The global yeast ingredients market size was valued at USD 1.77 billion in 2016 and is expected to exhibit a CAGR of 7.4% from 2014 to 2020. Increased demand in the pharmaceutical, academics, and research sectors - where microbial culturing is needed - is expected to positively influence market growth over the forecast period.
Yeast ingredients contain amino acids, proteins, carbohydrates, vitamins, and minerals and as a result, demand for the same is growing in food and supplement applications. Amino acid in yeast gives it a characteristic taste, which is similar to meat broth.
Various food manufacturers are developing products that contain yeast extracts rather than artificial flavors such as monosodium glutamate (MSG); this is expected to boost demand in the coming years. As these ingredients are natural, they are widely used across the food industry. Moreover, rising demand for food products with high nutritional value is poised to propel its use in various areas of the food and beverages industry.
The market is also fueled by initiatives taken by various organizations to promote the use of yeast ingredients in food, animal feed, and other applications. For instance, European Association for Specialty Yeast Products (EURASYP) is an association spreading awareness regarding specialty yeast products such as yeast extract in several European countries.
Yeast extracts dominated the global market, accounting for 31.5% of the overall revenue in 2013. Demand for the same in food processing is expected to witness a surge owing to increased interest of people in healthy food, which further boosts demand for organic food and natural ingredients.
Yeast autolysates accounted for 24.3% of the global demand in 2013. Rising demand for alcoholic beverages and bakery food products is expected to drive this segment over the forecast period.
Yeast derivatives are widely used in the production of wines; they are also known to benefit human and animal nutrition. Increased demand for animal feed in countries such as India, Indonesia, and those in the European region is expected to drive this segment4.
Rising number of urban cities has greatly impacted food habits of consumers. Demand for convenience foods and ready-to-eat meals is increasing at a rapid pace. Factors such as lifestyle changes, hectic work schedules, and access to more information about food ingredients have also affected consumer trends.
The food segment dominated the global yeast ingredients market, accounting for 58.2% of the overall value in 2013. The segment is expected to retain its dominance in the market over the forecast period due to favorable properties of these ingredients in various food products. Domestic manufacturers of processed food products, such as chilled processed food, canned food, sauces, and soups, maintain a leading edge in the market as they cater to local flavors.
The feed segment was valued at USD 354.4 million in 2013 growing at a CAGR of 7.6% from 2014 to 2020. Increased agricultural activities in Asia Pacific region is expected to boost the market.
Increasing consumption of food, feed, dairy, and pharmaceuticals is expected to fuel market growth over the forecast period. Superior properties such as non-toxicity and eco-friendly characteristics are key reasons accounting for increasing preference for yeast ingredients by food and feed manufacturers.
In terms of revenue, Europe is considered to be the largest regional market accounting for 35.3% of the overall demand in 2013. It is expected to dominate the market over the forecast period due to consistent demand from the food industry.
The Asia Pacific market expected to register a CAGR of 8.4% from 2014 to 2020 owing to increased consumption of domestic conventional food. In addition, increased awareness regarding consumption of nutritional food will have a positive impact on market growth.
North America is expected to exhibit a CAGR of 7.1% from 2014 to 2020, fueled by growing demand for food products with natural flavors. Rising application of yeast ingredients in the food and pharmaceutical sectors is driving demand in U.S. Growth of the bakery segment within the food industry will have a positive influence on the market. Availability of raw materials will also benefit industry growth.
Owing to high profitability, the number of players in the global market is expected to increase over the forecast period. Some of the key players are ABF Ingredients; Angel Yeast Co., Ltd.; Anchor Yeast; AB Vista; Alltech Inc.; F. Bio Springerk; Chr. Hansen; Kerry Group; Lallemand Inc.; Leiber GmbH; Lesaffre Group; Organotechnie; DSM; Suboneyo Chemicals Pharmaceuticals Pvt. Ltd.; Synergy Flavors Ltd.; and Becton, Dickinson and Company.
Players are focusing on increasing their market share along with profitability by indulging in research and development (R&D) activities. Companies have invested in acquisitions and strategic alliances in order to develop broader applications of yeast ingredients. Growing demand by customers has forced companies to expand their manufacturing facilities and invest in R&D to gain market share.
This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the global yeast ingredients market report based on type, application, and region:
Type Outlook (Revenue, USD Million, 2012 - 2020)
Application Outlook (Revenue, USD Million, 2012 - 2020)
Regional Outlook (Revenue, USD Million, 2012 - 2020)
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