Yeast and Yeast Extract Market Size and Growth Report, 2033

Yeast and Yeast Extract Market Overview

The Yeast and Yeast Extract Market size was valued at USD 2800.01 million in 2024 and is expected to reach USD 4089.98 million by 2033, growing at a CAGR of 4.3% from 2025 to 2033.

The global yeast and yeast extract market has witnessed significant growth, driven by the increasing demand for natural and functional ingredients across various industries. In 2024, the market was valued at approximately USD 2.57 billion, with projections indicating a rise to USD 3.76 billion by 2033. This growth is attributed to the expanding applications of yeast and yeast extracts in food and beverages, animal feed, pharmaceuticals, and bioethanol production. The food and beverage sector remains the dominant consumer, accounting for over 70% of the total market share in 2024. Additionally, the rising awareness of health benefits associated with yeast extracts, such as their rich nutritional profile and natural flavor-enhancing properties, has further propelled market expansion. Geographically, Europe held the largest market share in 2024, followed by North America and the Asia-Pacific region. The market's growth trajectory is supported by continuous innovations and product developments by key industry players.

Key Findings

Top Driver Reason: The escalating demand for natural and clean-label ingredients in the food and beverage industry is a primary driver for the yeast and yeast extract market.

Top Country/Region: Europe emerged as the leading region in 2024, holding approximately 35% of the global market share, owing to its robust food processing industry and high consumer awareness.

Top Segment: The food and beverage segment dominated the market in 2024, contributing to over 70% of the total demand for yeast and yeast extracts.

Yeast and Yeast Extract Market Trends

The yeast and yeast extract market is experiencing dynamic shifts, influenced by evolving consumer preferences and technological advancements. A notable trend is the surge in demand for natural and clean-label products, prompting manufacturers to incorporate yeast extracts as flavor enhancers and nutritional additives. In 2024, the global yeast extract market was valued at USD 2.23 billion, with projections indicating a growth to USD 4.40 billion by 2032. This growth is fueled by the increasing application of yeast extracts in bakery products, savory snacks, and functional foods.

Another significant trend is the adoption of genetically modified yeast strains to enhance production efficiency and product quality. For instance, biotech companies have developed yeast strains capable of producing specific enzymes, improving fermentation processes in the brewing industry. Additionally, the rise of plant-based diets has led to the development of yeast-based alternatives to animal-derived ingredients, such as dairy proteins, through precision fermentation techniques. These innovations not only cater to vegan consumers but also address environmental concerns associated with traditional animal farming.

The market is also witnessing increased investments in research and development, focusing on expanding the applications of yeast and yeast extracts in pharmaceuticals and bioethanol production. In 2024, the bioethanol yeast segment accounted for a significant portion of the market, driven by the global emphasis on renewable energy sources. Furthermore, the integration of yeast extracts in animal feed has gained traction, owing to their ability to enhance feed efficiency and animal health.

Yeast and Yeast Extract Market Dynamics

DRIVER

Rising demand for natural and clean-label ingredients

The growing consumer inclination towards natural and clean-label products has significantly influenced the yeast and yeast extract market. Yeast extracts, known for their natural origin and flavor-enhancing properties, have become essential ingredients in various food products. In 2024, the food and beverage sector accounted for over 70% of the total market share, reflecting the high demand for these natural additives. Manufacturers are increasingly utilizing yeast extracts to replace artificial flavor enhancers, aligning with consumer preferences for transparency and health-conscious choices. This trend is particularly prominent in Europe and North America, where regulatory frameworks and consumer awareness drive the adoption of clean-label ingredients.

RESTRAINT

Limited availability of raw materials

The production of yeast and yeast extracts heavily relies on the availability of raw materials, such as molasses and other sugar-rich substrates. Fluctuations in the supply and pricing of these raw materials can pose significant challenges to manufacturers. In 2024, the industry faced disruptions due to inconsistent molasses supply, impacting production volumes and operational costs. Additionally, the competition for raw materials from other industries, such as bioethanol production, exacerbates the scarcity, potentially hindering market growth. To mitigate this restraint, companies are exploring alternative substrates and optimizing fermentation processes to enhance yield efficiency.

