Yeast And Yeast Ingredients Market Size and Share
Yeast And Yeast Ingredients Market Analysis by Mordor Intelligence
The global yeast and yeast ingredients market size is assessed at USD 5.83 billion in 2025 and is projected to reach USD 8.31 billion by 2030, advancing at a 7.36% CAGR. Robust expansion reflects a steady pivot from commodity baker’s yeast toward specialty extracts, beta-glucans, nucleotides, and probiotic strains that meet rising demand for clean-label, functional products in food, beverage, nutraceutical, and animal nutrition channels. Growth also benefits from regulatory preference for Generally Recognized as Safe (GRAS) or Qualified Presumption of Safety (QPS) microorganism status, which accelerates time-to-market for Saccharomyces-based innovations. Europe remains the largest regional consumer on the back of historic bakery culture and strict additive oversight, whereas Asia-Pacific emerges as the fastest-growing territory due to rapid food-processing investments in China and India, coupled with widening acceptance of microbiome-targeted supplements. Meanwhile, advances in precision fermentation have opened new revenue pools in pharmaceuticals and sustainable chemicals, further supporting mainstream adoption across end-use industries.
Key Report Takeaways
- By product type, yeast commanded 56.47% of the 2024 yeast and yeast ingredients market share, and yeast ingredients are forecast to grow at a 9.56% CAGR through 2030.
- By form, active dry yeast held 39.52% of the 2024 yeast and yeast ingredients market size, while instant dry yeast is expected to expand at a 9.88% CAGR by 2030.
- By application, food and beverages accounted for 43.71% of demand in 2024, and pharmaceuticals and dietary supplements are projected to advance at a 10.01% CAGR to 2030.
- By geography, Europe led with 33.89% revenue share in 2024, and Asia-Pacific is set to clock the fastest 9.67% CAGR through 2030.
Global Yeast And Yeast Ingredients Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rising popularity of natural and clean label ingredients | +1.8% | Global, with strongest impact in North America and Europe | Medium term (2-4 years) |
Expansion of the bakery industry | +1.5% | Global, with accelerated growth in Asia-Pacific | Long term (≥ 4 years) |
Increasing use in nutritional supplements and fortified foods | +1.2% | North America and Europe core, expanding to Asia-Pacific | Medium term (2-4 years) |
Technological advancements in yeast fermentation | +1.0% | Global, with innovation centers in Europe and North America | Long term (≥ 4 years) |
Growing adoption in animal nutrition | +0.8% | Global, with strongest growth in Asia-Pacific and South America | Medium term (2-4 years) |
Expansion of microbiome-targeted nutraceutical yeasts | +0.7% | North America and Europe, expanding globally | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rising Popularity of Natural and Clean Label Ingredients
Consumer skepticism toward synthetic additives drives demand for yeast-based flavor enhancers and nutritional ingredients. According to the International Food Information Council, in 2024, nearly 26% of respondents in the United States indicated that "Natural" best defines healthy food, with yeast extracts increasingly replacing artificial flavor enhancers in savory applications [1]Source: International Food Information Council, “2024 IFIC Food & Health Survey,” Food Insight, foodinsight.org. Yeast extracts have expanded beyond traditional uses, serving as umami enhancers in sodium-reduced formulations, where their natural glutamate content provides flavor depth without synthetic additives. Research shows yeast extract effectively masks off-flavors in sodium-reduced marinated products, functioning as an ingredient that addresses both clean-label requirements and health-conscious reformulation needs. The Generally Recognized as Safe (GRAS) status of yeast ingredients eliminates lengthy approval processes required for synthetic alternatives. Food manufacturers now consider yeast ingredients as protection against evolving clean-label regulations, resulting in sustained demand growth independent of market fluctuations.
