Yeast Ingredients Market

Market Overview

The global yeast ingredients market size was valued at USD 2.75 billion in 2023. It is estimated to reach USD 5.92 billion by 2032, growing at a CAGR of 8.90% during the forecast period (2024–2032). In recent years, consumers have increasingly become aware of the food they consume, which has led to a growing demand for clean-label ingredients owing to their health benefits. 

This demand for clean-label ingredients is estimated to boost the global yeast ingredients market. Moreover, yeast ingredients are widely used as animal feed additives in animal husbandry as well as the pet food industry, which, in turn, fosters market expansion. Yeast ingredients are obtained from yeast, a unicellular creature from the fungus kingdom. Yeast is a frequently employed agent in baking and fermentation procedures, serving to aerate bread and generate alcoholic beverages. The nutritional, functional, and flavor-enhancing qualities of yeast ingredients make them extensively utilized in many industries, including food and drinks, animal feed, pharmaceuticals, cosmetics, and biotechnology. 

The various varieties of yeast ingredients, including yeast extracts, yeast autolysates, yeast beta-glucan, yeast derivatives, and others, are classified based on the processing method and the content of the final product. Yeast ingredients have wide-ranging applications in industries such as bakery, dairy, meat, soups, sauces, seasonings, drinks, pet food, animal nutrition, and health supplements.

Highlight

• Yeast extracts dominate the type segment 
• Food and beverages dominate the end-user segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global Yeast Ingredients Market Drivers:

Rising Demand for Clean-Label Ingredients

The growing demand for natural and clean-label ingredients in the food and beverage industry is a major driver of the expansion in the yeast ingredients market. Consumers are increasingly aware of the health advantages and safety considerations of natural ingredients. They are actively refraining from consuming artificial additives, such as monosodium glutamate (MSG), in their food products.

Yeast ingredients are considered natural, premium substances that can improve the taste, flavor, and nutritional content of an extensive range of culinary products, including bakery items, dairy goods, meat, soups, sauces, seasonings, and beverages. Moreover, yeast ingredients can substitute for salt and sugar in food formulations, resulting in a decrease in sodium and calorie levels and an enhancement of the health characteristics of the goods.

Likewise, the global market for clean-label ingredients is projected to have a value of USD 44.46 billion by 2030, as stated in a report by Straits Research. This growth is anticipated at a CAGR of 8.90% from 2022 to 2030. This is expected to propel the yeast ingredients industry significantly in the upcoming years.

Rising Demand for Animal Feed and Pet Food Products

The increasing demand for animal feed and pet food products is another significant factor driving the growth of the yeast ingredients market. Yeast ingredients are used as feed supplements for cattle, poultry, aquaculture, and pets. They offer vital nutrients, including protein, amino acids, minerals, vitamins, and antioxidants, which can enhance the animals' health, performance, and immunity. Incorporating yeast ingredients into animal feed and pet food products can improve their taste, ease of digestion, and longevity. 

Furthermore, yeast ingredients can mitigate the environmental consequences of animal production by decreasing the release of methane and ammonia, which are greenhouse gases, from animal waste. Moreover, there has been an increase in the consumption of animal protein in recent years, which is expected to stimulate the expansion of the animal feed additive market. As per the Food and Agriculture Organization (FAO), the worldwide consumption of animal proteins is projected to rise by 14.0% by 2030, compared to the average consumption between 2018 and 2020. This is expected to enhance the yeast ingredients market.

Global Yeast Ingredients Market Restraint:

Fluctuations in the Raw Material Availability and Prices

A significant challenge encountered by the yeast ingredients market is the fluctuation in the accessibility and costs of raw materials. The primary source of yeast ingredients is yeast, which is cultured utilizing several substrates such as molasses, sugarcane, corn, wheat, barley, and other grains.
The production and availability of these substrates depend upon many circumstances, including the weather, crop productivity, supply and demand equilibrium, and trade policies. These factors might impact the accessibility and pricing of raw materials for yeast ingredients. The volatility in the availability and costs of raw materials may threaten the profitability and long-term viability of the yeast ingredients market.

Global Yeast Ingredients Market Opportunities:

Development of Novel and Innovative Products

A promising segment in the yeast ingredients market involves the development of new and inventive products with improved functionality and application. Yeast ingredients are continuously advancing and enhancing in terms of quality, usefulness, and variety as manufacturers spend on research and development to meet shifting consumer preferences and market expectations. 

For instance, in December 2021, Lallemand, the Canadian expert in yeasts and bacteria, introduced three novel yeast extracts named Savor-Lyfe® P, designed explicitly for plant-based formulations. The P series is not exclusively ideal for plant-based cuisine. It can improve the taste characteristics of meat products, prepared meals, snacks, and other food items. The P series is available in three variations: Savor-Lyfe® PH 04 for imitating cooked ham products, Savor-Lyfe® PS 05 for smoked meat like bacon, and Savor-Lyfe® PR 06 for roasted meat resembling pig. Such developments and innovations in the market for yeast ingredients may generate future expansion opportunities.

Regional Analysis

Based on region, the global yeast ingredients market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe Dominates the Global Market

Europe is the most significant global yeast ingredients market shareholder and is expected to expand substantially during the forecast period. Europe is a significant market for yeast ingredients due to its rich tradition and culture of using them in various food products, including bakery, dairy, meat, and beverages. The region's expanding need for natural and organic food items is another factor fueling the European market for yeast ingredients. Renaissance BioScience disclosed in November 2023 that it had obtained patents for its non-genetically modified organism (GMO) yeast, which reduces acrylamide, from regulatory bodies in various European nations, including Denmark, France, Great Britain, Italy, and Sweden. This yeast is a clean-label ingredient that decreases the production of acrylamide in various widely consumed meals, such as chips, crackers, bread, cereals, and other typical food items and snacks. Thus, such approval of the clean-label yeast component drives market expansion in the region.

Moreover, there is a notable increase in strategic initiatives among major regional participants, such as collaborative partnerships, the introduction of new products, and expansion efforts. For instance, in November 2023, Univar Solutions B.V. agreed to distribute Biospringer's yeast ingredient products in the European Nordics region. Under the arrangement, Univar will distribute Biospringer's yeast component brands, including Springer Reveal, Springer Signature, Springer Proteissimo, Springer Cocoon, Springer Precursor, Springer Mask, and Springer Umami. According to the companies, the yeast elements can be utilized in many applications, such as plant-based meat, cheese, soups, sauces, and dressings, to enhance specific flavors like roast chicken and grilled, meaty tastes in vegan meals. Therefore, these factors support the growth of the regional market.

The North American yeast ingredients market is projected to experience substantial expansion due to the region's extensive utilization of yeast ingredients in various food and beverage products, including bread, cheese, yogurt, meat, soups, sauces, spices, and drinks. Moreover, the market expansion in North America is being bolstered by the participation of prominent companies like Lallemand, Lesaffre, ABF Ingredients, and Kerry Group. These players are engaged in strategic endeavors such as mergers and acquisitions, collaborations, expansions, and other initiatives to enhance their regional presence. 

For instance, in November 2023, Lesaffre is increasing its presence in the United States by making various investments and acquisitions. The company, primarily emphasizing yeast, bacteria, and baking ingredients, is diversifying its operations into the nutrition, health, and biotechnology domains. The company is investing in new equipment and R&D to expand. Lesaffre has installed an additional fermentor in the yeast plant of Red Star Yeast, LLC, in Cedar Rapids, Iowa. Those factors promote the expansion of the regional market.

Segmental Analysis

The global yeast ingredients market is segmented by type and end-users.

Based on type, the global yeast ingredients market is divided into yeast extracts, yeast autolysates, yeast beta-glucan, yeast derivatives, and others. 

The yeast extracts segment dominates the global market. 

Yeast extracts are obtained from fresh yeast without adding food additives or chemical ingredients, resulting in a natural component abundant in proteins, amino acids, carbs, vitamins, and minerals. Yeast extracts are used to prepare sauces, meat dishes, bouillons, pre-packaged meals, and savory snacks. Moreover, as a naturally derived component, these extracts ensure the safety of both the product and the user. Due to its ability to provide the desired flavor with minimal amounts, yeast extracts have gained popularity among producers. 

Furthermore, the market participants are implementing strategic measures, which, in turn, are propelling the growth of this category. For instance, in 2021, Biospringer by Lesaffre, a business unit of Lesaffre, intends to increase its production capacity by 50% at its yeast extract factory in Cedar Rapids. New process equipment will be added as part of the expansion.

Based on end-users, the global yeast ingredients market is segmented into food and beverages, animal feed, pharmaceuticals, and others. 

The food and beverages segment owns the highest market share. 

Yeast ingredients are mostly utilized in bread and brewery applications within the food and beverage industry. In bakeries, yeast ingredients are incorporated into the products to enhance flavor. Moreover, these substances contribute to the food's nutritious content, increasing their intake. The food business has witnessed a surge in the popularity of lighter and healthier food products. This has compelled food sector producers to modify their manufacturing processes and incorporate components sourced from natural origins into their goods. This results in a rise in the need for yeast ingredients. 

Yeast ingredients are crucial in brewery manufacturing as they are used for the fermentation process of beer. Moreover, yeast ingredients, such as yeast extracts, are utilized as a nutritional supplement to deliver essential nutrients, including vitamins, magnesium, chromium, zinc, selenium, iron, and other proteins.

Recent Developments

• September 2023- Lesaffre, a major player in the field of fermentation from France, acquired a 10% ownership share in Yeap, an Israeli business focused on producing proteins derived from upcycled yeast. Biospringer, a subsidiary of Lesaffre, the leading global manufacturer of food ingredients derived from yeast and other microorganisms, will manage the investment. They will collaborate with Yeap to introduce innovative and highly functional alternative proteins to the market.
• March 2023- Angel Yeast, a prominent yeast producer, announced its participation in Food Ingredients China 2023, a prestigious trade exhibition in Asia's food additives and ingredients sector. The company aims to showcase its latest advancements in yeast technology. Angel's latest products seek to harness the capabilities of yeast and biotechnology to enhance food production and enable food producers to take advantage of the expanding market.