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Yeast Market

ID: MRFR/FnB/4095-CR
200 Pages
Snehal Singh
July 2025

Yeast Market Research Report By Type (Baker's Yeast, Brewer's Yeast, Nutritional Yeast, Bioethanol Yeast, Wine Yeast), By Form (Dry Yeast, Fresh Yeast, Liquid Yeast), By Application (Food Beverage, Animal Feed, Pharmaceuticals, Biofuels), By End Use (Household, Commercial, Industrial) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Yeast Market Summary

As per MRFR analysis, the Yeast Market Size was estimated at 4.49 USD Billion in 2024. The Yeast industry is projected to grow from 4.659 USD Billion in 2025 to 6.746 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.77 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The yeast market is experiencing robust growth driven by evolving consumer preferences and technological advancements.

  • The demand for natural ingredients is rising, particularly in North America, which remains the largest market for yeast.
  • Technological innovations in yeast production are enhancing efficiency and product quality, especially in the Asia-Pacific region, the fastest-growing market.
  • The growth of plant-based products is propelling the popularity of nutritional yeast, which is gaining traction among health-conscious consumers.
  • Key market drivers include the increasing demand for fermented products and the expansion of the bakery sector, particularly in the baker's yeast segment.

Market Size & Forecast

2024 Market Size 4.49 (USD Billion)
2035 Market Size 6.746 (USD Billion)
CAGR (2025 - 2035) 3.77%

Major Players

Lesaffre (FR), AB Mauri (GB), Yeast and Co (US), Angel Yeast (CN), Baker's Yeast (DE), Lallemand (CA), Alltech (US), Kerry Group (IE), Mannitol (US)

Yeast Market Trends

The Yeast Market is currently experiencing a dynamic evolution, driven by various factors that influence consumer preferences and industrial applications. The increasing demand for natural and organic products has led to a surge in the use of yeast in food and beverage production. This trend is further supported by the growing awareness of health benefits associated with yeast, such as its role in fermentation and nutritional enhancement. Additionally, the rise of plant-based diets has prompted food manufacturers to explore yeast as a viable ingredient for flavor enhancement and texture improvement, thereby expanding its application scope. Moreover, the Yeast Market is witnessing advancements in technology that facilitate the development of specialized yeast strains. These innovations enable producers to cater to specific market needs, such as gluten-free options and enhanced fermentation processes. The ongoing research in biotechnology is likely to yield new yeast varieties that can improve efficiency and sustainability in production. As the market continues to evolve, it appears that the interplay between consumer trends, technological advancements, and health considerations will shape the future landscape of the Yeast Market.

Rising Demand for Natural Ingredients

There is a noticeable shift towards natural and organic ingredients in food production. This trend is prompting manufacturers to incorporate yeast as a clean-label component, appealing to health-conscious consumers.

Technological Innovations in Yeast Market Production

Advancements in biotechnology are leading to the development of specialized yeast strains. These innovations enhance fermentation processes and improve product quality, catering to diverse consumer preferences.

Growth of Plant-Based Products

The increasing popularity of plant-based diets is driving the use of yeast in various applications. Yeast Market serves as a flavor enhancer and texturizing agent, making it a valuable ingredient in meat alternatives and dairy substitutes.

Yeast Market Drivers

Expansion of the Bakery Sector

The Yeast Market is significantly influenced by the expansion of the bakery sector, which remains one of the largest consumers of yeast. The Yeast Market is projected to reach a valuation of over 500 billion dollars by 2026, with a substantial portion attributed to the rising consumption of bread, pastries, and other baked goods. This growth is largely driven by changing lifestyles and the increasing demand for convenience foods. As a result, the need for yeast, which plays a crucial role in leavening and flavor development, is expected to increase. Additionally, the trend towards clean label products is prompting bakers to seek natural yeast options, further enhancing the Yeast Market. The integration of innovative baking techniques and the introduction of gluten-free products also contribute to the evolving landscape of the yeast market.

Rising Popularity of Nutritional Yeast

The Yeast Market is witnessing a growing interest in nutritional yeast, particularly among health-conscious consumers and those following plant-based diets. Nutritional yeast is rich in vitamins, minerals, and protein, making it a favored ingredient in vegan and vegetarian cooking. Market analysis suggests that the nutritional yeast segment is expected to grow at a robust rate, driven by the increasing awareness of its health benefits. This trend is further supported by the rise of online retail platforms, which facilitate access to specialty health products. As consumers seek alternatives to traditional dairy and meat products, the demand for nutritional yeast is likely to expand, thereby positively impacting the Yeast Market. The versatility of nutritional yeast in enhancing flavors in various dishes also contributes to its appeal among culinary enthusiasts.

Increasing Demand for Fermented Products

The Yeast Market is experiencing a notable surge in demand for fermented products, driven by consumer preferences for health-oriented foods. Fermented items such as yogurt, kefir, and kombucha are gaining traction, as they are perceived to offer probiotic benefits. This trend is reflected in market data, indicating that the fermented food sector is projected to grow at a compound annual growth rate of approximately 8% over the next five years. As consumers become more health-conscious, the demand for yeast as a fermentation agent is likely to rise, thereby bolstering the Yeast Market. Furthermore, the increasing popularity of artisanal and craft beverages, including beer and wine, further fuels the need for high-quality yeast strains, which are essential for achieving desired flavor profiles and fermentation efficiency.

Growing Interest in Sustainable Practices

The Yeast Market is increasingly influenced by the growing interest in sustainable practices among consumers and manufacturers. There is a rising awareness of the environmental impact of food production, prompting stakeholders to seek eco-friendly alternatives. Yeast Market, being a natural and renewable resource, aligns well with sustainability goals. The market is witnessing a shift towards organic and non-GMO yeast products, as consumers prioritize transparency and ethical sourcing. Additionally, the use of yeast in biofuel production is gaining traction, as it offers a sustainable solution for energy generation. This trend is likely to drive innovation in the Yeast Market, as companies explore ways to enhance the sustainability of their production processes. The emphasis on reducing waste and utilizing by-products from yeast fermentation further underscores the potential for growth in this sector.

Technological Advancements in Yeast Production

The Yeast Market is benefiting from technological advancements in yeast production processes. Innovations such as genetic engineering and fermentation technology are enhancing the efficiency and quality of yeast strains. These advancements enable producers to develop yeast with specific characteristics, such as improved fermentation rates and resistance to environmental stressors. Market data indicates that the adoption of advanced fermentation technologies is expected to increase, leading to higher yields and reduced production costs. As the demand for specialized yeast strains rises, manufacturers are likely to invest in research and development to create tailored solutions for various applications, including baking, brewing, and bioethanol production. This focus on innovation is anticipated to drive growth within the Yeast Market, as companies strive to meet the evolving needs of consumers and industries alike.

Market Segment Insights

By Type: Baker's Yeast Market (Largest) vs. Brewer's Yeast Market (Fastest-Growing)

The yeast market is characterized by various segments, with Baker's Yeast Market holding the largest market share due to its extensive usage in the baking industry. Following closely are Brewer's Yeast Market and Nutritional Yeast Market, which cater primarily to the food and beverage sector. Meanwhile, segments like Bioethanol Yeast Market and Wine Yeast Market are also essential, but they command smaller shares relative to Baker's Yeast Market and Brewer's Yeast Market. These market dynamics reflect consumer demands ranging from baking needs to alcoholic beverage production.

Baker's Yeast Market (Dominant) vs. Brewer's Yeast Market (Emerging)

Baker's Yeast Market remains the dominant force in the yeast market, primarily due to its integral role in bread-making processes. Its reliability and efficiency in fermentation make it a staple in both commercial and home baking sectors. Conversely, Brewer's Yeast Market is emerging strongly, driven by the rise in craft beer production and consumer interest in fermented foods. This segment is experiencing rapid growth as more consumers seek out diverse, quality products and gravitate towards home brewing. Overall, both yeast types exhibit profound impacts on cooking and brewing traditions.

By Form: Dry Yeast Market (Largest) vs. Liquid Yeast Market (Fastest-Growing)

In the yeast market, the distribution of market share among the three forms—dry yeast, fresh yeast, and liquid yeast—reveals that dry yeast holds the largest share. This segment is favored for its convenience, long shelf life, and ease of use in both industrial and home baking. Fresh yeast, while traditionally popular among artisanal bakers for its flavor and texture, shows a smaller share of the market. Liquid yeast, however, is rapidly gaining traction as more consumers and baking professionals explore its benefits, such as quicker fermentation times and superior performance in specific applications. The growth trends within the yeast market are strongly influenced by changing consumer preferences and the rising popularity of home baking. As consumers turn to baking as a leisure activity, the demand for dry yeast has surged, thanks to its practicality and reliability. Meanwhile, liquid yeast is emerging as a preferred choice among craft brewers and gourmet bakers, driven by its ability to enhance the quality and flavor of baked goods. As innovation continues in this sphere, we expect these trends to evolve, further shaping the market landscape in the years to come.

Dry Yeast Market (Dominant) vs. Liquid Yeast Market (Emerging)

Dry yeast is the dominant form in the yeast market, known for its stability, long shelf life, and ease of storage. It appeals to both commercial bakers and home enthusiasts, making it a staple in the baking industry. This form can withstand various temperature and humidity conditions, allowing it to remain viable longer than fresh yeast. On the other hand, liquid yeast is considered an emerging segment, favored particularly by those seeking bespoke flavors in baking and brewing. Although it requires more careful handling and has a shorter shelf life than dry yeast, liquid yeast provides a range of unique characteristics that can elevate products, making it increasingly popular among artisanal bakers and brewing enthusiasts.

