Yeast and Yeast Extract Market Size was valued at USD 3.77 Billion in 2023. The yeast and yeast extract industry is projected to grow from USD 4.068207 Billion in 2024 to USD 6.94 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.90% during the forecast period (2024 - 2032). Increased demand from end-user sectors such as food and beverages, and increase in alcohol consumption, are the primary market drivers propelling growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Yeast and Yeast Extract Market Trends
The rising demand from the food industry is driving Market CAGR for yeast and yeast extract. As a leavening agent in bread, yeast extract is essential. This ingredients are used in the food and beverage business to ferment draught beverages with glucose. It is a nutritional supplement that contains minerals such as selenium, chromium, protein, potassium, zinc, magnesium, and iron. It is flexible and widely used in bouillons, seasoning sauces, soups, and savory snacks. It's also great for making vegetarian and vegan recipes. Increased use of alcoholic beverages is driving the expansion of the yeast extract market, as is consumer preference for fresh and nutritious foods made with natural ingredients.
The rise in alcoholic beverage consumption. As yeast is a major component in the production of wine and beer and the consumption of these beverages has increased in recent years, this has increased demand for yeast. As a result, the yeast market is being pushed by increased demand for high-quality wines and breweries. Yeast extract is a non-GMO component. It is a natural flavoring element, similar to spices and herbs. Among its many distinguishing characteristics, yeast extract is GMO-free, Kosher, Halal, and often gluten-free. At reasonable prices, the simple availability of resources, such as saccharides and other sugar derivatives, is expected to drive yeast extract market expansion throughout the forecast period. Growing veganism leads to increased use of nutritious yeast extract, which is predicted to be a prevailing trend. It is gaining popularity because nutritional yeast has a cheese flavor and is gluten-free and vegan. use of salt-free, organic, vegan, and plant-based protein products is increasing. The use of inactive dried nutritional yeast in animal feed is increasing. Yeast is a single-celled fungus that grows naturally on plants and soil and does not have a circulatory or neurological system. Thus, consuming yeast products causes no animal suffering, cruelty, or exploitation, making it an appropriate choice for the vegan population. Minerals, vitamins, and antioxidants are abundant in the items. Extracts are used as a leavening agent in various food products to improve texture and flavor while adding nutritional value.Thus, driving the Yeast and Yeast Extract industry revenue.
Based on type, the yeast and yeast extract market segmentation includes baker's yeast, brewer's yeast, wine yeast, and feed yeast. The baker's yeast segment dominated the market, accounting for 45% of market revenue. Bread is currently a culinary staple in many cultures worldwide, fueling demand for baker's yeast, as bread is normally created from wheat flour dough and baker's yeast. Furthermore, packed baked products, such as cakes, will likely increase demand in the next years, owing to a growing preference for eating packed cakes as snacks, particularly among youngsters worldwide. Rising bread consumption as a cost-effective and conveniently accessible staple item, along with an increase in the number of nuclear families, primarily in the European region, has increased demand for bakery products, which raises the utilization of baker's yeast.
The Yeast and Yeast Extract market segmentation, based on application, includes food & beverages (bakery & confectionery, beverages and others), animal feed and others). The food & beverages category generated the most income (72%). Because of their health benefits, yeast extracts are rapidly used in various food and beverage applications such as dairy replacements, bakeries, energy drinks, and confectionery goods. It is an effective tool for developing distinct flavor profiles. This is accomplished mostly by adding flavor notes and decreasing and deleting various substances for nutrition or clean labeling. It performs well in a wide range of processed foods, including canned and frozen goods, in various savory and sweet food and beverage markets. Yeasts are natural ingredients well-suited for vegan and vegetarian goods because they include no artificial, animal, or synthetic additives.
Figure 1: Yeast and Yeast Extract Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia Pacific Yeast and Yeast Extract market area will dominate this market due to strong demand for clean-label ingredients and additives - flavors and flavor enhancers with clean taste and scent.
Hence the major countries studied in the market report are German, France, The US, Canada, the UK, Italy, India, Australia, Spain, China, Japan, South Korea, and Brazil.
Figure 2: YEAST AND YEAST EXTRACT MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Yeast and Yeast Extract market accounts for the second-largest market share. The rising use of nutritional yeast extracts in processed foods is one of the major reasons driving market growth in the area. Increasing urbanization, rising demand for bread and baked products, a shift in customer preference for natural ingredients, and various uses for organic extracts in food and beverage. In addition, the German Yeast and Yeast Extract industry had the biggest market share, while the UK market for Yeast and Yeast Extract was the fastest expanding in the European region.
Between 2023 and 2032, the North America Yeast and Yeast Extract Market is estimated to develop at the quickest CAGR. The market for clean-label chemicals and additives - flavor enhancers with smell and clean taste - is growing in the region. Furthermore, the US market for Yeast and Yeast Extract held the greatest market share, while the Canada Yeast and Yeast Extract industry was the North American region's fastest growing.
Leading market players are making significant R&D investments to diversify their product offerings, which would drive the market for Yeast and Yeast Extract to increase in size. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Yeast and Yeast Extract industry must provide affordable products to grow and thrive in an increasingly competitive and challenging market environment.
One of the key business techniques manufacturers worldwide use for the Yeast and Yeast Extract industry to assist customers and expand the market sector is manufacturing locally to reduce operating costs. Â In recent years, the Yeast and Yeast Extract industry has offered some of the most significant advantages. Major players in the Yeast and Yeast Extract market, including Lesaffre, Kothari Fermentation & Biochem and others, are attempting to increase market demand by investing in research and development operations.
Lesaffre, a leading leader in fermentation for more than a century, present on all continents, with 11,000 people and 96 nationalities.Thry collaborate with customers, partners, and academics to create ever more relevant answers to the needs of food, health, naturalness, and environmental respect based on our expertise and diversity. In July 2021, Lesaffre's Biospringer has announced an expansion of its yeast extract production facility in Cedar Rapids, Iowa, USA. The diverse selection of yeast components offered by Biospringer by Lesaffre is critical for a variety of food and beverage sector applications. This investment will support the expanding market trend for fermentation-derived natural-origin components.
Since July 1993, KOTHARI FERMENTATION AND BIOCHEM LTD. (An ISO 22000:2018 & HALAL Certified Company)- in India have been producing Fresh Yeast, Active Dried Yeast, Live Yeast, Instant Dried Yeast, Yeast Extract Powder, Inactive Dried Yeast, Mono Oligo Saccharides, and Distiller Dried Yeast. In April 2022, Kothari Fermentation & Biochem has introduced Yeast Extract Powder and Mono Oligo Saccharides (Mannan and Beta Glucan) as new products. This product is mostly used in the pharmaceutical industry. Still, it is also appropriate for food and food, beverages, dietary foods, soups, spices, low-calorie food, nutritional filler, Biotech Research, Microbial growth media, fermentation substrate Biotech, etc.
Yeast and Yeast Extract Industry Developments
November 2022: Angel Yeast, a yeast technology player, announced plans to continue selling its cutting-edge yeast-based solutions in the European market and develop new solutions at the Food Ingredients Europe in the 2022 trade event in Paris, France. Among these options were yeast extract flavorings and yeast proteins for plant-based milk.
September 2022: Angel Yeast stated at Bakery China 2022 that it had developed the newest dry yeast product, Premium Dry Yeast, to address many of the current baking issues.
| Attribute/Metric | Details |
| Market Size 2023 | USD 3.77 Billion |
| Market Size 2024 | USD 4.068207 Billion |
| Market Size 2032 | USD 6.94 Billion |
| Compound Annual Growth Rate (CAGR) | 6.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Chr. Hansen A S (Denmark),Associated British Foods PLC (U.K.),Lallemand Inc. (Canada),BSG CraftBrewing (U.S.),Angel Yeast (China),Leiber GmbH (Germany),Lesaffre (France),Koninklijke DSM N.V. (The Netherlands),Novozymes (Denmark),Synergy Flavors (U.S.),Kerry Group PLC (Ireland),Omega Yeast Labs, LLC (U.S.),Kothari Fermentation and Biochem Ltd. (India),Oriental Yeast Co., Ltd. (Japan) |
| Key Market Opportunities | rising demand for alcoholic beverages like wine and beer among |
| Key Market Dynamics | demand for convenience food products, growth of the bakery industry, |
Yeast and Yeast Extracts Market Highlights:
Frequently Asked Questions (FAQ) :
The Yeast and Yeast Extract market size was valued at USD 3.77 Billion in 2023.
The market is projected to grow at a CAGR of 6.90% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the market
The key players in the market are Chr. Hansen A S (Denmark),Associated British Foods PLC (U.K.),Lallemand Inc. (Canada),BSG CraftBrewing (U.S.),Angel Yeast (China),Leiber GmbH (Germany),Lesaffre (France),Koninklijke DSM N.V. (The Netherlands).
The beverage category dominated the market in 2023.
The store based had the largest share in the market.
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Research Analyst Level II I have a degree in engineering (civil), with masters in business administration (marketing). with more than 4 years of experience in market research and consulting, i am involved in end-to-end process of market research, proposals, project kickoffs and delivery. i have research knowledge and expertise in consumer goods/packaging domain. also i have worked for various other domains like construction & equipment. effectively managed and delivered more than 60 report studies for regional as well as global clientele.
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