Yeast Extracts Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

Yeast Extracts size is estimated to be $4.70 billion in 2030, growing at a CAGR of 4.5% during the forecast period 2024-2030. Yeast are the kind of microorganisms that helps to produce enzymes, carbon dioxide (CO2), and other metabolites from carbohydrates which are used in the process of fermentation, baking, increasing value of the nutritional property, and flavoring foods. Yeasts are natural nutrients that are employed in the food processing industry as one of the key food Extracts. Fermentation is the process through which yeast transforms food into alcohol and carbon dioxide. As a result, yeast is essential in the production of wine and beer, as well as in the baking process. As yeast extract is of natural origin, it is beneficial to food manufacturers and consumers as a food ingredient as it is lightly processed. Autolysates are made in the same way that yeast extracts are made, except the cell walls aren't removed. As a result, they are only partially water-soluble. Autolysates combine the beneficial properties of yeast extracts and cell walls to produce smaller peptides that improve flavor, texture, and viscosity. Yeast beta-glucan is found in the cell wall of yeast and is well-known for its immune-boosting, anti-infection, and anti-tumor properties. Yeast cell walls, often known as MOS, are frequently employed as natural antibiotic substitutes in the feed business. Mannan oligosaccharides (MOS) and ß-glucans are two functional polysaccharides with proven health-promoting effects. Baker's yeast is a yeast that is often used as a leavening agent in baking bread and bakery items. When baking with yeast, wheat flour is the most commonly used flour. Furthermore, rising consumer interest in organic food items made with natural food additives, as well as increasing use of yeast components as nutritional supplements and in pharmaceuticals, are expected to contribute to market expansion. The robust growth of yeast Extracts in various applications such as food and beverages, feed & pet food, pharmaceuticals, etc. are some of the factors driving the Yeast Extracts Industry forward

The report: “Yeast Extracts – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Yeast Extracts. 

                                         

By Type: Baker’s Yeast, Wine Yeast, Brewer’s Yeast, Feed Yeast, Bioethanol Yeast, Others

By Form: Liquid Yeast, Fresh Yeast, Crumbled Yeast, Active Dry Yeast, Instant Dry Yeast, Frozen Semi Dry Yeast, Genetically Modified Yeast, and Others.

By Application: Food – Alcoholic Beverages - Brewing and Wine Making, Non-Alcoholic Beverages, Nutritional Supplements, Canned and Frozen Foods, Bakery/Snacks & Savory, Pharmaceuticals, Bio Fuels, Animal Feed and Others.

By Geography: North America, Europe, Asia-Pacific, and Rest of the World.

• The increasing consumption of processed food and growing demand for nutritional yeast is likely to be the major driving factor for the market’s growth.

• The rising demand of functional bakery products, positive trend in alcoholic beverage consumption and improved production of animal feed is adding towards the market’s growth.

• The growing industrialization and raising awareness about yeast is set to propel the growth of the market in the developing countries.

• North America region is estimated to record the fastest growth rate during the forecast period 2024-2030.

 

                                    

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In 2023, Food segment dominated the Yeast Extracts in terms of revenue is estimated to grow at a CAGR of 3.8% owing towards rising consumption of naturally-extracted Extracts with the increasing demand for clean-label and free-from products is projected to drive the growth of the Yeast Extracts in the food industry.  Yeast extract contains glutamates, an amino acid that can be found naturally in a variety of foods. They're sometimes removed and added to ready-to-eat foods like spreads, soups, and other prepared foods. Most producers are following the FDA's regulatory rules and employing yeast extract as a natural component, as well as including it on labels. Baker's yeast extracts are typically gluten-free because no gluten derivatives are utilized in the manufacturing process. Recently, about 72% of Americans are suffering from gluten intolerance that rising its use in the food and beverage industry.

In 2023, the Europe region dominated Yeast Extracts in terms of revenue with a market share of 36% owing towards increase in the disposable income and inception of weekend culture in most parts of the Europe and increasing demand for investment in R&D. North America held a growing share in the market as compared to other regions. It is owing to the robust demand of the food and beverage industry. Yeast extracts are growing rapidly owing to excessive intake of functional foods as well as rising growth in the dairy industry. The growth is also owing to the demand for fresh bread and rolls, which were the most popular bakery products in the United States in 2023, with sales totaling around $18 billion. So, the use of yeast Extracts increases with the rising growth in the bakery industry.

One of the most widely consumed foods is bread. Because consumers' hectic schedules are increasing that increasing the usage of packaged bread, producers are focusing on manufacturing additional bakery items. Because of their ready availability and high nutritional value, bakery products have become one of the most important foods in the modern human diet. According to the American Bakery Association, around 62 percent of bakery sales in the United States are increasing. Furthermore, the evolution of value-added bread items is boosting the market growth.

As consumers become more conscious of their diet and food choices so, yeast extract is improving appeal as a versatile ingredient used for savory flavor and high-quality meals. Veganism is becoming more popular as people become more conscious of their health and everyday habits. As consumer awareness of environmental issues grows, food companies are being driven to use natural resources such as yeast extract instead of animal-derived raw ingredients to improve product quality. Veganism usually entails avoiding animal-based goods, prompting food manufacturers to shift their focus to yeast extracts. The demand for yeast extracts will be aided by the health benefits connected with their intake in the next years. According to the Plant-Based Foods Association, sales of plant-based foods raised by 11% in 2019 further accelerating the demand for yeast extract.

Stringent regulations imposed by regulatory bodies and government in various countries is hindering the market for products made from yeast, thus restraining the Yeast Extracts. Also, unavailability of suitable raw materials required in the production of varied range of yeast types hampers the industry growth. Further, shortage of raw material is forecast to create supply-demand imbalances which restrain the growth of the market. 

The burgeoning global emphasis on reducing reliance on fossil fuels has spurred a notable surge in biofuel production. Yeast, crucial in ethanol fermentation, stands at the forefront of this expansion, witnessing soaring demand. Governments worldwide are instituting policies to incentivize the adoption of renewable energy sources, propelling the biofuel market forward. As a result, the reliance on yeast as a catalyst in ethanol production is escalating in tandem with the burgeoning demand for biofuels.

Product Launches, Merger & Acquisition, joint ventures, and R&D activities are key strategies adopted by the players in the Yeast Industry. Yeast top 10 companies include 

 In September 2022, Lesaffre, a fermentation leader for 170 years, has acquired Recombia Biosciences, a San Francisco-based biotech company. This move follows a strategic partnership aimed at leveraging Recombia's genome-editing tech to enhance yeast development for sustainable fermentation. It marks Lesaffre's foray into Synthetic Biology, a significant biotech frontier. The acquisition underscores Lesaffre's commitment to innovation and sustainability in the production of fermented Extracts.

 June 2022, Angel Yeast, responding to increasing demand for yeast-based products, announces plans to enhance supply and innovation capabilities. This aligns with insights from Innova Market Insights, highlighting the need for industry players to innovate and expand production to meet evolving consumer needs and stay competitive.

 January 2024, Lallemand Inc, a Canadian biotech company, has completed the acquisition of Swiss biotech firm Evolva AG. Evolva specializes in yeast-derived natural Extracts for various industries. The strategic fit aligns Evolva's precision fermentation technology with Lallemand's yeast-based solutions, enhancing their global biotech portfolio.