U.S Yeast Market-Supply Demand Analysis, Top Trends, Future Growth and Forecast 2024-2030

U.S Yeast Market Overview

U.S Yeast Market size is estimated to be $3.2 billion in 2030, growing at a CAGR of 3.4% during the forecast period 2024-2030. The U.S. yeast market is experiencing notable trends driven by shifts in consumer preferences and technological advancements. One significant trend is the rising demand for natural and clean-label yeast products. Consumers are increasingly opting for yeast products that are free from artificial additives, GMOs, and allergens, aligning with health-conscious lifestyles and dietary preferences. This trend has prompted manufacturers to innovate and develop yeast formulations that meet clean-label criteria while maintaining high standards of quality and functionality.

Moreover, there is a growing interest in yeast-based ingredients for their nutritional benefits and functional properties in various food and beverage applications. Yeast extracts, for instance, are gaining popularity as flavor enhancers and natural alternatives to artificial additives like monosodium glutamate (MSG). Additionally, technological advancements in yeast fermentation processes are enhancing production efficiency and sustainability, reducing environmental impact and production costs. These advancements are crucial in meeting the increasing demand for yeast across the food, pharmaceutical, and industrial sectors in the U.S.

Market Snapshot :-

Report Coverage 

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

Key Takeaways

• 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.

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By Application - Segment Analysis

In 2023, Food segment dominated the U.S Yeast Market in terms of revenue is estimated to grow at a CAGR of 3.1% owing towards rising consumption of naturally-extracted ingredients with the increasing demand for clean-label and free-from products is projected to drive the growth of the U.S Yeast Market in the food industry.  Yeast has wide applications in food including alcoholic and non-alcoholic beverages, nutritional supplements, canned and frozen foods, bakery, snacks and savory products. Various yeast fermented foods include bread, deep-fried dough sticks and fermented rice products. Yeast is an ideal nutrition source for human beings and its nutritional characteristics include low fat, low sugar and low calorie and high-quality protein, high-quality B vitamins, high-quality minerals and high-quality dietary fiber. Yeast is an ideal health food without cholesterol that conforms to the modern human dietary structure abetting towards the growth of the market.

By Geography - Segment Analysis

In 2023, the Europe region dominated U.S Yeast Market in terms of revenue with a market share of 29%. Bakers Yeast belongs to the species saccharomyces cerevisiae and is the common name for the yeast strains that are widely used in bakery products as a leavening agent. These are single-cell microorganisms found around the human body. Bakers yeast is increasingly being adopted across the world in bakery products as it can be stored for longer periods at room temperatures without any loss of changes in its properties. The rise in the demand for bakers yeast for bioethanol production, growing adoption of inactive dry yeast for making malt beverages, increase in the awareness about the benefits of active dry yeast, and the growing investment by the key players to develop nutritional bakers yeast to enhance its applications as a leavening agent are the factors that are set to drive the growth of the Bakers Yeast Market for the period 2024-2030.

Drivers – U.S Yeast Market

Increasing Demand for Ready-to- Eat Food Products 

Growing preference for ethnic food coupled with the success of Thai and Mexican food in restaurants has resulted in increased demand of yeast. Changing food consumption habits and pattern of people, drive the growth of bakery industry and in turn the growth of yeast demand. Demand for bakery products is increasing as they are an essential content of many fast-food items and people now increasingly prefer convenience products over traditional food items. The demand for convenience in food products has led to an increased demand for ready-to-eat food products, such as ready to consume soups and noodles, which have high amounts of yeast content in them.

Growth in Craft Brewing Industry

A major driver in the U.S. yeast market is the growth of the craft brewing industry. Craft breweries have witnessed significant expansion in recent years, driven by consumer demand for unique and high-quality beer offerings. Yeast plays a pivotal role in the brewing process, influencing the flavor, aroma, and character of beer. Craft brewers are increasingly experimenting with different yeast strains to create distinctive beer profiles, leading to a heightened demand for specialty and novel yeast varieties. The proliferation of craft breweries across the U.S. has spurred the need for diverse yeast products tailored to specific brewing styles and consumer preferences. This trend not only drives innovation in yeast cultivation and fermentation technologies but also supports the overall growth and dynamism of the U.S. yeast market within the brewing sector and beyond.

Challenges – U.S Yeast Market

Stringent Food Safety Regulations

Stringent regulations imposed by regulatory bodies and government in various countries is hindering the market for products made from yeast, thus restraining the U.S Yeast Market. 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. 

Expansion in Biofuel Production

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.

Yeast Industry Outlook 

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 Angel Yeast Co., Associated British Foods PLC, Lallemand Inc., Chr. Hansen Holdings A/S, Oriental Yeast Co., Ltd., Lesaffre Group, Synergy Flavors, Halcyon Proteins Pvy. Ltd., Novozymes, Food Chem International, among Oothers

Recent Developments:

• 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 ingredients.
• 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 ingredients for various industries. The strategic fit aligns Evolva's precision fermentation technology with Lallemand's yeast-based solutions, enhancing their global biotech portfolio.

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