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Organic Yeast Market Size - By Type (Yeast Extract, Yeast Derivatives, Inactive Dry Yeast, Nutritional Yeast, Others), By Application (Nutrition, Food, Beverages, Feed, Others), By Species (Saccharomyces, Candida, Kluyveromyces, Others) & Forecast, 2024 – 2032

  • Report ID: GMI8913
  • Published Date: Apr 2024
  • Report Format: PDF

Organic Yeast Market Size

Organic Yeast Market size was valued at USD 489 million in 2023 and is anticipated to register a CAGR of over 10.7% between 2024 and 2032. The market is witnessing substantial expansion owing to a confluence of industry dynamics and shifting consumer inclinations. Heightened emphasis on health, sustainability, and ethical procurement is increasingly paramount among discerning clientele, propelling a fervent quest for organic alternatives across diverse product domains, yeast included.
 

Organic Yeast Market

This surge finds amplification within the global organic food sector, buoyed by a collective pursuit of natural, unadulterated fare, resonating with both end-users and manufacturers alike. Regulatory frameworks, buttressed by government certifications and standards, lend crucial support in upholding the sanctity of organic produce, bolstering consumer confidence and fostering market entry.
 

Moreover, escalating demand for organic yeast finds impetus from sectors reliant upon its utility, such as baking, brewing, and pharmaceuticals, where a paradigm shift towards sustainable methodologies is underway. Despite the elevated costs associated with organic agricultural practices and certification protocols, consumer trust remains unwavering, incentivizing increased industry participation. This trajectory is underpinned by a resolute alignment with prevailing consumer predilections favoring organic, natural, and sustainable solutions, thereby engendering a vista of lucrative prospects for stakeholders within the organic food milieu.
 

Two significant pitfalls for quality control and standardization pose challenges in the organic yeast market, are limited supply and production constraints pose significant challenges. Organic farming practices inherently yield lower quantities compared to conventional methods, and sourcing organic ingredients for yeast cultivation can be difficult, leading to supply shortages. As demand for organic yeast rises, producers may struggle to scale up production, exacerbating supply constraints and potentially driving prices higher. Seasonal variations and weather conditions further complicate production, adding instability to the supply chain.
 

Moreover, the price premium associated with organic certification, sustainable farming practices, and potential yield limitations can deter price-sensitive consumers. Balancing profitability with competitive pricing becomes crucial for organic yeast producers to appeal to a broader consumer base. Economic fluctuations may further impact consumer purchasing behavior, challenging producers to maintain steady demand amidst cost sensitivity. Navigating these challenges requires strategic planning, investment in production efficiency, and effective supply chain management to ensure the sustainable growth of the market.
 

Organic Yeast Market Trends

An emergent trend within the organic yeast industry pertains to the escalating demand for natural ingredients and transparent labeling. Consumers are displaying a heightened awareness regarding the contents of their meals, gravitating towards products with concise, naturally derived ingredient lists. Given its reputation as a clean label ingredient, devoid of synthetic chemicals and pesticides, organic yeast seamlessly aligns with this burgeoning consumer preference.
 

This trend carries significant implications for industry advancement, as it fosters heightened demand from both food manufacturers and discerning consumers. The discernible shift towards natural and organic products amplifies the necessity for organic yeast across a spectrum of culinary applications, spanning from savory goods to baking and brewing endeavors. Consequently, food producers are pivoting towards reformulating their offerings to incorporate organic yeast, thereby catalyzing an upsurge in sales volume and facilitating market expansion.
 

Furthermore, as the momentum behind clean label initiatives continues to intensify, organic yeast stands poised to derive substantial benefits from its positioning as a coveted ingredient within the food industry. This strategic alignment not only augments consumer appeal but also serves as a catalyst for sustained growth within the market.
 

Organic Yeast Market Analysis

Organic Yeast Market Size, By Type, 2021 - 2032 (USD Million)

Based on type, the market is divided into yeast extract, yeast derivatives, inactive dry yeast, nutritional yeast & others. The yeast extract segment held the dominant market share of USD 179 million in 2023 and is expected to attain a market value of over USD 434 million by 2032.The exponential growth witnessed in the yeast extract market within the organic yeast sector can be attributed to several pivotal factors.
 

