Yeast Market
Yeast Market By Type (Baker’s Yeast, Brewer’s Yeast, Wine Yeast, Probiotic Yeast, Other Types), Application (Food, Feed, Other Applications), Form (Fresh, Instant, Active), Genus (Saccharomyces, Kluyveromyces, Other Genera), Yeast Extract (Qualitative), and Region - Global Forecast to 2031
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The yeast market is projected to reach USD 10.14 billion by 2031 from USD 6.59 billion in 2026, at a CAGR of 9.0%. The market's upward trajectory is fueled by several factors, foremost among them being the rising recognition of the health benefits associated with yeast ingredients. Consumers are becoming increasingly aware of yeast's positive impacts on their well-being, driving demand for yeast-based products in food and feed.
KEY TAKEAWAYS
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BY REGIONThe European region is estimated to account for 36.6% of the yeast market in 2026.
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BY PRODUCT TYPEBy product type, the baker's yeast segment is estimated to dominate the market with a share of 37.3% in 2026.
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BY GENUSBy form, the Kluyveromyces segment is projected to witness a higher CAGR of 9.2% from 2026 to 2031.
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BY APPLICATIONBy application, the food & beverage segment is expected to hold a dominant market share.
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BY FORMOn the basis of form, the fresh segment accounted for the majority of the market share among the forms of yeast.
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COMPETITIVE LANDSCAPE - KEY PLAYERSAngelYeast Co., Ltd., Associated British Foods plc, ADM, Nisshin Seifun Group Inc., and Kothari Fermentation and Biochem Ltd are among the leading companies in the yeast market, given their global presence and strong product portfolios.
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COMPETITIVE LANDSCAPE - STARTUPSAGRANO GMBH & CO. KG, Biorigin, and ABN Aplicaciones Biológicas a la Nutrición, among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The yeast market is mainly driven by growth in the food industry, which constantly upgrades its technologies and adapts to changing economic factors. This market is dominated by medium- to high-scale enterprises with specialized technological expertise. They have a better regional presence due to their knowledge of nutritional requirements for various food & beverage applications and other consumers. Companies are seeking patents and registrations for their products to stay competitive.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The transition from traditional commodity fermentation inputs to high-value, functional yeast solutions is increasingly influencing the brewer's yeast market. Commercial breweries are concentrating on developing diverse flavors, ensuring uniformity across batches, and optimizing fermentation outcomes. Moreover, food and beverage companies are incorporating yeast derivatives such as beta-glucans to enhance immune system functions. Concurrently, manufacturers of animal feed are integrating yeast cell wall components to promote gut health and facilitate the binding of mycotoxins within the feed. These evolving client requirements stem from end-consumer preferences for premium and craft products, functional nutrition, immune health, sustainable production practices, and clean-label formulations. Consequently, brewer's yeast is emerging as a multifunctional bio-ingredient platform, extending beyond its traditional role as a basic brewing component.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Global expansion of bakery industry
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Increasing demand for yeast in brewing sector
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Concerns regarding allergenic potential of yeast
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Competition for basic raw materials
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Strategic collaborations and partnerships between yeast manufacturers and other players
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New variants of yeast ingredients for improved functionality
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Difficulty in achieving consistent product quality and performance due to variations in raw materials, fermentation conditions, and strain characteristics
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High research and development costs
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Global expansion of bakery industry
The bakery industry has witnessed substantial growth worldwide, especially in emerging economies, driven by urbanization and changing consumer preferences. This expansion has led to a surge in demand for yeast, a crucial ingredient in bread-making. Yeast serves as the leavening agent responsible for the fermentation process that gives bread its desired texture. In emerging economies, the rising preference for convenient and affordable food options, including packaged bread and pastries, has further fueled the demand for yeast.
Restraint: Concerns regarding allergenic potential of yeast
The allergenic potential of yeast poses a significant restraint for the yeast market, particularly in food and beverage applications. With increasing awareness of food allergies among consumers, concerns about allergic reactions to yeast can lead individuals to avoid products containing this ingredient, impacting market demand. For manufacturers, yeast allergies limit their ability to include yeast in their products, restricting product offerings and potentially reducing revenue streams.
