Specialty Yeast Global Market Report 2024

The specialty yeast market size has grown strongly in recent years. It will grow from $2.7 billion in 2023 to $2.9 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. The growth observed during the historical period can be attributed to several factors, including the expansion of the food and beverage industry, increased production of bioethanol, growth in the animal nutrition sector, rising demand for gluten-free products, and the globalization of food supply chains.

The specialty yeast market size is expected to see strong growth in the next few years. It will grow to $3.85 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period is expected to stem from several factors, notably the rising trend of plant-based proteins, increased emphasis on sustainable practices, the emergence of alternative proteins, expansion within the craft brewing sector, growing interest in prebiotics and digestive health among consumers, and a consumer base increasingly conscious about health. Key trends projected in the forecast period encompass the preference for clean label and natural ingredients, advancements in yeast biotechnology, tailored yeast solutions catering to the food industry, ongoing research focused on yeast-based nutraceuticals, as well as continuous technological advancements in this field.

The specialty yeast market is poised for growth, with the increasing consumption of alcoholic beverages playing a significant role. Alcoholic beverage production relies on maintaining optimal temperature, viscosity, and pressure, where specialty yeast contributes to flavor improvement and fermentation. This heightened demand for specialty yeast in the food and beverage sector, particularly in alcoholic beverage production, results in expanded food and beverage production facilities. In December 2021, IWSR Drinks Market Analysis Limited reported an expected surge in online sales of alcoholic beverages from grocery stores, reaching $42 billion by 2025. The rising consumption of alcoholic beverages thus becomes a driving force for the specialty yeast market.

The growth of the specialty yeast market is further propelled by a substantial livestock population. Specialized yeast plays a crucial role in enhancing feed quality for livestock, providing essential nutrients that contribute to overall animal well-being and productivity. As of February 2023, the UK reported a 2.0% increase in the sheep and lamb population, reaching 14.9 million, with lambs accounting for 7.5 million. The large livestock population, including the breeding flock, is a key driver behind the growth of the specialty yeast market.

Innovation stands out as a notable trend in the specialty yeast market, with major companies actively developing innovative products. For instance, in January 2022, Ohly, a Germany-based manufacturing company, introduced OHLY SAV-R-MEAT PBD, a yeast-based chicken flavor enhancer. This innovative product delivers a juicy and dark-meat chicken flavor with a high umami impact, specifically designed for low-sodium meat applications. OHLY's diverse range of yeast-based ingredients, including those derived from peas and beans, yeast extracts, and enzymes, exemplifies the commitment to advancing taste and functionality in protein-based applications within the specialty yeast market.

Leading companies in the specialty yeast market are strategically focusing on the introduction of plant-based yeast extracts as a means to secure a competitive advantage. Plant-based yeast extracts, derived from yeast cells in plants, serve as natural flavor enhancers, offering a savory and umami-rich profile commonly utilized in vegetarian and vegan culinary applications. In a notable development in December 2021, Lallemand Inc., a Canada-based animal nutrition company, launched a new line of plant-based yeast extracts formulations, including Avor-Lyfe PH 04, Savor-Lyfe PS 05, and Savor-Lyfe PR 06. These formulations are crafted to enhance the flavors and impart cooked notes to various savory foods. The Savor-Lyfe product range, featuring these plant-based formulations, caters not only to plant-based foods but also extends its application to snacks, soups, and meal centers. Yeast extracts, yeast autolysates, and other yeast derivatives are commonly employed in the food and beverage industry for their flavor-enhancing properties. Specifically, Savor-Lyfe yeast extracts contribute to the meaty profile of plant-based foods, aligning with the demand for an authentic meat experience and providing a clean label for diverse food and beverage products.

In December 2021, DSM, a Netherlands-based chemical company, executed the acquisition of Vestkorn Milling for a deal value of $70 million. This strategic move is anticipated to bolster DSM's product portfolio, specifically in the domain of plant-based feed enzymes. Vestkorn Milling, a Norway-based company, specializes in the production of proteins, starches, and dietary fibers catering to plant-based foods, pet foods, and animal feed. This acquisition positions DSM to meet the evolving market demands for sustainable and plant-based alternatives in the specialty yeast market.

Major companies operating in the specialty yeast market report are Associated British Foods plc, Archer-Daniels-Midland Company, Lallemand Inc., Chr. Hansen Holding A/S, Kerry Group plc, Angel Yeast Co. Ltd., Biorigin SAS, Leiber GmbH, Synergy Flavors LLC, Aria Ingredients Inc., Halcyon Proteins Pty. Ltd., Agrano GmbH & Co. KG, AEB Group S.r.l., Jeevan Biotech Pvt. Ltd., Titan Biotech Ltd., Koninklijke DSM N.V., Levex Chemicals Inc., Lesaffre Group, Alltech Inc., Kemin Industries Inc., Beldem B.V., DSM Food Specialties B.V., A.G. Scientific Inc., Anchor Yeast Co. Ltd., Bacchus Yeast Co. Ltd., Bakers Yeast Co. Ltd., Best Flavors Inc., Cargill Incorporated, Ceres Inc., ConAgra Brands Inc., Corbion plc, CSM Bakery Solutions, Dairytech Inc.

Asia-Pacific was the largest region in the specialty yeast market in 2023. The regions covered in the specialty yeast market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the specialty yeast market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of specialty yeast include yeast extract, yeast autolysate, yeast beta-glucan, and other variants. Yeast extract, in particular, is highly favored as a vital ingredient in numerous vegetarian spreads, often combined with salt, herbal extracts, and spices. Different species of specialty yeast encompass saccharomyces cerevisiae, pichia pastoris, kluyveromyces, among others. These yeasts find applications in various sectors such as food, beverages, animal feed, and other industrial applications.

The specialty yeast market research report is one of a series of new reports that provides specialty yeast market statistics, including specialty yeast industry global market size, regional shares, competitors with a specialty yeast market share, detailed specialty yeast market segments, market trends and opportunities, and any further data you may need to thrive in the specialty yeast industry. This specialty yeast market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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