The global yeast extract industry size is expected to expand from USD 1,472.9 million in 2023 to USD 1550.9 million in 2024. Global sales will likely soar at a CAGR of 5.78% during the assessment period, totaling USD 2,584 million by 2034.
| Attributes | Key Statistics |
|---|---|
| Yeast Extract Market Value (2024) | USD 1,550.9 million |
| Anticipated Market Value (2034) | USD 2,584.0 million |
| Value-based CAGR (2024 to 2034) | 5.78% |
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Nutritional Yeast Extract Win over Vegan Diet
Nutritional yeast is becoming more popular since it tastes like cheese and lacks gluten and dairy. Globally, there is an increasing trend in the consumption of plant-based, organic, vegan, and salt-free protein products.
Inactive dry nutritional yeast is becoming more and more common in animal feed. This has led to a sharp rise in the market for nutritional yeast. Yeast is a single-celled fungus without a neurological or circulatory system that grows naturally in plants and soil.
Consuming yeast products does not cause animal suffering, cruelty, or exploitation, making them a healthy vegan choice. The products are packed with antioxidants, vitamins, and minerals.
The extracts are leavened in various food products to increase nutritional value and enhance texture and flavor. Usage of nutritional yeast extracts is increasing as veganism gains traction, which is predicted to rise in the coming decade.
Alcohol and Baked Goods Consumption Uplifts the Yeast Extract Market
The worldwide yeast extract business is predicted to expand as a result of increased demand for bakery foods and alcohol consumption. Non-GMO yeast extract is used as a flavorful natural ingredient.
Gluten-free, Kosher, Halal, and free of genetically engineered organisms are just a few distinctive features of yeast extract. Consumers' increased desire for fresh, healthy food products made with natural ingredients is also expected to boost demand.
The global yeast extract market is foreseen to grow owing to the availability of affordable saccharides and other sugar derivatives. Similarly, expanding applications in different sector will likely boost sales growth.
The global yeast extract market grew at a CAGR of 5.6% from 2019 to 2023, reaching USD 1,472.9 million by 2023.
| Attributes | Key Statistics |
|---|---|
| Historical Market Value (2023) | USD 1,472.9 million |
| Market Value (2024) | USD 1,550.9 million |
| HCAGR (2019 to 2023) | 5.60% CAGR |
The market for yeast extract manufacturing faces challenges such as high upfront costs and regulatory difficulties in adding yeast extracts to food and feed products. Despite these challenges, yeast extracts are a popular natural substitute for genetically modified organisms due to their abundance of amino acids, minerals, and vitamins. Their umami flavor enhances food items without artificial additions.
The demand for yeast extract is expected to increase as health-conscious consumers seek natural, clean-label products. The CAGR of the market is predicted to be 5.78% from 2024 to 2034. However, market limitations can be addressed through further research and development to overcome these challenges.
Yeast extract is frequently used in food and beverages to ferment draft drinks with glucose. It is an essential ingredient in bread-leavening recipes. As a nutritional supplement, it is helpful and includes minerals such as zinc, magnesium, potassium, protein, iron, selenium, and chromium. It works well in soups, bouillons, savory snacks, and seasoning sauces. It may also be used in vegetarian and vegan recipes.
Evolving consumer preferences is expected to drive the demand for natural, healthy, and nutritious products. Yeast extract is predicted to develop in this direction throughout the projected period since it is easy to get affordable resources such as saccharides and other sugar compounds.
Yeast is gaining immense traction as it enhances the flavor of different foods and beverages. In wine and beer, it acts as a flavoring agent and plays a crucial role in fermentation. Yeast extract is a common ingredient in various food products, from cheese to sauce, and is known for its unique savory taste, often referred to as 'umami.'
Probiotics also use dry yeast alone or in conjunction with beneficial bacteria to offer nutritional advantages. Protein and amino acids are frequently higher in nutritional yeasts than in diets containing grains and oil seeds.
Yeast extract is frequently used to make dough from wheat flour and yeast, a staple food in many cultures. Because yeast extract is so widely used, its demand is predicted to increase over the forecast period.
Demand for packaged baked goods, such as pizza, cakes, and cookies, is expected to rise rapidly during the forecast period, creating growth prospects for yeast extract manufacturers. Sales are also rising due to growing popularity of packaged cakes as a snack among adults and children globally, further contributing to sales growth.
| Top Grade | Food Grade |
|---|---|
| Market share in 2024 | 68.58% |
In 2024, manufacturers are developing food grade yeast extract after observing its outgrowing industry share of 68.58%. Food-grade yeast extract, sometimes anointed 'yeast hydrolysate' in the food industry, is Generally Recognized as Safe (GRAS) by most international food safety certification authorities.
Food producers and restaurants employ food-grade yeast extracts, such as herbs and spices, as aromatic components to create more flavored food and beverage applications, such as prepared meals, meat products, soups, sauces, snacks, and more. Nucleic acid, protein, B vitamins, and fiber are all present in yeast extract. To satisfy humans' nutritional needs, it is a necessary component of animal feed and dietary supplements.
| Top End Use | Food & Beverages |
|---|---|
| Market share | 35.47% |
Food and beverage segment dominates the market, holding a share of 35.47%, owing to the widespread use of yeast extracts in bakery and processed food products. Yeast extracts are becoming increasingly popular due to their health benefits across various food and beverage applications, such as dairy alternatives, baked products, energy drinks, and confections.