Opportunity: Strategic collaborations and partnerships between yeast manufacturers and other players
Brewer's yeast makers can make a lot of money by getting into the nutraceuticals market. Beta-glucans from yeast are known to help the immune system, and postbiotics are stable, non-viable functional ingredients that are good for gut health and overall health. As consumers become more interested in immunity, preventive health care, and clean-label products, the demand for dietary supplements, functional foods, and drinks is growing. This change lets manufacturers move away from supplying yeast as a commodity and toward bioactive ingredients that are backed by science and add value. This increases margins and diversifies revenue.
Challenge: Difficulty in achieving consistent product quality and performance due to variations in raw materials, fermentation conditions, and strain characteristics
Ensuring consistent product quality and performance in the yeast market poses a significant challenge due to variations in raw materials, fermentation conditions, and strain characteristics. Raw materials such as molasses or sugar can differ in composition and quality based on geographic origin and seasonal variations, impacting nutrient availability and ultimately affecting yeast growth and productivity during fermentation. Fluctuations in fermentation conditions, such as temperature, pH, and oxygen levels, can influence yeast metabolism and product attributes, leading to inconsistencies in flavor and aroma. Variations in strain characteristics, whether due to genetic mutations or microbial contamination, can result in unpredictable fermentation outcomes and product quality.
YEAST MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Angel Yeast has expanded its line of yeast by developing specialty yeast strains and yeast-based products for brewing, food, and health applications. To meet the demand for functional ingredients and improve brewing efficiency, the company focuses on high-performance fermentation strains, yeast extracts, and derivatives that are high in beta-glucan. | These programs help breweries make better beer by improving fermentation stability, flavor consistency. They also let food and nutraceutical companies use yeast-derived functional ingredients that support immune health and clean-label formulations. |
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The Associated British Foods AB Mauri division formulates advanced user-specific fermentation yeast solutions for both the food and beverage industries. The strong focus on fermentation performance, yeast strain optimization, and dialed-in specific strains for varying brewing styles and industrial fermentation processes makes AB Mauri a leader in their field. | These solutions help manufacturers improve fermentation efficiency, maintain consistent product quality, and develop differentiated flavor profiles. Customized yeast strains also support product innovation in craft brewing and specialty beverages. |
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ADM leverages its fermentation and bio-ingredient expertise to develop yeast-based ingredients such as yeast extracts, beta-glucans, and functional fermentation products for food, beverage, and nutrition markets. The company integrates fermentation technology with its broader ingredient portfolio to expand yeast applications. | ADM’s yeast-derived ingredients enhance flavor, nutritional value, and functionality in food and beverage formulations while supporting immune health and gut health applications. This diversification helps expand brewer’s yeast usage into high-value functional and nutraceutical markets. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The yeast market ecosystem comprises manufacturers, government bodies, end users, and startups. Major manufacturers like AngelYeast, ADM, Alltech, AB Mauri, and Lallemand are at the forefront of developing fermentation technologies and yeast-based ingredients. Government bodies like ISO, USDA, EFSA, and FSSAI are at the core of ensuring the safety and quality of yeast. End users like breweries, wineries, and food producers are the ultimate consumers of yeast, while startups are also contributing to the development of yeast through innovative yeast strains.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Yeast Market, by Type
The growth of the baker’s yeast market is directly linked to the increasing consumption of bakery items. Different forms of baker’s yeast are used to produce various bakery products. Fresh baker’s yeast provided for commercial uses includes products in liquid, creamy, or compressed forms and active dry yeast. Compressed baker’s yeast is the most used product and consists of only one yeast species, namely, S. cerevisiae.
Yeast Market, by Form
On the basis of form, the fresh segment accounted for most of the market share among the forms of yeast, primarily because it is considered a more sustainable form of yeast processing and has wide applicability across a wide range of food applications.
Yeast Market, by Genus
On the basis of the genus, the Saccharomyces segment accounted for the highest share in the global yeast market due to the increase in acceptability of this strain for adoption in the food industry. The increase in demand for baked products at the global level is projected to drive the market growth for Saccharomyces sp.-based yeast.