OPPORTUNITY

Expansion into emerging markets

Emerging markets, particularly in the Asia-Pacific and Latin American regions, present substantial growth opportunities for the yeast and yeast extract industry. In 2024, the Asia-Pacific region exhibited a notable increase in demand, driven by the expanding food processing industry and rising consumer awareness of health benefits associated with yeast extracts. Countries like China and India are witnessing rapid urbanization and changing dietary patterns, leading to increased consumption of processed and convenience foods. This shift creates a favorable environment for the integration of yeast extracts as natural flavor enhancers and nutritional additives. Furthermore, supportive government policies and investments in food technology infrastructure in these regions are expected to bolster market expansion.

CHALLENGE

Regulatory compliance and labeling standards

Navigating the complex regulatory landscape poses a significant challenge for manufacturers in the yeast and yeast extract market. Different regions have varying standards and requirements concerning the labeling and usage of yeast-derived ingredients. For instance, the European Union enforces stringent regulations on food additives and labeling, necessitating comprehensive documentation and compliance from manufacturers. In 2024, several companies faced hurdles in market entry due to non-compliance with regional standards, leading to product recalls and reputational damage. To address this challenge, industry players must invest in regulatory expertise and establish robust quality assurance protocols to ensure adherence to global standards.

Yeast and Yeast Extract Market Segmentation

By Type

Food: The food segment dominated the market in 2024, accounting for over 70% of the total demand for yeast and yeast extracts. These ingredients are extensively used in bakery products, savory snacks, and processed foods for their flavor-enhancing and nutritional properties. The increasing consumer preference for natural and clean-label ingredients has further propelled the adoption of yeast extracts in the food industry.
Beverage: Yeast plays a crucial role in the fermentation processes of alcoholic beverages, including beer and wine. In 2024, the beverage segment contributed significantly to the market, driven by the global demand for craft beers and specialty wines. Innovations in yeast strains have enabled the development of unique flavor profiles, catering to diverse consumer preferences.
Feed: The animal feed segment has witnessed steady growth, with yeast extracts being incorporated to enhance feed efficiency and animal health. In 2024, this segment accounted for a notable share of the market, particularly in regions with intensive livestock farming practices. Yeast-derived products are valued for their probiotic effects and ability to improve nutrient absorption in animals.
Others: This category encompasses applications in pharmaceuticals, bioethanol production, and biotechnology. In 2024, the bioethanol segment gained prominence due to the global emphasis on renewable energy sources. Yeast's role in fermenting biomass into ethanol positions it as a vital component in sustainable energy solutions.

By Application

Baker's Yeast: Baker's yeast remains a staple in the baking industry, essential for leavening bread and other baked goods. In 2024, this application held a significant portion of the market, driven by the consistent demand for bakery products worldwide.
Brewer's Yeast: Utilized in beer production, brewer's yeast contributes to fermentation and flavor development. The craft beer movement has spurred interest in diverse yeast strains, enhancing the market for brewer's yeast in 2024.
Wine Yeast: Specialized yeast strains are employed in winemaking to influence fermentation and flavor profiles. In 2024, the wine yeast segment experienced growth, aligned with the premiumization trends in the wine industry.
Feed Yeast: Incorporated into animal feed, feed yeast improves gut health and nutrient absorption. The segment saw increased adoption in 2024, particularly in poultry and swine nutrition.
Bioethanol Yeast: Yeast's fermentative capabilities are harnessed in bioethanol production, contributing to renewable energy efforts. In 2024, the bioethanol yeast segment expanded, reflecting the global shift towards sustainable fuel alternatives.
Others: This includes applications in pharmaceuticals and biotechnology, where yeast is used for producing bioactive compounds and as a model organism in research. In 2024, advancements in synthetic biology expanded yeast's utility in these sectors.

Yeast and Yeast Extract Market Regional Outlook

North America

In 2024, North America accounted for a substantial share of the yeast and yeast extract market, driven by the robust food and beverage industry and the growing demand for natural ingredients. The United States led the regional market in 2024, contributing more than 60% of North America’s yeast and yeast extract demand. The surge in demand for nutritional yeast and clean-label food products has driven significant growth in this region. Functional food consumption is high, and the use of yeast extract in meat substitutes and savory snacks is rapidly expanding. Additionally, North America’s advanced biotechnology and fermentation research infrastructure support continuous innovation in yeast production. Canada also reported a notable increase in demand for organic yeast products, especially in the health supplements segment, reflecting a strong preference for natural nutrition sources.

