Yeast Market

Yeast Market Outlook (2024 to 2034)

The global yeast market is anticipated to reach a valuation of US$ 5.39 billion in 2024. As per this new Fact.MR industry analysis, worldwide sales of yeast are forecast to rise at a CAGR of 8.7% and reach US$ 12.42 billion by 2034.

Yeast is one of the most versatile microbes and has high applications in food & beverages, and pharmaceuticals. Yeast is composed of minerals such as selenium, copper, chromium, zinc, and protein. Yeast can enhance the fermentation process, and because of this, it is widely used in bakery products such as breads, doughnuts, and croissants. Yeast is also known as the most consistent fermenting agent globally. Growing consumption of bakery products across the world is directly influencing the sales of yeast. Furthermore, yeast is used as a biofuel in the biotechnology and pharma industries.

Rising demand for plant-based protein products and the veganism trend are driving the demand for nutritional yeast products. Organic and specialty markets are driving the demand for enriched yeast extracts. The integration of advanced manufacturing techniques is one of the notable yeast market trends.

North America is a huge market for bakery products. High consumption of bakery food items is increasing the demand for yeast derivatives. The expanding pharma industry is also contributing to the yeast market growth in North America.

• The North American yeast market is forecast to reach US$ 3.01 billion by 2034.

East Asia is witnessing several developments in the food and beverage industry, from manufacturing, and processing, to packaging. Jiuqu is a type of yeast used to make alcohol such as baijiu (distilled spirits), huangjiu (cereal wine), and jiuniang (alcoholic rice pudding) in East Asia.

• East Asia is expected to capture 22.4% of the global yeast market share in 2024.

Report Attribute	Detail
Yeast Market Size (2024E)	US$ 5.39 Billion
Forecasted Market Value (2034F)	US$ 12.42 Billion
Global Market Growth Rate (2024 to 2034)	8.7% CAGR
South Korea Market Value (2034F)	US$ 662.8 Million
Brewer's Yeast Demand Growth (2024 to 2034)	9% CAGR
Key Companies Profiled	Associated British Foods Plc.; Angel Yeast (Chifeng) Co., Ltd.; Archer Daniels Midland Company; Koninklijke DSM N.V.; Lallemand Inc.; AB Mauri Foods, Inc.; Ohly GmbH & Co. KG; Fadayeast.Com; Chr. Hansen Holding A/S; Kerry Group Plc.; White Labs; Leiber GmbH; Shandong Bio Sunkeen Co., Ltd.; AGRANO Gmbh & Co. KG; Lesaffre International; Oriental Yeast India Pvt Ltd.; Kothari Fermentation and Biochem Ltd.

Comparative Analysis of Adjacent Markets

Nutritional Yeast Market

Attribute	Details
CAGR (2024 to 2034)	8.8%
Growth Factors	Rising health and wellness trend boosting demand for nutritional yeast-based food products.
Future Opportunities	Growing awareness of health benefits associated with use of nutritional yeast such as gluten-free, fat-free, low calories, and sugar-free, expected to drive its sales over the coming years.

Feed Yeast Market

Attribute	Details
CAGR (2024 to 2034)	6.3%
Growth Factors	Feed yeast widely used for intestinal flora's balance and to lessen digestive issues in animals.
Future Opportunities	Constant R&D efforts to enhance yeast strains to result in development of productive feed yeast products.

Which Market Trends are Leading to Rising Consumption of Yeast?

“Yeast Finding High Application in Ethanol Production”

Yeast is a natural fermenting agent that can convert sugar from biomass sources such as sugarcane, corn, or cellulosic materials into ethanol. For several years, yeast has been used in alcohol production, particularly in brewery and wine industries. Yeast keeps the distillation cost low and leads to high ethanol yield.

Nowadays, yeast is used to obtain fuel ethanol from renewable energy sources. Effective yeast strains to produce ethanol from various types of sugars are Pichia stipitis (NRRL-Y-7124), Kluyveromyces fagilis (Kf1), and S. cerevisiae (RL-11). S. cerevisiae can tolerate a wide range of pH, which makes it vital in industrial ethanol production. Baker's yeast also exhibits traditional use in ethanol production due to its easy availability and low cost.

What Do Yeast Manufacturers Need to Watch Out For?

“Allergic Concerns and Presence of Alternatives Lowering Adoption of Yeast”

The allergenic potential of yeast can hamper its sales growth. Rising awareness of food allergies can impact the use of yeast in food and beverages. Furthermore, the growing regulations on clean-label marketing can also deter consumers from purchasing yeast-based products. Negative public perceptions further hamper the consumption of yeast-based products. These factors are also driving the importance of alternatives. People may opt for yeast alternatives such as yogurt, lemon juice, or sourdough.