The use of yeast is a valuable means for creating distinct flavor characteristics. This is mainly accomplished by highlighting specific flavor notes and varying the amount of certain components for clean labels or nutrition reasons. It is used in many processed food products, including frozen and canned foods, and in both savory and sweet food and beverage categories. Yeast is an organic component that works well in vegan and vegetarian recipes since it doesn't include artificial, animal, or synthetic ingredients.
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| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 4.01% |
| China | 6.28% |
| Japan | 6.1% |
| Australia | 8.1% |
| Germany | 2.4% |
The yeast extract market in the United States is expected to rise at a CAGR of 4.01% during the next ten years. The nation is home to one of the world's major industrial centers. As companies focus on environmentally friendly solutions, the entire market for yeast extract in various areas has expanded noticeably.
Yeast is an essential component in the manufacturing of bioethanol, which is a sustainable industry fuel source. As the demand for yeast extract grows, yeast manufacturers are looking into new ways to obtain yeast extracts from sustainable production methods.
China's yeast extract market is anticipated to grow at a 6.28% CAGR during the forecast period, reaching a market share of 15.5%. China has had a considerable boom in the craft brewing sector, much like many other world regions.
The desire for yeast strains that can enhance the overall experience of craft beers has surged due to the production of small batches of unique, artisanal brews. Yeast is also used in other fermented beverages, including cider mead and craft beer. Demand for these drinks is driving up the requirement for yeast strains that may be used in their fermentation processes.
Japan is no stranger to the yeast and yeast extract business; nonetheless, it has recently assumed a more prominent role due to potentially profitable prospects. The Japanese yeast and yeast extract industry is estimated to grow at a CAGR of 6.1%.
Businesses may benefit from a multitude of benefits in the nation, including reduced production costs, enhanced technology, and easy access to a vast pool of prospective clients. Furthermore, increased health consciousness, rising disposable income, and Japan's expanding population are all contributing to the sector's rise.
To better satisfy consumer expectations, manufacturers are concentrating on innovation and product development, including creating new product applications. In addition, these businesses are spending a lot of money on marketing initiatives that aim to raise brand recognition and foster client loyalty.
Yeast extract demand in Australia is predicted to increase at a CAGR of 8.1%, gaining a noteworthy industry share of 3%. Businesses wishing to grow find the Australian market to be appealing.
Australia has become famous for those who wish to capitalize on the increasing demand for yeast extract since it has been gaining popularity. Food is a passion for Australians, who frequently look for baked delicacies with intriguing new flavors and textures.
Yeast extract offers a fascinating substitute that can be included in various recipes to enhance flavor while maintaining its nutritional value. Australians are becoming more health-conscious, and yeast extract provides a nutritious option that satisfies this trend without sacrificing the baked products' flavor or texture.
Germany's yeast extract market is expected to develop at a significant CAGR of 2.4% over the next ten years, gaining a 7.72% market share. Significant alterations in consumer behavior and lifestyle patterns were brought about by the COVID-19 pandemic, with one noticeable consequence being a substantial rise in baking activities in Germany.
The demand for a consistent supply of yeast grew as more homes started baking bread and other baked products regularly, which led to an increase in the sales of fresh and other yeast extracts.
Additionally, many people view cooking, especially baking, as soothing, which has led to the popularity of cooking as a family pastime. This tendency has considerably aided the expansion of the yeast and beta-glucan markets in Germany.
The yeast extract market is expected to grow due to the presence of significant industry players investing heavily in research & development to broaden their product offerings. New product releases, contracts, mergers and acquisitions, more effective investments, and cooperation with other businesses are essential market developments.
Market participants also take part in several calculated measures to broaden their global reach. For the yeast and yeast extract sector to expand and prosper in a market that is becoming more difficult and competitive, it must offer reasonably priced goods. Manufacturing locally to lower operational costs is one of the leading market tactics used by manufacturers in the market.
Recent Developments in the Yeast Extract Market
The global yeast extract market is likely to achieve USD 1,550.9 million in 2024.
The market is projected to reach USD 2584.0 million by 2034, , with a projected value of by that year.
The market is expected to grow at a 5.78% CAGR over the forecast period.
The United States market is anticipated to expand at a noteworthy CAGR of 4.01% from 2024 to 2034.
The United States, China, Japan, Australia, and Germany are the top five countries driving the demand for yeast extracts.
| Expected Base Year Value (2023) | USD 3.83 billion |
|---|---|
| Anticipated Forecast Value (2033) | USD 5.98 billion |
| Estimated Growth (2023 to 2033) | 4.6% CAGR |
| Market Size (2023E) | USD 1,291.3 million |
|---|---|
| Market Projected Size (2033F) | USD 2,868.6 million |
| Value CAGR (2023 to 2033) | 8.3% |
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