Yeast Extract Market Size

Yeast Extract Market Size

Yeast Extract Market size surpassed USD 1.6 billion in 2022 and is estimated to expand at 5.5% CAGR between 2023 and 2032. The flourishing food & beverages sector, boosted by the inflating food demand and a noticeable rise in the uptake of processed food items, will foster the market demand. According to the Business Development Bank of Canada, the Canadian food and beverage (F&B) industry is envisioned to register more than 11% growth by the end of 2025.

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 Yeast extract is primarily utilized as an aromatic ingredient in food & beverage companies and restaurants to design more flavorful food & beverages and enhance the taste of sauces, soups, snacks, seasonings, meat products, prepared meals, and other food products. The rapid growth in the food services sector and growing investment of leading food processing companies in emerging economies such as China and India will offer a lucrative growth opportunity for the market.

Baker’s yeast, saccharomyces cerevisiae, sugar molasses, and nitrogen are the primary raw material used in yeast extract production. However, instability in the prices of these materials is likely to hamper the yeast extract market growth. As a result, manufacturers have to bear high costs to stock molasses for biofuel production, resulting in a lack of supply for yeast extract manufacturing, thus, leading to increased competitiveness. Additionally, the easy availability of low-cost substitute products and savory ingredients such as MSG, hydrolyzed vegetable proteins (HVPs), hydrolyzed animal proteins (HAPs), and nucleotides will limit the demand for yeast extract across the globe.