Start-up Ecosystem

• Smart Yeast is a Brazil-based start-up that focuses on R&D in the fermentation process for distilled spirits, alcoholic beverages, and kombucha. The company’s SmartGO! Yeast Nutrient capsules aid with the nutritional deficiencies of fermentation.
• United States-based start-up Berkeley Yeast offers yeast strains for winemakers and brewers. The yeast strain offered by Berkeley Yeast comes in flavors such as mango, lemon, geranium, and pineapple.
• Lachancea, a United States-based start-up, offers lactic acid yeasts produced from selected bees and wasps that allow brewers to make aged sour beers.

Country-wise Analysis

The United States is estimated to hold 44.5% of the North American market share in 2024. Presence of key market players and the existence of strong end-use industries such as pharma and food & beverages are contributing to the increasing sales of yeast in the United States.

What is the Sales Outlook for Yeast in the United States?

“Veganism Trend Driving Demand for Plant-based Yeast Extracts”

Attribute	United States
Market Value (2024E)	US$ 573.6 Million
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 1.37 Billion

The United States is home to the world's biggest pharmaceutical and food & beverage companies. The growing trend of sustainability and veganism is increasing the demand for plant-based food products, including those made from plant-based yeast extracts. Yeast is a vital ingredient in bioethanol production. The rising demand for yeast is driving manufacturers’ attention to exploring innovative techniques to harness yeast from sustainable production methods.

Why is Yeast Consumption So High in Japan?

“Yeast Widely Used in Japanese Food Products such as Soy Sauce and Miso”

Attribute	Japan
Market Value (2024E)	US$ 349.1 Million
Growth Rate (2024 to 2034)	9.2% CAGR
Projected Value (2034F)	US$ 843.6 Million

Japan’s sizeable population makes for high consumption of bakery products. This is supporting yeast sales growth in Japan. The Japanese also make wide use of miso and soy sauce in their foods. Yeast is used in the production of these products. Thus, the cultural component is boosting the adoption of yeast in Japan.

Category-wise Analysis

Baker's yeast is projected to hold 37.1% of the global market share by 2034. This is attributed to its high use in bakery products. Brewer’s yeast is also expected to exhibit high demand throughout the forecast period due to the rising consumption of beers and other alcoholic beverages. Demand for brewer’s yeast is foreseen to increase at a CAGR of 9% from 2024 to 2034.

Which Type of Yeast is Most Widely Consumed?

“Baker's Yeast Heart & Soul of Bakery Products”

Attribute	Baker's Yeast
Segment Value (2024E)	US$ 1.96 Billion
Growth Rate (2024 to 2034)	8.9% CAGR
Projected Value (2034F)	US$ 4.6 Billion

Baker's yeast is the topmost ingredient in the bakery world. Bread is a staple food in many regions across the globe and yeast is a main ingredient in bread making. Other than that baker's yeast is used in the fermentation process of pizza base, doughnuts, and pastries. High commercial production of bread is supporting the sales of baker’s yeast. Thus, the increasing consumption of bakery products is directly boosting the sales of baker’s yeast.

Why is Fresh Yeast Preferred Globally?

“Fresh Yeast Key Ingredient in Manufacturing of Beer, Wine, and Whiskey”

Attribute	Fresh Yeast
Segment Value (2024E)	US$ 3.42 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 7.93 Billion

Fresh yeast is also called compressed yeast or cake yeast. The fresh yeast is a mixture of water and yeast. The life of fresh yeast is short and needs to be refrigerated. The use of fresh yeast is increasing in beverages. Alcoholic beverages such as beer and wine are widely consumed across the globe and fresh yeast is exhibiting high usage in their fermentation process.

Competitive Landscape

Key players in the yeast industry are focused on the production of innovative yeast strains. They are also employing marketing strategies such as mergers, acquisitions, collaborations, and geographical expansion to increase their profit shares and market reach.

• In June 2023, Fermentis launched a new yeast strain, 'SafŒno™ FV 19'. This yeast strain helps winemakers meet the rising demand for smooth and fruity red wines.
• In February 2022, Bragg introduced Flavored Nutritional Yeast Seasonings. The company launched its first flavored nutritional yeast flake in the United States. The nutritional yeast seasonings are available in two flavors smoky BBQ and roasted garlic.
• In 2022, Angel Yeast announced the launch of Premium Dry Yeast at an event called ‘Bakery China’.

Fact.MR provides detailed information about the price points of key producers of yeast positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Key Segments Covered in Yeast Market Research

• By Type :

  • Brewer’s Yeast
  • Baker’s Yeast
  • Wine Yeast
  • Probiotic Yeast

• By Form :

  • Instant
  • Fresh
  • Active

• By Application :

  • Food & Beverages
  • Bioethanol
  • Pharmaceuticals
  • Feed
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa