Published On : March 2018
Global Yeast Market Research Report - Forecast to 2023
Bread is considered as one of the most essential constituents of the human diet. Bread comes in various forms and is identified to be consumed like a staple food in the Asian, and the Middle East and African region. Furthermore, an adaptation of western culture in these regions have further prompted the growth of alcoholic beverages market in the developing countries among which beer and wine holds a major share. Owing to this the regional production of these commodities have increased to several folds. The boost in the bakery sector has given an impetus to the market growth of yeast as a major ingredient facilitating the manufacturing of desired end product. Yeast is the commonly used ingredients to support fermentation of alcoholic beverages. Owing to the current scenario, the market of yeast looks bright and flourishing. Based on the primary research and interviews carried out by Market Research Future, it was identified that the growing inclination of consumers towards the consumption of baked convenience food is influencing the positive growth of this market.
Which type of yeast dominates the market?
Based on the research carried out on the global yeast market, Baker’s yeast is evaluated to secure the top position owing to its high application in the bakery industry. Baker’s yeast is also used by some of the brewers to produce alcoholic drinks and hence the popularity and demand for this yeast is high. These strains of yeast are used in bakery industry to improve the texture of the bread and other bakery products. Yeast degrades sugar molecules and produces carbon dioxide which provides fluffiness to the surface of the baked good. Following the trail, brewer’s yeast is also evaluated to secure a significant share in the global yeast market. Increasing demand for beer across the globe and high consumption volume is adding fuel to the escalating market share of brewer’s yeast on a global platform. Yeast helps in the fermentation process and breaks down sugar molecule to produce alcohol hence facilitating the whole brewing process. Consumers’ prominent preference for beer as the most popular alcoholic beverages have given a boost to brewer’s yeast market on a global platform.
Additionally, the demand for biofuel is increasing globally at an incremental pace. Owing to this, the demand for bioethanol yeast is witnessing high growth across the globe. Yeast (majorly Saccharomyces cerevisiae) is used for the production of ethanol due to its high ethanol productivity, ethanol tolerance, and a wide range of sugar-fermenting capacity. The drift of manufacturers towards escalating the production capacity of bioethanol yeast is observed to become more prominent over the period, 2017-2023. Manufacturers of bioethanol and feed yeast are projected to generate high revenues during the assessment period based on the current scenario.
Consumption of bread based bakery goods and alcoholic beverages such as wine and beer is high in Europe, and so is the consumption of yeast. The region dominates the global yeast market and is estimated to hold the lion's share during the corresponding period. A significant contribution of the region in the global market is marked by the presence of established players in the region. Europe is concentrated with renowned players such as Associated British Foods Plc., Chr. Hansen A S, Leiber GmbH, and Lesaffre which have their significant contribution to the yeast market.
Furthermore, North American region is also identified to be the fastest growing region with profound contribution from countries including the U.S. and Canada. The U.S. is leading the region not only in terms of production but also because of the presence of giant manufacturers of yeast in the country. Increasing population of working women and home bakers in the region makes its market more lucrative. New players who want to enter the yeast market are targeting North America and Asia Pacific region to expand their consumer base. With increasing population and a never-ending demand for bakery products, the need for yeast to sustain its organoleptic property will keep growing.
Based on the market analysis, it was identified that the key players in the global yeast market are focusing more on escalating their production capacity as well as launching new products to establish a strong consumer base. Likewise, new players who want to enter this competitive market are focusing more on the R&D sector. This strategy followed by them will create product differentiation and will also gain consumers attention based on the current trend of consumption of bakery based convenience food products. Established players, on the other hand, are focusing more on new product launch and expansion of their geographical presence through acquisitions and mergers to strengthen their business portfolio further. Strong application of yeast in animal feed and bioethanol products have attracted new players to make high investments in these segments and generate revenue.
In conclusion, the yeast market is identified to be profitable for players who want to shift from conventional yeast to unconventional application of yeast. The major reason behind this is the escalating market for “feed” and “bio-fuel” which has a direct impact on the yeast market.