Yeast Ingredients Market Technology Overview and Landscape Analysis by 2020

Industry Insights
The global market size for Yeast Ingredients was estimated over USD 1.7 billion in 2014. The market demand is driven by growing application in the manufacturing of processed foods and nutritional foods. The low toxicity and eco-friendly nature of these products are boosting the consumption of these ingredients in the application segments. Hectic lifestyle coupled with rising disposable incomes has resulted in more population consuming processed foods. The growing trend of consuming vegetarian foods is anticipated to propel market growth over the forecast period.

The market demand for these products has been driven by growing interest in natural food ingredients. Consumer awareness regarding organic food products manufactured using natural food additives is expected to have a positive impact on demand for these ingredients. The low cost of these products helps manufacturers in offering a clean label product and satisfying the consumer’s need for natural ingredients.

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Product Insights
The product segments in the yeast ingredients market comprise extracts, autolysates, yeast beta-glucan, yeast derivatives. Yeast extracts product segment was valued over USD 450 million in 2015 and the demand is expected to grow rapidly on account of growing usage in vegetarian foods. The yeast extracts demand is driven by growing preference for this product over monosodium glutamate (MSG) in food applications. Autolysates are used in animal feed to increase palatability and in processed foods for flavor enhancement. The growing usage of beta glucans in the treatment of cancer, HIV, and high cholesterol medicines is expected to drive market growth over the forecast period.

Application Insights
Yeast ingredients are used in feed, pharmaceutical, dairy applications and food. Food application segment is the major application segment in the market. Yeast ingrediensts contain many useful minerals and vitamins like vitamin D, amino acids and vitamin B which will enhance the usage of these products over the forecast period. The demand for foods and beverages will witness the growth over the forecast period owing to growing population and rising health awareness. The growing demand for products derived from domesticated animals is expected to boost the demand in animal feed. The growing usage of specialty yeast ingredients in food and animal feed applications is expected to boost market growth over the forecast period.

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Regional Insights
Europe is the largest regional market and accounted for over 35% of revenue share globally in 2014. The growing demand for functional foods and dairy products is expected to drive industry growth over the forecast period. The growing awareness among middle-class population regarding various diseases caused due to high cholesterol is driving the demand for yeast ingredients in Asia Pacific. North America is likely to witness substantial growth owing to growing demand for pharmaceuticals, food, animal feed and dairy products.

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Competitive Insights:
Key players in the yeast ingredients market are Angel Yeast, DSM, Chr. Hansen, Kerry Group, Lallemand, Lesaffre Group and ABF Ingredients. The industry is characterized by high level of competition owing to less number of industry participants with a global presence. The industry participants are engaged in new product development with rising investments in R&D for increasing the product line. The high-profit margin has attracted the attention of a large number of small and local manufacturers.