The Global Organic Yeast sales are estimated to be worth USD 345.7 million by 2024 and are projected to reach a value of USD 901.2 million by 2034, with the global industry reflecting a CAGR of 10.1% over the assessment period 2024 to 2034
The organic yeasts marketplace is being driven by factors such as rising consumer awareness of health and well-being, the growing need to substitute monosodium glutamate (MSG) as an additive in food items, and increased demand for organic food products around the world.
The retail sales of organic food items have increased as public awareness of the benefits of organic food products has grown. The United States is the world's greatest consumer of organic food, followed by Europe.
In the food and beverage (F&B) business, yeast is commonly used to make alcoholic beverages, bakery items, and ready-to-eat (RTE) food products. It's used to improve the product's quality, fragrance, texture, and flavor, as well as speed up the fermentation process.
Aside from that, the industry is seeing an increase in demand for nutritional yeast, inactive dried yeast, mostly among vegans. It's used as a condiment in a variety of recipes because of its nutty and cheesy flavor, which helps to mimic the taste of cheese in vegan dishes, thicken sauces and dressings, and provide a nutritional boost.
| Attributes | Description |
|---|---|
| Estimated Global Organic Yeast Market Size (2024E) | USD 345.7 Million |
| Projected Global Organic Yeast Market Value (2034F) | USD 901.2 Million |
| Value-based CAGR (2024 to 2034) | 10.1% |
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| Particular | Value CAGR |
|---|---|
| H1 | 9.5% (2023 to 2033) |
| H2 | 9.7% (2023 to 2033) |
| H1 | 10.3% (2024 to 2034) |
| H2 | 10.4% (2024 to 2034) |
The attached table shows the projected Compound Annual Growth Rate (CAGR) for the global business for organic yeast across several quarterly timeframes, from 2024 to 2034. With the projected compound annual growth rate (CAGR) of 10.1%, the industry is expected to see a decline in the first half (H1) of the decade, which goes from 2023 to 2033.
In the second half (H2) of the same decade, the growth rate is predicted to slightly increase to 9.7% after that. Moving on to the next phase, which is from H1 2024 to H2 2034, the CAGR is projected to grow to 10.3% in the first half and stay at a fairly stable pace of 10.4% in the second half.
Increasing Demand for the Organic Food Products
The organic yeast industry has expanded due to rising demand for organic and clean-label goods. Organic yeast, taken from organic sources and manufactured without the use of synthetic chemicals, corresponds to customer desires for natural and sustainable components.
The sector has witnessed outstanding transformations through the years in the Food and beverages industry and will continue to do so in the coming years too in terms of Organic food and rising awareness for healthier alternatives. From simple staple food products to diversified and chemical-free organic food products, this upward journey of organic Food will continue to open growth opportunities for the organic yeast business.
Product Innovation by Companies
Companies like Lallemand are boosting the demand for organic yeast through new product innovations. They are developing better strains of yeast that enhance the quality and variety of food products, making them healthier and more appealing to consumers. By offering customized solutions and support to bakers and food manufacturers, these companies help create diverse products like gluten-free bread, vegan options, and artisanal foods.
This variety attracts health-conscious and eco-friendly consumers, expanding the sector for organic yeast. Additionally, their efforts help meet regulatory standards and support sustainable practices, making organic yeast products more popular and widely accepted.
Wide Application Areas for the Organic Yeast
Organic yeast is growing in popularity due to its wide range of uses across various industries. In the food industry, it's essential for baking and adds flavor to ready meals, while in beverages, it helps make both alcoholic and non-alcoholic drinks. For animal feed, it improves nutrition and digestive health, making it a healthier choice for pets and livestock.
In dietary supplements, organic yeast offers vital nutrients and immune support. Additionally, it's used in skincare and hair care products for its moisturizing and strengthening properties. Its rich nutritional value, natural production, health benefits, and sustainable practices make organic yeast a versatile and in-demand ingredient, appealing to health-conscious and eco-friendly consumers.
From 2019 to 2023, the demand for organic products grew slowly, and there wasn't much innovation in areas like bakery, beverages, and animal feed. This meant that sales of organic yeast only increased steadily, without any big jumps. However, the future looks brighter for organic yeast. Food and beverage companies are now launching many new products, which is helping to boost demand.
Additionally, there's a growing interest in organic bakery and other food products in developing countries like India and other South Asian nations. This increase is due to more people becoming aware of the benefits of organic products and having more money to spend. As a result, the demand for organic yeast is expected to rise significantly.
With a significant 50 to 60% global business share, Tier 1 companies hold the higher share in the sector. The key players offer a wide variety of products and have a vast capacity for manufacturing.
With a faithful customer base, they retain a broad geographic reach and boast substantial competence in manufacturing and reconditioning for a variety of organic yeast products. They offer a wide range of products, including organic and gluten-free yeasts for the free-from claim on the final consumer products.
Prominent Tier 1 companies include LeiberGmbh, Angel Yeast Co Ltd, White Labs Copenhagen, Lallemand, Inc., Biorigin, and Biospringer.
