Yeast Extract Market Size, Share & COVID-19 Impact Analysis, By Type (Autolyzed and Hydrolysed), Application (Food and Beverages, Animal Feed, Pharmaceuticals, and Others), and Regional Forecast, 2022-2029

The global yeast extract market size was USD 1.75 billion in 2021 and is projected to grow from USD 1.89 billion in 2022 to USD 3.39 billion by 2029, exhibiting a CAGR of 8.7% during the forecast period (2022-2029). The global COVID-19 pandemic has been unprecedented and staggering, experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 8.09% in 2020 as compared to 2019.

Yeast extract is a clean-label ingredient used in food and beverage products such as sauces, soups, ready meals, and savory snacks. It is made from the same fresh yeast used in bread, beer, and wine production. It is characterized by a savory taste of its own and is used as a spice to round off the taste of food products. The rising consumption of alcohol and the growing demand for bakery items will propel the market forward over 2022-2029.

COVID-19 IMPACT

Supply Chain Disruptions amid COVID-19 to Hamper Performance

The food and beverages industry has undergone profound disruption as the manufacturing plants were shut. The COVID-19 impact created a massive disruption in supply chains and acted as a significant restraint to food and beverages companies across the globe. Most countries had anticipated a decline in consumers’ purchasing powers owing to the shutdown of businesses and loss of income. Trade restrictions and imposition of lockdown by the government led to the halt of an immense number of barriers to producers and distributors operating in the food and beverages industry, as there was a restricted supply of raw materials and ingredients.

LATEST TRENDS

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Rapid Adoption of Veganism to Positively Influence Market Growth  

Increasing adoption of veganism leads to the growing use of nutritional yeast extract is expected to be a prevailing trend. Since nutritional yeast has a cheesy taste and is gluten-free and vegan is gaining traction. The consumption of salt-free, organic, vegan, and plant-based protein products is growing across the globe. The usage of inactive dried nutritional yeast is growing in animal feed. As a result of these factors mentioned above, the demand for nutritional yeast increases rapidly. Yeast is a single-cell fungus that develops naturally on plants and soil and lacks a cardiovascular and nervous system. Thus, yeast products consumption leads to no animal suffering, cruelty, and exploitation, making it a suitable choice for the vegan population. The products are rich in minerals, vitamins, and antioxidant contents. The extracts are the leaven in various food products to improve their texture and flavor and add nutritional content.

DRIVING FACTORS

Ease of Incorporation in Wide Range of Food & Beverage Applications to Aid Growth

Yeast extract plays a vital role as a bread leavening agent. It is used broadly in the food and beverage industry to ferment draft beverages with glucose. It comprises nutrients such as selenium, chromium, protein, potassium, zinc, magnesium, and iron and is helpful as a dietary supplement. It is highly versatile and popular for bouillons, seasoning sauces, soups, or savory snacks. It is also excellent for preparing vegetarian and vegan dishes. The driving force behind the yeast extract market growth is increased consumption of alcoholic beverages increased consumer preference for fresh and healthy foods comprising natural ingredients.

Rising Demand for Bakery Products to Propel Market Forward

Bread being a staple food across many countries, the demand for baker’s yeast is on the rise. Packaged baked goods, such as cakes, are also experiencing increasing demand worldwide, which will create new opportunities. Furthermore, the sales of bakery items are driven by the constant demand for specialty breads as well as the impact of inflation on retail prices. , further propelling the demand for baker’s yeast in bread and bakery products application.

RESTRAINING FACTORS

Availability of Substitutes to Hinder the Market Growth

The availability of various substitutes of yeast extract such as hydrolyzed animal proteins (HAPs), hydrolyzed vegetable proteins (HVPs), and nucleotides in the food industry is anticipated to restrict the market growth. Moreover, U.S. Food and Drug Administration (FDA) has granted GRAS status to monosodium glutamate (MSG), hydrolyzed animal protein (HAPs), and hydrolyzed vegetable protein (HVPs) for food and beverages applications, which affect industry demand. However, HPV and HAPs have safety concerns about the formation of intermediate products such as dichloro propanol (DCP) and monochloro propanol (MCH) in the manufacturing process, which may be mutagenic. Therefore, all such factors are expected to impact the yeast extract market share over the forecast period.

SEGMENTATION

By Type Analysis

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Autolyzed Segment to hold Significant Market Share Owing to Wide Use in Various Food Applications

The autolyzed technology segment accounted for a 63.99% market share in 2020. The segment will dominate during 2022-2029 because of the prominent taste of the product in various food applications including soups, dressings, and bakery products. The product is a rich source of vitamin B and micronutrients. The surging demand for clean label products with natural food ingredients will further drive the growth of this segment.

The two typical approaches for yeast extract production are autolyzed and hydrolyzed. Autolyzed is a natural event arising after cell death. It is the self-degradation of the cellular components of a yeast cell by the released endogenous digestive enzymes. The autolyzed process is associated with drawbacks such as difficulty in solid-liquid separation and low extraction yield owing to the risk of microbial contamination resulting from long-term incubation.

By Application Analysis

Food and Beverage Sector to hold Largest Market Share, Owing to Widely Utilized in Varied Applications

Yeast extracts are increasingly being utilized in various food & beverage applications such as dairy alternatives, bakery, energy drinks, and confectionery products due to their health benefits. It is an efficient tool to build unique taste profiles. This is primarily by bringing out some flavor notes and reducing and removing different ingredients for nutrition or clean labels purposes. It is performant in numerous processed foods, even in canned and frozen goods in several savory or sweet food and beverage segments. Yeasts are natural, well-suited ingredients for use in vegan and vegetarian products with no artificial, animal, or synthetic composition.

REGIONAL INSIGHTS

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European Market to Exhibit Highest Market Share On Account of Rising Awareness Regarding the Consumption of Nutritional Products

Europe dominated the global yeast extract market share with 35% and will exhibit similar trends in the future. Rising consumption of nutritional yeast extracts processed foods are the significant factors propelling the market growth in the region. Increasing urbanization, growing demand for bread and baked food products, the surge in consumer inclination towards natural ingredients, and varied usage of organic extracts in the food and beverage segment are several other crucial factors promoting the regional market.

North America is also considered as a substantial region in the global market, driven by intense demands for clean label ingredients and additives – flavor enhancers showing aroma and clean taste are increasing the market growth in the region. Consumers in the region are becoming more health-conscious and environmentally friendly since they are increasingly interested in the traceability, natural origin, and sustainability or nutritional impact of the food they purchase and consume.

Moreover, Asia Pacific is expected to witness significant gains because of the growing demand for convenience and ready-to-eat food products due to changing dietary preferences. The product is widely used as salt reduction, a natural ingredient, and flavoring agent in frozen and canned soups, bakery items, meat and fish, savory mixes, and sauces,. The Asia Pacific is expected to register the fastest growth over the forecast period on account of shifting consumer preference towards high-quality and nutritious foods.

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There has been a growing demand for natural food additives in the food and beverages industry due to the shifting food preferences and healthy lifestyle adoption among the younger and millennial population across the South American region. Consumers suffering from health conditions are advised to consume food items made from natural sources. Such factors, in turn, are expected to boost the market demand over the forecast period.

KEY INDUSTRY PLAYERS

Companies Focus on Expanding their Production Capacity to Meet the Global Demand

The global market is moderately consolidated in nature pertaining to the presence of large major key players in the market. Key manufacturing companies operating in the global market include Angel Yeast, Lesaffre, Ohly, Lallemand, AB Mauri, Halcyon Proteins, and DSM.

LIST OF KEY COMPANIES PROFILED:

• Lesaffre (France)


• AngelYeast Co., Ltd (China)


• Halcyon Proteins, (Australia)


• Biospringer. (France)


• Thai Foods International (Thailand)


• Alltech (U.S.)


• Synergy Flavors (U.S.)


• Lallemand, Inc. (Canada)


• Ohly (Germany)


• Leiber GmBH (Germany)

KEY INDUSTRY DEVELOPMENTS:

• July 2021: Biospringer by Lesaffre, announced an expansion on its yeast extract production site in Cedar Rapids, Iowa, United States. Biospringer by Lesaffre’s varied range of yeast ingredients is vital for multiple food and beverage industry applications. This investment will aid the growing market trend for natural-origin ingredients derived from fermentation.


• January 2019: Ohly announced that it has decided to divest its Hutchinson Torula Yeast facility and associated Torula whole-cell business with Lallemand, a global producer of bacteria-based products, with immediate effect.

REPORT COVERAGE

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The global market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Various key insights presented in the report are an overview of related markets, recent industry developments, such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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