Dried Yeast Market Promising Growth Rate of 7.1% by 2034

Overview

New York, NY – June 06, 2025 – The Global Dried Yeast Market is growing fast, driven by rising demand from the food and beverage industries. In 2024, the market was valued at USD 4.4 billion, but it is expected to reach USD 8.7 billion by 2034, growing at a 7.1% CAGR.

In 2024, Active Dry Yeast led the dried yeast market, securing over 48.3% of the segment. Its widespread use is driven by its reliability, long shelf life, and ease of use, making it a top choice for both commercial and home baking. Bags and Sacks dominated the dried yeast packaging segment, accounting for over 37.5% of the market. Their affordability, durability, and suitability for bulk storage and transport make them ideal for industrial buyers.

The Bakery segment commanded over 54.6% of the dried yeast market, driven by rising consumption of bread, cakes, and other baked goods globally. Commercial Bakeries held over 40.1% of the dried yeast market, driven by high-volume production needs and the demand for consistent yeast performance. Distributors and Wholesalers captured over 37.4% of the dried yeast distribution market, leveraging their extensive networks to supply commercial bakeries and food manufacturers.

Key Takeaways

• Dried Yeast Market size is expected to be worth around USD 8.7 billion by 2034, from USD 4.4 billion in 2024, growing at a CAGR of 7.1%.
• Active dry yeast held a dominant market position, capturing more than 48.3% of the dried yeast segment.
• Bags and sacks held a dominant market position in the dried yeast packaging segment, capturing more than 37.5% of the market share.
• The bakery segment held a dominant position in the dried yeast market, capturing more than 54.6% of the total application share.
• Commercial bakeries held a dominant position in the dried yeast market, capturing more than 40.1% of the end-use segment.
• Distributors and wholesalers held a dominant market position in the dried yeast distribution channel segment, capturing more than 37.4% of the market share.
• North America held a commanding 46.3% share of the global dried yeast market, translating to an estimated market size of approximately USD 2 billion.

How Growth is Impacting the Economy

• The Dried Yeast Market’s growth significantly impacts the global economy by driving job creation and industrial expansion. Commercial bakeries, holding 40.1% of end-use, bolster foodservice sectors, particularly in North America, where the market contributes USD 2 billion. Rising demand for baked goods fuels economic activity in urbanizing regions, enhancing local economies through increased consumer spending.
• Additionally, dried yeast’s applications in brewing and bioethanol production diversify economic contributions, supporting energy sectors. The growth of distribution networks, led by wholesalers, strengthens trade and logistics infrastructure. As bakery chains expand globally, investments in production facilities and innovation stimulate economic development, particularly in emerging markets, fostering sustainable growth and reinforcing the food industry’s role as a key economic driver in 2025 and beyond.

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Strategies for Businesses

• Businesses in the dried yeast market should focus on innovation, sustainability, and market expansion. Developing specialized yeast products, such as organic or high-potency variants, can attract health-conscious consumers. Adopting eco-friendly packaging, like biodegradable bags, aligns with sustainability trends.
• Strengthening partnerships with distributors and wholesalers, who hold a 37.4% market share, ensures efficient supply chains. Expanding into emerging markets with growing bakery sectors, like Mexico, offers growth opportunities. Leveraging digital platforms for direct-to-consumer sales can tap into the home baking trend. Investing in R&D to enhance yeast performance and shelf life will maintain competitive edges, ensuring alignment with 2025’s rising demand.

Report Scope

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Key Market Segments

By Yeast Type

• In 2024, Active Dry Yeast led the dried yeast market, securing over 48.3% of the segment. Its widespread use is driven by its reliability, long shelf life, and ease of use, making it a top choice for both commercial and home baking. The global rise in bakery product demand further strengthened its market position. In 2025, active dry yeast continues to dominate, fueled by consumer demand for consistent quality and dependable fermentation, solidifying its leadership in the dried yeast market.

