Feed yeast is considered to be an important segment in the global feed additive market due to the critical role it plays in enhancing the antimicrobial activity of the gut and promoting animal growth by improving gut microbiota. Better understanding of such benefits provided by yeasts is supporting the market expansion. Based on estimates by research firms, the global feed yeast market is projected to have a size of approximately USD 2 billion in 2024. Expectations also indicate that the market will reach a size of around USD 2.8 billion in 2030.
By Derya Yildiz
Yeast, a single-celled microorganism, is classified as a type of fungus and is widely used as a feed additive. When added to animal feed, yeast undergoes fermentation. This process is known to enhance the growth of beneficial bacteria in the stomach that break down cellulose and improve digestion, thereby improving gut health and nutrient utilization in animals. As a result, feeds supplemented with yeast are associated with improved growth performance, enhanced immune function and increased resistance to pathogens. Yeast can be a valuable source of essential vitamins and minerals and can also contribute to the overall health and well-being of animals.
Feed yeast is considered to be an important segment in the global feed additive market due to the critical role it plays in enhancing the antimicrobial activity of the gut and promoting animal growth by improving gut microbiota.
FEED YEAST MARKET AND FORECASTS
The global feed yeast market has witnessed significant growth in recent years due to the positive impact of feed yeast cultures on animal health and productivity. According to a report published by Mordor Intelligence, feed yeasts accounted for 3.1% of the global feed additives market in 2022. The company estimates that the global feed yeast market size today (2024) is approximately USD 1.48 billion. The analysts forecast the market to grow at a CAGR of approximately 4.85% between 2024 and 2029, reaching a market size of USD 1.87 billion by 2029.
According to a similar forecast by Research Reports World, the global feed yeast market reached USD 1.65 billion in 2023, and will be growing at a CAGR of 4.9% to reach USD 2.31 billion by 2030.
Precision Business Insights points to a higher market value in its report on global feed yeast. In 2023, the company estimates the market size to be at USD 2.29 billion, which will reach USD 2.39 billion in 2024 at a compound annual growth rate (CAGR) of 4.8%. Precision Business Insights forecasts that growth will continue at a CAGR of 5% in the following years and the total market value will reach USD 3.21 billion in 2030.
Verified Market Research (VMR) forecasts that the global feed yeast market size will reach USD 3.15 billion in 2031, up from an estimated size of USD 2.08 billion in 2024. VMR reveals that growth will occur at a CAGR of 5.30% during the forecast period 2024-2032.
Another high estimate for the market size belongs to analysts at Market Data Forecast. In the company’s report, the global feed yeast market size is estimated to be at USD 2.21 billion for 2024. Forecasting an annual growth rate of 5.1% for the 2024-2029 period, the company estimates that the total market value will reach USD 2.83 billion in 2029.
All the reports we have evaluated reveal that the global feed yeast market is showing positive signs of growth. With an average calculation based on the data from these 5 reports, it is possible to estimate that the global feed yeast market will have a size of USD 1.98 billion in 2024, grow at a CAGR of 5.3% between 2024 and 2030 and reach a size of USD 2.79 billion in 2030. This represents a significant opportunity for stakeholders in the feed yeast market.
FACTORS SUPPORTING MARKET GROWTH
Increasing consumer demand for animal proteins, combined with increasing animal population and growth of the animal feed industry, is leading the growth of the feed yeast market. The benefits of feed yeast on animal health and productivity, as well as growing awareness about these benefits is leading to the widespread use of yeast in feed and encouraging the future growth of the market. Analysts believe that if more information is provided to animal producers about the positive impact of yeast on gut health, nutrient absorption, and overall animal welfare, the adoption rate in the feed yeast market will increase.
Another key factor directing the market is legal restrictions on the use of antibiotic growth promoters. These restrictions are encouraging the search for alternative feed additives that can maintain or improve animal health and performance without the potential downsides of antibiotics. The ability of yeast to replace antibiotics, reduce costs by increasing feed efficiency, and improve animal growth rates contribute significantly to the growth of the feed yeast market.
In addition to these, the demand for poultry feed, which is the most common feed type in which yeast is used, is another factor contributing to the growth of the market. This is because there is a significant increase in demand for poultry products worldwide and investments in the poultry sector are increasing in line with this demand. With the increase in poultry population and demand for poultry feed, the use of feed yeast is expected to continue to increase.
