August 29, 2017
WELLESLEY, Mass., August 29, 2017 – Increasing use of yeast in animal feeding operations and ethanol production, plus continued growth of the product’s use in beer, wine, and bread production, is helping to fuel dramatic expansion of the yeast market. Globally, the total yeast market is projected to grow 7.1% between 2016 and 2022, according to a report by BCC Research. By 2022, the global market for yeast could top $10.7 billion.
While challenged by high investment costs and rising prices for yeast’s main ingredient – molasses – the yeast industry is buoyed by surging demand and low plant depreciation. Beer, wine, and spirit consumption worldwide is projected to increase in the coming five years, especially in parts of Asia and Latin America. The global beer yeast market is projected to grow by 8.3% annually through 2022, with Asia leading the way, according to the report, Yeast, Yeast Extracts, Autolysates, and Related Products: The Global Market.
“Most yeast manufacturers, large and small, operate in a challenging business environment,” said report author Andrew McWilliams. “In any process in which it is used, there is no replacement for yeast. At the same time, product diversification and differentiation is difficult.”
After stagnating for several years, global production of bioethanol is expected to increase dramatically through 2022, with commercially traded ethanol yeast projected to rise in market value to $264 million – a 16.3% annual rise. Globally, the market value of baker’s yeast is expected to rise by 5.7% through the same period.
Currently, there are more than 200 companies globally producing yeast, but the market is dominated by a handful of large producers, including Lesaffre (the market leader), Lallemand, Pakmaya, Oriental Yeast, AB Mauri, Angel Yeast, DSM, and ICC.
Factors Impacting Growth
Price pressures prompted industry consolidation in the 1980s and 1990s and the shutdown of many small yeast factories, which concentrated global production into the hands of a few key players; this trend appears to be reversing. Although yeast plants are generally simple operations, investment costs can be considerable, particularly for small operations; as is typical for chemical plants, the economy of scale impact is large. The majority of currently operating plants are older than a decade, and maintenance costs are moderate.
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Yeasts, Yeast Extracts, Autolysates and Related Products: The Global Market( CHM053C )
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