Yeast Market Intelligence

Industry Outlook & Drivers

Yeast 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

The global enzyme market is expected grow at a CAGR of 6.3 percent between 2015–2020 to reach $ 4.31 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 industry is expected to reach $5.40 billion by 2022, with a CAGR of over 9 percent from 2017.. 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 2012,, 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

• Packaging and waste water treatment is termed as post-production cost and these costs constitute a significant 37 percent of the overall cost. Yeast producers price their product above this cost component with a margin of 22 to 25 percent.

Global Enzyme Market Outlook

Global demand across various industries, like paper & pulp, bio-diesel, biological detergents, food and beverage, etc., are driving the growth of whole enzyme market. Industrial enzymes are most likely to witness high growth rate in the next five years, due to the growing demand from the food sectors.

• The global enzymes market is expected to grow approximately at the rate of 6.3 percent and reach $9.5 billion by 2022. Industrial enzymes that include enzymes used in detergent manufacturing, food & beverage processing, pharmaceutical industry, etc., occupy major market, in terms of value and volume
•  Enzymes used in organic synthesis and analytical applications, food analysis,etc. are classified as non-industrial enzymes and these enzymes occupy 40 percent market share in the total enzyme market. Growing demand for sustainable products among consumers and continuous investments by large players in various industries is driving the growth of industrial enzymes market. However, uncertain market environment is impacting the industry dynamics at present.
• The global industrial enzymes market is projected to grow at 7 percent by 2020,to reach $8.1 billion. Food & beverage and household care enzymes are the biggest segments driving the entire industrial enzyme market.
• Bioenergy, however, contributes only 15 percent, and is expected to grow at a faster rate owing to the growth in the usage of bio-ethanol in blending with fossil fuels.
•  Increasing population, focus on yield maximization and reduced use of antibiotics in animals are the major drivers of agriculture and feed enzymes
• Pharmaceutical industry uses very limited quantity of enzymes compared to food and households.