Inactive Dried Yeast Market With Tariff Impact | CAGR of 12.1%

Overview

New York, NY – May 20, 2025 – The Global Inactive Dried Yeast Market is experiencing strong growth, with demand driven by its wide use in food, animal feed, and nutraceuticals. The market, valued at USD 666.1 million in 2024, is projected to reach USD 2087.4 million by 2034, growing at a 12.1% CAGR. In 2024, North America led the global inactive dried yeast market, holding a 46.2% share, valued at USD 307.7 million.

In 2024, Conventional inactive dried yeast held a strong 76.9% market share. Its reliability and widespread use in food production drive its popularity. The Powder form of inactive dried yeast led with a 46.3% market share in 2024. Packed with vitamins and minerals, it appeals to health-focused consumers.

Fortified inactive dried yeast captured 56.1% of the market in 2024. Packed with vitamins and minerals, it appeals to health-focused consumers. The Food & Beverage sector dominated with a 67.4% share in 2024. Inactive dried yeast enhances flavor, texture, and nutrition in baking, brewing, and more.

US Tariff Impact on Market

The American Bakers Association (ABA) estimates that tariffs on imports from Canada, Mexico, and China could increase U.S. baking industry costs by USD 454 million annually. Since early February, the White House has imposed tariffs on these key trading partners, including 10% to 20% on select Chinese goods and a 25% tariff on most imports from Canada and Mexico, though the latter is paused until April 2.

In 2024, U.S. bakers imported USD 977 million in goods from Canada, including USD 193 million in ingredients, USD 31 million in packaging, and USD 15 million in equipment. A 25% tariff would add USD 244 million in costs. From Mexico, imports totaled USD 679 million, with USD 96 million in ingredients, USD 56 million in equipment, and USD 17 million in packaging, leading to USD 170 million in additional costs under a 25% tariff.

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The ABA reports that these tariffs would collectively raise annual costs for the baking industry by USD 454 million. In 2024, bakery goods, cereals, and pasta made up 9% of U.S. agricultural exports to Canada, while U.S. agricultural exports to Mexico were dominated by corn (18%), dairy (8%), pork (8%), and soybeans (7%), per USDA data.

Key Takeaways

• Inactive Dried Yeast Market size is expected to be worth around USD 2087.4 Million by 2034, from USD 666.1 Million in 2024, growing at a CAGR of 12.1%.
• Conventional inactive dried yeast segment maintained a commanding presence in the market, securing over three-quarters of the total market share at 76.9%.
• The Powder form of inactive dried yeast solidified its market dominance by capturing more than 46.3% of the overall market share.
• Fortified inactive dried yeast captured a significant portion of the market, securing over 56.1% of total sales.
• The Food & Beverage sector significantly dominated the inactive dried yeast market, capturing a substantial 67.4% share.
• North America stands out as a dominant region, capturing a significant market share of 46.2%, which translates to approximately USD 307.7 million.

Analyst Viewpoint

The Inactive Dried Yeast (IDY) market offers strong investment potential driven by rising demand for health-focused, vegan, and gluten-free products. IDY’s high vitamin and protein content fuels its growth. Investing in production facilities could yield high returns, but investors must navigate risks like volatile raw material costs and supply chain issues that may affect profitability.

These innovations strengthen market competitiveness. In North America and Europe, strict food safety and quality regulations create challenges but also protect established companies by limiting new entrants. Government support for healthy eating and food fortification programs boosts IDY demand, fostering a positive growth environment.

Report Scope

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Key Market Segments

By Nature

• In 2024, conventional inactive dried yeast held a strong 76.9% market share. Its reliability and widespread use in food production drive its popularity. Food manufacturers trust it for consistent quality, making it a key ingredient. Despite new options, conventional yeast’s proven track record ensures its leading role in food processing.

By Form

• The powder form of inactive dried yeast led with a 46.3% market share in 2024. Its versatility, long shelf life, and easy storage make it ideal for home and industrial use. Powdered yeast blends well in baking, brewing, and fermentation, ensuring its continued dominance as a convenient choice.

By Fortification

• Fortified inactive dried yeast captured 56.1% of the market in 2024. Packed with vitamins and minerals, it appeals to health-focused consumers. Used in functional foods and supplements, it meets the demand for nutritious products. Its popularity is expected to grow into 2025 as health trends rise.

By Application

• The Food & Beverage sector dominated with a 67.4% share in 2024. Inactive dried yeast enhances flavor, texture, and nutrition in baking, brewing, and more. Its health benefits, like better digestion, make it essential. The sector’s growth ensures its strong market position.

Regional Analysis

• In 2024, North America led the global inactive dried yeast market, holding a 46.2% share, valued at USD 307.7 million. The U.S. drives this dominance, excelling in production and innovative uses, especially in food and beverages. A strong food processing industry, advanced technology, and demand for nutritious, plant-based, and clean-label products fuel growth. Vegan diet trends further boost yeast’s role as a flavor and nutrition enhancer, ensuring North America’s market leadership.

Top Use Cases

• Flavor Enhancer in Food: Inactive dried yeast adds a savory, cheesy, or nutty flavor to snacks, soups, and sauces. It’s popular in vegan foods like plant-based cheeses and meat substitutes, enhancing taste without artificial additives, appealing to consumers seeking clean-label products.
• Nutritional Supplement: Rich in protein, B vitamins, and minerals, inactive dried yeast is used in dietary supplements. It supports vegan and vegetarian diets, boosting immunity and gut health, and is marketed as a natural, nutrient-dense option for health-conscious consumers.
• Animal Feed Additive: Inactive dried yeast improves animal nutrition in livestock and pet food. Its high protein and probiotic effects enhance digestion, immunity, and growth, making it a sustainable choice for farmers aiming to reduce antibiotic use in feeds.
• Fermentation Nutrient Source: In brewing, winemaking, and bioethanol production, inactive dried yeast provides nutrients to support fermentation. It ensures consistent quality in beverages and biofuels, meeting the rising demand for sustainable and efficient production processes.
• Functional Food Ingredient: Inactive dried yeast is added to baked goods and snacks to boost nutritional value. Its vitamins and antioxidants align with the growing demand for functional foods that promote health, such as fortified breads and low-sodium products.

Recent Developments

1. Associated British Foods PLC (ABF)

• ABF, through its subsidiary AB Mauri, has expanded its inactive dried yeast offerings for the plant-based and alternative protein markets. The company emphasizes clean-label solutions with enhanced umami and savory flavors. AB Mauri’s latest products cater to vegan and health-conscious consumers, focusing on non-GMO and sustainable sourcing.

2. Alltech

• Alltech has introduced Yea-Sacc, an inactive dried yeast product aimed at improving gut health in livestock. Recent research highlights its benefits in enhancing nutrient absorption and immune response in animals. The company is also exploring applications in aquaculture and pet nutrition, promoting sustainable farming practices.

3. Angel Yeast Co. Ltd.

• Angel Yeast has launched a new high-protein inactive dried yeast for the food and beverage industry, targeting protein enrichment in snacks and beverages. The company is investing in R&D to improve yeast’s functional properties, such as solubility and flavor masking, for better application in health-focused products.

4. Chr. Hansen Holdings A/S

• Chr. Hansen has developed Fermotein, an inactive dried yeast protein for plant-based foods. This innovation enhances texture and nutritional profiles in meat alternatives. The company is collaborating with food manufacturers to integrate yeast-derived ingredients into sustainable food systems.

5. Lallemand Inc.

• Lallemand’s Lalmin range of inactive dried yeast is gaining traction in nutraceuticals and functional foods. Recent advancements focus on yeast beta-glucans for immune support. The company is also optimizing fermentation processes to improve yield and sustainability.

Conclusion

The Inactive Dried Yeast Market is growing fast, driven by rising demand in plant-based foods, animal nutrition, and health supplements. Companies like AB Mauri, Alltech, Angel Yeast, Chr. Hansen and Lallemand are innovating with new products, focusing on protein enrichment, gut health, and sustainable production. The trend toward clean-label and functional ingredients is pushing more food and feed manufacturers to use inactive yeast. With increasing interest in alternative proteins and natural additives, the market is expected to expand further, especially in North America, Europe, and Asia.

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