Specialty Yeast Market Report 2026

The specialty yeast market size has grown strongly in recent years. It will grow from $3.09 billion in 2025 to $3.31 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to expansion of processed food production, increasing use of yeast in animal nutrition, rising demand for flavor enhancers, advancements in fermentation technologies, growth of nutraceutical ingredient usage.

The specialty yeast market size is expected to see strong growth in the next few years. It will grow to $4.4 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to increasing focus on immune-support ingredients, rising adoption of yeast-based protein alternatives, expansion of functional food and beverage formulations, growing demand for natural bioactive compounds, increasing investment in precision fermentation. Major trends in the forecast period include increasing demand for functional yeast ingredients, rising use of yeast-based nutritional enhancers, growing adoption of clean-label fermentation solutions, expansion of yeast beta-glucan applications, enhanced focus on high-purity yeast derivatives.

Rising consumption of alcoholic beverages is expected to support the growth of the specialty yeast market in the coming years. Alcoholic beverages rely on controlled fermentation conditions, including optimal temperature, viscosity, and pressure, during production. Specialty yeast is widely used in food and beverage applications, particularly in alcoholic beverage production, to enhance fermentation efficiency and improve flavor characteristics. As demand for alcoholic drinks increases, it drives higher production volumes and the expansion of food and beverage manufacturing facilities, which in turn raises demand for specialty yeast. For instance, in December 2024, according to Kirin Holdings Co. Ltd., a Japan-based producer of alcoholic and non-alcoholic beverages and pharmaceutical products, global beer consumption in 2023 rose slightly by around 200,000 kiloliters compared to 2022, reaching approximately 187.9 million kiloliters, equivalent to about 296.9 billion 633 ml bottles, representing a modest year-on-year growth of 0.1%. Therefore, the increasing consumption of alcoholic beverages is driving the growth of the specialty yeast market.

Leading companies in the specialty yeast market are concentrating on the development of innovative products, such as specialty brewing yeasts, to support experimental brewing, expand flavor diversity, and address evolving requirements within the craft beer industry. Specialty brewing yeast refers to carefully selected yeast strains designed to create unique flavor profiles, new beer styles, or specific fermentation characteristics. For example, in 2024, Lallemand Brewing, a Canada-based supplier of brewing yeasts and fermentation solutions, introduced the LalBrew Limited Release Yeast Series. This initiative features exclusive, small-batch yeast strains that enable brewers to experiment with seasonal beers, historical recipes, and specialty fermentations, allowing breweries to innovate while providing feedback that informs future yeast development.

In August 2024, AB Mauri, a UK-based bakery and yeast company, acquired Omega Yeast Labs LLC for an undisclosed amount. Through this acquisition, AB Mauri aims to strengthen its position in the craft brewing sector by leveraging Omega Yeast’s well-regarded yeast strains and technical expertise. By combining Omega Yeast’s capabilities with AB Biotek’s global fermentation technology platform, the company seeks to broaden its specialty yeast portfolio and diversify product offerings. Omega Yeast Labs LLC is a US-based yeast manufacturer specializing in the production of specialty yeast strains.

Major companies operating in the specialty yeast market are Associated British Foods plc, Archer-Daniels-Midland Company, Lallemand Inc., Chr. Hansen Holding A/S, Kerry Group plc, Angel Yeast Co. Ltd., Biorigin SAS, Leiber GmbH, Aria Ingredients Inc., Agrano GmbH & Co. KG, Koninklijke DSM N.V., Lesaffre Group, Alltech Inc., Kemin Industries Inc., DSM Food Specialties B.V., Anchor Yeast Co. Ltd., Bacchus Yeast Co. Ltd., Bakers Yeast Co. Ltd., Best Flavors Inc., Cargill Incorporated.

Asia-Pacific was the largest region in the specialty yeast market in 2025. The regions covered in the specialty yeast market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the specialty yeast market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The specialty yeast market consists of sales of dry yeast, instant yeast, and liquid yeast. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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