Expansion of the Bakery Industry
Global bakery expansion extends beyond traditional bread categories into premium, artisanal, and health-focused segments, increasing the demand for specialized yeast formulations. Yeast enhances product characteristics in baked goods such as pizza, bread, and homemade items. The growth of the bakery and confectionery industry supports this segment's expansion. According to LocalCircles, a November 2023 survey on sugar consumption in India revealed that 31% of respondents consumed bakery products daily. The industry's transition toward gluten-free and allergen-free products necessitates specialized yeast strains and fermentation processes, prompting manufacturers to develop targeted solutions for alternative flour systems. While emerging markets drive volume growth, developed markets emphasize premiumization, creating parallel demand for both commodity and specialty yeast products. The development of portion control and convenience formats generates additional growth opportunities, particularly for instant and active dry yeast formulations that align with contemporary consumption patterns.
Increasing Use in Nutritional Supplements and Fortified Foods
Yeast has evolved from a traditional fermentation agent into a nutritional delivery system, enabling high-value applications in dietary supplements and functional foods. Selenium-enriched yeast demonstrates this advancement, with EFSA approvals allowing selenium content formulations up to 3,000 mg/kg, which enables more concentrated nutritional supplements while maintaining safety standards. The extraction of beta-glucan from yeast cell walls produces immune-supporting ingredients with demonstrated effectiveness, while B-vitamins derived from yeast provide better bioavailability than synthetic versions. The FDA's GRAS status for yeast hydrolysate peptide complexes in nutritional applications validates the regulatory acceptance of modern yeast processing methods. Probiotic yeast applications have expanded beyond conventional Saccharomyces boulardii to include engineered strains with enhanced therapeutic benefits, such as improved gastric acid resistance and specific metabolite production. This integration of biotechnology and nutrition creates opportunities for premium pricing that exceed traditional yeast applications.
Technological Advancements in Yeast Fermentation
Technological advancements in yeast fermentation are driving significant growth in the global yeast and yeast ingredients market. Innovations in strain improvement, metabolic engineering, and precision fermentation have enhanced the efficiency, yield, and versatility of yeast production. These developments enable the production of specialized yeast strains with specific functionalities, including improved flavor profiles, stress tolerance, and productivity. Revyve, a Dutch food technology company, introduced a yeast-based texturizing ingredient in September 2024. This ingredient, developed through a proprietary process using baker's yeast, functions as a clean-label, allergen-free egg replacer with neutral flavor and color. It provides emulsification, gelling, binding, and water retention benefits, making it applicable in sauces, baked goods, confectionery, and plant-based dairy alternatives. Non-conventional yeast platforms, such as Issatchenkia orientalis, are emerging as valuable alternatives due to their enhanced stress tolerance and ability to process diverse substrates compared to traditional Saccharomyces cerevisiae [2]Source: United States Department of Agriculture, “Development of Microbial Platforms Capable of Co-Fermenting Non-Conventional Substrates for Enhanced Production of Value-Added Chemicals,” USDA, usda.gov. Yeast continues to establish itself as a fundamental platform technology for sustainable manufacturing, with growing applications across food, pharmaceuticals, chemicals, and materials industries.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
High cost of specialty yeast ingredients | -1.2% | Global, with strongest impact in price-sensitive emerging markets | Short term (≤ 2 years) |
Fluctuations in raw material prices | -0.9% | Global, with particular impact on molasses-dependent regions | Short term (≤ 2 years) |
Limited consumer awareness of yeast-based ingredients | -0.6% | Asia-Pacific and emerging markets primarily | Medium term (2-4 years) |
Competition from alternative flavor enhancers | -0.4% | Global, with strongest competition in developed markets | Medium term (2-4 years) |
Source: Mordor Intelligence
High Cost of Specialty Yeast Ingredients
Premium yeast ingredients cost 3-5 times more than commodity yeast, limiting their adoption in price-sensitive applications and emerging markets. The production of selenium-enriched yeast requires specialized fermentation conditions and quality control systems, which increase manufacturing costs. The limited number of approved production facilities restricts supply and maintains high prices. Regulatory compliance requirements for new yeast ingredients add significant costs, especially for applications requiring extensive safety documentation and clinical validation. Small and medium-sized food manufacturers often lack the technical expertise to use specialty yeast ingredients effectively, which limits market penetration despite their proven benefits. The cost-benefit ratio becomes favorable primarily in high-value applications such as nutraceuticals and premium food products, which restricts the widespread adoption of advanced yeast technologies.
Fluctuations in Raw Material Prices
The yeast production industry relies heavily on agricultural feedstocks, primarily molasses and sugar-based substrates, making manufacturers vulnerable to commodity price fluctuations that affect profit margins. While agricultural waste utilization and alternative substrates present opportunities for cost reduction, these solutions require significant capital investment in fermentation technologies and regulatory compliance. The energy-intensive nature of fermentation processes, which demand precise temperature and aeration control, makes production costs sensitive to utility price changes. For companies that source raw materials internationally while serving local markets, currency fluctuations in emerging markets further intensify input cost challenges. Recent global supply chain disruptions have highlighted the industry's vulnerability to input availability and pricing volatility, resulting in periodic margin pressures that limit investments in capacity expansion and innovation.
Segment Analysis
By Product Type: Yeast Ingredients Drive Innovation Premium
Yeast holds a dominant 56.47% market share in 2024, driven by its essential role in traditional fermentation processes, while the yeast ingredients segment demonstrates the highest growth potential, with a projected CAGR of 9.56% through 2030. This growth pattern indicates a market shift toward specialized applications where yeast ingredients generate higher margins through enhanced functionality. Baker's yeast remains the primary product in conventional applications, supported by steady demand from the expanding global bakery industry. Brewer's yeast maintains its significance in the growing craft beer sector and nutritional supplements market due to its high B-vitamin and protein content.
Wine yeast benefits from the increasing premium wine production globally, as specialized strains enhance wine characteristics and terroir expression. Torula and non-Saccharomyces yeasts are gaining importance in new fermentation applications, particularly in alternative protein development and flavor enhancement. Yeast extracts lead the ingredients segment expansion, primarily due to their role in clean-label product reformulation and natural umami flavor enhancement, replacing artificial flavor compounds.

By Form: Instant Dry Yeast Captures Convenience Premium
Active dry yeast holds a 39.52% market share in 2024, supported by established distribution networks and familiar handling characteristics. Instant dry yeast demonstrates the highest growth rate at 9.88% CAGR through 2030, driven by its convenience, shelf stability, and consistent performance. Fresh yeast retains its position in commercial bakery operations where immediate use and superior fermentation properties offset its handling requirements and limited shelf life.
Instant dry yeast adoption increases in emerging markets where infrastructure constraints favor products with longer shelf life and enhanced distribution capabilities. Professional bakers select instant formulations for their direct-addition properties and reduced hydration needs, which optimize production efficiency. The growth in home baking, driven by lifestyle changes, supports instant dry yeast demand due to its reliable performance and extended storage life that suits occasional usage.
By Application: Pharmaceuticals Lead Growth Transformation
The food and beverages segment holds 43.71% market share in 2024, highlighting yeast's essential role in traditional food applications. The pharmaceuticals and dietary supplements segment is projected to grow at 10.01% CAGR through 2030, as yeast transitions from a basic ingredient to a key component in therapeutic and nutritional applications.
Within the food and beverages sector, bakery and confectionery applications maintain consistent growth, driven by the increasing global population and urbanization that boost processed food demand. The savory and snacks segment expands through clean-label initiatives, with manufacturers using yeast extracts to replace artificial flavor enhancers. Dairy and dairy alternatives present new opportunities, particularly in probiotic products where yeast complements bacterial cultures. The animal feed and pet food segments show stable growth due to expanding livestock production in developing markets and increased focus on premium pet nutrition.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Europe holds a 33.89% market share in 2024, supported by traditional food practices, quality regulations, and biotechnology infrastructure that create premium market positioning. The yeast and yeast ingredients market is driven by consumer demand for clean-label products and natural fermentation processes. Europe's established bakery industry, along with expanding applications in savory snacks, meat alternatives, and functional beverages, positions the region as a significant center for yeast product development.