Firstly, its surge in demand is underpinned by the remarkable versatility and flavor-enhancing properties it offers, rendering it a highly sought-after component across a spectrum of applications spanning food, beverages, and pharmaceuticals. This multifaceted utility positions yeast extract as an indispensable ingredient, driving its adoption in various product formulations. Secondly, the burgeoning popularity of yeast extract stems from its emergence as a natural flavor enhancer, appealing to discerning consumers who prioritize clean label and natural products over artificial additives.
 

This shift towards natural alternatives has propelled the demand for yeast extract as a preferred ingredient in the food industry. Moreover, the increasing recognition of the health benefits associated with yeast extract, including its rich nutritional profile and potential to elevate umami taste, has further fueled its incorporation into diverse food compositions. This growing awareness of its health advantages has spurred consumer interest and acceptance, contributing to the heightened demand for yeast extract.
 

Furthermore, continuous advancements in product development and extraction techniques have bolstered the functionality, quality, and flavor profile of yeast extract, enhancing its appeal and driving market growth. The convergence of these factors collectively underscores the rapid expansion of the yeast extract segment within the market, signaling promising prospects for its continued trajectory.
 

Organic Yeast Market Revenue Share, By Application, (2023)

Based on application, the organic yeast market is categorized as nutrition, food, beverages, feed, others. The nutrition segment accounted for 34.6% of the market share in 2023. Due to several crucial factors that have propelled the remarkable ascent of the nutrition segment within the market. Firstly, a burgeoning awareness and prioritization of personal health and well-being has precipitated heightened demand for nutritive offerings. Organic yeast emerges as a pivotal constituent in this landscape, boasting a rich reservoir of essential vitamins, minerals, and proteins, thus positioning it as a cornerstone in the formulation of functional meals and dietary supplements aimed at augmenting holistic health.
 

Secondly, the surge in popularity of plant-based diets and vegan lifestyles has precipitated a corresponding uptick in the quest for natural, non-animal-derived nutrient sources, further amplifying the appeal of organic yeast. Notably, advancements in extraction and production technologies have elevated the quality and bioavailability of organic yeast nutritional supplements, serving as a catalyst for the segment's expansion. Moreover, the resounding endorsement of organic certifications and adherence to clean label trends have fostered enhanced consumer trust and confidence in organic yeast-based nutrition products, underscoring their ascendance and pervasive market presence.
 

By species, the burgeoning growth of the Saccharomyces segment within the organic yeast market can be attributed to several pivotal factors. Firstly, Saccharomyces strains, particularly Saccharomyces cerevisiae, boast versatile applications across various industries, including food, beverages, pharmaceuticals, and biotechnology. Its prominence in baking, brewing, and fermentation processes contributes significantly to its burgeoning demand, as these sectors witness sustained growth and innovation.
 

Secondly, the increasing adoption of Saccharomyces yeast in probiotic formulations and nutritional supplements underscores its pivotal role in promoting gut health and overall well-being, aligning with rising consumer preferences for natural and holistic health solutions. Furthermore, advancements in biotechnological research and genetic engineering techniques have led to the development of novel Saccharomyces strains with enhanced functionalities, expanding its utility in diverse applications. Additionally, the endorsement of organic certifications and clean label trends further bolsters consumer trust and confidence in Saccharomyces-based products, propelling its rapid growth within the market.
 

North America Organic Yeast Market Size, 2021 - 2032 (USD Million)

North America organic yeast market generated a revenue of USD 182.8 million in 2023 and is set to cross 458 million by 2032. North America stands as a prominent force in the market, propelled by several key factors that fuel its significance for growth. Foremost among these factors is the heightened consumer awareness and demand prevalent among North American consumers, who increasingly prioritize health-conscious and environmentally friendly choices. This trend drives a burgeoning demand for organic and natural products, including organic yeast, as consumers in the region place a premium on items with clean labels and sustainable sourcing practices.
 

Moreover, North America boasts a mature and well-established organic market, supported by robust regulatory frameworks and certification standards that ensure product integrity and consumer trust. This regulatory infrastructure, coupled with a strong distribution network encompassing retail outlets, e-commerce platforms, and specialty stores, facilitates widespread accessibility and availability of organic yeast products to consumers across the region.
 

