The global yeast extract market was valued at US$ 1,450.57 million in 2019 and is projected to reach US$ 2,121.62 million by 2027; it is expected to grow at a CAGR of 4.8% from 2020 to 2027.

Yeast extract consists of the cell contents of yeast without the cell walls. It is mainly used in the food & beverages sector for fermentation. Yeast extract is categorized under natural ingredients with a taste of its own, used as flavoring agents replacing synthetic additives. It comprises carbohydrates, water-soluble vitamins, peptides, and amino acids. Fundamental product properties include taste enhancement ability, savory flavor, and the ability to replace salt partially. These extracts are incorporated in dietary supplements and nutritional food to balance amino acid content and enhance the flavor. Brewer's yeast is prominently used in pharmaceutical applications due to its high nucleotide, B complex vitamins, and protein content.

Based on application, the yeast extract market is segmented into food & beverages, animal feed, pharmaceuticals, and others. The food & beverages segment led the yeast extract market with the highest market share in 2019. The food & beverages segment is anticipated to grow significantly, owing to factors such as extensive usage of yeast extract in the fermentation of sugars in bakery applications and fast-paced growth of the brewing industry. In terms of beverages, yeast extracts are used to enhance the flavors and address the consumer's demand for taste and nutrition. Produced from the food-grade Baker's yeast, these extracts are enriched in proteins, free amino acids, and essential carbohydrates, releasing multiple flavor ingredients, flavor peptides, and polysaccharides. The yeast extracts are also used in sugar reduction in beverages up to 30% without compromising the taste of the products.

Geographically, the yeast extract market is segmented into North America, Europe, Asia Pacific (APAC), Central & South America, and Middle East & Africa (MEA). In 2019, Europe held the largest share of the global yeast extract market, followed by North America. Europe is the chief revenue contributor for the yeast extract market and is estimated to grow rapidly, owing to the large number of vendors for yeast extract in this region. There has been a rise in demand for nutritional yeast extract in the European region owing to increasing consumption of processed foods, changing lifestyle, and surging usage of organic yeast. In addition, changes in consumer preference for clean label and natural ingredients are further likely to be responsible for the growth of the region.

COVID-19 virus was first observed in December 2019 in Wuhan (China), and it has spread to ~100 countries across the world, with the World Health Organization (WHO) stating it as a public health emergency. The global impacts of COVID-19 are felt across several markets. While SARS, H1N1, and other outbreaks have occurred in the healthcare sector in the last few years, the severity of COVID-19 has made the situation more complicated due to its mode of transmission. North America has experienced a rising number of cases of COVID-19 since its outbreak. The food and beverages industry have experienced profound disruption as the manufacturing plants were shut and there was shortage of workforce. The COVID-19 created a massive disruption in supply chains and acted as a major restraint to food and beverages companies in the North American markets. Trade restrictions and imposition of lockdown by government led to halt of a large number of obstacles to manufacturers and distributors operating in the food and beverages market, as there was a limited supply of raw materials and special ingredients. Furthermore, the bakery and liquor manufacturing companies developed robust safety programs to stridently work under the pandemic conditions and keep the operations functional as food and beverages production come under the category of essential businesses. The safety programs helped to offer maximum protection while minimizing the downtime of the machines.

Kerry Group; Angel Yeast Co., Ltd.; BioOrigin; DSM; LALLEMAND, INC.; LEIBER GMBH; Titan Biotech; Synergy Flavors; Ohly; Ajinomoto Co. Inc.; Lesaffre; Specialty BioTech; Zhuhai TXY Biotech Holding Co., Ltd; Yantai Huahai Biochemical Product Co., Ltd.; LEVEX; and Zhen-Ao Bio-Tech are among the major players operating in the global yeast extract market.

The size of overall global yeast extract market has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data, as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the yeast extract market.