Yeast Market Size, Share, and Industry Analysis by Form (Dry Yeast, Instant Yeast, Fresh Yeast, and Others), by Type (Baker’s Yeast, Brewer’s Yeast, Wine Yeast, and Others), by Application (Food [Bakery, Alcoholic Beverages, Prepared Food and Others], Feed, and Others), and Regional Forecast till 2032

The global yeast market is poised for continued expansion as it adapts to changing consumer preferences toward healthier options and sustainable practices. Innovations in yeast manufacturing technology will likely play a crucial role in meeting the evolving demands across various sectors.The yeast market encompasses the production, distribution, and utilization of yeast, which is a unicellular eukaryotic fungus essential in various applications, particularly in food and beverage industries. Yeasts are primarily known for their role in fermentation, which enhances the flavor, texture, and shelf life of products.

Yeast Market Drivers

Increasing Demand from the Baking and Brewing Industries to Fuel the Growth of Yeast Market

The yeast market is experiencing significant growth, primarily driven by increasing demand from the baking and brewing industries. Yeast is an essential ingredient in the baking process, particularly for leavening dough in bread, pastries, and other baked goods. The rise in the consumption of baked products has intensified the demand for yeast. According to the U.S. Department of Agriculture (USDA), in the U.S., the retail sales of baked goods increased from USD 82,933.7 million in 2022 to USD 86,641.3 million in 2023. Consumption of baked products is expected to rise further, intensifying the need for yeast.

Yeast Market Restraints

Supply Chain Disruptions Coupled with Stringent Regulatory Compliance to Hamper Product Sales

Ongoing supply chain issues, exacerbated by geopolitical uncertainties and economic fluctuations, have created challenges for yeast manufacturers. These disruptions can lead to delays in production and increased costs, affecting overall market stability.

Furthermore, compliance with food safety and labeling regulations is becoming increasingly complex. Manufacturers must navigate a robust regulatory framework, which can be resource-intensive and may deter smaller players from entering the market.

Yeast Market Opportunities

Growing Ethanol Production to Fuel Product Demand in Upcoming Years

Over the last couple of years, the demand for biofuel has been gaining more traction worldwide due to increasing environmental concerns. Bioethanol has been identified as the most used biofuel worldwide as it significantly contributes to the reduction of crude oil consumption and environmental pollution. Microorganisms such as yeast have been used to produce ethanol as compared to other microbes due to their functional benefits, such as high ethanol productivity, high ethanol tolerance, and the ability to ferment a wide range of sugars. Thus, increasing ethanol production globally will likely drive the product demand in the upcoming years.

According to the U.S. Department of Agriculture, ethanol production in Brazil reached 31.66 billion liters in 2022, nearly 6% growth from the past year. Increasing sugarcane production is primarily responsible for the growth. Furthermore, According to the Renewable Fuels Association, ethanol production in the U.S. crossed 55 billion liters in 2022. The Association further claimed that the U.S. and Brazil produced more than 80% of ethanol in the world.

Yeast Market Segmentation

Key Insights

The report covers the following insights:

• Overview of the Parent Market


• Supply Chain Analysis


• Regulatory Landscape


• Recent Industry Development – New Product Launches, Mergers & Acquisitions, Investment Initiatives, and Others


• Qualitative Analysis Related to COVID-19

Analysis by Form

Based on form, the market is fragmented into dry yeast, instant yeast, fresh yeast, and others.

Dry yeast's dominance in the global yeast market can be attributed to several factors, including its ease of use, longer shelf life, cost-effectiveness, and versatility in various applications. Dry yeast has a longer shelf life, is easier to store, and is easier to transport than fresh yeast. The production cost of active dry yeast is low as it is mainly produced from molasses, an end product of sugarcane or sugar manufacturing plants. Its affordability is enhanced by lower production and shipping expenses.

The instant yeast segment is anticipated to experience significant growth in the coming years. Instant yeast does not require prior hydration, can be added directly to other bread ingredients, and reduces rise time, which is why it is favored in the bakery and brewing industries over fresh yeast. It improves efficiency and product quality by reducing fermentation time and standardizing production.

Analysis by Type

Based on type, the market is divided into baker’s yeast, brewer’s yeast, wine yeast, and others.

Baker's yeast, scientifically known as saccharomyces cerevisiae, dominates the global yeast market as it is a cornerstone of the baking industry, facilitating the fermentation process that leavens bread and imparts characteristic flavors. Baker's yeast is a key ingredient in producing bread, pastries, and other baked goods by facilitating fermentation, which leavens dough and enhances texture and flavor, contributing to higher product quality and consumer satisfaction. The rising popularity of bakery products among consumers, advancements in yeast fermentation technologies, and the increasing trend of home baking spurred by consumer interest in healthy, artisanal foods are growth factors for the baker’s yeast market.

The brewer's yeast segment is projected to experience significant growth in the global yeast market, driven by various factors, including increasing demand for natural ingredients in food and beverages. Beyond brewing, brewer's yeast is increasingly used in various food products such as bread, dietary supplements, and savory snacks. Its versatility as a functional ingredient is propelling its adoption across different sectors.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Europe holds a dominant position in the global yeast market. Countries such as Germany, France, Italy, and the U.K. dominate the European yeast market. Surging demand for bakery products in European countries boosts yeast’s demand. The European Union market is mainly concentrated on bread production applications, which is expected to drive the yeast market in the coming years.

The Asia Pacific region is experiencing strong economic growth, leading to rising living standards and an increasing population, which is stirring up demand for bakery and convenience food products. Exposure to international foods and rising disposable incomes are changing consumer food habits, with more consumers opting for ready-to-eat products, creating a promising outlook for the yeast market in the region.

Key Market Players

• Associated British Foods plc. (U.K.)


• Angel Yeast (Chifeng) Co., Ltd. (China)


• Lallemand Inc. (Canada)


• Lesaffre International (France)


• Oriental Yeast India Pvt Ltd. (India)


• AB Mauri Foods, Inc. (U.K.)


• Hansen Holding A/S (Denmark)


• Kerry Group Plc (Ireland)


• Koninklijke DSM N.V. (Netherlands)


• Leiber GmbH (Germany)

Key Industry Development

• In October 2023, Extracell launched ExtraCell AdTaste Smoked, a clean-label yeast extract ingredient that can be used on a wide range of dishes. It adds a smoky flavor to the dishes, which is also suitable for vegan consumers.


• In August 2023, Leiber GmbH expanded its presence in the U.S. market. The company invested USD 20 million in establishing its processes for brewer's yeast, which can be used for manufacturing animal nutrition, biotechnology, and nutraceutical products.