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3. Increase in Demand for Organic Food and Beverages in the Developing Countries Leading to the Increased Demand for Organic Yeast Market

The global organic yeast market size is estimated to grow from USD 364 million in 2020 and is projected to reach USD 599 million by 2025, at a CAGR of 10.5%. Organic foods are gaining popularity as people are becoming aware of their benefits. Organic food products are either grown under a natural system of agriculture, without the use of synthetic fertilizers or they are processed products made from organically produced raw materials. The increased focus in health and demand for transparency is in turn putting pressure on manufacturers to deliver products that has clean level as a basic requirement in even the most challenging food product. Consumer’s favor for this simplicity are compelling food producers to look  for more natural and organic food ingredients to supply 100% organic products to their customers. This trend in the food pattern is expected to increase the use of organic yeast globally as it helps is enhancing flavor, color,  improve texture and also add extra protein, vitamins, minerals and antioxidants to meals.

The organically grown nutritional yeast products is now increasingly being used in feed products for its nutritive value as it consists of yeast biomass or pure, dead yeast cells, it also have flavor enhancing properties. Increasing awareness of animal health and nutrition and the growing prevalence of diseases in animals are the major factors driving the organic yeast market for feed. Due to its high bioavailability, organic yeast helps realize full growth and production potential in animals. Furthermore, yeast in its organic form is easy for absorption and utilization by the body and therefore, reduce oxidative damage, stress and improve meat quality effectively in animals. Therefore, it has recently proven itself to be a high quality and consistent product that guarantees animal performance, which in turn, results in increased profitability. All these beneficial factors have led to surge the demand for organic yeast and yeast extracts in the feed market.

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Organic yeast are finding huge application in the food industry. Yeast extracts plays a major role in the food processing companies as an umami taste contributor. The yeast extracts segment of the organic yeast market is projected to account for the largest share.  Yeast extracts are used by restaurants and food companies as an aromatic ingredient and for enhancing specific flavor profiles in food and beverages. Most organic yeast extract manufacturers, such as Biospringer (France) and Ohly (Germany) offer yeast extracts for food applications, such as soups & broths, sauces & dressings, snacks & seasonings, meat, fish & analogues, dairy products, sweets, starchy goods, and beverages. Use of yeast extracts in sauces, seasonings and dressing is expected to growth at the fastest rate during the projected period. With the growing awareness among consumers about nutrition and healthy foods, the need for salt, fat, and sugar reduction in food products has taken precedence.

The organic yeast market is estimated to grow significantly at the fastest rate in the Asia Pacific region due to the rise in demand for natural and organic food ingredients from the major economies such as China, India, Japan and other South East Asian countries as they experience a surge in the increase in number of health conscious consumers. With the increase in awareness amongst consumers about the essential nutrients requirement in daily diet, have increased the demand for protein rich nutritional supplement. In Asia Pacific, trends around healthy lifestyles and prevention among older consumers trying to avoid expensive healthcare costs and extend healthy lifespans are generating growth opportunities dietary supplements. Thus causing organic yeast to flourish as it acts a high quality nutritional supplement as it contain vitamins, minerals and proteins which helps boost immunity.

Although the consumption of organic food products has a positive effect on the overall health of the consumers, one of the major put offs for consumers is the high prices associated with the organic products. Organic food products are costly owing to the higher costs associated with the agricultural production and processing. The need for legal regulations and compliance in the specific country also adds to the pricing of the product. This has slightly effected the growth of the organic yeast market.

However, environmental and health concerns are driving the demand for organic wine and this factor boosts its sales worldwide, especially in Europe. People are gradually choosing organic products as compared to conventional beverages and wines. This has increased the use of organic yeast for alcoholic fermentation. The demand for organic yeast is growing due to the increased demand for yeast which would help the wine producers get a distinct taste for their wine thereby differentiating their product from other manufacturers. It is also used to enhance the overall flavor, aroma, and mouth-feel of the wine. Companies such as Chr.Hansen (Denmark) and Lallemand Inc. (Canada) offer organic wine yeasts which are used for both fermentation and improving the flavor of the beverage. With the increasing awareness among the consumers about the benefits of a healthy diet, the demand for non-fermented beverages such as juices, ready-to-serve (RTS), and squashes have also increased. This also allows aids the growth of the organic yeast market, providing huge scope for yeast manufacturers to tap these opportunities and capture the growing market to create a strong customer base.

Related Reports:

Organic Yeast Market by Type (Yeast extracts, Yeast derivatives, Inactive dry yeast, Nutritional yeast), Application (Food, Beverage, Nutrition, Feed),Species (Saccharomyces, Torulaspora, Candida, Kluyveromyces), and Region - Global Forecast to 2025

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