Some feed yeast suppliers in the world:
AB Mauri
ABF Ingredients – Ohly
ADM
Alltech
Angel Yeast
Associated British Foods
Cargill
Devenish Nutrition
Dsm-firmenich (Biomin)
Enzym Group
Evonik
Futuresun Group
Heforma
ICC Brazil
Innovad
Kemin Industries
Kerry Group
Lallemand
Leiber GmbH
MicroBioGen
Novonesis (Chr. Hansen & Novozymes)
Novus International
Nutreco (Selko – Trouw Nutrition)
Orffa
Pacific Ethanol
Phibro Animal Health
Phileo by Lesaffre
Titan Biotech
Zilor (Biorigin)
FACTORS LIMITING MARKET GROWTH
While the global feed yeast market is experiencing significant growth, there are factors that could potentially restrict this, such as ensuring consistent product quality, raw material competition and legal legislations.
According to researchers, ensuring consistent quality and performance of feed yeast is a key barrier that could restrict market growth. Changes in raw materials such as molasses or sugar can affect nutrient availability and ultimately affect yeast growth and productivity during fermentation as well. Fluctuations in fermentation conditions such as temperature, pH and oxygen levels can affect yeast metabolism and product characteristics, leading to inconsistencies.
The feed yeast industry also faces competition for raw materials such as molasses and sugar, which are also used in other food and industrial applications. Fluctuations in the price and availability of these raw materials can lead to cost pressures for feed yeast producers.
Strict government regulations on import, export, production, and labelling of yeast products may also pose a barrier to entry for new players and limit the overall growth of the market.
Moreover, regulations regarding the use of certain additives in animal feed may affect the demand for certain types of feed yeast.
MARKET SITUATION BY ANIMAL TYPE
Poultry feed is the most widely used feed group, as yeast plays a crucial role in the growth and productivity of poultry. According to a report by Mordor Intelligence, the poultry segment accounted for 45.1% of the global feed yeast market in 2022. This is followed by swine feed with 25% share. The antimicrobial performance of yeast on toxins in the gut, enhances intestinal health and increases feed efficiency, which causes these two animal feed segments to stand out in the use of yeast. In addition, consumer demand for poultry products and increasing investments in the poultry industry indicate that growth in this segment will be noteworthy in the coming years.
In ruminants, yeast’s ability to enhance digestion of plant-based feed and lead to improved gut health and overall growth draws attention. Some analysts predict that due to these properties, the use of yeast in ruminant feed will be much higher in the coming years, with the ruminant segment accounting for the highest market share in the feed yeast market.
Aquaculture also holds significant potential for the feed yeast market. Growing demand for seafood consumption, particularly in Asia-Pacific and South America, is driving the production of feed for aquaculture. Some countries are focusing on expanding aquaculture production to meet consumer demand. With all these developments, the need to maintain and improve the performance of aquatic life is considered as a significant opportunity for the feed yeast market. Analysts predict that this segment will witness significant growth in the global feed yeast market in the upcoming years.
MARKET GROWTH ON REGIONAL BASIS
The global feed yeast market is segmented into various regions, each with unique demands for feed yeasts. The growth of these regions is driven by various factors such as size of the animal population, the level of industrialisation of animal husbandry, and consumer preferences for animal products.
The Asia-Pacific region is the most important potential market for feed yeast, as for many feed additives. According to a report by Mordor Intelligence, the region is the world’s largest feed yeast market with a market share of 31.4% in 2022. North America and Europe follow with market shares of 25.4% and 23.5% respectively. Asia-Pacific’s higher share is due to the increase in demand for animal proteins, focus on solutions to improve productivity to meet this demand, higher penetration rates of additives, large animal populations, particularly poultry, and increasing feed production volumes.
North America, particularly the US, is considered to be the fastest growing country/region in the feed yeast market as a result of commercial animal husbandry and the adoption of new production methods on animal farms.
Europe, which is considered to be the third largest market for feed yeast, has strict regulations on animal feed safety and quality, it also encourages the use of well-researched and proven feed additives such as yeast. Technologically advanced livestock production systems that prioritize animal health and performance are widespread in the region. In addition, high quality meat products raised with responsible practices are increasingly demanded by European consumers. Researchers state that these factors are encouraging the use of feed yeast in the market.
The Middle East is a region that attracts attention with increasing investments especially in poultry production. The increase in the poultry population is expected to increase the demand for feed yeast.
Sources:
1. Feed Yeast Market Size & Share Analysis – Industry Research Report – Growth Trends (mordorintelligence.com)
2. In-Depth Industry Outlook: Feed Yeast Market Size & Forecast (verifiedmarketresearch.com)
3. Global Feed Yeast Market Industry Growth Analysis 2022-2028 (precisionbusinessinsights.com)
4. Global Feed Yeast Market – Industry Reports (researchreportsworld.com)
5. Feed Yeast Market Size, Share, Growth Report | 2024 to 2029 (marketdataforecast.com)