By Packaging Type

• In 2024, Bags and Sacks dominated the dried yeast packaging segment, accounting for over 37.5% of the market. Their affordability, durability, and suitability for bulk storage and transport make them ideal for industrial buyers. In 2025, demand for bags and sacks remains strong, driven by the growth of the bakery and food processing industries, which value cost-effective and efficient packaging solutions.

By Application

• In 2024, the Bakery segment commanded over 54.6% of the dried yeast market, driven by rising consumption of bread, cakes, and other baked goods globally. The growing popularity of fresh and homemade bakery products further increased demand. In 2025, the bakery sector continues to lead, supported by expanding bakery chains and urbanization, which sustain the need for reliable yeast products.

By End Use

• In 2024, Commercial Bakeries held over 40.1% of the dried yeast market, driven by high-volume production needs and the demand for consistent yeast performance. The global expansion of bakery chains and foodservice providers bolstered this trend. In 2025, commercial bakeries remain a key market driver, fueled by growing demand for baked goods in both developed and emerging markets.

By Distribution Channel

• In 2024, Distributors and Wholesalers captured over 37.4% of the dried yeast distribution market, leveraging their extensive networks to supply commercial bakeries and food manufacturers. Their ability to ensure timely delivery and widespread availability strengthens their role. In 2025, these channels continue to drive market growth, supported by robust logistics and connections to meet global demand.

Regional Analysis

• In 2024, North America accounted for 46.3% of the global dried yeast market, valued at approximately USD 2 billion. The bakery sector’s strong demand, coupled with a well-established food processing industry, drives this dominance, with applications extending to brewing and bioethanol production. The United States is a major contributor, supported by its extensive commercial bakery network and a surge in home baking. Canada’s demand for artisanal and organic baked goods and Mexico’s growing food and beverage industry further fuel the region’s need for dried yeast.

Recent Developments

1. AB Mauri

• AB Mauri, a global leader in yeast production, recently launched high-performance dried yeast strains for artisanal and industrial baking. The company is focusing on clean-label and sustainable solutions, reducing energy use in production. They also expanded operations in Asia and Africa to meet growing demand. AB Mauri’s innovations include yeast with enhanced fermentation stability for better bread quality.

2. Algist Bruggeman

• Algist Bruggeman has introduced non-GMO and organic dried yeast to cater to health-conscious consumers. The company invested in automated drying technology to improve efficiency and product consistency. They are also collaborating with European bakeries to develop custom yeast blends for specialty bread. Their focus remains on sustainability and reducing the carbon footprint in yeast production.

3. Alltech

• Alltech is leveraging its yeast-based nutrition expertise to develop dried yeast for animal feed, enhancing gut health in livestock. They recently partnered with aquaculture farms to test yeast-based protein alternatives. Additionally, Alltech is researching yeast-derived biofuels as a sustainable energy source. Their focus is on biotechnology-driven yeast applications.

4. Angel Yeast Co. Ltd.

• Angel Yeast expanded its dried yeast production capacity with a new facility in China, targeting export markets. They introduced low-sugar-tolerant yeast for diabetic-friendly bakery products. The company is also investing in R&D for yeast extracts used in plant-based meat alternatives. Angel Yeast aims to lead in functional and specialty yeast products.

5. Biospringer

• Biospringer, part of Kerry Group, launched yeast extracts for umami flavor enhancement in snacks and vegan foods. They developed heat-stable dried yeast for processed foods with a longer shelf life. The company is also exploring yeast-based fermentation for alternative proteins. Their innovations focus on natural taste improvement and clean-label trends.

Conclusion

The Dried Yeast Market is on a strong growth path. Rising demand from bakeries, breweries, and health-focused food products is driving this expansion. Key factors like vegan diets, clean-label trends, and convenience foods are boosting sales, while innovations in non-GMO, organic, and specialty yeast strains are creating new opportunities. Companies are expanding production, entering emerging markets, and investing in sustainable and high-efficiency yeast solutions. 

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