Yeast Market, by Application
Based on application, the food & beverage segment dominated the market during the study period. There is a significant rise in the demand for yeast in the market as it finds applications in the functioning of the bakery, wine, and beer industries. Since the demand for processed & baked food and non-carbonated beverages is increasing due to the change in the lifestyle of consumers, the growth of the yeast market is projected to remain high. Along with imparting flavors in food products, the infusion of yeast as an ingredient also increases the nutritive value of feed. This has significantly encouraged the inclusion of yeast in feed products.
REGION
Europe to dominate global yeast market
Europe is estimated to have the largest share of the global yeast market as of 2024. The European yeast market is witnessing significant growth due to the increasing consumption of processed food products, increased alcohol consumption, and awareness about the nutritional value of yeast. The EU market revolves around bread production. The increase in the consumption of cakes, bread, pastries, and alcoholic beverages has driven a surge in yeast demand across Europe.
YEAST MARKET: COMPANY EVALUATION MATRIX
In the yeast market matrix, AngelYeast Co., Ltd., Associated British Foods plc (Star) lead with a moderate market share and extensive product footprint for yeast products, driven by their strong geographical presence, significant formulation and distribution capabilities, and strong ties with food manufacturers and breweries. Lallemand (Emerging Leader) is gaining visibility with its specialized yeast offerings, strengthening its position through strong product offerings.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Associated British Foods Plc (UK)
- AngelYeast Co., Ltd. (China)
- Chr. Hansen Holding A/S (Denmark)
- Koninklijke Dsm N.V (Netherlands)
- Lallemand Inc. (Canada)
- Leiber Gmbh (Germany)
- Lesaffre Group (France)
- Oriental Yeast Co., Ltd. (Japan)
- Synergy Flavors (Us)
- Halcyon Proteins Pvy. Ltd. (Australia)
- Food Chem International Corporation (China)
- Sensient Technologies Corporation (Us)
- Pacific Fermentation Industries (Canada)
- Kerry Group Plc (Ireland)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size, 2025 (Value) | USD 6.05 Billion |
| Market Forecast, 2031 (Value) | USD 10.14 Billion |
| Growth Rate | CAGR of 9.0% from 2026 to 2031 |
| Years Considered | 2022–2031 |
| Base Year | 2025 |
| Forecast Period | 2026–2031 |
| Units Considered | Value (USD Million/Billion), Volume (KT) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, South America, Rest of the World |
WHAT IS IN IT FOR YOU: YEAST MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Europe-based yeast manufacturers | Detailed yeast market analysis, competitive landscape, and competitor benchmarking (financials, product portfolios) | Identified and profiled 20+ brewer’s yeast producers |
| Yeast derivative segment assessment | Segmentation of yeast demand by type (baker's yeast, brewer's yeast, probiotic yeast, wine yeast) and application (brewing, food & beverage, feed, nutraceuticals) | Benchmarking yeast strain adoption and fermentation performance across regions |
RECENT DEVELOPMENTS
- December 2025 : AngelYeast began trial production at its new specialty yeast production plant located in Yichang, China. The facility was designed with highly sterile production processes and will have the capacity for producing around 8,500 metric tons annually when it becomes operational. The facility would also have a Brewing Functional Microorganism Pilot Test Platform to mimic real-world brewery conditions for faster product development. The facility would be the final link in the integrated value chain from R&D to mass production for AngelYeast Company.
- February 2025 : Asahi Group Foods signed a supply agreement with ADM Wild Valencia to distribute its proprietary lactic acid bacteria Lactobacillus gasseri CP2305 internationally. Starting in March, ADM Wild Valencia will supply the ingredient to food manufacturers across North America, Europe, and Asia for use in supplements and health foods. This would be the first time Asahi Group Foods would sell this probiotic outside its group, aiming to capitalize on rising global demand for health-focused food and beverage ingredients.
- August 2024 : AB Biotek, a division of AB Mauri under Associated British Foods, develops yeast technologies and fermentation solutions for alcoholic beverages, bioethanol, animal nutrition, and human health markets. The company gained attention for its Pinnacle Crisp Sour Lachancea yeast strain, originally sourced from a wasp, designed to support innovative sour beer production.
Table of Contents
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Methodology
The study involved two major segments in estimating the current size of the yeast market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
This research study involved the extensive use of secondary sources—directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the market.
