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Yeast: A Global Strategic Business Report

Global yeast market forecast to total over US$4.4Bn by 2020

Global market for Yeast is projected to reach US$4.4 billion by 2020, driven by expanding applications and increasing use of yeast as salt substitute in a variety of products. Yeast has been in use for several centuries for manufacturing a wide range of food and beverage products. Yeast is a vital constituent of bread, wine, and beer making processes. Growth in the global yeast market is primarily attributed to increasing demand for wine, beer, animal feed, bio-ethanol, and bakery products. Strong growth over the years has characterized the global market for yeast. The market continues to remain buoyant largely due to the growing consumer acceptance of natural foods. With several food ingredient manufacturers and food processors continuing to seek ways to capitalize on the growing demand for health-oriented foods, demand for yeast is poised to remain steady in the coming years.

Growing demand for natural ingredients in processed foods is expected to augur well for the yeast market. Research studies highlighting yeast extracts as effective alternatives to synthetic food enhancers in improving textures, modifying mouth feel and creating fullness and richness in defatted products will also help contribute towards demand growth. Rising popularity of functional bakery products is expected to drive demand for baker's yeast. Demand for nutrition enriched bakery products such as whole grain-based products is growing, which in turn is expected to provide a major boost to yeast demand. Increased adoption of stringent food safety regulations will additionally influence yeast consumption patterns. Meanwhile, demand for brewer's yeast is witnessing significant growth driven by growing consumption of alcohol.

Yeast extracts are garnering increased attention due to their ability to replace salt in a variety of savory foods. With the global drive towards salt reduction in food products gaining traction, there is growing demand for salt substitutes like yeast extracts. Yeast extracts are especially being preferred since, unlike other substitutes, yeast allows for reducing salt content without perceptible changes in taste and flavor. Recent studies on ruminant, equine, porcine and pet animal nutrition have demonstrated the usefulness of live yeast cultures in alleviating digestive disorders in farm animals. The safety aspect, associated with the use of yeast, both to the animal and to the environment, is expected to emerge as an important factor driving growth in the animal feed end-use sector.

Europe represents the largest market worldwide. In addition to being the largest consumer, the region also towers high in R&D investments. Increasing bread consumption, growth of specialty food sector, advances in formulations and greater demand for natural flavoring and ingredients represent major drivers of growth in the market. The United States represents the fastest growing market with a CAGR of 9.2% over the analysis period. Major players operating in this market include AB Mauri, Angel Yeast Co. Ltd., Chr. Hansen A/S, Kerry Group Plc, Lallemand Inc., Lesaffre Group, Bio Springer, Red Star Yeast Company, Ohly GmbH, Royal DSM N.V., Synergy (High Wycombe) Limited, and Zeus IBA SpA, among others.

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