Yeast Ingredients Market Overview
Yeast Ingredients Market size was valued at $ 2.26Bn in 2019, and it is anticipated to grow at a CAGR of 6.6% during the forecast period 2020-2025. The Yeast Ingredients Market growth rate is attributed to the rising demand for yeast ingredients from the food & beverage industries, and growing awareness among individual’s related to health benefits and nutritional value of yeast in foods. Yeasts are chemoorganotrophs, as they use organic compounds to source energy and do not require sunlight for growth or survival. They are usually unicellular; although some species are multi-cellular which is found in soil, on plant surfaces, and also abundantly in sugary mediums such as flower nectar and fruits.
Yeasts are natural ingredients and they are used as one of the primary food ingredients in the food processing industry. Yeast converts food into alcohol and carbon dioxide through the process called fermentation. This makes yeast crucial in making of wine and beer, as well as in the process of baking. Yeast that is commonly used as a leavening agent in baking bread and bakery products is referred to as Baker’s yeast. Wheat flour is the most common type of flour used when baking with yeast. Moreover, increasing use of yeast ingredients as nutritional supplements, in pharmaceuticals, and growing consumer interest in organic food products manufactured by using natural food additives is anticipated to contribute to the market growth. From developing significance of these ingredients as exquisite flavors and their substantial scale application in aging handling that has helped the market gain footing over the most recent couple of years to expanding utilization of prepared and inexpensive food, particularly bread kitchen things, is foreseen to invigorate the development of the Yeast Ingredients Market during the forecast period 2020-2025.
Europe dominated the Yeast Ingredients Market with a share of 29% in the year 2019.
The factors such as growing importance of these ingredients as savory flavors and their large-scale application in fermentation processing and increasing consumption of processed and fast food, especially bakery items are amongst the major factor projected to propel growth of Yeast Ingredients Market.
Growing demand for live-stocks products and rising use in various areas of the food and beverage industry owing to high nutritional value foods are the key factors owing to the growth in the segment during forecast period 2020-2025.
By Product Type – Segment Analysis
Yeast Extracts segment held the largest share in the market over Yeast Ingredients types owing to the increase in consumer preference for savory food products and flavors. Yeast extracts basically refers to beneficial components extracted by autolysis. It contains nucleotides, amino acids, vitamins, minerals, and others. It is used as a crucial ingredient in the food & beverage industry. Furthermore, these are mainly used as a natural aromatic ingredient for savory food products such as soups, sauces, meat preparations, and savory mixes owing to which this segment is anticipated to witness a market growth in the forecast period 2020-2025 as key properties favoring the demand for extracts in the industry includes high nutritional value, sodium content reaction, and taste and flavor enhancer. Companies are focusing on strategic technological developments and initiatives to expand product portfolio thereby, lavishing the market demands. However, yeast auto-lysates segment is anticipated to dominate the Yeast Ingredients market owing to its use as enhancing color, flavor, and nutritional value of food products. Auto-lysate products are rich in vitamins, proteins, micronutrients, and fiber, and thus, are added to food products. Hence, owing to the above factors they are used as a pet food ingredient, in poultry and pork applications as seasoning blend ingredient and flavor carrier for processed meat products and as a nutrient for micro-organisms in fermentation processes are set to boost the market.
By Application – Segment Analysis
On the basis of Application, food & beverages segment held the major share of the market in terms of revenue and is set to grow with a CAGR of 6.4% owing to increasing health consciousness and fast-evolving indulgence by consumers that are driving the demand for low-salt, low-fat, and no-glutamate food products. The demand for the product for food applications is anticipated to experience an upsurge over the coming years as consumers prefer balanced diets and foods that help improve their immunity, along with innovations in offerings in terms of variant and flavors. Manufacturers of processed food products are targeting consumers with better-for-you low-salt products to boost sales in a stagnating and matured market.
In contrary, yeast ingredients is anticipated to spur its application in the pharmaceutical segment during the forecast period 2020-2025 owing to burgeoning importance of adequate protein intake in emerging markets of China and India, on account of growing focus on advertising campaigns by companies for brand promotions. Apart from this yeast ingredients are also used in feed applications to increase milk yield, accelerate animal growth, increase weight, and decrease susceptibility to bacterial diarrhea. In addition, they also help promote performance in animals, especially young ones and also help improve animal metabolism by strengthening defense mechanism against infections which is poised to remain a driving force for the market.
By Geography – Segment Analysis
Europe dominated the Yeast Ingredients Market with a share of 29% in 2019. The application of Yeast Ingredients has grown rapidly over the last few years can be attributed to the facts like increasing consumption of functional foods coupled with growing dairy industry in countries in the region owing to which there are developments in the bakery industry and expansion of business in target markets including Germany, the U.K., Italy, and France which continues to expand its market. Moreover, the market is driven by progressive drift in alcoholic beverage consumption. However, Asia-Pacific region is anticipated to grow at a faster growth rate owing to growing demand of the emerging economies like China and India, on account of high animal feed production and food consumption. In addition, increasing awareness regarding consumption of nutritional food is poised to work in favor of the market. This growth is also majorly attributed to the consumption drifts of food & beverage products in the region is rising steadily, driven by the growing population, rising incomes, and increasing urbanization.
Drivers – Yeast Ingredients Market
Rising demand for conventional and processed food in emerging economies
With emerging economies there has been a significant growth for conventional and processed food, thus substantially boosting the yeast ingredients market globally. Moreover, the convenience, accessibility and nutrition profile associated with them are the major factors of their sustenance in the modern market. Their significance as a major portion of diet has been prevalent in middle to lower income group countries. In addition, the rising trend of “Natural nutrition”, “healthy living” and “organic products” has significantly raised the consumers’ demand on whole wheat, light, natural and additive-free products. And in recent years, the growth in sales of packaged, whole wheat, whole meal, gluten-free and natural products is to bolster the demand for Yeast Ingredients over the forecast period 2020-2025.
Challenges – Yeast Ingredients Market
Robust competition and lack in raw material availability
The major challenge for the market is the lack of availability of raw materials which is considered to be a key factor restraining growth of the global yeast ingredients market. Additionally, robust competition among market players is another factor estimated to hamper growth of the global yeast ingredients market over the forecast period 2020-2025. Lack of raw materials, which are in demand in various sectors owing to various restrictions on trade, is posing a significant threat to the European countries.
Yeast Ingredients Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Yeast Ingredients Market. Yeast Ingredients Market share is fragmented by the top ten players present in the market. Yeast Ingredients Market top 10 companies are Kerry Group PLC, Synergy, Ltd., Associated British Foods PLC, DSM, Angel Yeast Co. Ltd, Lesaffre Yeast Corporation, Lallemand Inc., Alltech Inc., Wyeast Laboratories Inc., Danisco A/S, Dohler Group and others.
In January 2020, Lallemand Bio-Ingredients strengthened its position in the North American market with the acquisition and transformation of a new Canadian production site, which joins the company’s network of manufacturing factories that specialise in yeast-based ingredients in the US, Canada, Mexico and other parts of the world.
In February 2018, French yeast manufacturer, Lesaffre, has acquired Alltech’s yeast extract facility in Serbia. The transaction is in line with Alltech’s continued focus on its core business in animal and crop nutrition.
In August 2017, Ajinomoto Co. Inc. Signed a sub-contracting agreement with Meihua Holdings Group China in regards to the production of amino acids for feed.