The yeast extract market is expected to witness robust growth by 2027 driven by the surging product demand, particularly in food & beverage applications. Additionally, increasing focus of manufacturers on product innovation is projected to fuel market adoption through the forecast period.
Yeast extract is a thick and dark liquid, which is sometimes dehydrated to create a thick paste or powder. It is prepared by either salting or steaming the yeast cells, which causes the cells to shrink or break respectively. The cell extract collected from this process is dense in vitamins like iron and B-complex. Yeast extract is also rich in umami substances like glutamates and ribonucleotides, which has further enhanced product demand.
Notably, WHO Member States have set a global target to decrease salt intake by 30% by the year 2025 since high sodium consumption has been linked to high blood pressure, stroke, and heart diseases. To that effect, food innovators have been attempting to offer products deliver taste with reduced sodium content. As yeast extract is becoming a key ingredient in the modern food sector, industry players have been launching new products to accommodate these emerging consumer demands.
For instance, in June 2021, Angel Yeast Co., Ltd., a China-based high-tech yeast firm, introduced its range of yeast extracts at the 24th Food Ingredients China, one of the biggest trade shows for food additives and ingredients. Angel Yeast has played a pivotal role in promoting innovative yeast extract solutions that not only enhance taste but also help reduce sodium intake.
At the event, Angel Yeast presented one such range of yeast extract solutions, which have been derived from natural and nutritional fresh yeast. Moreover, the yeast extract also promises excellent flavor, which has made it an ideal alternative for conventional umami enhancers like MSG. As a result, the improving product landscape of the industry has been boosting business outlook across the globe.
The yeast extract market has been segmented on the basis of source, technology, form, application, and region. With respect to application, the market has been divided into food & beverages (soups, bakery, dairy products, sauces & savory flavors, processed foods, and others), pharmaceutical, animal feed, and others (cosmetics, biofuel, and biomass production).
The soups sub-segment is projected to observe steady growth at a CAGR of around 5.5% over the forecast period. The yeast extract market from the bakery application segment is projected to expand at a CAGR of over 5.7% through the assessment timeframe.
The sauces & savory flavors sub-segment accounted for 11.32% of the yeast extract market in 2020 and is projected to grow at a considerable pace through the study timeline. The others sub-segment size is expected to reach about USD 72.8 million by 2027. Other food & beverages application of yeast extract comprises meat & canned fish and snack foods.
In the regional landscape, the North America yeast extract market is estimated to garner a valuation of around USD 449.2 million by 2027, progressing at a sizable pace over 2021-2027. Meanwhile, the Middle East and Africa yeast extract market is calculated to expand at a CAGR of approximately 5.5% through the forecast period.