Ltd (UK)
• Danone SA (France)
• ADM (U.S)
• Daiya Foods Inc. (Canada)
• Grupo Bimbo S.A.B.de C.V.(Mexico)
• Associated British Foods PLC (UK)
• General Mills Inc. (US)
• Lantmännen Unibake (Denmark)
• Aryzta AG (Switzerland)
• Vandemoortele NV (Belgium)
• Europastry S.A. (Spain)
• Cole’s Quality Food Inc.(US)
• Others

The Yeast Market is segmented as follows:

By Insect Type

• Baker’s yeast
• Brewer’s yeast
• Wine yeast
• Bioethanol yeast
• Feed yeast
• Others

By Form

• Fresh yeast
• Active dry yeast
• Instant yeast
• Others

By Application

• Food
• Beverages
• Bioethanol
• Pharmaceuticals
• Feed

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America