Global Yeast Extract Market - 2022-2029

Global Yeast Extract Market - 2022-2029

Market Overview

Yeast Extract Market size is projected to reach USD XX billion by 2029, with growth at a CAGR of 6.32% during the forecasting period (2022-2029).

Yeast extract contains yeast cell contents without the enveloping cell wall. Yeast extracts create savory and umami flavors in a wide range of packaged food items such as frozen meals, sauces, snacks, soups and broths. Yeast extract is prepared through fermentation, disruption and separation of yeast. It is used in food and beverage products such as sauces, ready meals, savory snacks and soups. It is mostly used in the preparation of bread and beer. Yeast extract is a rich source of Vitamin B, particularly, B-1, B-2, B-3, B-6, B-12 and folic acid. It plays a major role in metabolizing carbohydrates, fats and proteins into usable energy. Increasing demand for yeast extract in the food and beverage industry drives the market growth.

Market Dynamics

Hectic modern lifestyles and increased incomes from economic development are changing consumer dietary preferences. There is an increasing demand for convenient-to-eat packaged foods. Frozen meals, savory snacks, sauces and soups widely utilize yeast extract to enhance the savory flavor profile of the product. The increasing global consumption of processed foods is expected to augment yeast extract market growth during the forecast period.

Also, the Diversification of raw material sources is expected to generate new opportunities for the global yeast extract market. The development of alternative sources of raw materials for yeast extract will reduce price volatility and ensure the stability of supply chains. Diversification of raw materials sources will enable manufacturers to increase yeast extract production and lower prices for end-users.

Volatility in the prices of raw materials is expected to restrain the global yeast extract market. Over the forecast period, volatility in raw material prices is expected to prevent major growth of the global yeast extract market. Yeast extract is mainly manufactured from sugar-rich products such as molasses. Molasses is the refuse left over from the sugar refining process. There is high price volatility for molasses due to several factors, such as harvest depletion. Volatile molasses prices have a direct impact on yeast extract production.

Also, Health risks associated with processed foods consumption are expected to present challenges for the global yeast extract market. The chronic consumption of packaged and processed foods is linked to several health complications, such as cardiovascular diseases and diabetes. Yeast extract is widely used to enhance various packaged foods' savory flavor profiles. The switch to healthier food options is expected to decrease demand for packaged foods, thereby affecting the usage of yeast extracts.

Market Segmentation: The powder segment accounted for the highest share in global yeast extract market.

The powder form of yeast extract enhances the flavor and shelf life of the products. Due to its powered nature, it blends and easily mixes with the end product. It is majorly used in food products like sauces and snacks. The powder form of extract doesn't impact the taste and color of food, so various consumers prefer the powder form of yeast extract. Increased research and development investments for the power form of yeast extract help to grow the segment in the forecast period. New food products launched with yeast extract in the market and increasing demand for that product helps grow market share in the forecast period.

The pharmaceutical segment accounted for a significant revenue share in the forecast period due to yeast extract's nutritional and medicinal benefits. It helps treat coma, cardiovascular disease, and gastrointestinal disease. Furthermore, Yeast extracts are widely used as nutritive media for cell culture and prominently used in the production of antibiotics and organic pharmaceuticals.

Geographical Penetration: Asia pacific is the dominating region during the forecast period.

The Asia Pacific is estimated to grow at the yeast extract market's highest growth rate during the forecast period. The growth of the region is primarily driven due to increasing baked goods and confectionery product consumption. The global companies are investing in the region to increase the export from the low-cost area, which is further expected to increase yeast extract consumption in the domestic region during the forecast period. Relentless economic growth and rising incomes have had a profound change in the dietary habits of consumers in Asia-Pacific. Rapid urbanization and the growth of export-driven manufacturing and service industries have created hectic lifestyles with growing demand for convenience food options. Many multinational food and beverage companies are creating new products suitable for local tastes. Local cuisine in Asia-Pacific has many distinctive flavors, and food and beverage companies utilize yeast extract to mimic the flavor profile. Asia-Pacific is expected to become a leading player in the global yeast extract market during the forecast period.

Competitive Landscape:

The yeast extract market is highly competitive, owing to the presence of big food brands. The key yeast extract players which are contributing to the growth of the global market include Lesaffre Group, Kerry Group, Leiber GmBH, Lallemand, Inc., Biospringer, DSM, Synergy Flavors, Thai Foods International Co., Ltd., Halcyon Proteins, Ohly, Angel Yeast Co., Ltd, AB MAURI, Lesaffre, Ziying Biotechnology, and Jiangmen Biotechnology, among others. The major players are adopting new product launches and expansion strategies for global growth in the yeast extract market. In April 2022, as per the study, Angel Yeast Co., Ltd., a major global yeast extract manufacturer, opened a fully automated production facility in China. The factory is expected to boost the company's output of yeast extract significantly. In April 2022, DSM, a leading health and nutrition company, launched its proprietary Maxarone range of yeast extracts for flavor masking in plant-based meat products. In June 2021, Lesaffre Group announced a capacity expansion at its yeast extract manufacturing facility in Cedar Rapids, Iowa, U.S. The expansion is expected to boost production output by more than 50%. In August 2021, Angel yeast announced the acquisition of Bio Sunkeen's Yeast Relevant Assets. This acquisition helped to enhance China's position on the global stage. This acquisition strengthens the company's position in the industry as it reduces market competition by converting competitors into partners.

COVID-19 Impact: Positive impact on the global yeast extracts market.

The evolving uncertainty of the coronavirus pandemic has unprecedentedly impacted the world economy and businesses. The agribusiness sector has been affected to varying degrees, with some food companies experiencing rapidly increased demand for products as panic buying escalated. Healthy eating is strongly appealing, increasing the demand for yeast extract. As consumers become more aware of their eating habits' environmental and health implications, consuming fruits is moving to new heights. Major yeast extract companies focus on healthier product development to promote people's health and well-being. The food and beverage and pharmaceuticals industry enriched with yeast extracts have witnessed increased sales during 2020, primarily by consumption from health-savvy people groups.

On the other hand, due to the outbreak of COVID-19, the yeast extract market has been facing some issues with streamlining all of the supply chain workstreams from production to the delivery of the yeast extract, which is expected to restrict the growth of the yeast market during this pandemic period. Additionally, consumers were more focused on building higher immunity levels during and post-crisis, shaping the ingredient producers' market.

The global yeast extract market report would provide an access to approximately 76 market data tables, 57 figures and 170 pages