Additionally, North America's role as a hub for innovation and product development in the food and beverage industry further propels market growth, as companies invest in research and development to meet evolving consumer preferences and drive product innovation. Furthermore, the supportive regulatory environment, exemplified by government initiatives, subsidies, and incentives promoting organic farming practices and certification processes, fosters a conducive landscape for organic yeast producers to flourish and expand their market presence.
 

In summation, North America's prominence in the organic yeast market is underscored by its robust consumer demand, well-established market infrastructure, extensive distribution channels, innovation capabilities, and supportive regulatory framework, all of which collectively drive the region's pivotal role in steering the growth trajectory of the market.
 

Organic Yeast Market Share

Organic Yeast Market Company Market Share, (2023)

The substantial growth of the organic yeast industry is propelled by a confluence of critical factors, bolstered by industry giants such as Lesaffre Group, Lallemand Inc., Angel Yeast Co., Ltd., Ohly GmbH, and Associated British Foods plc (ABF). These market leaders not only command extensive expertise in yeast and fermentation products but also demonstrate a relentless commitment to innovation and product development. Their diverse portfolios cater to a wide range of applications across industries, including baking, brewing, nutrition, and animal feed, thereby tapping into multiple growth avenues. Furthermore, their robust distribution networks ensure widespread availability of organic yeast products to consumers worldwide, facilitating market expansion and penetration.
 

Additionally, these industry stalwarts leverage their global presence and strong market positions to instill stability and credibility in the organic yeast sector, fostering trust among consumers and industry stakeholders alike. Through continuous investment in research, development, and sustainability initiatives, these key players remain at the forefront of driving the market's growth trajectory, poised to capitalize on emerging opportunities and evolving consumer preferences.
 

Organic Yeast Market Companies

Major players operating in the organic yeast industry include:

  • Angel Yeast Co., Ltd.
  • Associated British Foods plc (ABF)
  • Bio Realizations Inc.
  • Bio Springer
  • DSM Nutritional Products
  • Kemin Industries
  • Kerry Group
  • Koninklijke DSM N.V. (Royal DSM)
  • Lallemand Inc.
  • Leiber GmbH
  •  Lesaffre Group
  • Ohly GmbH
  • Red Star Yeast Company
  • Solgar, Inc.
     

Organic Yeast Market Industry News

  • In 20 February 2023, Angel Yeast, a global yeast manufacturer, emphasizes innovative solutions via strategic investments and partnerships, aimed at enhancing supply chain and R&D capabilities. The company will also continue collaborating with global universities and research institutions, joining forces with top-notch scientists.
     
  • In April 2020, North American corporation Biospringer expanded its production site in Iowa, USA, enhancing its manufacturing capabilities. The expansion reflects Biospringer's commitment to meeting growing demand for yeast-based products and strengthening its presence in the region.
     

The organic yeast market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Tons) from 2018 to 2032, for the following segments:

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Market, By Type

  • Yeast extract
  • Yeast derivatives
  • Inactive dry Yeast
  • Nutritional yeast
  • Others

Market, By Application

  • Nutrition
  • Food
  • Beverages
  • Feed
  • Others

Market, By Species

  • Saccharomyces
  • Candida
  • Kluyveromyces
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada 
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA

 

Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of organic yeast reached USD 489 million in 2023 and is set to witness 10.7% CAGR between 2024 and 2032, owing to a confluence of industry dynamics and shifting consumer inclinations.

Yeast extract accounted for USD 179 million in 2023 and is expected to reach USD 434 million through 2032, driven by the increasing recognition of the health benefits, including its rich nutritional profile and potential to elevate umami taste.

North America market generated USD 182.8 million in 2023 and anticipated to reach USD 458 million by 2032, attributed to burgeoning demand for organic and natural products, as consumers in the region place a premium on items with clean labels and sustainable sourcing practices.

Angel Yeast Co., Ltd., Associated British Foods plc (ABF), Bio Realizations Inc., Bio Springer, DSM Nutritional Products, Kemin Industries, Kerry Group, Koninklijke DSM N.V. (Royal DSM), Lallemand Inc., Leiber GmbH, Lesaffre Group, Ohly GmbH, Red Star Yeast Company and Solgar, Inc.

Organic Yeast Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 14
  • Tables & Figures: 532
  • Countries covered: 22
  • Pages: 300
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