Yeast Ingredients Market Size, Share & Trends Analysis Report By Application (Feed, Food), By Type (Autolysates, Extracts, Beta-glucan, Derivatives), Vendor Landscape, And Segment Forecasts, 2019 - 2025

Industry Insights

The global yeast ingredients market size was valued at USD 1.91 billion in 2017. Growing importance of these ingredients as savory flavors and their large-scale application in fermentation processing has helped the market gain traction in the last few years. Furthermore, increasing consumption of processed and fast food, especially bakery items, is anticipated to stimulate the growth of the market.

In terms of raw materials, the industry value chain consists of distribution channels, raw material suppliers, manufacturers, and applications. Yeast ingredients used in various sectors including various industries such as food and feed.

Various food manufacturers are developing products that contain extracts rather than artificial flavors such as monosodium glutamate (MSG). This is estimated to boost the demand in the coming years. As these ingredients are natural, they are widely used across the food industry. Moreover, surging demand for food products with high nutritional value is expected to augment its use in various areas of the food and beverages industry.

Rising awareness regarding calorie reduction and healthier diets among consumers in major markets such as India, the U.S., and China is likely to promote the consumption of functional foods over the coming years, thereby escalating the growth of the market. Increasing awareness regarding importance of appropriate protein intake is poised to provide an upthrust to the market over the forecast period.

Asia Pacific is projected to be at the forefront of the market throughout the forecast period owing to increasing demand from different application segments in the region. Countries such as India and China are anticipated to be major manufacturing and exporting hubs for yeast, with growing percentage share of sugarcane production.

Type Insights

On the basis of type, the market has been segmented into yeast autolysates, extract, beta-glucan, derivatives, and others. The yeast extract segment held more than 35.0% of the overall market revenue in 2017.Yeast extract 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.

Key properties favoring the demand for extracts in the industry includes high nutritional value, sodium content reaction, and taste and flavor enhancer. It is widely used in soups, savory mixes, dairy products, processed foods, and others. Companies are focusing on strategic technological developments and initiatives to expand product portfolio.

Yeast autolysates are used for enhancing color, flavor, and nutritional value of food products. They are used in poultry and pork applications, in addition to their application as seasoning blend ingredient and flavor carrier for processed meat products. Autolysate products are rich in vitamins, proteins, micronutrients, and fiber, and thus, are added to food products. In addition, they are used as a pet food ingredient and as a nutrient for micro-organisms in fermentation processes.

Application Insights

Feed and food are key application areas for the yeast ingredients market. In 2017, the food segment dominated the market. It is estimated to represent more than 60.0% of the overall revenue by 2025. 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. This, along with innovations in offerings in terms of variant and flavors, is estimated to supplement the growth of the segment.

Rising awareness in major markets regarding calorie reduction, including the U.S., China, and Italy, is expected to promote the application of yeast ingredients in the health and wellness segment. This, in turn, is likely to spur the growth of the market during the forecast period. 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 is poised to remain a driving force for the market over the forecast period.

Growing significance of e-commerce portals as a distribution channel for food supplements, as they enable providing access to products through key benefits including favorable discounts and cash-on-delivery features, is anticipated to contribute to the growth of the segment during the forecast period.

Yeast ingredients are also used in feed applications to increase milk yield, accelerate animal growth, increase weight, and decrease susceptibility to bacterial diarrhea. Yeast ingredients help promote animal performance in animals, especially young ones. In addition, they help improve animal metabolism by strengthening defense mechanism against infections. Growing consumption of products in feed application is estimated to augur well for the overall market during the forecast period.

Regional Insights

The demand for yeast ingredients in Europe held approximately 35.0% in terms of revenue in 2017. It is expected to witness substantial growth over the forecast period owing to developments in the bakery industry and expansion of business in target markets including Germany, the U.K., Italy, and France. Surging demand for bakery food products in European countries is likely to boost product demand in the region over the forecast period.

Asia Pacific commanded about 23.0% of the global product demand in terms of revenue in 2017. China, India, and Japan are the key revenue contributors in the region, 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.

The market in North America is projected to witness considerable growth during the forecast period, expanding at a CAGR of 7.4% in terms of revenue. The growth of the region can be attributed to surging demand for dairy, animal feed, and pharmaceutical.

Soaring prevalence of diseases such as diabetes is bolstering the significance of fortified foods with low calorie and sugar-free ingredients. As a result, food & beverage manufacturers are utilizing yeast ingredients in their product offerings such as frozen products, baked foods, beverages, and confectionaries. This, in turn, is poised to foster the growth of the market.

Yeast Ingredients Market Share Insights

The market is exceptionally aggressive with organizations undertaking a few activities including regular mergers, acquisitions, capital extension, and strategic alliances. Established players are concentrating on expanding their share in the overall industry alongside productivity through technological innovations. The market is dependent on raw material suppliers and manufacturers, which are primarily concentrated in the U.S., China, India, and Brazil.

Organizations are emphasizing on ideal business development by actualizing different development techniques. They are framing strategic alliances with strong players of specific regions and sharing expertise for food supplements and feed supplements. Some of the key companies operating in the market are Kerry Group; Cargill, Incorporated; Lesaffre Group; and Archer Daniels Midland Company.

Lesaffre Group led the market in 2017, followed by Cargill, Incorporated; Lesaffre Group; Archer Daniels Midland Company; and Associated British Food Plc. These manufacturers have a firm foothold in the market with capabilities of catering to the local as well as international market. These companies have a broad clientele base within their country of origin as well as in other countries.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global yeast ingredients market report on the basis of type, application, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Yeast Extracts

  • Yeast Autolysates

  • Yeast Beta-Glucan

  • Yeast Derivatives

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Feed

  • Food

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa