Sustainable Growth Opportunities in the Organic Yeast Market

The global organic yeast market size is estimated to be valued at USD 364 million in 2020 and is expected to reach a value of USD 599 million by 2025, growing at a CAGR of 10.5% during the forecast period. Factors such as increasing awareness among consumers about health & wellness, growing need to replace monosodium glutamate (MSG) as an additive in food products, and increased demand for organic food products across the globe is driving the growth of the market.

COVID-19 Impact on the Organic Yeast Market:

Due to the pandemic, “panic-buying” became more prevalent for grocery and food ingredients. The supermarkets witnessed a surge in demand for yeast products, both active and inactive. In order to meet the demand in the initial phase of the pandemic, several sellers had cut-up the bulk product packaging and sold in smaller sachets. With the increase in time spent at home, the trend is to consume home-cooked foods, which, in turn, has led to an increase in demand for flour and yeast products. With the need for convenience and the requirement to cater to their health concerns, consumers have increased their intake of soups, healthy snacks, and salads, which has also encouraged the demand for organic yeast products. Yeast manufacturers, such as Lallemand Inc. (Canada) and Ohly (Germany), are focusing on catering to the challenges and have increased their production capacities. For instance, due to the increase in demand for dietary supplements during the pandemic, Angel Yeast Co., Ltd (China), has witnessed an expansion of its yeast beta-glucan production capacity. In another instance, Bluebonnet Nutrition Corporation (US) has undertaken stringent measures at the plant level and increased its production capacity to meet the growing demand from consumers who are targeting to improve their immunity.

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The yeast extracts segment of the organic yeast market is projected to account for the largest share, by type

Yeast extract is a natural ingredient comprising various amino acids, carbohydrates, minerals, and vitamins. 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. 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 use of yeast extracts intensifies the salt flavor in the food due to the strong umami taste and allows for specific flavor notes. Since yeast extracts are extracted from fresh yeast, it qualifies as an animal-free ingredient, which can be included in vegan and vegetarian diets. In addition, due to its nutritional characteristics, the use of yeast extracts is growing. A majority of the product lines of companies are also focused on offering yeast extracts and yeast derivatives to its consumers

The rising demand for an alternative to monosodium glutamate (MSG) to drive the organic yeast market

Monosodium glutamate (MSG) is the sodium salt of glutamic acid. It is used as an additive to offer “umami” taste in food products to improve the palatability. MSG helps in enhancing the presence of other taste-active compounds. However, the use of MSG has clinically proven to have caused health related issues such as obesity, oxidative stress, renal, and hepatotoxicity. Organic yeasts such as yeast extracts, derivatives, and nutritional yeast are used as alternatives to MSG to provide the “umami” taste. Certain organic yeast manufacturers also claim that the products offered by them can be used as an alternative to MSG.

Asia Pacific  is the fastest-growing market during the forecast period in the global market

Asia Pacific is projected to be the fastest growing 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 are they experience a surged in the increase in number of health  conscious consumers. With the increase in disposable income and awareness about nutrient requirement in daily diet amongst consumers have let to the increase in demand for protein rich nutritional food products. 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.

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This report includes a study on the marketing and development strategies, along with a study on the product portfolios of the leading companies operating in the organic yeast market. It consists of the profiles of leading companies such as Koninklijke DSM N.V (Netherlands), Lallemand Inc. (Canada), Biospringer (France), Leiber GmbH (Germany), Ohly (Germany), Levapan (Colombia), Biorigin (Brazil), Agrano Gmbh & Co. KG (Germany), Red Star Yeast Company (US), Angel Yeast Co. Ltd (China), Solgar Inc (US), Imperial Yeast (Portland), Levex (Turkey), and White Labs Copenhagen (US).