Increasing demand for specialised yeast to improve food and drink quality are driving rapid growth in the global yeast market , which could grow 75% on 2010 levels to reach $5.1bn by 2016, according to a new report from MarketsandMarkets.
The market research organisation estimated the value of the global yeast market at $2.9bn in 2010, dominated by baker’s and brewer’s yeast, with the former accounting for 31% of the total market. Apart from demand from traditional applications for yeast, such as bakery products, beer, wine, animal feed, and bio-ethanol, the market is also seeing increased demand due to yeast’s high nutritional value.
“Though the yeast market is primarily driven by baker’s yeast and brewer’s yeast, other yeast types such as wine making yeast, bio-ethanol yeast, and feed yeast are gaining awareness and their usage is expected to contribute a major amount to further growth,” the researchers said. “Government initiatives from food and beverage manufacturers and optimum use of available resources in production may give growing shape to the market in future.”
Currently Europe and the Asia-Pacific region are the leading yeast markets, accounting for 60% of the global total – 32% in Europe alone. However, the North American market is the fastest growing, with an estimated CAGR of 9.7% from 2011 to 2016 to reach $1.3bn.
The market is dominated by a few major companies, including Lesaffre Group in France, AB Vista in the UK, AB Mauri (U.K.), and Lallemand Inc. (Canada) and some regional markets players, such as Angel Yeast Co. Ltd in China.
“The market is anticipated to continue flourishing in the developed as well as the developing regions,” according to the market researcher.
“The growth is also attributed to the growing demands and penetration of the food and beverage industry. The variants and combination methods used for the application of yeasts are bound to undergo further developments with growing demands and concerns for food safety legislations and regulations.”
The report also mentioned the salt replacement potential of yeast as a driver for future growth, saying it has been proven to help “the process of repairing and improving the taste of the product to a level at which the consumer would not be able to trace the lower sodium levels.”