According to MarketsandMarkets, the global yeast market size is estimated to be valued at USD 3.9 billion in 2020 and is projected to reach USD 6.1 billion by 2025, recording a CAGR of 9.6%. Yeast, being one of the most versatile microorganisms, is used in the production of food & beverage products. The commercialization of yeast has resulted in a transition phase in the yeast industry. The market for yeast is growing globally due to the increase in demand for bakery products, the trend of buying alcoholic beverages worldwide, and global demand for bioethanol as a fuel.
The demand for naturally-sourced food additive witnesses a significant increase due to the growing health concerns among consumers, which is projected to drive the growth of the market. However, food safety regulations for the use of red yeast extract products is a key factor that is projected to inhibit the growth of this market in developed regions.
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Europe is projected to account for the largest share during the forecast period
In 2019, Europe accounted for the largest share in the market. The processed food and bakery industries in the European region are witnessing significant growth due to the change in lifestyles of consumers and an increase in disposable income levels. The European yeast market is witnessing significant growth due to the increase in consumption of processed food products, the rise in alcohol consumption, and awareness about the nutritive value of yeast. The market in the European Union is mainly concentrated on bread production applications. The increase in the consumption of cakes, bread, pastries, as well as alcoholic beverages has led to an increase in demand for yeast in European countries.
Key players in this market include Angel Yeast Co. Ltd. (China), Associated British Foods PLC (UK), DSM N.V. (Netherlands), Kerry Group PLC (Ireland), Alltech (US), Lesaffre Group (France), Synergy Flavors (US), Sensient Technologies Corporation (US), Chr. Hansen Holdings A/S (Denmark), Lallemand Inc. (Canada), Leiber GmbH (Germany), Oriental Yeast Co., Ltd. (Japan), Halcyon Proteins (Australia), Food Chem International (China), ICC Brazil (Brazil), Biorigin (Brazil), Pacific Fermentation Industries (Canada), and Novozymes (Denmark).
Angel Yeast Co. Ltd. (China) is a key supplier of yeast for use in the production of food products. Its focus is to become a specialty yeast company by growing sustainably by incorporating new foundational platforms into its technologies. It pursues competitive superiority by creating new demand and developing high value-added and customized products based on client requirements. In 2019, the company launched a new natural flavor-enhancing solution for plant-based foods and beverages in Europe. This product launch would help the company to strengthen its portfolio and increase its customer base in Europe.
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Lesaffre Group (France) is a privately held company headquartered in France and one of the leading developers, manufacturers, and distributors of yeast. The company works in collaboration with brands, retailers, and packaging manufacturers to design circular economy solutions to maintain its market position. In April 2019, the company set up a new baking center for industrial baking in Vienna, Austria. This new establishment would support industrial customers in the development of new products. In addition, it would help the company to serve its customer base in Europe and expand its geographic reach.
Yeast Market to See Major Growth by 2025
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