Yeast Market Experiences US Tariff Impact | CAGR of 6.9%

Overview

New York, NY – May 19, 2025 – The Global Yeast Market is experiencing strong growth, driven by rising demand from food, beverage, and biofuel industries. Valued at USD 5.9 billion in 2024, the market is projected to reach USD 11.5 billion by 2034, expanding at a CAGR of 6.9% from 2025 to 2034.

In 2024, Fresh Yeast dominated the By Form segment of the Global Yeast Market, commanding a 56.4% share. Its widespread use in bakery applications stems from its active fermentation properties, which are critical for achieving superior dough rise and texture. Baker’s Yeast led the By Type segment in 2024, holding a 46.2% market share.

Its dominance is driven by its essential role in bread, pastries, and other baked goods. Conventional Yeast captured an impressive 89.9% share of the By Nature segment in 2024, reflecting its dominance in the Yeast Market. Yeast Autolysates led the Yeast Extract segment in 2024 with a 56.1% share, driven by their rich umami flavor and clean-label appeal.

US Tariff Impact on Market

The American Bakers Association (ABA) estimates that tariffs on imports from Canada, Mexico, and China could cost the U.S. baking industry USD 454 million annually. Since early February, the White House has implemented tariffs on the U.S.’s top three trading partners, including 10% to 20% on specific Chinese goods and a 25% tariff on most imports from Canada and Mexico, though the latter is paused until April 2.

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In 2024, U.S. bakers imported USD 977 million in Canadian goods, 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, per the ABA. From Mexico, bakers imported USD 679 million in goods, including USD 96 million in ingredients, USD 56 million in equipment, and USD 17 million in packaging. A 25% tariff would increase costs by USD 170 million, the ABA calculated.

The combined impact of these tariffs would raise costs for the baking industry by USD 454 million per year, the ABA reported. In 2024, bakery goods, cereals, and pasta accounted for 9% of U.S. agricultural exports to Canada, while U.S. agricultural exports to Mexico were led by corn (18%), dairy (8%), pork (8%), and soybeans (7%), per USDA data.

Key Takeaways

• Global Yeast Market is expected to be worth around USD 11.5 billion by 2034, up from USD 5.9 billion in 2024, and grow at a CAGR of 6.9% from 2025 to 2034.
• In 2024, fresh yeast held 56.4% market share due to its popularity in artisanal baking.
• Baker’s yeast led the type segment, accounting for 46.2% because of its wide bakery applications.
• Conventional yeast dominated with an 89.9% share, driven by cost-effectiveness and large-scale food processing use.
• Yeast autolysates captured 56.1% in the extract segment, valued for flavor enhancement in savory products.
• The food segment led with a 57.4% share, supported by strong demand in the bakery and snack sectors.
• Europe’s bakery sector fueled yeast demand, capturing a 43.5% share worth USD 2.5 Bn.

Report Scope

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Key Market Segments

By Form Analysis

• In 2024, Fresh Yeast dominated the By Form segment of the Global Yeast Market, commanding a 56.4% share. Its widespread use in bakery applications stems from its active fermentation properties, which are critical for achieving superior dough rise and texture. Fresh Yeast’s natural leavening ability and minimal processing make it a top choice for artisanal and commercial bakers, aligning with the rising demand for clean-label products.

By Type Analysis

• Baker’s Yeast led the By Type segment in 2024, holding a 46.2% market share. Its dominance is driven by its essential role in bread, pastries, and other baked goods, offering reliable leavening and versatility across fresh, dry, and instant forms. The consistent global demand for baked products, particularly in bread-centric regions, fuels its widespread use.

By Nature Analysis

• Conventional Yeast captured an impressive 89.9% share of the By Nature segment in 2024, reflecting its dominance in the Yeast Market. Its cost-effectiveness, consistent quality, and scalability make it the preferred choice for large-scale baking, brewing, and food processing. Despite the rise of organic alternatives, conventional yeast’s established supply chains and regulatory compliance ensure its widespread adoption in high-volume production.

By Yeast Extract Analysis

• Yeast Autolysates led the Yeast Extract segment in 2024 with a 56.1% share, driven by their rich umami flavor and clean-label appeal. Widely used in ready meals, soups, sauces, and plant-based foods, autolysates enhance taste and mouthfeel while meeting consumer demand for natural ingredients. Their high protein content also supports their use in nutritional supplements.

By Application Analysis

• The Food sector dominated the By Application segment in 2024, accounting for 57.4% of the Yeast Market. Yeast’s critical role in baking, seasonings, sauces, and meat alternatives drives its high demand, supported by its fermentation, flavor-enhancing, and nutritional properties. The 57.4% share reflects the growing consumption of processed and convenience foods, alongside the rise of clean-label and plant-based products.

Regional Analysis

• In 2024, Europe led the Global Yeast Market with a 43.5% share, valued at USD 2.5 billion, driven by its strong bakery culture and demand for fermented foods and alcoholic beverages. Countries like Germany, France, and the UK fuel yeast consumption through artisanal and industrial baking.
• North America follows, with the U.S. showing growth in nutritional yeast and clean-label trends, spurred by plant-based diets. Asia-Pacific is a fast-growing region, driven by rising packaged food consumption in emerging economies. The Middle East & Africa and Latin America, while smaller markets, are expanding due to increasing urbanization and food processing, but Europe remains the market leader.

Top Use Cases

• Baking Industry: Yeast is essential for leavening bread, pastries, and dough-based products. Ensures consistent rise and texture, meeting the growing demand for artisanal and packaged baked goods. Its natural fermentation properties align with clean-label trends, driving its widespread use in Europe and Asia-Pacific.
• Brewing and Alcoholic Beverages: Yeast ferments sugars to produce alcohol in beer, wine, and spirits. Its critical role in crafting unique flavors fuels demand, especially in Europe’s robust brewing sector. The market’s growth is supported by rising craft beer popularity and consumer interest in premium, fermented beverages globally.
• Nutritional Supplements: Nutritional yeast, rich in protein, vitamins, and minerals, is a popular dietary supplement, especially among vegans. Its use in fortified foods and health products is growing, driven by consumer focus on wellness. The clean-label appeal and functional benefits contribute to its expanding market presence.
• Bioethanol Production: Yeast converts sugars into ethanol for biofuels, supporting sustainable energy solutions. With global emphasis on renewable energy, this application is gaining traction, particularly in North America and Asia-Pacific. The market sees opportunities as governments promote eco-friendly fuels, boosting yeast demand.
• Animal Feed: Yeast enhances animal nutrition, improving digestion and growth in livestock and poultry. Its high protein content and probiotic properties make it a valuable feed additive. Growing meat consumption and focus on animal health drive this segment, with notable expansion in emerging markets like Asia-Pacific.

Recent Developments

1. Associated British Foods plc (ABF)

• Associated British Foods, through its subsidiary AB Mauri, has expanded its yeast extract production to meet rising demand for umami flavors in plant-based foods. The company invested in sustainable fermentation technologies to reduce carbon emissions. ABF also launched new non-GMO yeast strains for clean-label products. Their focus remains on innovation in the bakery and savory segments.

2. Angel Yeast (Chifeng) Co. Ltd.

• Angel Yeast has introduced high-protein yeast-based meat alternatives in China, leveraging fermentation for sustainable protein. The company expanded its production capacity in Egypt to serve Middle Eastern and African markets. Angel Yeast also developed low-sodium yeast extract for health-conscious consumers. Their R&D focuses on functional yeast for nutraceuticals.

3. Lallemand Inc.

• Lallemand launched Proton, a yeast-based probiotic for gut health in animal nutrition. They expanded their bioethanol yeast portfolio to improve fuel efficiency. In baking, Lallemand introduced clean-label dough conditioners using non-GMO yeast. The company also partnered with research institutes to study yeast’s role in reducing methane emissions in livestock.

4. Lesaffre International

• Lesaffre invested in precision fermentation for alternative proteins and opened a new R&D center in France. They introduced BakerySense, an AI-driven yeast optimization for consistent baking results. The company also expanded its yeast-derived vitamins for human and animal nutrition. Lesaffre continues sustainability efforts with carbon-neutral yeast production.

5. Oriental Yeast India Pvt Ltd.

• Oriental Yeast India launched high-performance yeast strains for ethanol production, catering to India’s biofuel demand. They introduced specialty yeast for gluten-free baking and expanded distribution in Southeast Asia. The company also focuses on yeast-based immunity boosters for poultry and aquaculture.

Conclusion

The Global Yeast Market plays a vital role in baking, brewing, nutritional supplements, and emerging applications like bioethanol and plant-based foods. With strong demand in Europe and rising opportunities in Asia-Pacific, yeast’s versatility, clean-label appeal, and alignment with sustainability trends ensure its robust market expansion. Innovations in yeast extracts and increasing consumer preference for natural ingredients further position the market for sustained success, offering significant investment potential.

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