Europe Yeast Extract Market size surpassed USD 600 million in 2021 and is estimated to witness 4% CAGR between 2022 and 2028.
With the acceleration of highly processed food production, consumers are leading the trend toward healthy and natural ingredients. This has consequently boosted the consumption of a range of specialty yeast extracts with taste-building components as a substitute for synthetic flavoring substances in the food and beverage industry in Europe.
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The use of food and beverage ingredients perceived as clean is becoming a phenomenon in the region. According to a study conducted by Ingredion, European countries like the UK, Italy, and Germany will gain tremendous opportunities for clean label growth. Such factors, along with the emergence of innovative technologies to extend the shelf life of food products, are further creating a strong outlook for the market for processed food applications.
Despite these favorable growth environments, the availability of hydrolyzed vegetable protein and other alternative flavor enhancers may create a hindrance to market expansion in Europe. Other key challenges faced by product manufacturers include cost concerns associated with raw materials and supply deficit, which are asserting a negative influence on the regional industry outlook.
Impact of COVID-19 on Europe Yeast Extract Market Dynamics
While market demand remained strong, the food processing industry in European nations like France faced COVID-19-related supply disruptions and other significant challenges during the initial phase of the pandemic. However, since COVID-19 restrictions are gradually starting to ease, the demand for food flavoring agents like yeast extract will rise. Furthermore, with the rapid bounce-back of pharmaceutical supply, the demand for drug manufacturing ingredients is anticipated to surge, which will result in the rampant growth of the industry.
Europe Market, By Technology
The hydrolyzed yeast technology segment will witness remarkable growth through 2028, considering its massive application scope in animal feed to enhance palatability and support digestion and gut health. With the rapid establishment of animal nutrition laboratories by key food nutrition and processing companies like ADM to develop feed additives.
Europe Market, By Application
The Europe yeast extract market from the pharmaceuticals segment will gain an outstanding momentum over the years ahead. In 2022, scientists from the UK and other nations successfully engineered baker’s yeast to manufacture alkaloid, an ingredient for dementia medicines.
Europe Market, By Form
The paste form segment will increase steadily during the forecast period, owing to its usage benefits such as the protection of animals against diseases through the stimulation of their immune system through yeast mannans and beta-glucans.
Europe Market, By Country
The UK yeast extract market revenue will cross USD 90 million by 2028, as a result of the growing investment in the animal farming sector. For instance, in May 2022, British supermarkets invested a huge sum into rescuing the beleaguered pig farming sector in the UK. Such an initiative and the rising number of food and drink manufacturing businesses will augment the use of ingredients like yeast extract in the UK.
Competitive Industry Landscape
Major players involved in the Europe yeast extract market include Kerry Group, Biospringer, Lesaffre, Ohly, and DSM. These companies undertake growth strategies like production unit expansion, product development, and more to expand their foothold in the market.