July 21, 2024

The Global Nutritional Yeast Market Driven By Increasing Demand For Plant-Based And Vegan Foods

Nutritional yeast is a dehydrated yeast developed to have a nutty, cheesy flavor and aroma. It is grown on molasses or beets and inactivated, which allows it to keep its nutritional value for a long shelf-life. Nutritional yeast provides a nutritious source of vitamins, especially B vitamins like folic acid, riboflavin, and B12. It is used to create dairy-free cheeses and add a cheesy flavor and consistency to plant-based dishes due to its umami and robust taste. The global nutritional yeast market is growing rapidly due to rising consumers preference for healthy and nutritious foods. Moreover, increasing vegan and vegetarian population worldwide is fueling the demand for nutritional yeast as a dairy alternative ingredient.

The global Nutritional Yeast Market is estimated to be valued at Us$ 229.6 Mn in 2023 and is expected to exhibit a CAGR Of 6.8% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Nutritional yeast manufacturers are focusing on new product development by introducing yeast varieties targeted towards specific applications like baking and cooking. For instance, nutritional yeast flakes are being marketed as a substitute for parmesan cheese to sprinkle on popcorn, pasta, and salads for their nutritional benefits and savory taste. Similarly, nutritional yeast powders are gaining popularity as seasoning blends in plant-based mac and cheese, pizza, and salad dressings. Rising awareness about veganism and health benefits of nutritional yeast is prompting food entrepreneurs to develop innovative nutritional yeast-based food products. This is expected to further drive the demand for nutritional yeast over the forecast period.

Porter’s Analysis

Threat of new entrants: Low threat as the nutritional yeast market is highly consolidated and dominated by established players. Significant capital investment is required to achieve economies of scale in production and R&D.

Bargaining power of buyers: Moderate bargaining power held by buyers due to availability of substitutes and standardized products. Switching costs are low for buyers.

Bargaining power of suppliers: Higher bargaining power held by key suppliers as they control key raw materials supply. Nutritional yeast relies on limited number of cultivars.

Threat of new substitutes: Low threat as nutritional yeast offers distinct sensory, nutritional and functional benefits over other yeast extracts and seasoning ingredients.

Competitive rivalry: Highly competitive market dominated by major players. Competition occurs based on pricing, production capacity, product quality and innovations.

Key Takeaways

 

The Global Nutritional Yeast Market Demand is estimated to be valued at US$ 229.6 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.

North America is expected to dominate the nutritional yeast market owing to rising trend of veganism and vegetarianism. Increased health awareness along with proven probiotic benefits are fueling nutritional yeast adoption. The US accounts for over 40% of the North America nutritional yeast market share. Europe is the second largest and a highly potential market for nutritional yeast driven by favorable regulations. Countries like Germany, UK, France hold major shares in Europe on account of robust demand from food processing industry.

Key players operating in the nutritional yeast market are Lesaffre, Cargill, Lallemand, Alltech, Angel Yeast, Aqua Spectrum, and Associated British Foods. Companies are investing extensively in R&D to develop new product formulations, textures and functionalities to suit changing market trends. Technological advancements in fermentation processes will further aid commercial production.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it