Europe

Europe held the largest market share globally in 2024, accounting for approximately 35% of the global yeast and yeast extract market. Countries like Germany, France, and the UK are key contributors due to their well-established bakery and brewery industries. The European market emphasizes sustainability and transparency in food ingredients, leading to high adoption of natural yeast-based products. Germany, in particular, reported a 12% year-on-year growth in yeast extract consumption in bakery and processed foods. Furthermore, EU regulations favor clean-label ingredients, driving demand for yeast-based flavor enhancers and nutritional supplements.

Asia-Pacific

Asia-Pacific emerged as the fastest-growing region in 2024, contributing more than 28% of the global market. China and India are the dominant players in this region. China recorded over 180 kilotons of yeast production in 2024, fueled by growing domestic consumption and export demand. The increasing urban population and changing dietary habits have led to higher consumption of processed foods, directly boosting yeast extract use. India’s yeast market is expanding in both the food and pharmaceutical sectors, with a 14% increase in demand for baker’s yeast reported over the past year. Southeast Asian countries, such as Thailand and Indonesia, are also rapidly adopting yeast in bioethanol and animal feed applications.

Middle East & Africa

The yeast and yeast extract market in the Middle East & Africa is showing steady growth, primarily driven by the expanding food and beverage sector in Gulf Cooperation Council (GCC) countries and South Africa. In 2024, the UAE and Saudi Arabia together contributed nearly 65% of regional yeast extract imports, largely used in bakery and food service sectors. South Africa has also shown growing interest in nutritional yeast and feed yeast due to rising awareness of livestock health and food fortification. The lack of large-scale domestic yeast manufacturing plants presents an opportunity for investment and partnerships in the region.

List of Top Yeast and Yeast Extract Market Companies

Associated British Foods
Hansen
Angel Yeast
Leiber
Lallemand
Lesaffre
Novozymes
Koninklijke
Kerry
Synergy Flavors
ABF
BioSpringer
DSM
Kohjin Life Sciences
Lallemand Bio-Ingredients
Sensient Technologies

Top Two Companies with Highest Market Shares

Lesaffre: Lesaffre accounted for over 25% of the global yeast extract production in 2024. The company processed more than 500 kilotons of yeast annually and expanded operations in Brazil and Southeast Asia during the year.
Angel Yeast: Angel Yeast is a major player in Asia, producing more than 300 kilotons of yeast products in 2024, with a significant share in both baker’s yeast and feed yeast segments.

Investment Analysis and Opportunities

The yeast and yeast extract market is attracting substantial investments due to increasing demand across industries and the broadening application scope. In 2024, global investments in yeast-related biotechnology and production facilities exceeded USD 1.5 billion. This investment trend is expected to continue as companies aim to expand their production capacities, enhance fermentation efficiency, and develop novel strains. In Asia-Pacific, particularly in China and India, over USD 600 million was invested in new yeast production plants and R&D facilities. The focus was primarily on improving strain performance and tailoring yeast extracts for specific applications such as vegan food and plant-based protein flavoring.

In North America, companies are investing in automation and precision fermentation technologies. For example, multiple startups in the United States received venture capital funding to develop yeast strains for use in dairy alternatives, nutraceuticals, and synthetic biology applications. The rise in functional food products is also pushing for fortification-focused yeast extract developments. European companies are focusing their investments on sustainability. Lesaffre invested in bio-refinery models that allow by-product utilization from sugar industries, reducing production waste. Additionally, over EUR 100 million was invested in sustainable yeast production projects in France and Germany in 2024.

Africa and Latin America, while smaller markets, are being targeted for infrastructure development. International firms are investing in setting up manufacturing units and logistics hubs to cater to local demand and reduce reliance on imports. This region is also receiving funding from development finance institutions to support fermentation-related food technology startups. Future opportunities lie in precision nutrition, with yeast extracts being customized to deliver specific health benefits. The rise in health supplements and dietary blends using nutritional yeast opens new revenue streams. Furthermore, the increasing government support for bioethanol and sustainable agriculture globally creates long-term growth potential for yeast-based solutions in those sectors.

