Table of Contents
Overview
New York, NY – May 05, 2025 – The global Yeast Ingredients Market is growing fast, driven by rising demand from food, beverage, and animal feed industries. In 2024, the market was valued at USD 4.8 billion and is expected to reach USD 8.8 billion by 2034, growing at a steady 6.2% CAGR.
In 2024, yeast extracts led the yeast ingredients market with a 43.6% share, driven by their extensive use in food and beverage applications as flavor enhancers and nutritional supplements. Baker’s yeast held a 68.5% share of the yeast ingredients market in 2024, owing to its critical role in the baking industry. The food sector accounted for 65.4% of the yeast ingredients market in 2024, reflecting yeast’s versatile role in culinary applications. Beyond baking, yeast is key in fermenting alcoholic beverages like beer and wine.
US Tariff Impact on Market
The U.S. baking industry faces a potential USD 454 million surge in costs in 2025 due to new tariffs ranging from 10% to 145% on imports from Canada, Mexico, and China, critical sources for over half of the industry’s ingredients, packaging, and equipment, according to the American Bakers Association (ABA).
➤ Get More Detailed Insights about US Tariff Impact @ – https://market.us/report/global-yeast-ingredients-market/request-sample/
Canada alone supplied nearly USD 1 billion in goods last year, including USD 193 million in ingredients, with a 25% tariff adding USD 244 million in costs, while Mexico’s USD 679 million in baking-related exports could increase expenses by USD 170 million under the same tariff. Chinese imports, valued at USD 395 million in 2024, may escalate to nearly USD 1 billion in costs amid intensifying trade tensions. The ABA warns that these tariffs threaten to disrupt global supply chains, raise operational costs, and impact businesses, workers, and consumers in the baking sector.
Key Takeaways
- Yeast Ingredients Market size is expected to be worth around USD 8.8 Bn by 2034, from USD 4.8 Bn in 2024, growing at a CAGR of 6.2%.
- Yeast extracts solidified their market leadership in the yeast ingredients sector, seizing more than a 43.6% share.
- Baker’s yeasts continued to dominate the yeast ingredients market, securing over a 68.5% share.
- The Food sector maintained a commanding lead, capturing over 65.4% of the market.
- European market for yeast ingredients exhibited robust growth, securing a dominant share of 44.6%, equivalent to a market valuation of approximately USD 2.1 billion.
Analyst Viewpoint
From an investment perspective, the yeast ingredients market offers a compelling growth outlook, fueled by rising demand for convenience foods and baked goods driven by evolving consumer preferences for quick, easy meals. Opportunities abound in the burgeoning plant-based and vegan food sectors, where yeast extracts and autolysates enhance flavor and nutrition, aligning with growing health and environmental awareness. However, investors must navigate risks, including volatile raw material prices that can squeeze production costs and margins, as well as stringent global food safety and quality regulations that may constrain operational flexibility and increase compliance costs.
Report Scope
| Market Value (2024) | USD 4.8 Billion |
| Forecast Revenue (2034) | USD 8.8 Billion |
| CAGR (2025-2034) | 6.2% |
| Segments Covered | By Type (Yeast Extracts, Yeast Autolysates, Yeast Beta-glucan, Yeast Derivatives, Others), By Source (Baker’s yeast, Brewer’s yeast), By Application (Food, Feed, Others) |
| Competitive Landscape | AngelYeast Co., Ltd, Leiber, DSM, Associated British Foods plc, Lesaffre Yeast Corporation, Lallemand Inc., Synergy Flavors, Sensient Technologies Corporation, Chr. Hansen Holding A/S, AB Vista, Kerry Group plc, Alltech, Foodchem International Corporation, BASF SE, ADM, Other Key Players |
➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=145896
Key Market Segments
By Type
In 2024, yeast extracts led the yeast ingredients market with a 43.6% share, driven by their extensive use in food and beverage applications as flavor enhancers and nutritional supplements. Praised for delivering umami flavor without artificial additives, they align with the rising demand for clean-label products. Yeast extracts also offer vitamins and minerals, making them vital for healthier, natural food formulations.
By Source
Baker’s yeast held a 68.5% share of the yeast ingredients market in 2024, owing to its critical role in the baking industry. Essential for dough fermentation, it enhances the texture and flavor of bread and other baked goods. Available in forms like fresh, dry, and instant yeast, it meets diverse baking needs. With growing global demand for bread, especially healthier and artisanal varieties, Baker’s yeast is poised to maintain its market leadership in 2025.
