Yeast Extracts Market Forecast and Growth 2031

The yeast extracts market size is projected to reach US$ 2.59 billion by 2031 from US$ 1.75 billion in 2023. The market is expected to register a CAGR of 5.0% in 2023–2031. Rising demand for yeast extracts in plant-based foods is likely to remain key yeast extracts market trends.

Yeast Extracts Market Analysis

The increasing adoption of veganism is playing a significant role in driving the growth of the yeast extract market. As more consumers embrace plant-based diets, there is a growing demand for vegan-friendly alternatives that can replicate the savoury flavours traditionally associated with animal-derived ingredients. Yeast extract, with its naturally occurring umami taste, serves as an excellent substitute for meat-based flavours in vegan and vegetarian food products. Its ability to enhance the overall taste and palatability of plant-based dishes makes it a valuable ingredient for food manufacturers catering to the expanding vegan market. Additionally, yeast extract's clean label and natural profile align with the preferences of health-conscious consumers, further bolstering its appeal and market penetration in the growing plant-based food industry. As veganism continues to gain momentum globally, yeast extract's versatility as a flavor enhancer positions it favourably to meet the needs and expectations of this expanding consumer base, contributing to its yeast extract market growth.

Yeast Extracts Market Overview

Yeast extract is a food ingredient derived from yeast cells through a process of autolysis, where the yeast cells are broken down, releasing their contents. It is a natural source of various nutrients, including amino acids, vitamins, minerals, and nucleotides, making it a valuable ingredient in the food industry. Yeast extract is widely used as a flavor enhancer and a natural alternative to monosodium glutamate (MSG). The yeast extract market has experienced significant growth in recent years due to increasing consumer demand for clean label and natural ingredients in food products. Its versatile applications in the food and beverage, pharmaceutical, and animal feed industries have contributed to its popularity. As consumers become more health-conscious, yeast paste nutrient-rich profile has further boosted its appeal. Additionally, its widespread use as a flavor enhancer and vegan-friendly option has driven adoption among various consumer segments. Despite challenges related to allergenicity concerns and price volatility, the yeast extract market is expected to continue growing as manufacturers such as ABF Ingredients, Ltd. and Angel Yeast Co., Ltd. are focusing on product innovation and meeting diverse market demands.     

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Yeast Extracts Market Drivers and Opportunities

Rising Demand for Natural Flavoring Ingredients to Favor the Market

The increasing demand for natural and clean label ingredients is a significant driving factor in the growth of the yeast extract market. As consumers become more health-conscious and environmentally aware, they are seeking food products with transparent and recognizable ingredients. Yeast extract, derived from yeast cells through a natural autolysis process, fits these criteria perfectly, as it is a natural and unadulterated ingredient. With a rising preference for clean label products free from artificial additives, preservatives, and chemicals, yeast extract's inclusion as a flavor enhancer and nutrient-rich component in various food items has surged. This demand trend not only reflects changing consumer preferences but also influences food manufacturers and processors to incorporate yeast extract into their product formulations, driving its overall market growth.

Increasing Demand for Clean-Label, Non-GMO, and Minimally Processed Food and Beverages

With rising awareness about health concerns of synthetic food additives, the interest of consumers in clean-labelled food products increased tremendously. Consumers are paying immense attention on the product labels and are preferring brands that showcase transparency and include minimally processed as well as ethically-sourced ingredients. Yeast extracts are natural, clean-label, animal-free, and non-GMO flavoring ingredients witnessing high demand in clean-label foods and beverages. This factor is expected to open new growth opportunities in the market over the next few years.

Yeast Extracts Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Yeast Extracts Market analysis are form, technology, application, and geography.

• Based on technology, the yeast extracts market is bifurcated into hydrolysed and autolyzed. The autolyzed segment held a larger market share in 2023. Autolysis is a process in which yeast cells are broken down enzymatically, releasing their contents, including proteins, amino acids, vitamins, and minerals. This technology allows to produce yeast extract with a well-balanced and natural flavor profile, rich in umami, making it an effective and sought-after flavor enhancer in various food products. The autolyzed yeast extract offers clean label advantages, as it does not require the use of chemical additives or artificial ingredients. Moreover, this technology enables the extraction of valuable nutrients, contributing to the growing demand for natural and nutritious ingredients in the food industry. As consumers increasingly seek clean label and minimally processed products, the use of autolyzed technology in yeast extract production is propelling its yeast extract market growth by meeting these evolving consumer preferences.
• Based on form, the yeast extracts market is segmented into powder, liquid, and paste. The powder segment held a larger market share in 2023. Powdered yeast extracts are widely used in meat, dairy, dietary supplements, bakery, confectionery, brewing, and others. The powdered form of yeast extract is also utilized as a nutrient for culture media. The usability of powdered products is relatively convenient as compared to the paste form. In addition, the weighing of powdered form is also convenient and accurate. Nutritional yeast extract is also available in the form of granules. These granules are rich in various proteins and free amino acids. They have a very strong flavor and are generally used as taste enhancers to deepen the taste of products containing low salts. Additionally, yeast extract is available in granulated form. So, the easy availability of powdered yeast extract is expected to drive the yeast extract market.

Yeast Extracts Market Share Analysis by Geography

The geographic scope of the Yeast Extracts Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The Europe yeast extracts market held the largest market share in 2023. Europe has been one of the prominent markets for yeast extract, with countries like the United Kingdom, Germany, France, and Italy being key consumers. The region's strong focus on food quality, safety, and sustainability aligns well with the use of natural and clean label ingredients like yeast extract.

Yeast Extracts Market Regional Insights

The regional trends and factors influencing the Yeast Extracts Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Yeast Extracts Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Yeast Extracts Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Yeast Extracts Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Yeast Extracts Market are:

1. Kerry Group Plc
2. Angel Yeast Co., Ltd.
3. BioOrigin
4. DSM
5. LALLEMAND, INC.
6. LEIBER GMBH

Disclaimer: The companies listed above are not ranked in any particular order.

Yeast Extracts Market News and Recent Developments

The Yeast Extracts Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:

• Yeast technology player Angel Yeast will continue to promote its innovative yeast-based solutions in the European market and introduce new solutions at this year’s Food Ingredients Europe (FiE) 2022 trade show in Paris, France (Dec 6-8). These solutions include yeast proteins for plant-based milk and new yeast extract taste products. The company also plans to highlight its green sustainability practices and solutions. (Source: Angel Yeast Co., Ltd; Press Release/Company Website/Newsletter, 2022)
• Lallemand, one of the leaders in the production of yeast-based ingredients, with several factories in the US, Canada, Mexico and other parts of the world, has recently strengthened its position in the North American market with the acquisition and transformation of a new Canadian production site. (Source: Lallemand Inc, Press Release/Company Website/Newsletter, 2020)

Yeast Extracts Market Report Coverage and Deliverables

The “Yeast Extracts Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles