Europe Yeast Extract Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Technology; Form; Application

The Europe yeast extract market is expected to reach US$ 618.7 million in 2027 from US$ 446.6 million in 2019. The market is estimated to grow at a CAGR of 4.2% during 2020-2027.

The growth the Europe yeast extract market is attributed to the key driving factors such as the rising demand for natural ingredients in the food & beverages industry and the launch of new products. However, the availability of yeast extract substitutes hinders the market growth.

There has been an increasing demand for natural food additives in the food & beverages industry in the recent years owing to the changing food preferences and healthy lifestyle adoption among the younger population across Europe. People suffering from health conditions are recommended to consume food items made from natural sources. As a result of environmental awareness, as well as the growing trends of healthy food consumption led by young population, the consumers are demanding transparency regarding the source of raw materials and ingredients used for making a particular product while purchasing the same.

Yeast extract is one of the key aromatic natural ingredients used for the designing of flavorful dishes and drinks by various food & beverages companies and restaurants. The extract also helps in enhancing the taste and texture of food items such as sauces, soups, seasonings, ready meals, snacks, and meat products. Furthermore, the yeast extract is considered as a safe and clean label ingredient by majority of the federal regulatory bodies. Therefore, its adoption is rising in end users such as pharmaceutical companies, restaurants, home bakers, brewing companies, and cosmetic product manufacturers. Thus, the advantages offered by natural yeast extracts combined with the increasing demand for natural ingredients in food products drive the growth of the Europe yeast extract market.

After Asia, Europe is a highly affected region due to the COVID-19 outbreak pandemic. Countries such as Italy, Spain, the UK, Germany, France, Russia, and Switzerland are highly affected as the majority of the deaths were registered in these countries. The European Union countries even faced the second wave of the outbreak. Therefore, to control the spread of novel coronavirus, governments of various countries imposed lockdown. The packaged foods and products industry witnessed a marginal growth in 2020, however the disruptions in supply chains decreased it to a certain extent owing to the magnitude of the second wave in Europe. The COVID-19 crisis also created a negative impact on product supply strategies among various countries in Europe. Labor shortage and sanitary constraints were also among the problems faced by manufacturers during the lockdown.

Yeast extract is significantly used in the beer making process. The sales of beer in Europe has dropped by a certain percentage due to the COVID-19 pandemic. According to the European Commission, ~15 member states closed bars and imposed severe limitations, equating closure. Thus, the outbreak is restraining the growth of the yeast extract market in Europe.

Based on technology, the Europe yeast extract market is bifurcated into autolyzed and hydrolyzed. The autolyzed segment held a larger market share in 2019, whereas the hydrolyzed segment is anticipated to register a higher CAGR in the market during the forecast period.

The Europe yeast extract market, based on form, is segmented into powder, paste, and liquid. The powder segment held the largest market share in 2019, also the same segment is anticipated to register the highest CAGR in the market during 2020-2027.

By application, the Europe yeast extract market is segmented into food and beverages, animal feed, pharmaceuticals, and others. The food and beverages segment held the largest market share in 2019, whereas the animal feed segment is anticipated to register the highest CAGR in the market during the forecast period.

A few of the primary and secondary sources referred to while preparing the report on the Europe yeast extract market are the German Center for Addiction Issues (DHS) and Délifrance (UK).