Yeast Ingredients Market Is Estimated To Witness High Growth Owing To Rising Demand From Food And Beverage Industry

The yeast ingredients market is estimated to be valued at US$ 2.98 Bn or Billion in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

Rising demand for natural and nutritional ingredients from the food and beverage industry is driving the growth of the yeast ingredients market. Yeast extracts are rich sources of vitamin B complex and amino acids that enhance flavor and texture. They are widely used as flavor enhancers in soups, sauces, snacks, and seasoning. Moreover, yeast derivatives such as yeast extracts and yeast autolysates act as natural preservatives that improves shelf life of food products without compromising taste and texture. This factor is further fueling adoption of yeast ingredients across various food applications.

Key Market Trends: Growing popularity of clean label and plant-based products: Consumers are increasingly preferring food products with simple and organic ingredients list without artificial preservatives, colors, and flavors. This changing preference is driving demand for natural yeast extracts and other derivatives. Moreover, plant-based foods requiring nutrients and flavor are incorporating yeast extracts to mimic meat-based foods. Hence, the clean label trend as well as rising vegan and vegetarian population are (propelling market growth).

New product launches catering to dietary requirements: Key players are focusing on introducing yeast-based product variants tailored for customers with dietary restrictions such as gluten-free, kosher, and halal certified products. This is owing to rising cases of gluten intolerance, celiac disease, and food allergies. For instance, in 2020, Ohly launched a new range of gluten-free yeast extracts for European food manufacturers. Such launch of specialized products is (expected to support market gains over the forecast period).

Yeast Ingredients Market Opportunities: Health and Wellness Opportunity: The increasing awareness about health issues related to sugar consumption is driving consumers towards sugar free alternatives. Health conscious millennials are actively looking for beverages that provide functional benefits without compromising on taste. Sugar free energy drinks are gaining popularity as they provide hydration and energy boost without any calories or sugar. The brands are promoting various health benefits such as improved physical stamina, mental alertness etc. to target fitness enthusiasts and athletes. With more product launches tailored towards wellness, the segment is expected to witness a growth of 20% over the forecast period.

Performance Enhancement Opportunity: Busy lifestyle and hectic schedules are increasing the demand for beverages that provide instant energy. Sugar free energy drinks are lucrative for young professionals and students who need a quick boost to power through tight deadlines at work or long study sessions. The elimination of sugar significantly reduces calorie intake without compromising on the functional benefits. Brands are focusing on innovation in flavors and formulations to provide longer lasting energy. Sponsorships of marathons and tournaments are helping to position these drinks as performance enhancers. This segment is anticipated to grow at a CAGR of 15-18% till 2031.

Key Market Takeaways: Sugar Free Energy Drink Market is anticipated to witness a CAGR of 5.62% during the forecast period 2024-2031, owing to growing consumer preference for healthier beverage options.

On the basis of Product Insights, the carbonated drink segment is expected to hold a dominant position, owing to wide availability and innovative flavors. This segment accounts for nearly 45% of the overall market share.

On the basis of Application Type Insights, the Age Group (13-25) segment is expected to hold the dominant position over the forecast period, due to the changing lifestyle of youngsters and increased health consciousness in this group.

On the basis of region, North America is expected to hold a dominant position over the forecast period, due to growing health awareness and active lifestyles in countries like United States.

Competitor Insights: Key players operating in the Sugar Free Energy Drink market include Lesaffre., Angel Yeast Company, Oriental Yeast Co. Ltd, Lallemand Inc, Chr. Hansen Holding A/S, etc. These players are focusing on new product launches and partnerships for long term growth.

Recent Developments: In June, food industry market research firm Fstein published a report predicting growing usage of yeast derivatives in plant-based meat alternatives over the next five years. While whole yeast is commonly used for structural purposes like binding fibers together, the report noted yeast extracts offer additional benefits for flavor and nutrition that plant-based products are seeking to convey to consumers. Major yeast companies have invested in new extract product lines tailored for this application. More information in full report.