The Asia-Pacific region shows the highest growth potential with a 9.67% CAGR through 2030, fueled by industrial development, increased consumer spending, and government initiatives in food processing modernization. China's expanding food processing sector presents significant opportunities for yeast manufacturers, with regulations emphasizing food safety and quality standards that benefit established international suppliers[3]Source: United States Department of Agriculture, “China: Food Processing Ingredients Annual,” USDA, usda.gov.
North America exhibits consistent growth through product innovation and premiumization, particularly in high-margin specialty segments. South America's agricultural resources and increasing protein consumption support both food and animal feed applications, while the Middle East and Africa show growth potential due to developing food processing capabilities and growing urban populations.

Competitive Landscape
Global leaders like Lesaffre, Angel Yeast, and Associated British Foods dominate the yeast and yeast ingredients market, leveraging scale economies in baker's yeast. Their focus on innovation allows them to meet the growing demand for clean-label ingredients, functional food applications, and sustainable production methods. Additionally, these companies are expanding their global presence through strategic partnerships, acquisitions, and collaborations, further strengthening their competitive position in the market.
The market is witnessing significant growth opportunities in emerging segments such as microbiome therapeutics, sustainable protein manufacturing, and specialized animal feed formulations. These segments are characterized by high technical complexity, including advanced fermentation techniques and compliance with stringent regulatory frameworks, which create substantial barriers to entry. The increasing consumer focus on personalized nutrition and environmentally friendly products further drives the demand for advancements in these segments.
Smaller companies are gaining traction by targeting niche segments and regional markets, leveraging their agility and deep understanding of local regulatory environments. By building strong customer relationships and adopting innovative technologies, smaller players are able to compete effectively with larger global firms. Additionally, many of these companies are embracing sustainable practices and developing specialized products tailored to specific consumer demands, enabling them to differentiate themselves and secure a loyal customer base in an increasingly competitive market.
Yeast And Yeast Ingredients Industry Leaders
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Associated British Foods plc
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Angel Yeast Co. Ltd.
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Lesaffre Yeast Corporation
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Lallemand Inc.
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Novonesis
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: MicroBioGen, an Australian yeast biotechnology company, and Lesaffre, a global fermentation company, established an exclusive worldwide licensing and collaboration agreement to develop yeast solutions for the baking, food, and biochemicals markets. The partnership combines MicroBioGen's yeast strain platform and 20-year genetic library with Lesaffre's bioengineering capabilities, Research and Development infrastructure, and global production network to improve efficiency and sustainability across industries.
- December 2024: Yeastup AG, a Swiss food technology company, secured CHF 8.9 million (~USD 9.9 million) in Series A funding to establish a large-scale production facility. The company plans to convert a former dairy facility in Switzerland to process more than 20,000 tons of spent brewer's yeast annually. Using its patented technology, Yeastup aims to extract three functional ingredients in a single step: protein (branded Yeastin), beta-glucan, and mannoprotein.
- August 2024: AB Mauri North America acquired Omega Yeast Labs LLC. Operating out of a 14,000-square-foot facility in Chicago, Omega Yeast Labs focuses on research, development, and production, with additional locations throughout the Midwest. AB Mauri views this acquisition as a strategic complement to its AB Biotek division. AB Biotek specializes in crafting specialty yeast solutions tailored for diverse markets, including alcoholic beverages (spanning beer, wine, distilled spirits, seltzer, and cider), bioethanol production, and animal nutrition.
- April 2024: Lesaffre, the world's largest yeast producer based in France, has opened a new yeast manufacturing facility in Malang Regency, East Java, Indonesia. The facility is operated through PT Lesaffre Sari Nusa, a joint venture with local partner PT Citra Bonang. The plant, constructed on a 9.8-hectare site next to its Surabaya blending facility, manufactures both compressed and dry yeast for Indonesia and the ASEAN baking markets.
Global Yeast And Yeast Ingredients Market Report Scope
Yeast ingredients provide a range of functions in food manufacturing. It is generally available in different forms, including compressed, dried/granular, cream, and liquid.
