Bakers\' Yeast Extract Market-Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2024 - 2030

Bakers’ Yeast Extract Market Overview

Bakers’ Yeast Extract Market size is estimated to be $1.7 billion in 2030, growing at a CAGR of 4.9% during the forecast period 2024-2030. Yeast are the kind of microorganisms that helps to produce enzymes, carbon dioxide (CO2), and other metabolites from carbohydrates which are used in the process of fermentation, baking, increasing value of the nutritional property, and flavoring foods. Yeasts are natural nutrients that are employed in the food processing industry as one of the key food Extracts. The bakers' yeast extract market is undergoing significant changes influenced by evolving consumer preferences and technological innovations. There is a growing demand for natural and clean-label ingredients, with consumers seeking products free from artificial additives, preservatives, and GMOs. Bakers' yeast extract fits well into this trend, as it is a natural ingredient rich in umami flavor, enhancing taste profiles in a variety of food products such as soups, sauces, snacks, and ready-to-eat meals. Additionally, yeast extracts are gaining traction as a natural alternative to monosodium glutamate (MSG) and other synthetic flavor enhancers, catering to health-conscious consumers looking for healthier and more natural options.

Another trend is the increasing application of bakers' yeast extract in the food industry due to its nutritional benefits, including being a source of essential amino acids, vitamins, and minerals. This makes it an attractive ingredient for fortifying food products, especially in the growing sectors of plant-based and functional foods. Technological advancements in fermentation and extraction processes are also enhancing the efficiency and quality of yeast extract production, enabling manufacturers to meet the rising demand while ensuring product consistency and sustainability. These trends reflect a broader movement towards healthier, more natural, and sustainable food ingredients in the global market.

Report Coverage 

The report: “Bakers’ Yeast Extract Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Bakers’ Yeast Extract Market. 
By Form: Liquid Yeast, Fresh Yeast, Crumbled Yeast, Active Dry Yeast, Instant Dry Yeast, Frozen Semi Dry Yeast, Genetically Modified Yeast, and Others.
By Application: Food – Alcoholic Beverages - Brewing and Wine Making, Non-Alcoholic Beverages, Nutritional Supplements, Canned and Frozen Foods, Bakery/Snacks & Savory, Pharmaceuticals, Bio Fuels, Animal Feed and Others.
By Geography: North America, Europe, Asia-Pacific, and Rest of the World.

Key Takeaways

• The increasing consumption of processed food and growing demand for nutritional yeast is likely to be the major driving factor for the market’s growth.
• The rising demand of functional bakery products, positive trend in alcoholic beverage consumption and improved production of animal feed is adding towards the market’s growth.
• The growing industrialization and raising awareness about yeast is set to propel the growth of the market in the developing countries.
• North America region is estimated to record the fastest growth rate during the forecast period 2024-2030.

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By Application - Segment Analysis

In 2023, Food segment dominated the Bakers’ Yeast Extract Market in terms of revenue is estimated to grow at a CAGR of 3.8% owing towards rising consumption of naturally-extracted Extracts with the increasing demand for clean-label and free-from products is projected to drive the growth of the Bakers’ Yeast Extract Market in the food industry.  Yeast extract contains glutamates, an amino acid that can be found naturally in a variety of foods. They're sometimes removed and added to ready-to-eat foods like spreads, soups, and other prepared foods. Most producers are following the FDA's regulatory rules and employing yeast extract as a natural component, as well as including it on labels. Baker's Bakers’ Yeast Extract Market are typically gluten-free because no gluten derivatives are utilized in the manufacturing process. Recently, about 72% of Americans are suffering from gluten intolerance that rising its use in the food and beverage industry.

By Geography - Segment Analysis

In 2023, the Europe region dominated Bakers’ Yeast Extract Market in terms of revenue with a market share of 36% owing towards increase in the disposable income and inception of weekend culture in most parts of the Europe and increasing demand for investment in R&D. North America held a growing share in the market as compared to other regions. It is owing to the robust demand of the food and beverage industry. Bakers’ Yeast Extract Market are growing rapidly owing to excessive intake of functional foods as well as rising growth in the dairy industry. The growth is also owing to the demand for fresh bread and rolls, which were the most popular bakery products in the United States in 2023, with sales totaling around $18 billion. So, the use of Bakers’ Yeast Extract Market increases with the rising growth in the bakery industry.

