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The global yeast ingredients market size is expected to reach USD 3.5 billion by 2025, according to a new report by Grand View Research, Inc., exhibiting a CAGR of 8.0% during the forecast period. Rising usage of yeast ingredients in the food industry, coupled with government initiatives to promote use of these ingredients in food products, is expected to boost the growth of the market over the forecast period.

Furthermore, high demand for yeast ingredients from various application segments such as fermentation, baking, medical, nutritional supplement, and molecular genetics is expected to restrict the availability of yeast as a raw material for production of ingredients. Hence, raw material availability is a major challenge faced by players in the yeast ingredients market.

The demand for yeast ingredients in food products and supplements is anticipated to exhibit high growth on account of rising use of natural additives and ingredients in bakery and functional food products. In addition, significant demand for ready-to-eat food items and convenience foods is expected to fuel the consumption of yeast ingredients in the food industry over the forecast period. In addition, rising consumer awareness regarding consequent health benefits and nutritional significance of yeast extracts is expected to create growth opportunities for market players over the forecast period.

E-commerce portals provide access to products through key benefits including favorable discounts and cash-on-delivery features. Burgeoning popularity of these portals as a distribution channel for food supplements is expected to benefit the growth of the overall market during the forecast period. The Food and Drug Administration (FDA) imposed numerous regulations concerning labeling of food supplements on account of increasing number of reported incidences regarding violation of label standards as well as product quality. As a result, food supplement and bakery product manufacturers are expected to increase their expenditure on development of better quality food products.

Asia Pacific is the fastest-growing market for yeast ingredients worldwide. Developing countries in APAC have been experiencing strong economic growth. Rising living standards and increasing population are stirring up the demand for bakery and convenience food products in the region. Rising disposable incomes and exposure to international foods and flavors are impelling consumers to change their food habits and consume more ready-to-eat-products. All these factors are anticipated to bode well for the market in the region.

Further key findings from the report suggest:

  • The yeast extracts segment is likely to reach a value of USD 1.36 billion by 2025, expanding at a CAGR of 8.7% from 2018 to 2025
  • In terms of revenue, the yeast autolysates segment is anticipated to post a CAGR of 8.1% over the forecast period
  • Food application dominated the yeast ingredients market, with revenue share of approximately 60.0% in 2017
  • The U.S. has been one of the largest importers of yeast ingredients across the globe. Spiraling demand for yeast in baking, brewing, and wine making in the country is expected to drive the market for yeast ingredients in food over the coming years
  • Germany is one of the most sought-after markets for yeast products. Increasing penetration of bakery food products and beverages is likely to propel the market over the coming years
  • Changing consumer dietary habits and rising consumption of fast foods in Europe are anticipated to further fuel the demand for yeast ingredients over the forecast period
  • Countries in Asia Pacific, most notably India, Indonesia, and China, are expected to witness significant demand growth over the forecast period
  • In terms of revenue, the India yeast ingredients market is anticipated to reach value of USD 228.9 million by 2025
  • The market is characterized by accreditation of product, capacity expansion, capital expansion, and substantial investment decisions to improve market share of manufacturers
  • Some of the prominent companies present in the market are Kerry Group; Cargill Incorporated; Lesaffre Group; Archer Daniels Midland Company; and Associated British Food Plc.