New Product Development

The yeast and yeast extract market has seen a surge in innovation, with companies focusing on enhancing functionality, nutrition, and application versatility. In 2024, over 150 new yeast-based products were launched globally across food, beverage, feed, and pharmaceutical industries. Lesaffre launched “Springaline Pro,” a new range of inactive dry yeast enriched with selenium, targeting the health supplement and sports nutrition markets. This product contains 1.2 mg selenium per gram and is designed to support immunity and antioxidant activity. Angel Yeast introduced a new baker's yeast strain with enhanced fermentation performance in high-sugar dough. This development allows for 20% faster proofing time and better leavening stability, catering to industrial bakeries.

Kerry Group unveiled its next-generation yeast extract, “UmamiMax,” aimed at sodium reduction in savory products without compromising flavor. Tests in processed meats and ready meals showed up to 30% salt reduction while maintaining taste appeal. DSM developed a bioactive yeast-based ingredient for skin and gut health supplements under its “Eubiotics” portfolio. The new product contains heat-killed Saccharomyces cerevisiae strains with clinical backing for supporting the gut-skin axis. Novozymes, in collaboration with synthetic biology firms, engineered a yeast strain capable of producing dairy proteins like casein and whey. This innovation supports the plant-based dairy market and enables production without animal farming. These new product developments highlight the industry's shift towards targeted health benefits, reduced environmental impact, and enhanced application efficiency. There is also growing interest in using yeast extract for personalized nutrition and medical nutrition products.

Five Recent Developments

Lesaffre Opens Largest Yeast Production Facility in Brazil (2024): Lesaffre inaugurated a state-of-the-art yeast manufacturing facility in São Paulo, Brazil, with an annual production capacity of over 120 kilotons. The plant focuses on supplying yeast extracts for food, animal feed, and bioethanol applications, aiming to meet growing demand across Latin America. This expansion is projected to reduce supply lead time by 30% in the region.
Angel Yeast Launches Biotechnology Innovation Center in China (2023): Angel Yeast established a new R&D center in Yichang, China, dedicated to fermentation innovation and nutritional yeast development. With an investment of over USD 80 million, the facility houses more than 100 researchers and focuses on developing customized yeast strains for food, pharmaceuticals, and biochemicals.
DSM Introduces Yeast-Based Ingredient for Gut Health (2024): DSM unveiled a new postbiotic product under its health and nutrition line using Saccharomyces cerevisiae. Clinical studies demonstrated improved gut microbiota balance within 6 weeks of use. The ingredient is designed for dietary supplements and functional foods, especially in North American and European markets.
Lallemand Expands Bio-Ingredients Division in Canada (2023): Lallemand invested CAD 45 million to upgrade its yeast extract production facility in Montreal. The expansion includes fermentation and drying lines dedicated to organic-certified and vegan yeast extracts, enabling the company to meet the rising demand from plant-based and clean-label product manufacturers.
Novozymes Collaborates on Synthetic Dairy via Engineered Yeast (2024): In a landmark partnership, Novozymes and a food-tech startup developed a yeast strain capable of producing beta-lactoglobulin, a key dairy protein. This innovation enables animal-free dairy protein manufacturing, and pilot batches achieved a purity level of 92%, with commercial production slated for late 2025.

Report Coverage of Yeast and Yeast Extract Market

This report provides a thorough and data-driven analysis of the yeast and yeast extract market, capturing market size, structure, segmentation, and competitive landscape. It covers over 20 major and emerging countries across North America, Europe, Asia-Pacific, and Middle East & Africa. The 2024 edition includes detailed breakdowns by product type, application, and regional performance, supported by verified quantitative data. The market segmentation includes food, beverage, feed, and industrial applications, with individual insights into baker’s yeast, brewer’s yeast, wine yeast, feed yeast, bioethanol yeast, and others. Each category is analyzed for production volume, market share, usage trends, and regional dynamics. The report includes production and consumption volume in kilotons, price variations, and growth factors for each segment. It profiles leading companies with detailed analysis of their production capacity, product portfolio, manufacturing technologies, recent investments, and strategic developments. The top two companies profiled—Lesaffre and Angel Yeast—are highlighted for their innovation pipelines and geographical expansion strategies. The report outlines current and future investment trends, new product developments, and technological advances in yeast fermentation and extraction. It addresses the regulatory framework across key regions and its impact on product formulation and marketing strategies. The scope extends to emerging applications of yeast in pharmaceuticals, bioethanol, and precision nutrition. It also includes market dynamics such as key growth drivers, restraints, opportunities, and challenges backed by numerical data. In total, the report provides a holistic view of the market, enabling stakeholders to make informed business and investment decisions.