Yeast – a commonly used fermenting agent that helps bread rise and alcohol ferment has witnessed increased adoption in the recent years owing to the elevating demand from the end-user sectors such as food and beverages, significantly contributing to the global yeast market. In terms of value, the global yeast market is anticipated to expand at a value CAGR of 5.4% during the forecast period 2018-2026. Rising awareness of health benefits associated with the consumption of fermented food that contains microorganisms such as bacteria and yeast – that use the nutrients in the food as an energy source, resulting in the transformation of food, containing organic acids, can be considered as one of the most prominent factors driving the demand for yeast, globally.
As indicated by regional analysis, Europe will remain the most dominating market for bakery products and around 60% of the flour produced in the U.K. is used in the manufacturing of bread products, in turn, fueling the global yeast market.
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Large scale applications creating attractive opportunities in food industry; soaring consumption of fermented foods and alcoholic beverages further fueling the market
Over the last decade, the food industry as a whole has witnessed a rise in the consumption of fermented food products such as yogurt, pickles, and sauces and, some traditional Asian foods such as Kimchi and Kempeh. Owing to its fermenting property, yeast has been used on a large scale for fermentation in the production of these foods, eventually driving the demand for yeast in the global market. According to experts, bakery industry has been using yeast as an ingredient and not as a food additive, till recently. However, to raise the hygiene and nutrition bar, food regulatory authorities across the globe have approved yeast as an ingredient in baked other foods. This move helped bakery products gain momentum, resulting in increased consumption of bakery products and bread.
Additionally, studies have indicated increased consumption of alcoholic beverages around the world. This increase rate of consumption of alcohol has directly influenced the demand for yeast, which is the key ingredient used in the production of a majority of alcoholic beverages such as beer, wine, and whiskey. Different types of yeasts including ale yeast and lager yeast are used for fermentation in the alcohol production process, to provide the right proportion of texture and flavor to the alcohol.
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Green Trend, healthier food choices driving organic yeast market
Vegan, non-GMO, organic, and gluten-free are the new green badges of food formulations. Studies have revealed a steady shift away from traditional dairy products towards plant-based alternatives, due to growing health concerns. This global trend toward nutritionally beneficial choices is anticipated to be the real winner in the bakery products segment. Owing to this rising demand for organic products, organic yeast is anticipated to gain traction compared to conventional yeast, which is expected to account for a considerable value share in the global yeast market.