USD 5.1 Billion
Report ID:
SQMIG30D2073 |
Region:
Global |
Published Date: June, 2025
Pages:
196
|Tables:
90
|Figures:
71
Global Yeast Market size was valued at USD 5.1 Billion in 2023 poised to grow from USD 5.55 Billion in 2024 to USD 10.9 Billion by 2032, growing at a CAGR of 8.8% in the forecast period (2025-2032).
The growing global demand for processed and convenience foods has emerged as a key factor in the yeast market. Urbanization, two-income families, and busy lifestyles have contributed to the increased consumption of ready-to-eat and pre-packaged food products. Yeast has an integral part in improving textures, flavours, and shelf-life for products such as baked goods, snacks, and frozen foods. These factors have increased the usage of yeast for product processing. As consumers favour convenience rather than loss of taste/quality, food manufacturers rely more heavily on yeast-derived formulations, which in turn creates market growth on a global level.
The global expansion of the brewing industry, especially the craft and premium beer segments, is a key trend driving the global yeast sector. Yeast is a crucial ingredient in alcohol production, as it is the organism which converts sugar into alcohol while also adding aroma, mouthfeel, and complexities of flavour. With the growth of microbreweries and growing consumer interest in more extensive beer varieties, there is an increased demand for regional and specialized yeast strains. Additionally, emerging markets in Asia-Pacific and Latin America are experiencing a surge in beer consumption, further boosting yeast demand. The industry's push toward innovation and product differentiation ensures continuous yeast application, reinforcing its critical role in brewing operations.
How much can AI-Guided Fermentation Increase Yeast Productivity?
Artificial Intelligence (AI) is changing the global yeast market indirectly, by improving yeast strain development and optimizing fermentation practices. By utilizing machine learning algorithms and predictive modeling, manufacturers can optimize variables, such as temperature, pH, and attractiveness of the nutrient supply, in real-time, to help maximize yeast performance while lowering production costs. For example, AI fermentation approaches have been found to increase yeast performance by over 25% and reduce uncompromised by-products as identified through integration of metabolic engineering with AI. Overall, this transition allows producers to scale their production processes effectively to address the growing requirements of clients in the food and beverage industries while maintaining product consistency, ultimately improving the competitiveness and innovation aspects of the yeast market.
In October 2024, DairyX This Israeli biotech company has developed precision fermentation by creating yeast strains to produce casein proteins identical to those in cow's milk. The precision fermentation process will allow for the production of stretchy, creamy cheeses without the use of any animal-derived ingredients, and it overcomes the texture issues associated with plant-based cheeses. DairyX will also use AI and ML to select yeast strains and identify optimum fermentation conditions, which they say will increase efficiency and commercial scalability.
Market snapshot - 2025-2032
Global Market Size
USD 5.1 Billion
Largest Segment
Baker's Yeast
Fastest Growth
Brewer's Yeast
Growth Rate
8.8% CAGR
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The global yeast market is segmented based on type, yeast, end use, and regions. In terms of type, the market is grouped into baker's yeast, brewer's yeast, nutritional yeast, bioethanol yeast, and wine yeast. Based on yeast, the market is trifurcated into dry yeast, fresh yeast, and liquid yeast. Based on end use, the market is divided into commercial and industrial sectors. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.
What Baking Applications Commonly use Baker’s Yeast?
Based on the global yeast market forecast, baker's yeast, primarily Saccharomyces cerevisiae, dominates the industry due to its versatility, cost-effectiveness, and alignment with clean-label trends. New developments are geared towards improving fermentation efficiency and high sugar tolerance strain selection to meet different baking needs. Its natural origin and adaptability allow for all kinds of applications, including bread, pastries, and bioethanol production. The explicit and growing consumer demand for natural and sustainable ingredients further ensures baker's yeast will continue to hold its rightful market position.
Brewer's yeast is poised to be the fastest-growing segment in the global yeast market, driven by its expanding applications across craft brewing, functional foods, and plant-based nutrition. Its rich nutritional profile—high in B vitamins, protein, and minerals—aligns with consumer preferences for natural, health-enhancing ingredients. Additionally, the surge in craft beer production and the demand for clean-label, sustainable products amplify its market growth.
What Advantages does Dry Yeast Offer Over Other Yeast Forms?
Dry yeast has emerged as the dominant form in the global yeast market, driven by its superior shelf life, ease of storage, and consistent performance across various applications. Its stability and convenience make it ideal for both industrial-scale food production and home baking, especially in regions with limited refrigeration infrastructure. Recent innovations include hybrid yeast strains that enhance fermentation efficiency and flavor profiles, particularly in the alcoholic beverage industry.
