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Attractive Opportunities in the Yeast Market

(Food-Beverage-News.Com, November 13, 2019 ) The global yeast market has witnessed a steady growth over the last few years. The market size is projected to reach USD 5.40 Billion by 2022, at a CAGR of around 9.0% from 2017 to 2022. The growth of the bakery industry and increasing demand for convenience food are the major drivers that have contributed to the growth of the market.

How is the increasing preference for MSG alternatives creating profitable growth opportunities for manufacturers in the yeast market?

MSG is the sodium salt of a glutamic acid, which is used as a food additive in various processed foods to enhance the natural flavor of foods. Various studies have shown that prolonged consumption of MSG results in several health complications, some of which include obesity, weakness and fatigue, and frequent headaches and numbness. Growing awareness about the side effects of MSG has resulted in an increased demand for safer alternatives. Yeast extracts contain hydrolyzed properties and amino acids and can hence be used to add flavor in processed foods and other savory applications; yeast is hence a suitable alternative to MSG. And, with more campaigns against the use of MSGs in food, the market for yeast has high growth potential in this function.

Stringent food safety regulations

In Asian countries, red yeast products, such as rice is a staple diet. Red yeast rice is made by cultivating rice with various strains of Monascus purpureus. These rice products contain a considerable amount of monacolin K, a chemical ingredient that is similar to the cholesterol-lowering drug, lovastatin. According to the U.S. Food and Drug Administration (FDA), red yeast rice products that contain more than a certain level of monacolin K, cannot be sold legally as a dietary supplement. This implies potential adverse effects, about which consumers need to be informed, in case they are supplied in the form of food supplements. The labeling rules in case of such products in European countries are very stringent.

The active ingredient in red yeast is the same as that in prescription drugs called statins, which are used for controlling high cholesterol. The American Heart Association warns against using red yeast until the studies regarding its safe use are concluded. Therefore, it is a challenge for the producers of this type of yeast to market it as a food ingredient.

Request for Customization:

Stringent food safety regulations is the major factor restraining the yeast market. Some of the regulations are Regulation (EC) No 834/2007, and in particular Article 20 thereof, which lays down basic requirements for the production of organic yeast. Detailed rules for the implementation of those requirements should be laid down in Commission Regulation (EC) No 889/2008 (2). Also, according to Annex VI (B) to Council Regulation (EEC) No 2092/91 (3), only enzymes normally used as processing aids were allowed to be used in organic processing and enzymes used as food additives would have to be in the list of authorized food additives of Annex VI (A) (A.1) to that Regulation.

The yeast market, by type, is segmented into baker’s yeast, brewer’s yeast, wine yeast, bioethanol yeast, feed yeast, and others (nutritional and supplement yeast). The increasing trend of consumption of processed food items and bakery foods is leading to a high demand for baker’s yeast in developing economies.

By application, the market has been segmented into food, feed, and others (including pharmaceutical and industrial). The yeast application in the food segment has been increasing due to the increasing use of yeast in snack seasonings, ready-to-eat meals, processed fish, meat and analogs, dairy, bakery, beverages, and dietary supplements.

By form, the market has been segmented into fresh yeast, dry yeast, instant yeast, and others (including bread machine and rapid-rise yeast). The fresh yeast segment accounted for the largest market due to its wide use in bakery products such as bread, biscuits, and pastries.

The global yeast market is characterized by moderate to low competition. Acquisitions and expansions & investments are the key strategies adopted by the key market players to ensure their growth in the market. The market is dominated by players such as Associated British Foods plc (U.K.), AngelYeast Co., Ltd (China), Lesaffre Group (France), Chr. Hansen Holding A/S (Denmark), and Koninklijke DSM N.V. (Netherlands). Other players include Lallemand Inc. (Canada), Alltech, Inc. (U.S.), Leiber GmbH (Germany), Oriental Yeast Co., Ltd.(Japan), and Synergy Flavors (U.K.).

To know about the assumptions considered for the study, download the PDF brochure:

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Mr. Shelly Singh


Source: EmailWire.Com
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