In a recently updated research report on the nutritional yeast market, FMI has estimated that the industry is set to reach a net worth of USD 257.38 million in FY 2024. Reflecting on current consumer trends, key players are offering multifunctional food and beverages that contain healthy ingredients like nutritional yeast, also known as deactivated yeast.
The nutritional yeast market is en route to attaining USD 894.07 million by 2034. During this time, the market is expected to increase at a CAGR of 13.3%. As players in the HORECA sector seek to elevate their dining experience to attract more customers, deactivated yeast for seasoning is predicted to rise.
| Attributes | Key Insights |
|---|---|
| Nutritional Yeast Market Size (2024E) | USD 257.38 million |
| Market Valuation (2034F) | USD 894.07 million |
| Value-based CAGR (2024 to 2034) | 13.3% |
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| Leading Nature | Organic |
|---|---|
| Value Share (2024) | 17.40% |
Organic deactivated yeast is gaining widespread attention due to many research studies reporting high nutritional content in the organic variant. The market share at present occupies 17.4% of the global market, the rest is owned by the conventional one.
Increasing preference, health awareness, and buying potential among consumers is inducing sales of organic versions. Consumers add organic deactivated yeast in salads, soups, dips, casseroles, and popcorn to elevate their nutritional consumption.
| Leading End-use | Food Industry |
|---|---|
| Value Share (2024) | 36.50% |
Food industry is a prominent user of nutritional yeast in several foods and beverages. The segment is expected to hold a share of 36.5% in the year 2024. This deactivated yeast is used as a taste enhancer in vegetarian recipes.
Due to its cheesy feel and flavor, consumers who have shunned dairy-based goods integrate deactivated yeast into their meal preps. Other influencing factors include busy work schedules, climatic conditions, and altering food patterns.
The food sector increasingly uses deactivated yeast as it boosts energy, supports the immune system, promotes health, and supports healthy pregnancy and glycemic sensitivity.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 6.90% |
| Germany | 5.80% |
| China | 11.10% |
| Japan | 12.50% |
| India | 13.20% |
The nutritional yeast industry in the United States is registering a CAGR of 6.9% in the course of the following decade. Umami-rich taste enhancer, which is a deactivated yeast, is a highly popular component in a vegan diet. Vegans add it to their diet to incorporate cheesy flavor.
Rapidly expanding veganism across the United States can be attributed to growing health concerns among the population. 1/5th of the American population is demanding vegan food in the age group of 15 to 70 years. With increasing veganism, sales of deactivated yeast are also predicted to surge.
Several benefits of deactivated yeast, like its use to enhance stress and anxiety scores, are benefitting the regional market. These positive aspects of consuming this deactivated yeast are being spread through social media posts, health magazines, and eMagazines.
As more recipes that integrate deactivated yeast are developed and shared on social media platforms, more people are going to head over to convenience stores or nearby hypermarkets to purchase this yeast for their next food experimentation.
The consumption of nutritional yeast in India is predicted to rise at a rapid pace of 13.2% over the next decade. The concept of mindful eating is gaining traction in India and food is being consumed as a medicine to enhance general well-being and health. These trends are spurring the sales of the product.
Brand owners and newcomers are further motivated to create healthier food options by altering their dietary and eating habits. In India, many clean-label items are being introduced to the market as consumers are showing interest in this new product.
Players are also offering premium deactivated yeast seasoning in the Indian market to help home chefs level up their cooking game. In addition to this, many start-ups are entering the nutritional yeast landscape in India.
For instance, Nextferm, which is an Israeli foodtech startup that develops alternative yeast-based nutrients, signed an agreement for commercial production of fermented vegan protein in India.
The nutritional yeast industry in Germany is increasing in size at 5.8% CAGR over the forecast period. The country is one of the lucrative markets in Europe. The market is developing due to heightened awareness about meat-borne diseases, like avian flu and swine flu, which is expected to raise the demand for meatless goods and vegetable proteins like deactivated yeast.
Consumers who have food allergies, gluten, and lactose intolerance, or are on special diets is significantly benefitting from deactivated yeast. Germany is also witnessing incoming of foodtech start-ups who are disrupting the food landscape in the country.
ProteinDistillery, for instance, is a food-tech startup based in Ostfildern that produces sustainable and clean proteins for food companies utilizing microorganisms. The source of their protein is residual yeast in beer brewing, which is offering varied applications without artificial additives.
China is performing quite well in the global market, assuming a pace of 11.1% over the forecast period. The market valuation of China is rising on account of the rising adoption of plant-based and vegan food by the millennial population.
The China-based yeast extract manufacturer, Angel Yeast, is offering a nutritious, eco-friendly, and sustainable solution. This company is the first to invest in modern yeast production in China and is currently a prominent yeast producer in Asia. The company specializes in yeast and fermentation and offers an eco-conscious, sustainable, and nutritious food option to meet the demands of people and the planet.
Consumption of nutritional yeast is predicted to rise in Japan at a CAGR of 12.5% during the assessment period. Companies operating in Japan are taking many steps to strengthen consumer trust and spur business growth.
Taiwan-based health food developer Daiken Biomedical thinks that patent grants are a secure way of gaining consumer trust. By gaining a patent in February 2024, the company also holds a winning chance to increase its business expansion.
Daiken Biomedical has produced a capsule supplement known as Q10-Natto Plus Red Yeast Rice Complex, which is composed of distinct formulas to maintain cardiovascular health, increase metabolism, and reduce blood lipids. This formula received a patent in Japan in 2023, after a review process of six to eight weeks conducted by the Japan Licensing Agency’s Quality Assurance Panel.
Established players are employing research and development activities to develop new technologies. This helps in introducing new applications and products that integrate deactivated yeast. Further, prominent businesses are forming partnerships and strategic joint ventures with other companies.
Players are also responding to the surging consumer preference for organic nutritional yeast by commercializing organic deactivated yeast. Industry participants are introducing supplements, sports drinks, snacks, and bakery products that contain deactivated yeast.
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Current projections of the market indicate a valuation of USD 257.38 million in 2024.
Looking ahead to 2034, the current forecast projects a CAGR of 13.3% for the encasement pipe industry.
FMI predicts the market to reach USD 894.07 million by the year 2034.
Food industry is predicted to hold a significant market share during the forecast period.
India is predicted to offer opportunities for investors and stakeholders.
Lessafre Group, Angel Yeast, and Alltech are powerful players in the nutritional yeast industry.
| Market Value (2022) | USD 2,467.5 Million |
|---|---|
| Market Forecast Value (2032) | USD 4,096.6 Million |
| CAGR (2022 to 2032) | 5.2% |
| Market Size Value in 2022 | USD 23.0 Billion |
|---|---|
| Market Forecast Value in 2032 | USD 18.1 Billion |
| Growth Rate (2022 to 2032) | 3.4% CAGR |
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