By Application: Food (Largest) vs. Beverage (Fastest-Growing)

The yeast market displays a diverse application landscape, with significant contributions coming from the food and beverage sectors. The food sector commands the largest share, driven by the widespread use of yeast in baking, cooking, and food preservation. The beverage segment, particularly in brewing and winemaking, is also significant, growing rapidly as consumer preferences shift towards artisanal and craft products. Other sectors, including pharmaceuticals, animal feed, and biofuels, contribute to the market but at comparatively lower rates.

Food (Dominant) vs. Beverage (Emerging)

The food industry remains the dominant sector in the yeast market, leveraging yeast not only for leavening in bread and baked goods but also for flavor enhancement and nutritional benefits. In contrast, the beverage sector, while currently emerging, is rapidly expanding due to the increasing popularity of craft beers and fermented beverages. This duality illustrates the robust nature of the market; the food sector's established presence contrasts with the beverage segment's innovative approaches, highlighting the dynamic interplay between tradition and emerging consumer trends.

By End Use: Household (Largest) vs. Commercial (Fastest-Growing)

The yeast market is segmented by end use into three main categories: household, commercial, and industrial. Among these, the household segment holds the largest market share, driven primarily by rising home baking trends and consumer interest in homemade food products. The commercial segment, while smaller in market share, is rapidly gaining attention as restaurants and bakeries increasingly seek yeast for their baking and fermentation needs. Meanwhile, the industrial segment caters to large-scale manufacturing but remains more niche in its audience and appeal.

Household (Dominant) vs. Commercial (Emerging)

The household segment of the yeast market continues to dominate, fueled by the growing trend of home baking and cooking, especially in the wake of recent global events that have encouraged people to try their hand at baking. Consumers are increasingly opting for high-quality, specialized yeasts that promise better results for diverse recipes. In contrast, the commercial segment is emerging quickly, as food service and hospitality industries expand post-pandemic. This segment signifies a shift toward more creativity in culinary applications, resulting in an increased demand for innovative yeast solutions that can meet the varied needs of restaurants and artisanal bakeries.

Get more detailed insights about Yeast Market

Regional Insights

The Yeast Market revenue reflects significant regional variations, with North America, Europe, Asia Pacific, South America, and Middle East and Africa playing crucial roles in shaping the industry. In 2024, the North America market is valued at 0.981 USD Billion and is expected to reach 1.575 USD Billion by 2035, indicating its importance as a leading region in the yeast sector.

Europe closely follows with a 2024 valuation of 1.309 USD Billion, projected to grow to 2.07 USD Billion, showcasing its substantial market influence driven by increasing demand in the food and beverage industry.The Asia Pacific region, valued at 1.472 USD Billion in 2024, is anticipated to expand to 2.16 USD Billion by 2035, highlighting its rapid industrial growth and significant consumer market, propelling the global market forward. South America, while smaller, shows potential with values of 0.286 USD Billion in 2024 and 0.405 USD Billion by 2035, driven by the rising trend in fermented food products.

Meanwhile, Middle East and Africa's valuation of 0.442 USD Billion in 2024 with a growth to 0.54 USD Billion reflects emerging opportunities in the region as the demand for yeast in various sectors increases.Each region contributes uniquely to the Yeast Market Statistics, with North America and Europe currently dominating, addressing trends propelled by innovation and changing consumer preferences.

Yeast Market Regional Insights

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Yeast Market Regional Image

Key Players and Competitive Insights

The Yeast Market has experienced significant growth over the years, fueled by various factors such as the increasing demand for processed foods and beverages, rising consumer interest in health and wellness, and the expanding use of yeast in fermentation processes. This market is characterized by a diverse range of players, including large multinational corporations, regional companies, and niche market participants. Competitive dynamics are influenced by technological advancements, product innovations, and the ability to adapt to changing consumer preferences.

Companies are increasingly focusing on enhancing their product offerings, optimizing production efficiency, and expanding their geographical footprint to capture a larger market share. The competitive landscape is marked by strategic alliances, mergers and acquisitions, and collaboration between companies to leverage synergies and expand their capabilities.Chr. Hansen has established a strong presence in the Yeast Market, leveraging its extensive expertise in biotechnology and fermentation. The company is recognized for its innovative approaches to developing yeast strains that enhance flavor, aroma, and texture in food products. With a robust portfolio of natural yeast solutions, Chr.

Hansen meets the growing consumer demand for clean-label and sustainable ingredients. The company's strengths lie in its deep research and development capabilities, enabling it to stay ahead of industry trends and address diverse customer requirements. In addition, its commitment to sustainability and quality reinforces its reputation in the marketplace, allowing for greater competitive advantages and customer loyalty.Higgins Group has positioned itself as a key player in the Yeast Market by providing high-quality yeast products tailored for various applications, including baking and brewing.

The company focuses on innovation and product differentiation, offering a wide range of yeast strains that cater to different segments of the food industry. Higgins Group has established itself in the global arena through strategic partnerships and distribution networks that enhance its market presence. The company's strengths include its dedicated research efforts to develop new and improved formulations and the ability to respond swiftly to market demands.

Furthermore, Higgins Group has pursued mergers and acquisitions to expand its product line and enhance its competitive position, thereby gaining a foothold in multiple international markets while addressing the evolving needs of its customers.

Key Companies in the Yeast Market market include

Industry Developments

The Yeast Market has seen significant developments recently, with companies like Chr. Hansen and Lesaffre expanding their production capabilities to meet rising demand, particularly in the food and beverage sectors. Angel Yeast Market announced an increase in its R&D investments to innovate yeast products suitable for plant-based alternatives, reflecting the shifting consumer preferences toward healthier options.

In 2024, Lallemand Inc. has entered a strategic partnership with Veripan AG to develop and distribute fermentation-derived solutions for artisan-style breads, focusing on customized yeast for premium baking .

Year-on-year growth in the Yeast Market has been attributed to the increase in demand for fermented products and biofuels, with market valuations projected to rise significantly. Noteworthy events also include a surge in bioethanol production, with Sudzucker investing in new technology to streamline its fermentation processes. Companies are adapting to the evolving landscape driven by sustainability and health trends, marking a dynamic period for the Yeast Market.

 

Future Outlook

Yeast Market Future Outlook

The Yeast Market is projected to grow at a 3.77% CAGR from 2024 to 2035, driven by increasing demand in food and beverage sectors, and advancements in biotechnology.

New opportunities lie in:

  • Expansion into plant-based protein fermentation processes.
  • Development of specialized yeast strains for biofuel production.
  • Investment in automated yeast propagation systems for efficiency.

By 2035, the Yeast Market is expected to achieve robust growth, reflecting evolving consumer preferences and technological advancements.

Market Segmentation

Yeast Market Form Outlook

  • Dry Yeast
  • Fresh Yeast
  • Liquid Yeast

Yeast Market Type Outlook

  • Baker's Yeast
  • Brewer's Yeast
  • Nutritional Yeast
  • Bioethanol Yeast
  • Wine Yeast

Yeast Market End Use Outlook

  • Household
  • Commercial
  • Industrial

Yeast Market Application Outlook

  • Food
  • Beverage
  • Animal Feed
  • Pharmaceuticals
  • Biofuels

Report Scope

MARKET SIZE 20244.49(USD Billion)
MARKET SIZE 20254.659(USD Billion)
MARKET SIZE 20356.746(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)3.77% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for natural and clean-label yeast products in food and beverage applications.
Key Market DynamicsRising demand for natural ingredients drives innovation and competition in the yeast market, influencing product development strategies.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Yeast Market as of 2024?

The Yeast Market was valued at 4.49 USD Billion in 2024.

What is the projected market valuation for the Yeast Market in 2035?

The Yeast Market is projected to reach 6.746 USD Billion by 2035.

What is the expected CAGR for the Yeast Market during the forecast period 2025 - 2035?

The expected CAGR for the Yeast Market during 2025 - 2035 is 3.77%.

Which segment of the Yeast Market had the highest valuation in 2024?

In 2024, Baker's Yeast had the highest valuation at 2.2 USD Billion.

What are the projected valuations for Dry Yeast and Liquid Yeast by 2035?

By 2035, Dry Yeast is projected to reach 2.3 USD Billion, while Liquid Yeast may reach 2.65 USD Billion.

Which application segment is expected to grow the most in the Yeast Market by 2035?

The Food application segment is expected to grow to 2.2 USD Billion by 2035.

Who are the key players in the Yeast Market?

Key players in the Yeast Market include Lesaffre, AB Mauri, and Angel Yeast, among others.

What is the projected valuation for Nutritional Yeast by 2035?

Nutritional Yeast is projected to reach 0.9 USD Billion by 2035.

How does the Commercial end-use segment compare to the Industrial segment in 2035?

In 2035, the Commercial end-use segment is projected at 2.3 USD Billion, while the Industrial segment may reach 2.246 USD Billion.

What is the expected growth trend for Bioethanol Yeast from 2024 to 2035?

Bioethanol Yeast is expected to grow from 1.1 USD Billion in 2024 to a higher valuation by 2035.

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