Increasing Demand for Bakery Products, Alcoholic Beverages, and Ethanol to Drive the Yeast Market

The yeast market projected to reach USD 5.40 Billion by 2022, at a CAGR of around 9.0% from 2017 to 2022.


The yeast market is projected to account for a value of USD 5.4 Billion By 2022. Increasing adoption of a health-enriching diet is becoming the new norm among consumers, which is significantly influencing the budget allocation decisions of manufacturers. To maintain their health, consumers are increasingly spending on protein-rich food products such as fermented meat, dairy products, bakery products, and vegetables. Consumers also include fermented food products in their diets, which have encouraged manufacturers to utilize various yeast products.

Growth in demand for bioethanol as a fuel

Bioethanol is a renewable source of energy, obtained from seaweeds, which are third-generation biofuel resources, used to produce alternative energy. The increase in demand for bioethanol and improved technologies has fueled the production of bioethanol. Saccharomyces cerevisiae is a species of yeast used for bioethanol-based fermentation of seaweed hydrolysate. The requirement for alternative fuel is growing globally, thus driving the demand for bioethanol as a fuel. Bioethanol is a clean burning fuel source that combusts in the presence of oxygen to form carbon dioxide, water, and aldehydes, and also acts as an alternative to petroleum fuels in the industrial sector.

Yeast Market

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The fuel efficacy of bioethanol and its ecological characteristics has increased the demand for yeast. The main advantage of bioethanol is that the carbon dioxide emitted during its use is balanced by the carbon dioxide consumed by microorganisms producing bioethanol. The bioethanol industry benefits from lower taxation in some European countries; the U.K. government has reduced fuel duty on bioethanol. AB Mauri (U.K.), one of the largest producers of yeast, offers high-quality yeast products that deliver consistent high alcohol yield to the biofuel industry. With the increasing awareness regarding the applications of bioethanol, the demand for bioethanol yeast is rising, particularly in North America and Europe.

With the growing gap between the global energy requirements and limited energy sources, the bioethanol market has witnessed significant progress over the last few years. According to the Proceedings of the World Congress on Engineering 2011 (Vol III), the legislation targeted the consumption of 28.4 billion liters of bioethanol by 2012, which was around 5% of the total gasoline consumption in the year. Such initiatives will fuel the demand for bioethanol, thus furthering the demand for yeast production.

How is the increasing preference for MSG alternatives creating profitable growth opportunities for manufacturers in the yeast market?

MSG is the sodium salt of a glutamic acid, which is used as a food additive in various processed foods to enhance the natural flavor of foods. Various studies have shown that prolonged consumption of MSG results in several health complications, some of which include obesity, weakness and fatigue, and frequent headaches and numbness. Growing awareness about the side effects of MSG has resulted in an increased demand for safer alternatives. Yeast extracts contain hydrolyzed properties and amino acids and can hence be used to add flavor in processed foods and other savory applications; yeast is hence a suitable alternative to MSG. And, with more campaigns against the use of MSGs in food, the market for yeast has high growth potential in this function.

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The Yeast Market in Asia Pacific To Witness Significant Growth Through 2022

In parallel to the growth in population in various countries of the region, the preference for health-enriching and natural food ingredients remains high. As customers in this region increasingly prefer opting for nutrient-dense food products, manufacturers are increasingly investing in various yeast products to align with their diet requirements. Increasing consumption of fermented food products, such as kefir and pickles, has led to a surge in demand for yeast among manufacturers of the food & beverage industry. On account of these factors, the market is projected to record significant growth by 2022.

Leading players operating in the yeast market include AngelYeast Co., Ltd (China), Associated British Foods plc (UK), Lesaffre Group (France), Koninklijke DSM N.V. (Netherlands), and Chr. Hansen Holding A/S (Denmark). Key players in this market are adopting strategies such as expansions and new product developments to enhance their presence across regions.

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