The global yeast and yeast ingredients market is segmented by type, application, and geography. By type, the market is segmented into yeast extracts, yeast autolysates, yeast beta-glucan, and yeast derivatives. By application, the market is segmented into food and beverages, pharmaceuticals, feed and pet foods, and other applications. The food and beverage segment is further divided into bakery and confectionery, beverages, and others. By geography, the market is segmented into emerging and established markets across the globe, including North America, Europe, Asia, South America, and Middle East & Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
By Product Type | Yeast | Baker’s Yeast | |
Brewer’s Yeast | |||
Wine Yeast | |||
Torula/Non-Saccharomyces Yeast | |||
Yeast Ingredients | Yeast Extracts | ||
Autolysates | |||
Beta-Glucan | |||
Derivatives | |||
Specialty/High-nucleotide Yeast | |||
By Form | Fresh Yeast | ||
Active Dry Yeast | |||
Instant Dry Yeast | |||
By Application | Food and Beverages | Bakery and Confectionery | |
Savory and Snacks | |||
Dairy and Dairy Alternatives | |||
Beverages | |||
Others | |||
Animal Feed and Pet Food | |||
Pharmaceuticals and Dietary Supplements | |||
Others | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
Europe | Germany | ||
France | |||
United Kingdom | |||
Spain | |||
Netherlands | |||
Italy | |||
Sweden | |||
Poland | |||
Belgium | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
Japan | |||
Australia | |||
South Korea | |||
Indonesia | |||
Thailand | |||
Singapore | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Chile | |||
Colombia | |||
Peru | |||
Rest of South America | |||
Middle East and Africa | United Arab Emirates | ||
South Africa | |||
Nigeria | |||
Saudi Arabia | |||
Egypt | |||
Morocco | |||
Turkey | |||
Rest of Middle East and Africa |
Yeast | Baker’s Yeast |
Brewer’s Yeast | |
Wine Yeast | |
Torula/Non-Saccharomyces Yeast | |
Yeast Ingredients | Yeast Extracts |
Autolysates | |
Beta-Glucan | |
Derivatives | |
Specialty/High-nucleotide Yeast |
Fresh Yeast |
Active Dry Yeast |
Instant Dry Yeast |
Food and Beverages | Bakery and Confectionery |
Savory and Snacks | |
Dairy and Dairy Alternatives | |
Beverages | |
Others | |
Animal Feed and Pet Food | |
Pharmaceuticals and Dietary Supplements | |
Others |
North America | United States |
Canada | |
Mexico | |
Rest of North America | |
Europe | Germany |
France | |
United Kingdom | |
Spain | |
Netherlands | |
Italy | |
Sweden | |
Poland | |
Belgium | |
Rest of Europe | |
Asia-Pacific | China |
India | |
Japan | |
Australia | |
South Korea | |
Indonesia | |
Thailand | |
Singapore | |
Rest of Asia-Pacific | |
South America | Brazil |
Argentina | |
Chile | |
Colombia | |
Peru | |
Rest of South America | |
Middle East and Africa | United Arab Emirates |
South Africa | |
Nigeria | |
Saudi Arabia | |
Egypt | |
Morocco | |
Turkey | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
How big is the yeast and yeast ingredients market in 2025?
The yeast and yeast ingredients market size is valued at USD 5.83 billion in 2025, with a forecast to reach USD 8.31 billion by 2030 at a 7.36% CAGR.
Which region leads global demand?
Europe holds the largest 33.89% revenue share because of entrenched bakery consumption and a strict clean-label regulatory culture.
What segment is expanding the fastest?
Pharmaceutical and dietary supplement applications are growing at 10.01% annually owing to regulatory approvals for selenium-enriched, chromium-enriched, and probiotic yeast ingredients.
Why are instant dry yeast products gaining traction?
Instant dry yeast offers long shelf life and direct-add convenience, supporting a projected 9.88% CAGR that outpaces all other form factors.
Page last updated on: July 1, 2025