Yeast and Enzymes Global Market Outlook

The global fresh yeast market is expected grow at CAGR of 9 percent between 2015–2020 to reach $ 4.3 billion in 2020 
Growing demand for processed foods and alcoholic beverages are driving in the market.

  • Growth in demand is expected to be high in Asia Pacific, especially in China and India

yeast-and-enzymesThe global enzyme market is expected grow at a CAGR of 6.3 percent between 2015–2020 to reach $ 8.4 billion in 2020

  • Growing demand for processed foods and FMCG’s is driving the growth of enzyme market
  • Growth in demand is expected to be high with a CAGR of 9.5 percent until 2020 in Asia Pacific
     

The global yeast market recorded a CAGR of 8.9 percent between 2009–2015. The current market size of fresh yeast is above 3.2 million metric tons. Baker’s yeast and Autolyzed yeast have the major market share in the overall yeast industry and their combined annual growth is expected to witness 10 percent growth between 2016-2020

  • The global yeast industry is expected to reach $ 9.2 billion in 2020 with a CAGR of over 8 percent from 2015. The global yeast market includes all industrial yeast in fresh form
  • Baker’s yeast occupies a major market share because of the growing demand and changing consumer’s lifestyle
  • Increase in the usage of ethanol in blending with fossil fuels across world is driving the demand for bio-ethanol yeast. Market size of bio-ethanol yeast during 2010 was $ 87 million, which is worth over $200 million, at present
  • Wine yeast and other yeast’s market value are small compared to Baker’s yeast due to the less demand among consumers

Molasses Global Production and Price Drivers

EU is the leading yeast producer and nearly 82 percent of the molasses (feedstock) used in EU are produced domestically. Any change in the global sugar beet or sugarcane price and sugar price will highly influence the price of yeast produced in EU and other regions

  • Molasses, being the by-product of sugar beet and sugar cane, sugar prices also influences molasses prices. For instance, in 2011, when EU sugar prices increased by 15 percent year-on-year to $ 728.84/MT, molasses prices increased by 6.25 percent year-on-year to $ 165.42/MT 
  • Yeast prices vary in proportion with beet molasses’ prices due to its high utilization. Any increase in the price of molasseswill have an impact on the price of yeast 
  • Hence, understanding the seasonality of price movement will be helpful in strategic sourcing of yeast Key Takeaway EU is the leading yeast producer and nearly 82 percent of the molasses (feedstock) used in EU are produced domestically. Any change in the global sugar beet or sugarcane price and sugar price will highly influence the price of yeast produced in EU and other regions.

Cost Structure - Yeast

Increase in the price of molasses, the raw material for fresh yeast production, and energy price cause an increase in total fresh yeast’s cost of production, which is generally passed on to the buyers through an increase in yeast prices.

  • Beet molasses is the most economical feedstock for fresh yeast production, followed by cane molasses. The substrate concentration mix of 80:20 of beet to cane molasses respectively, is considered ideal for yeast production
  • The two highest cost components (raw material and energy), exhibit price volatility and account for 62 percent of the total production cost. The margin for fresh yeast production is 22-25 percent and hence, there is a tendency on the part of fresh yeast producers to pass on the cost increase to the buyers