GLOBAL MARKET OUTLOOK FOR GRAIN DISTILLERS DRIED YEAST (2024 - 2030)

The Grain Distillers Dried Yeast market, valued at USD 9.52 Billion in 2023, is estimated to achieve a market size of USD 15.29 Billion by 2030. Across the forecast period spanning 2024 to 2030, the market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 7%.

INDUSTRY OVERVIEW

Yeast, classified as single-celled fungi, thrives in humid environments. Saccharomyces Cerevisiae, commonly known as Baker's yeast, stands out as a significant yeast strain widely employed in the food industry due to its leavening properties. By consuming sugar and oxygen, yeast generates new cells and releases carbon dioxide, essential for the effervescence in beer, the pace of wine fermentation, and the texture of bread. Dry yeast, predominantly utilized in baking, consists of approximately 95% solid yeast. The market expansion is propelled by the low production costs, prolonged shelf life, and refrigeration stability of dry yeast.

Dry yeast finds applications across various sectors, including pharmaceuticals and the food and beverage industry. The global market witnesses a rapid growth in both the production and demand for this product. The influx of new competitors into the international market promises further market growth. Moreover, quick dry yeast finds significant utility in biotechnology, aiding in the production of diverse compounds and biofuels from agricultural food waste. Sectors such as bakeries and breweries contribute to the global demand and expansion of the instant dry yeast market. Yeast, a commonly used food ingredient at home due to its fermentation properties, also benefits from cost-effective production. Yeast production, sourced from molasses—an end product of sugarcane—is economically viable due to the moderate prices of sugarcane.

COVID-19 IMPACT ON THE MARKET

The COVID-19 pandemic has substantially hindered the growth of several markets, including the instant dry yeast market. The imposition of lockdown measures in numerous countries directly affected food processing sectors, notably impacting confectionery and bakery businesses. Fast-food establishments, restaurants, and the hospitality industry faced significant setbacks, leading to a decreased demand for quick dry yeast. The market's reliance on the food services sector further constrained the expansion of quick dry yeast. However, a resurgence in the supply of instant dry yeast is anticipated post-pandemic. Increased demand is projected as dried yeast finds extensive use in ready-to-eat products. The rising working population's preference for prepared meal items is expected to further boost the instant dry yeast market in the forthcoming years.

MARKET DRIVERS

Increased production in pharmaceuticals, breweries, and bakeries.

Longer shelf life and reliability of instant dry yeast compared to active dry yeast. This form of yeast is commonly used in beer production to enhance aroma and preserve color. Additionally, non-alcoholic beverages and packaged foods benefit from the use of quick dry yeast.

Growing applications of dry yeast in biofuel production.

Bioethanol, essential in reducing crude oil dependency and environmental pollutants, is produced using yeast. Yeast facilitates the conversion of sugar into ethanol, subsequently utilized in place of diesel in automobiles. The manufacturing process of ethanol shares similarities with wine and beer production.

MARKET RESTRAINTS

Rapidly escalating prices of raw materials.

The instability in the instant dry yeast market is attributed to fluctuating prices of essential ingredients required for yeast production. Molasses, a vital ingredient, is not only used in yeast production but also in the manufacture of bioethanol and animal feed, leading to its swift price increase. Additionally, excess sugar usage in yeast production has driven up sugar prices, negatively impacting the cost of dry yeast products and impeding the market demand for instant dry yeast.

GRAIN DISTILLERS DRIED YEAST MARKET - BY PRODUCT

• Pouches
• Bottles
• Other Formats

In terms of Packaging, the market is divided into Pouches, Bottles, and Other Formats. Pouches, which represented the largest share of revenue in 2021, are expected to witness substantial growth throughout the forecast period. Their popularity in the food and beverage industry is attributed to attributes such as durability, sustainability, customization options, and cost-effective shipping.

GRAIN DISTILLERS DRIED YEAST MARKET - BY END-USER

• Households
• Food Services
• Bakery and Confectionery
• Quick Service Restaurants (QSRs)
• Other Applications

The market is segmented by End-User into households, Food Services, Bakery and Confectionery, Quick Service Restaurants (QSRs), and other applications. McDonald's, Domino's, and KFC stand as the top three global fast-food chains. Consumer preference leans towards affordable, appealing, fresh, and delicious items. Factors driving the market for instant dry yeast include rapid changes such as the rise of working women, disposable incomes, the digitization of quick-service restaurants, evolving consumer tastes, and diverse culinary establishments.

GRAIN DISTILLERS DRIED YEAST MARKET - BY DISTRIBUTION CHANNEL

• Supermarkets/Hypermarkets
• Convenience Stores
• E-commerce Platforms
• Other Channels

The market is categorized by Distribution Channel into Supermarkets/Hypermarkets, Convenience Stores, E-commerce Platforms, and other channels. Supermarkets and hypermarkets offer a wide array of consumer goods, particularly in regions such as North America and Europe. Factors such as growing urban populations, competitive pricing, and increased urbanization contribute to the appeal of supermarkets and hypermarkets in both developed and developing economies. These retail outlets serve as convenient one-stop destinations for diverse product selections.

GRAIN DISTILLERS DRIED YEAST MARKET - BY REGION

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East
• Africa

Regionally, the market is segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. Europe presently leads the instant dry yeast market and is expected to maintain its position throughout the forecast period. Leading the market are nations with high wine consumption such as France, Italy, Germany, the United Kingdom, and Spain. Additionally, Germany, Austria, and the Czech Republic are prominent in beer production. Estonia notably boasts the world's highest alcohol consumption rates, with "kali," a fermented bread drink, being a popular choice. These factors are anticipated to drive the expansion of the instant dry yeast market in Europe. The Asia Pacific region is forecasted to experience the highest growth rate during the projection period. The bakery sector in Asia Pacific is highly lucrative, surpassing the growth rates seen in Europe. Factors such as the busy lifestyles of the working population, rising consumer spending power, and urbanization contribute to this trend. The demand for on-the-go breakfast items has surged, leading to increased demand for instant dry yeast. Additionally, the market for alcoholic beverages like wine and beer is on the rise in Asia-Pacific, with significant demand from countries such as India, China, and Japan, contributing to the growth of the instant dry yeast market in the region. North America is expected to witness substantial demand for instant dry yeast during the forecast period, driven in part by the widespread use of biofuels like bio-ethanol. The United States, for instance, exported 95.5 million gallons of bioethanol in April 2016. The growing consumption of alcoholic beverages also plays a role in the market's expansion.

GRAIN DISTILLERS DRIED YEAST MARKET - KEY COMPANIES

Leading players in the market include:

1. Angel yeast co.
2. Lallemand inc.
3. Lesaffre group
4. Associated british foods plc
5. Chr hansen group
6. Alltech
7. Leiber group
8. Levapan group
9. Oriental yeast co.
10. Biomin

KEY DEVELOPMENTS IN THE GRAIN DISTILLERS DRIED YEAST MARKET

• EXPANSIONS: On June 18, 2019, AB Mauri Food Inc. inaugurated an expanded headquarters in St. Louis, Missouri, United States. This expansion includes a research and development center focused on yeast strains, aimed at boosting the company's production capacity.
• ACQUISITIONS: On September 10, 2019, ACH Food Companies, Inc. acquired Anthony's Goods, a brand with a strong online presence in the natural and organic food sector. The acquisition is expected to diversify the company's product offerings and expand its customer base.