Organic Yeast Market to Generate $599 million Revenue by 2025

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.

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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.

The market for Saccharomyces species is projected to account for the largest share during the forecast period

Saccharomyces is a genus of fungi that includes many species of yeasts. Many members of this genus are considered important in food production. It is known as the brewer's yeast or baker's yeast. One example is, Saccharomyces cerevisiae, which is popularly known for its role in manufacturing various food and beverage products. It is a critical component in the fermentation process that converts sugar into alcohol, an ingredient shared in beer, wine, and distilled beverages. It used in a variety of snacks and savory products as seasonings to add an umami taste.

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.

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Key players are Koninklijke DSM N.V (Netherlands), Lallemand (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), and Rapunzel Naturkost (Germany).

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