Asia Pacific Yeast Extract Market size crossed USD 400 million in 2021 and is projected to observe around 7% growth rate from 2022 to 2028.
A major driver for APAC yeast extract industry growth is the growing awareness among consumers regarding health management. The shift towards vegan diets, especially, has been gaining steady traction in the APAC region, compelling food brands to avoid the use of animal-derived additives and raw materials and focus on natural resources such as yeast extract to boost product quality.
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Yeast extracts are becoming increasingly popular as natural food ingredients, owing to their high nutritional content of high-quality proteins, carbohydrates, vitamins, minerals, and amino acids. Additionally, the flavor-enhancing attributes of the product also make them ideal to produce various food and beverage products including dairy products, bakery products, sauces, and other savory items, as well as animal feed.
COVID-19 Impact on Asia Pacific Yeast Extract Market
The unprecedented outbreak of the novel coronavirus in early 2020 brought the manufacturing sector to a sudden halt, creating massive disruption across major supply chains. While this may have had an initial adverse impact on the yeast extract industry in the Asia Pacific, demand for the product remained relatively stable given its use as an ingredient in shelf-stable foods such as ready-to-cook and ready-to-eat products, which observed a massive rise in popularity during the lockdown phase.
The hydrolyzed yeast segment will gain significant momentum during the forecast period, given its strong application potential as an anti-oxidant ingredient in skin care products and cosmetics. Hydrolyzed yeast extract also serves as a functional protein source in feed products for young animals.
The paste segment in the Asia Pacific yeast extract market will register appreciable growth through 2028, owing to the strong benefits of the formulation in the preparation of food items such as marinades, pastry fillings, and sauces to enhance their savory profile.
The pharmaceutical segment accounted for USD 80 million revenue in 2021, due to the numerous health benefits of yeast extracts. These substances contain large concentrations of probiotics which make them ideal for the treatment of ailments such as cholesterol, common cold, diarrhea, respiratory infections, and premenstrual syndrome. Furthermore, the use of yeast extract can also help food manufacturers decrease sugar content in foods like cereals by up to 30%, which can help diabetes patients control their blood glucose levels.
The China yeast extract market size will increase exponentially during the period 2022-2028, attributed to targeted efforts by regional industry players to boost the production levels of yeast extract products. For instance, in April 2021, Angel Yeast (Dehong), an Angel Yeast company subsidiary, announced its plans to establish a new green manufacturing plant for yeast extracts to achieve an annual output of 15, 000 tons. With a USD 71 million total budgeted investment, this expansion was announced to boost the firm’s 2025 yeast industry planning strategy and ensure an adequate supply of yeast extracts to accommodate evolving market demands.
Prominent participants operating across the Asia Pacific yeast extract market are Oriental Yeast Co., Ltd., Biochem Ltd., Kerry Group PLC, Novozymes, Leiber GmbH, Koninklijke DSM N.V., Angel Yeast, Synergy Flavors, BSG CraftBrewing, Lallemand Inc, Kothari Fermentation and Lesaffre.