The yeast market is projected to reach a value of USD 5.40 billion by 2022, at a CAGR of 9.0% from 2017 to 2022. The market is driven by factors such as the growth of the bakery industry, increasing demand for convenience food, and increasing demand for bioethanol as a fuel. Yeast, on the basis of type, is segmented into baker’s yeast, brewer’s yeast, wine yeast, bioethanol yeast, and feed yeast. Based on the application, the market is broadly segmented into food and feed. The major forms of yeast are fresh yeast, dry yeast, and instant yeast. Specialty yeast, by type, is segmented into yeast extracts, yeast autolysates, and other yeast derivatives. On the basis of region, the market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW).
On the basis of type, the baker’s yeast segment accounted for the largest market size in 2016. However, the bioethanol segment is projected to grow at the highest CAGR during the forecast period. Due to the increasing awareness about the use of bioethanol, many countries have already accepted bioethanol as an alternative to gasoline, owing to its low-carbon emission and environment-friendly nature. The demand for baker’s yeast is increasing in the developing economies due to the increasing trend of consumption of processed food items and special bakery foods. The major application areas for baker’s yeast are bread, bread rolls, pizza base, cracker biscuits, sweet bread, burger, and buns for fermentation of the dough.
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The Asia-Pacific market is expected to witness the fastest growth during the forecast period. The market is mainly driven by China as it has witnessed high growth in the yeast-based products market, and is one of the emerging markets for baker’s yeast. Import of yeasts in the region benefits countries such as New Zealand and Australia. Moreover, the economic improvements in countries such as India and China have increased the demand for yeasts in the region. The Asia-Pacific market is driven by the growing demand for processed food products in developing economies such as India, China, Japan, Australia, and South Korea.
The global yeast market was dominated by Europe in 2016. North America is projected to be the fastest-growing market from 2017 to 2022. The European market is witnessing growth due to the increasing consumption of processed food products, increasing alcohol consumption, and increasing awareness about the nutritive value of yeast.
Stringent food safety regulations is the major factor restraining the market. Some of the regulations are Regulation (EC) No 834/2007, and in particular Article 20 thereof, which lays down basic requirements for the production of organic yeast. Detailed rules for the implementation of those requirements should be laid down in Commission Regulation (EC) No 889/2008 (2). Also, according to Annex VI (B) to Council Regulation (EEC) No 2092/91 (3), only enzymes normally used as processing aids were allowed to be used in organic processing and enzymes used as food additives would have to be in the list of authorized food additives of Annex VI (A) (A.1) to that Regulation.
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The global market is characterized by moderate to low competition. Acquisitions and expansions & investments are the key strategies adopted by the key market players to ensure their growth in the market. The market is dominated by players such as Associated British Foods plc (U.K.), AngelYeast Co., Ltd (China), Lesaffre Group (France), Chr. Hansen Holding A/S (Denmark), and Koninklijke DSM N.V. (Netherlands). Other players include Lallemand Inc. (Canada), Alltech, Inc. (U.S.), Leiber GmbH (Germany), Oriental Yeast Co., Ltd.(Japan), and Synergy Flavors (U.K.).