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New Variants of Yeast Ingredients for Improved Functionality Would Aid the Growth of the Specialty Yeast Market

(Food-Beverage-News.Com, September 11, 2019 ) The global specialty yeast market is estimated to be valued at USD 2.7 billion in 2019 and is projected to reach USD 4.0 billion by 2025, at a CAGR of 7.2%. The growing demand for bakery products and a positive trend in the consumption of alcoholic beverages are some of the factors driving the growth of this market.

Research & development is one of the strategic pillars of specialty yeast manufacturing companies, for new product developments, modifications in existing products, development of new applications and various technologies used to make the products more enhanced. Companies are innovating new products to maintain their presence in the market and to cater to the consumer demand for more qualitative products. For instance, in February 2019, Diamond Knot Brewing Company (US) launched three new beers with the fruity aroma coming from specialty yeast with flavors with a resemblance to Caribbean rum, along with Lower Deck Lager.

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The specialty yeast market, by type, is segmented into yeast extracts; yeast autolysates; yeast beta- glucan; and other yeast derivatives, which include yeast flavor enhancers, yeast saccharides, and yeast pigments. With the growing demand for natural food additives, the yeast extracts segment experiences a higher growth rate.

By species, the specialty yeast market is segmented into Saccharomyces cerevisiae; Pichia pastoris; Kluyveromyces; and others, which include Torulaspora delbrueckii, Metschnikowia fructicola, and Candida queretana. Saccharomyces cerevisiae has high fermentation efficiency, rapid growth rate, effectivity in the usage of sugar, the ability for the production of ethanol, tolerance to high ethanol concentrations, and ensured cell activity in acidic environments. Due to these characteristics, Saccharomyces cerevisiae finds application in the food & beverage (distilled spirits & beer) industry.

Based on application, the specialty yeast market is segmented into food; beverages; feed; and others, which include healthcare, bioethanol, biotechnology, cosmetics, and personal care products. The food segment is projected to be the largest through the forecast period due to the wide application of specialty yeast in the preparation of various food and feed products.

The growing demand for clean-label products in developing countries, new variants of yeast ingredients for improved functionality, and the potential of yeast as a promising protein source in the feed are proving to be opportunities for the specialty yeast industry. However, the commercialization of duplicate & low-quality products is a major challenge which the market faces.

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The increasing R&D activities for creating yeast alternatives are replacing the need for specialty yeast in the fermentation industry. These alternative solutions are known for their plant-based sources, stable compositions, predictable performance, high nutrient content, and equivalent performance; this restricts the specialty yeast market growth. Moreover, manufacturers’ and consumers’ acceptance of these alternatives due to their higher productivity and lower cost is restricting the market for specialty yeast, globally.

The major players such as Lallemand (Canada), Archer Daniels Midland (US), and Chr. Hansen (Denmark) are focusing on new product launches, expansions & investments, acquisitions and agreements, collaborations, and partnerships to increase their global footprint.

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