By Application
The food sector accounted for 65.4% of the yeast ingredients market in 2024, reflecting yeast’s versatile role in culinary applications. Beyond baking, yeast is key in fermenting alcoholic beverages like beer and wine. Yeast extracts, used as flavor enhancers and nutritional additives, are increasingly incorporated into products like soups, snacks, and ready-to-eat meals. Rising awareness of yeast’s health benefits, such as aiding digestion and nutrient absorption, is driving its use. As the food industry innovates with healthier options and new flavors, yeast’s market share is expected to grow in 2025.
Regional Analysis
- In 2024, the European yeast ingredients market captured a leading 44.6% share, valued at approximately USD 2.1 billion, driven by the region’s entrenched bakery and brewing industries, where yeast is indispensable. Europe’s advanced food processing sector and strong consumer demand for natural, clean-label ingredients further fuel this growth, complemented by a focus on sustainable production practices that align with the EU’s push to minimize artificial additives.
- Additionally, the rising health and wellness trend among European consumers boosts demand for functional foods enriched with yeast ingredients, valued for their high vitamin B content and essential minerals, supported by regional health campaigns aimed at reducing non-communicable diseases.
Top Use Cases
- Flavor Enhancement in Foods: Yeast extracts add a rich umami taste to soups, sauces, snacks, and ready meals. They act as natural flavor enhancers, replacing artificial additives like MSG, meeting consumer demand for clean-label products with authentic, savory profiles.
- Baking Industry Staple: Baker’s yeast is essential for bread, pastries, and pizza dough. It ferments sugars, producing carbon dioxide to make dough rise, improving texture and flavor, catering to the global demand for artisanal and healthier baked goods.
- Fermentation in Beverages: Yeast is crucial for brewing beer, making wine, and producing spirits. It converts sugars into alcohol and carbon dioxide, shaping unique flavors and textures, supporting the growing alcoholic beverage market.
- Nutritional Supplements: Yeast extracts and nutritional yeast provide vitamins, minerals, and proteins. Used in dietary supplements and fortified foods, they support immune health, energy, and digestion, appealing to health-conscious consumers.
- Animal Feed Additives: Yeast ingredients enhance pet food and livestock feed palatability. Rich in proteins and prebiotics, they promote gut health, immunity, and growth, meeting the rising demand for high-quality animal nutrition.
Recent Developments
1. AngelYeast Co., Ltd
- AngelYeast has expanded its yeast extract production to meet rising demand in food and health supplements. The company launched new high-protein yeast products for plant-based meat alternatives, catering to the vegan market. They also invested in R&D for yeast-derived beta-glucans to boost immunity. AngelYeast is strengthening its global presence, particularly in Africa and Southeast Asia.
2. Leiber
- Leiber specializes in brewers’ yeast and yeast derivatives for animal nutrition and human food. Recently, they introduced a new yeast-based selenium product for livestock health. The company also enhanced its yeast extract offerings with improved digestibility for pet food. Leiber focuses on sustainable production, using fermentation by-products to reduce waste.
3. DSM (Now part of Firmenich as “DSM-Firmenich”)
- DSM-Firmenich has developed innovative yeast solutions for alternative proteins, including vegan cheese and dairy substitutes. Their latest yeast extracts enhance umami flavor in reduced-sodium foods. The company also introduced a new yeast strain for bioethanol production, improving efficiency. DSM continues to invest in sustainable yeast-based ingredients for health and nutrition.
4. Associated British Foods plc (ABF) – AB Mauri
- AB Mauri, under ABF, launched new non-GMO yeast strains for artisanal and industrial baking. They expanded their yeast extract portfolio for savory snacks and soups, focusing on clean-label trends. The company also invested in fermentation tech to improve yeast yield and sustainability. AB Mauri is growing in emerging markets like India and Brazil.
5. Lesaffre Yeast Corporation
- Lesaffre introduced a new yeast protein for sports nutrition and plant-based diets. They expanded their yeast extract applications in meat alternatives and functional foods. The company also partnered with biotech firms to develop yeast-based probiotics for gut health. Lesaffre continues to lead in bakery yeast innovation with sustainable fermentation methods.
Conclusion
The Yeast Ingredients Market is steadily growing as food, beverage, and animal feed industries seek cleaner, natural, and functional alternatives. Yeast extracts, autolyzed yeast, and other derivatives are increasingly used for improving flavor, texture, and nutritional value. Rising consumer demand for plant-based and label-friendly ingredients has also pushed food manufacturers to turn toward yeast-based solutions. The growing popularity of processed foods and savory snacks in emerging regions is further fueling demand.
Discuss Your Needs With Our Analyst
Please share your requirements with more details so our analyst can check if they can solve your problem(s)