Fresh yeast is projected to grow rapidly in the global yeast market due to rising demand for artisanal and clean-label bakery products. Its superior fermentation activity and natural leavening make it ideal for traditional baking. As consumers shift toward chemical-free, fresh ingredients, bakeries and food producers increasingly favor fresh yeast, driving its accelerated market growth.
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How does Regulatory Frameworks Support Yeast Market Growth in North America?
As per the global yeast market analysis, North America holds a significant share in the industry, driven by a strong bakery industry and a growing craft brewing culture. Advanced food processing technologies and increasing health-conscious consumer trends boost demand for specialty yeast strains. The U.S. leads innovation in yeast applications, including bioethanol and pharmaceuticals. Supportive regulatory frameworks and rising investments in R&D further propel market growth, positioning North America as a key region in the global yeast market expansion.
US Yeast Market
The United States is a key driver of North America’s yeast market, leading in production and innovation. It hosts major yeast manufacturers like Lesaffre and Archer Daniels Midland, supplying baker’s, brewer’s, and bioethanol yeasts globally. Strong consumer demand for baked goods, craft beers, and renewable energy fuels market growth. Advanced R&D in yeast strain development enhances fermentation efficiency and flavor, solidifying the U.S. as a dominant yeast market contributor.
Canada Yeast Market
Canada significantly contributes to North America’s yeast market through its growing feed yeast and yeast extract sectors. The country’s extensive agriculture and livestock industries drive demand for yeast-based animal feed additives that improve health and productivity. Rising consumer preference for natural food ingredients boosts yeast extract usage. Innovation and expanding applications in food and feed markets position Canada as an important, fast-growing yeast market player in the region.
How do Strict Food Safety Regulations Influence Yeast Production Quality in Europe?
Europe holds a prominent position in the global yeast market, driven by its well-established bakery and brewing industries. Growing consumer preference for artisanal and specialty products fuels demand for diverse yeast strains. Innovations in bioethanol production and pharmaceutical applications further expand the market. Strict food safety regulations encourage high-quality yeast production, while sustainability trends promote eco-friendly yeast manufacturing. Together, these factors solidify Europe as a vital region in the global yeast market share.
Germany Yeast Market
Germany is a leading player in the Europe yeast market, known for its advanced brewing industry and bakery sector. The country excels in yeast strain innovation, especially craft beer and specialty baked goods. Strong emphasis on quality standards and sustainability drives high yeast production. Germany’s investments in bioethanol and pharmaceutical yeast applications further enhance its global market influence and technological leadership.
France Yeast Market
France significantly contributes to the Europe yeast market through its renowned baking and wine industries. The country’s demand for premium baker’s yeast and specialized strains supports artisanal food production. French companies focus on sustainable yeast manufacturing and innovation, particularly in fermentation technology. Growing interest in functional foods and bioethanol production also boosts yeast consumption, making France a critical market in Europe’s yeast ecosystem.
UK Yeast Market
The UK plays a vital role in the Europe yeast market, fueled by its large bakery and craft brewing industries. Innovation in yeast strains for flavor and fermentation efficiency is a focus area. The rising demand for plant-based and clean-label products drives yeast use in diverse applications. Strong research initiatives and sustainable production practices position the UK as a key contributor to global yeast market growth.
How are Innovations in Dry and Instant Yeast Impacting the Asia Pacific Market?
Asia Pacific is rapidly emerging as a key growth region in the global yeast market, driven by expanding bakery, brewing, and bioethanol industries. Rising urbanization and increasing disposable incomes fuel demand for processed and convenience foods, boosting yeast consumption. Innovations in dry and instant yeast, alongside growing awareness of health benefits, propel market growth. Strong government support for bio-based industries and expanding food manufacturing infrastructure further expands Asia Pacific’s yeast market expansion.
Japan Yeast Market
Japan significantly contributes to the Asia Pacific yeast market through its strong bakery, brewing, and bioethanol industries. The country’s focus on health-conscious and plant-based diets drives demand for specialized yeast products. Traditional fermentation in foods like miso and soy sauce adds unique market value. Technological innovations and increasing urbanization further support Japan’s growing yeast consumption, positioning it as a vital player in the Asia Pacific yeast market.
