Yeast Market - Forecasts from 2023 to 2028

The global yeast market is projected to grow at a CAGR of 7.37% over the forecast period, increasing from US$4.218 billion in 2021 to a total market size of US$7.750 billion by 2028.

The yeast market is expanding rapidly because of the rising demand from end-user industries, including food and beverage. Since yeast improves the quality of baked goods, there is a vast market for it. Due to rising customer demand for packaged and convenience foods, compressed yeasts are being used in the bread sector at a quicker pace.

Companies see huge potential in Yeast manufacturing and are developing various innovative products. For instance, in September 2022, Angel Yeast announced the development of its newest dry yeast product, Premium Dry Yeast. A global event was organized in China, where the baking industry is flourishing, to address all the issues in the baking and confectionery value chain. These cutting-edge yeasts satisfy the most recent standards for flexibility, convenience, and stability in the baking business.

Increasing demand for baked goods.

The demand for baked goods like cookies, biscuits, and cakes is driving up the price of yeast products. The evolving human lifestyle and the growing purchasing power are significant factors in the expansion of the global yeast market. Consumption of packaged foods has dramatically grown recently, especially among millennials, which will further support industry expansion. Furthermore, the rising popularity of drinking beer, rum, vodka, and other alcoholic beverages is paving new market potential for yeast producers globally. The beverages' texture, flavor, quality, and scent are all improved by yeast.

The rising consumption of bread, pastries, and other bakery items fuels the demand for yeast as a key ingredient in dough fermentation. Bakeries such as Tartine Bakery and Boudin Bakery in San Francisco have gained recognition for their artisanal sourdough bread, which relies on natural fermentation with yeast to achieve its iconic tangy flavor and chewy texture.

Increased demand for processed food items and alcoholic beverages.

The yeast market is estimated to grow significantly due to increased demand for processed food items and alcoholic beverages. The need for these food products has been growing recently due to rapid urbanization, increasing disposable incomes for younger age groups, rising standards of living, increased demand for desserts, and the growing culture of cafes and bakeries. This will simultaneously boost the demand for yeast, a vital component in making these baked goods. Further, there is a rise in demand for nutritional yeast from people who follow vegan dietary habits. Therefore, the increase in vegan culture will also help generate additional demand for yeast products in the food industry.

Additionally, craft breweries, known for their focus on flavor, quality, and experimentation, heavily rely on yeast to create various beer styles with distinct characteristics. For instance, breweries like Cascade Brewing specialize in sour beers requiring specific yeast strains to achieve the desired tartness and complexity. The yeast used in sour beer fermentation plays a crucial role in producing lactic acid and other flavor compounds that contribute to the distinct taste of these beers.

Geographical Insights:

The global yeast market is segmented by geography as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American market is estimated to grow driven by increasing demand for bakery products, rising adoption of yeast as a natural food ingredient, and the expansion of the craft brewing industry.

The North American yeast market.

The United States holds the largest share of this market due to the growing consumption of baked goods, the rising popularity of specialty and craft beers, and the increasing demand for natural and organic food ingredients. Canada is another country that holds a significant share of this market after the United States. This country's market growth is attributed to the expanding bakery industry, increasing demand for nutritional yeast as a plant-based protein source, and the rising consumption of fermented food and beverages. The market growth in Mexico is driven by the growing popularity of Mexican cuisine worldwide and the increasing adoption of yeast as a key ingredient in various culinary applications.

Rising beer demand in the U.S.

The data on U.S. beer sales volume share in 2022 reveals that craft beer accounted for 13.20% of the market, while other domestic beers held a share of 64.50%, and imports made up 22.20%. Craft beer production typically involves various yeast strains to achieve unique flavors and profiles. As the craft beer sector continues to expand, the demand for yeast as a crucial component for fermentation and flavor development is expected to grow in the U.S. Similarly, the dominance of other domestic beers in the market indicates a steady demand for yeast in producing traditional beer styles. Additionally, imports contribute to the overall demand for yeast as international breweries often rely on various yeast strains for their beer production. Consequently, the growth and diversification of the U.S. beer market contribute to the growth and demand for yeast in the country.

Market Segmentation:

By Form

• Active Dry Yeast
• Fresh Yeast
• Instant Yeast

By Type

• Baker's Yeast
• Brewer's Yeast
• Nutritional Yeast
• Distiller's and Wine Yeast
• Others

By Application

• Food
• Beverage
• Animal Feed
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa (MEA)
• Saudi Arabia
• UAE
• Isreal
• Others
• Asia Pacific
• Japan
• China
• India
• Australia
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others