United States Feed Yeast Market Expands Rapidly at 5.1% CAGR - $1.0 Billion Milestone by 2031, Led by Lallemand and Lesaffre as Top Competitors | DataM Intelligence

Leander, Texas and TOKYO, Japan - Dec. 12, 2025. According to DataM Intelligence, the United States Feed Yeast Market Size is growing from USD 0.7 billion in 2023 to USD 1.0 billion by 2031, registering a robust CAGR of 5.1% during 2024-2031. The surging demand for antibiotic-free animal nutrition, the expansion of precision livestock farming, and advancements in microbial fermentation technologies are fueling the need for enhanced feed yeast formulations that maximise gut health benefits without synthetic residues. Feed yeast, the nutrient-rich probiotic derived from Saccharomyces and other strains, revolutionises animal husbandry by integrating seamlessly into compound feeds, aquaculture diets, and pet nutrition, enhancing digestion, immunity, and feed efficiency while ensuring compliance with USDA organic and FDA feed safety standards. By combining live probiotic cultures, spent yeast derivatives, and precision drying processes, this market provides potent, stable solutions for improved weight gain, reduced methane emissions, and sustainable protein production throughout the United States and beyond.

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Recent Developments

1. Lallemand Inc. unveiled a new probiotic yeast blend for ruminant feeds at the International Production & Processing Expo 2024 in Atlanta (January 2024), targeting methane reduction with 20% efficacy in dairy trials, as validated by livestock nutritionist Dr. Sarah Kline from the University of Georgia Extension, who highlighted its alignment with EPA sustainability goals.

2. Lesaffre (Phileo) opened a dedicated fermentation facility in Wisconsin for high-potency feed yeast production in September 2024, serving Midwest poultry operations and securing USDA bio-preferred certifications, per analysis from ag economist Dr. Robert Hale at the American Feed Industry Association, noting a 15% drop in production emissions.

3. Alltech partnered with Texas A&M for spent yeast trials in swine nutrition in May 2025, boosting feed conversion ratios by 12%, endorsed by animal health expert Prof. Elena Torres for advancing antibiotic alternatives in confined feeding systems.

4. Angel Yeast Co., Ltd. acquired a U.S.-based yeast derivative processor in Iowa in March 2025, expanding its North American footprint and achieving 18% higher bioavailability in aquaculture feeds, as praised by supply chain consultant Dr. Javier Ruiz from the National Aquaculture Association for enhancing domestic sourcing.

4. ADM expanded its Decatur, Illinois plant with brewer's yeast innovations for pet foods in November 2024, reducing allergen risks by 25% in pilot studies, with market analyst Tom Vargas from Feedstuffs Magazine forecasting broader adoption in premium pet segments.

Competitive Landscape

The market is highly competitive among global biotech leaders, fermentation specialists, and feed additive innovators.

1️⃣Lallemand Inc. expanded its U.S. probiotic yeast lines in Montana with a $30 million investment in early 2025, operational since spring rollout, bolstering supply for dairy farmers with 22% improved gut microbiota profiles and capturing 26% of the live yeast segment.

2️⃣Lesaffre (Phileo) acquired a Midwest specialty yeast firm in October 2024, fortifying its Central U.S. hub and reporting a 19% revenue surge in poultry applications through advanced strain selection and organic approvals.

3️⃣Alltech integrated new spent yeast formulations for aquaculture, securing 29% of fish feed contracts with 90% digestibility rates and alliances for precision dosing in Southern states.

4️⃣Angel Yeast Co., Ltd. debuted dry instant yeast variants with extended shelf life in mid-2025, aligning with FDA guidelines and driving 21% domestic growth via partnerships with swine producers for customized blends.

5️⃣ADM rolled out brewer's yeast optimized for equine nutrition, cutting processing costs by 32% through automated lines and collaborating with vets for performance-enhancing protocols in equestrian markets.

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Growth Drivers

✦ The global animal feed market surpassed USD 500 billion in 2024, with feed yeast accounting for 0.4% of additive spends, underscoring the drive for natural probiotics amid antibiotic phase-outs.

✦ US livestock production exceeded 250 million tons in 2024, driving over 400 million units of yeast-supplemented feeds annually and accelerating integration for enhanced animal welfare.

✦ Sustainability regulations spurred USD 200 billion in green feed investments by 2025, prioritising live yeast strains that meet USDA certifications and producer demands for verifiable efficacy.