In the secondary research process, various sources such as annual reports, press releases & investor presentations of companies, white papers, food journals, certified publications, articles from recognized authors, directories, and databases, were referred to identify and collect information.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation as per the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted after obtaining information regarding the Yeast market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, South America, and the Rest of the World. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, research, and development teams, and related key executives from distributors, and key opinion leaders. Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to yeast, type, form, application, and region. Stakeholders from the demand side, such as processed food and functional food products manufacturers who manufacture the products, were interviewed to understand the buyer’s perspective on the suppliers, products, and their current usage of yeast and the outlook of their business, which will affect the overall market.
Note: The three tiers of the companies are defined based on their total revenues in 2021 or 2022, as per the availability of financial data: Tier 1: Revenue > USD 1 billion; Tier 2: USD 100 million ≤ Revenue ≤ USD 1 billion; Tier 3: Revenue < USD 100 million.
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COMPANY NAME |
designation |
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ADM (US) |
General Manager |
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Associated British Foods plc (UK) |
Sales Manager |
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Alltech (Kentucky) |
Manager |
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AngelYeast Co., Ltd (China) |
Head, Processing Department |
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Lallemand Inc. (Canada) |
Marketing Manager |
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Leiber (Germany) |
Sales Executive |
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the yeast market. These approaches were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and the overall markets were identified through extensive secondary research.
- All shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from leaders, such as CEOs, directors, and marketing executives.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed to estimate the yeast market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying numerous factors and trends from the demand and supply sides. The market size was also validated using both the top-down and bottom-up approaches.
Market Definition
According to the FAO, yeast is a unicellular fungus that reproduces asexually by budding or division, particularly the genus Saccharomyces, which is important in food fermentations. It is used in the preparation of food products, animal nutrition, and pet nutrition products, which help in improving the health and performance of animals. According to Lallemand Inc., “the ban of antibiotic growth promoters in feed for production of animal foods in the European Union has led to increased interest in evaluating the effect of yeast products on the gastrointestinal ecosystem, rumen microbial populations, and overall animal performance.”
Furthermore, the large-scale industrial production and commercial use of yeasts were initiated around the end of the 19th century. Yeasts approved for use in food products are rich in nutrition, proteins, enzymes, and vitamins. Hence, yeast can be used in the food industry as a nutritional supplement. Yeast is used in basic cultures for manufacturing specific fermented food products, such as dairy, bakery, fermented meat and vegetable products, and vinegar.
Key Stakeholders
- Yeast manufacturers
- Yeast importers and exporters
- Yeast traders, distributors, and suppliers
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Food additive manufacturers, importers, and exporters
Feed manufacturers - Food associations of several countries
- Intermediary suppliers, including traders and distributors of food & beverage, feed, and bio-ethanol products
- Research organizations and associations such as the Food and Agriculture Organization (FAO), Food and Drug Administration (FDA), European Animal Protein Association (EAPA), Food Standards Australia New Zealand (FSANZ), European Food Safety Authority (EFSA), and United States Department of Agriculture (USDA)
- Regulatory bodies such as
- US Food and Drug Administration (FDA)
- European Commission (EC)
- United States Department of Agriculture (USDA)
- Commercial research & development (R&D) institutions and financial institutions
- Food and Agriculture Organization (FAO)
Report Objectives
- To determine and project the size of the yeast market with respect to the type, applications, form, genus, yeast extract (qualitative), and region in terms of value and volume over five years, ranging from 2026 to 2031
- To identify the attractive opportunities in the market by determining the largest and fastest-growing segments across regions
- To provide detailed information about the key factors influencing market growth (drivers, restraints, opportunities, and challenges)
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
- To analyze the micro-markets with respect to individual growth trends, prospects, and their contribution to the total market
- To identify and profile the key players in the yeast market
- To understand the competitive landscape and identify the major growth strategies adopted by players across the key regions
- To provide insights into key product innovations and investments in the yeast market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the European Yeast market into its key countries, the Netherlands, Russia, Switzerland, Greece, and Poland.
- Further breakdown of the Rest of Asia Pacific Yeast market into its key countries, the Philippines, Indonesia, Malaysia, Vietnam, Singapore, and Thailand.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in Yeast Market