South Korea Yeast Market
South Korea’s yeast market growth is fueled by its expanding craft beer industry and rising demand for functional foods. Dry yeast leads product sales, while liquid yeast shows rapid growth. The country’s emphasis on innovative fermentation technologies and clean-label products drives yeast adoption. Increasing consumer awareness of health benefits and rising disposable incomes further boost South Korea’s contribution to the global yeast market, especially within regional outlook.
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Yeast Market Drivers
Rising Demand for Processed Foods
Growth in Bioethanol Production
Yeast Market Restraints
Shelf-Life Limitations
Consumer Preference for Alternatives
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The global yeast market outlook is highly competitive, dominated by international companies like Lesaffre, AB Mauri, Chr. Hansen, and Lallemand. These companies focus on product innovation, strategic acquisitions, and expanding production capacities to strengthen market presence. For example, Lesaffre invests heavily in R&D to develop specialized yeast strains, while AB Mauri pursues mergers to enhance its global footprint. Such strategies drive growth and maintain leadership in this dynamic market.
As per the global yeast industry analysis, the startup ecosystem is rapidly evolving, driven by innovations in synthetic biology, fermentation technology, and sustainable production. Startups focus on developing specialty yeast strains for alternative proteins, biofuels, and novel food applications. Agile R&D and eco-conscious approaches enable these companies to challenge traditional players, accelerate market growth, and diversify yeast usage across health, food, and environmental sectors worldwide.
Top Player’s Company Profiles
Recent Developments in Yeast Market
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global yeast industry is experiencing robust growth driven by rising demand for processed foods, expanding craft brewing, and innovative applications in biotechnology. Urbanization and busy lifestyles fuel yeast use in convenience foods, while the craft beer boom and emerging markets increase demand for specialized yeast strains. Technological advancements, especially AI-enabled fermentation optimization, enhance yeast productivity and product quality.
Regional dynamics show North America, Europe, and Asia-Pacific as key players, each leveraging unique market drivers and innovations. Competitive international firms and agile startups alike focus on sustainable, clean-label, and health-oriented yeast solutions. Together, these factors create a dynamic landscape where yeast continues evolving beyond traditional uses, supporting growth, sustainability, and diversification across food, beverage, pharmaceutical, and Bioindustrial sectors worldwide.
Report Metric | Details |
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Market size value in 2023 | USD 5.1 Billion |
Market size value in 2032 | USD 10.9 Billion |
Growth Rate | 8.8% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Yeast Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Yeast Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Yeast Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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Global Yeast Market size was valued at USD 5.1 Billion in 2023 poised to grow from USD 5.55 Billion in 2024 to USD 10.9 Billion by 2032, growing at a CAGR of 8.8% in the forecast period (2025-2032).
The global yeast market outlook is highly competitive, dominated by international companies like Lesaffre, AB Mauri, Chr. Hansen, and Lallemand. These companies focus on product innovation, strategic acquisitions, and expanding production capacities to strengthen market presence. For example, Lesaffre invests heavily in R&D to develop specialized yeast strains, while AB Mauri pursues mergers to enhance its global footprint. Such strategies drive growth and maintain leadership in this dynamic market.'Lesaffre (France)', 'AB Mauri (United Kingdom)', 'Chr. Hansen (Denmark)', 'Lallemand Inc. (Canada)', 'Angel Yeast Co., Ltd. (China)', 'Associated British Foods plc (United Kingdom)', 'Koninklijke DSM N.V. (Netherlands)', 'Alltech (USA)', 'Oriental Yeast Co., Ltd. (Japan)', 'ADM Yeast Solutions (USA)', 'Novozymes A/S (Denmark)', 'Royal Ingredients Group (France)', 'Biosearch Life (Spain)', 'Lesaffre Asia Pte Ltd (Singapore)', 'Sensient Technologies Corporation (USA)'
The increasing consumption of processed and convenience foods globally drives yeast demand. Yeast enhances flavor, texture, and shelf life in baked goods, snacks, and beverages. Urbanization and busy lifestyles push consumers toward ready-to-eat products, boosting the need for reliable yeast strains in food manufacturing worldwide.
Rising Demand for Clean-Label and Natural Yeast Products: Consumers increasingly prefer clean-label, natural yeast products free from synthetic additives. This trend drives manufacturers to develop organic and non-GMO yeast strains, enhancing product transparency and sustainability. The shift supports healthier lifestyles and environmental responsibility, shaping product innovation and the global yeast market trends.
How does Regulatory Frameworks Support Yeast Market Growth in North America?
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