✦ North American aquaculture revenues climbed 12% recently, utilising more than 100 million tons of yeast-enriched diets yearly as protein demands fuel eco-friendly farming adoption.

✦ Fermentation innovations trimmed blending costs by 18%, forecasting USD 150 million in yearly efficiencies for US producers by 2030 through scalable microbial processes.

🌍Regional Insights

United States (North America): The U.S. feed yeast market was valued at USD 0.7 billion in 2023, projected to reach USD 1.0 billion by 2031 at a 5.1% CAGR. It holds nearly 30% of the global market share, driven by vast compound feed output and rising organic livestock trends. Key players like Lallemand and Lesaffre lead through innovation, strain optimization, and expanded regional facilities. Adoption of probiotic variants and multiple supply channels from mills to farms strengthens its dominance. Recent capacity expansions and product trials keep the U.S. as the North American powerhouse.

Canada (North America): Canada's market size was USD 150 million in 2023, expected to grow to USD 220 million by 2031 at a 4.9% CAGR, holding roughly 5% of the global market share. Growth is fueled by federal eco-subsidies and regulatory support that boost premium, yeast-based demand. Leading U.S. brands are investing in Canadian processing and trials, accelerating market maturity. Producer preference for natural, performance-boosting additives continues to mount. Canada complements U.S. leadership with a strong adjacent presence.

Europe (Key countries: UK, Germany, France): Europe constitutes 25% of the global feed yeast market and is steadily growing due to EU antibiotic bans and escalating sustainable ag focus. While the exact 2023/2031 values are less defined, Europe is the second-largest regional market following Asia-Pacific. The UK, Germany, and France drive expansion through ruminant formulations and diversified livestock launches. Market growth is supported by established feed milling demand and the increased entry of North American biotechs. Europe's progressive frameworks and broadening producer base make it a crucial growth region.

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Market Segmentation Analysis

By Type: Probiotic yeast dominates with a 45% market share, valued at USD 315 million in 2023 and projected to grow to USD 450 million by 2031 at a 5.2% CAGR. Yeast derivatives hold 30% of the market, valued at USD 210 million in 2023 and expected to reach USD 300 million by 2031 at a 5.0% CAGR. The probiotic segment's growth is driven by increasing demand for live cultures compliant with organic standards, while derivatives sustain demand through cost-effective nutrient boosts in compound feeds.

By Form: Dry yeast leads with a commanding 65% market share, valued at USD 455 million in 2023 and forecasted to reach USD 650 million by 2031, favoured for its stability and ease in storage. Liquid yeast holds a 25% share, worth USD 175 million in 2023 and projected to grow to USD 250 million by 2031, attracting users seeking rapid dissolution. The remaining 10% comprises instant and fresh variants, growing fastest at 5.3% CAGR to USD 100 million by 2031, catering to niche needs for quick-feed integration and minimal processing.

By Livestock: Poultry constitutes the largest segment with 35% market share, valued at USD 245 million in 2023 and expected to expand to USD 350 million by 2031, powered by biosecurity research and efficiency trends. Ruminants hold 30% share, valued at USD 210 million in 2023 and projected to reach USD 300 million by 2031, fueled by methane mitigation applications. Swine and aquaculture each account for 20% of the market, reflecting growing awareness of gut health benefits and targeted productivity gains.

Innovation and Consumer Trends Fueling Market Expansion

Manufacturers are investing heavily in advanced fermentation technologies, such as strain engineering and spray-drying optimization, to improve viability, reduce inclusion costs by an estimated 18%, and comply with regulatory expectations. Producer growth is driven by expanding recognition of feed yeast's role in antibiotic-free systems, integration into precision rations, and education on natural, high-digestibility additives. North American markets, particularly the U.S., exhibit the highest adoption rates, supported by field validations, co-op partnerships, and proven performance hybrids.

Market Outlook and Opportunities: The Global feed yeast market is at a tipping point, driven by eco-livestock imperatives and every ounce of biotechnological evolution in probiotics. Valued at USD 2.1 billion in 2023, it is projected to reach USD 2.6 billion by 2030 at a steady 5.1% CAGR. North America, capturing over a third of the global share, spearheads expansion powered by feed milling scale, while Asia Pacific benefits from herd growth. Progress in live strain development and sustainable sourcing align with USDA sustainability aims, although hurdles like raw material volatility, shelf-life challenges, and scaling limits remain. Post-recovery focus on resilient herds and rising embrace of functional feeds and digital monitoring unlock vast potential for immunity enhancement and yield optimization in poultry, dairy, and aqua sectors.

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