Tier 2 players are medium-sized, highly lucrative players who engage in specific regions and have an important effect on the segments there. These mid-sized businesses have a weak international presence. They hold 20 to 25% of the ecosystem share.
The table below highlights revenue from organic yeast sales in key countries. The USA is predicted to remain the top Organic Yeast business, with estimated sector valuations of USD 296.5 Million by 2034.The following table shows the estimated growth rates of the Organic Yeast industry. India and the Japan are set to exhibit target segments, recording CAGRs of 7.5% and 7.0%, respectively, through 2034.
| Countries | CAGR (2034) |
|---|---|
| USA | 6.1% |
| India | 7.5% |
| China | 6.0% |
| Germany | 5.3% |
| Japan | 7.0% |
Artisanal baking and home cooking styles have seen a return in the United States. The demand for organic yeast has increased as more individuals bake bread, pastries, and fermented meals at home. Organic yeast appeals to home chefs and bakers who want high-quality ingredients to provide their handmade products' greatest Flavor and texture.
Organic food departments at supermarkets and specialized stores have grown, offering a broader selection of organic ingredients, including organic yeast. Online sales have also made it easier for people to locate and acquire organic yeast, increasing its accessibility and convenience.
To protect the quality of organic goods, the United States has rules and certification programs in place. The National Organic Program (NOP) establishes organic production, labeling, and certification criteria. The establishment of these laws and certifications increases customer trust and confidence in organic products, including organic yeast, hence increasing demand for them.
The United Kingdom has strict rules, regulations, and certification standards for organic products Organic regulations in the United Kingdom Union ensure that organic products meet specific criteria and go through strict certification processes. These standards provide assurance to consumers and foster trust in organic products, leading to increased demand for organic yeast.
The United Kingdom consumers are becoming more conscious of the need to make healthy and sustainable food choices. As customers seek natural and organic options in their diets, the demand for organic goods, particularly organic yeast, has surged. Concerns about health, the environment, and ethical issues are driving this movement.
China and India are seeing fast expansion in the organic food sector. Demand for organic items, especially organic yeast, is increasing as customers grow more concerned about the quality and safety of their food. The organic food business is growing in these nations, thanks to government programs and legislation that promote organic agricultural practices and certification.
Both China’s and India's retail infrastructure is quickly increasing, making organic products more accessible to customers. Organic goods are rapidly being stocked in supermarkets, specialty stores, and online platforms, making it easier for people to identify and acquire organic yeast. The increased retail presence and distribution networks in these nations contribute to the growth of the organic yeast segment.
| Segment | Baker’s Yeast - Product Type |
|---|---|
| Value Share (2024) | 24.6% |
Baker's yeast is mostly used in the baking of bread. A crucial leavening ingredient causes the dough to rise and gives bread its light and fluffy texture by producing carbon dioxide gas during fermentation. Because bread is one of the most commonly consumed foods globally, demand for baker's yeast stays strong.
Baker's yeast has been extensively researched and optimized for use in baking applications. It has been carefully chosen and farmed to produce consistent and dependable outcomes, providing predictable fermentation and dough rise.
| Segment | Direct Sales (Sales Channel) |
|---|---|
| Value Share (2024) | 34.8% |
Organic yeast manufacturers can create direct relationships with their clients through direct sales. Manufacturers may express their brand values, product quality, and the benefits of organic yeast by connecting directly with consumers. This human engagement contributes to the development of trust and brand loyalty, which may lead to repeat purchases and favorable word-of-mouth referrals.
Manufacturers have more control over pricing tactics and profit margins with direct sales. Manufacturers may establish competitive pricing while keeping healthy profit margins by removing middlemen. This control enables them to give consumers appealing prices and adapt rapidly to industry conditions, providing a viable business strategy.
The industry for organic yeast is defined by strong competition, with leading players engaging in elevated competition. As consumers become more conscious of the advantages of organic products and the role that yeast plays in a variety of applications, competition increases through product differentiation, innovation, and strategic alliances.
Prominent producers of organic yeast, in addition to food and beverage corporations, engage in competitive sector dominance by utilizing assertive marketing tactics, broadening their range of products, and exploring new regions.
Companies invest a significant amount of funds in R&D, with the goal of identifying more beneficial yeast varieties, perfecting formulation techniques, and developing customized products that cater to certain nutritional needs. In addition, as businesses look to expand their product lines and market penetration, alliances and acquisitions play a crucial role in determining the competitive dynamics of the organic yeast industry.
The global Organic Yeast marketplace is estimated at a value of USD 345.7 Million in 2024.
Sales of Organic Yeast increased at 9.2% CAGR between 2019 and 2023.
Lallemand Inc., Leiber GmBh, Angel Yeast Inc., Biospringer, Koninklijke DSM N.V, Levapan, White Labs Copenhagen
The North America sector is projected to hold a revenue share of 32.9% over the forecast period.
Product type segment includes different yeast varieties such as yeast autolysate, bakers yeast, torula yeast, brewer’s yeast, nutritional yeast, inactive dried yeast, and others
The sales channel segment includes direct sales/B2B sales and indirect sales/B2C sales which is further segmented into store based retailing, and online retailing
Industry analysis has been carried out in key countries of the regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
Organic Yeast Market
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