Drivers – Bakers’ Yeast Extract Market

Rising Demand for Plant Based Foods

A major driver in the bakers' yeast extract market is the rising demand for plant-based foods. As more consumers adopt vegetarian, vegan, and flexitarian diets, the need for plant-based ingredients that can deliver rich, savory flavors and nutritional benefits is increasing. Bakers' yeast extract, being a natural source of umami, is ideally suited for enhancing the taste and nutritional profile of plant-based products such as meat substitutes, dairy alternatives, and plant-based snacks. This demand is further fueled by the growing awareness of the health and environmental benefits of plant-based diets, driving food manufacturers to incorporate yeast extracts into their formulations. Consequently, the rising popularity of plant-based foods is significantly boosting the demand for bakers' yeast extract in the food industry.

Growing health consciousness consumers have readily aided the market growth

As consumers become more conscious of their diet and food choices so, yeast extract is improving appeal as a versatile ingredient used for savory flavor and high-quality meals. Veganism is becoming more popular as people become more conscious of their health and everyday habits. As consumer awareness of environmental issues grows, food companies are being driven to use natural resources such as yeast extract instead of animal-derived raw ingredients to improve product quality. Veganism usually entails avoiding animal-based goods, prompting food manufacturers to shift their focus to Bakers’ Yeast Extract Market. The demand for Bakers’ Yeast Extract Market will be aided by the health benefits connected with their intake in the next years. According to the Plant-Based Foods Association, sales of plant-based foods raised by 11% in 2019 further accelerating the demand for yeast extract.

Challenges – Bakers’ Yeast Extract Market

Stringent Food Safety Regulations

Stringent regulations imposed by regulatory bodies and government in various countries is hindering the market for products made from yeast, thus restraining the Bakers’ Yeast Extract Market. Also, unavailability of suitable raw materials required in the production of varied range of yeast types hampers the industry growth. Further, shortage of raw material is forecast to create supply-demand imbalances which restrain the growth of the market. 

Expansion in Biofuel Production

The burgeoning global emphasis on reducing reliance on fossil fuels has spurred a notable surge in biofuel production. Yeast, crucial in ethanol fermentation, stands at the forefront of this expansion, witnessing soaring demand. Governments worldwide are instituting policies to incentivize the adoption of renewable energy sources, propelling the biofuel market forward. As a result, the reliance on yeast as a catalyst in ethanol production is escalating in tandem with the burgeoning demand for biofuels.

Bakers’ Yeast Extract Industry Outlook 

Product Launches, Merger & Acquisition, joint ventures, and R&D activities are key strategies adopted by the players in the Bakers’ Yeast Extract Industry. Bakers’ Yeast Extract top 10 companies include 

1. Kerry Group PLC,
2. Synergy Ltd.,
3. Associated British Foods PLC,
4. DSM,
5. Angel Yeast Co. Ltd,
6. Lesaffre Yeast Corporation,
7. Lallemand Inc.,
8. Alltech Inc.,
9. Wyeast Laboratories Inc.,
10. Danisco A/S

Recent Developments:

• In September 2022, Lesaffre, a fermentation leader for 170 years, has acquired Recombia Biosciences, a San Francisco-based biotech company. This move follows a strategic partnership aimed at leveraging Recombia's genome-editing tech to enhance yeast development for sustainable fermentation. It marks Lesaffre's foray into Synthetic Biology, a significant biotech frontier. The acquisition underscores Lesaffre's commitment to innovation and sustainability in the production of fermented Extracts.
• June 2022, Angel Yeast, responding to increasing demand for yeast-based products, announces plans to enhance supply and innovation capabilities. This aligns with insights from Innova Market Insights, highlighting the need for industry players to innovate and expand production to meet evolving consumer needs and stay competitive.
• January 2024, Lallemand Inc, a Canadian biotech company, has completed the acquisition of Swiss biotech firm Evolva AG. Evolva specializes in yeast-derived natural Extracts for various industries. The strategic fit aligns Evolva's precision fermentation technology with Lallemand's yeast-based solutions, enhancing their global biotech portfolio. 

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