Nutritional yeast is a species of yeast often used as a nutrient-rich food additive. It is a highly reputed source of vitamins like vitamin B1, B2, B3, B6, and B12. It provides these vitamins at exceptional levels along with minerals like zinc, selenium, and iron. Nutritional yeast has a nut-like, cheesy, savory flavor and is commonly used as a seasoning on popcorn, pasta, casseroles, salad dressings, and sandwiches.
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 14% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Nutritional yeast has gained huge popularity as a vegan substitute for cheese and dairy. With growing environmental and ethical concerns regarding animal agriculture, veganism and plant-based diets are on the rise. Nutritional yeast perfectly fits the bill as a plant-based, non-dairy alternative to cheese and butters for vegan dishes. It provides the signature savory, nutty and cheesy taste without the dairy proteins. Its exceptional nutritional profile also makes it an appealing alternative to dairy foods. The growing vegan population worldwide represents a massive market opportunity for nutritional yeast manufacturers to promote its usage as a cheese and dairy substitute. With more people adopting veganism, demand for vegan-friendly ingredients like nutritional yeast is expected to surge significantly in the coming years.
Porter’s Analysis
Threat of new entrants: low as this is a well established market requiring high capital investments and R&D resources for manufacturing yeast extracts.
Bargaining power of buyers: moderate as nutritional yeast market has several buyers but key brands dominate buyers can bargain on prices.
Bargaining power of suppliers: low as there are several suppliers of raw materials like molasses, sugarcane etc and switching costs are low.
Threat of new substitutes: low as nutritional yeast offers unique health benefits as a meat substitute and gluten-free ingredient.
Competitive rivalry: high as there are several players offering nutritional yeast at global level competing on price and quality.
SWOT Analysis
Strength: high demand for vegan and plant-based foods, versatile usage as seasoning or supplement.
Weakness: niche product with limited awareness, price sensitive market.
Opportunity: growing health consciousness, expanding into new application areas.
Threats: stringent regulations around FSSAI approvals, dependence on agriculture commodities prices.
Key Takeaways
The Global Nutritional Yeast Market Share is expected to witness high growth over the forecast period of 2023 to 2030.
Regionally, the North America nutritional yeast market accounted for the largest market share in 2023 and is expected to maintain its dominance over the forecast period. Growing vegan populace and protein-rich diet trends have boosted demand in the region.
Asia Pacific region is anticipated to grow at the fastest rate during the forecast period. Increasing health awareness, rising disposable incomes are supporting the market growth in developing countries like India and China. Growth in veganism and flexitarian diets is further expected to propel Asia Pacific nutritional yeast market.
Key players operating in the nutritional yeast market are Kothari Fermentation and Biochem Ltd, ABF ingredients, Biomin, Angel Yeast, Bob’s Red Mill, Cargill Inc., Nutreco, Alltech and Pacific Ethanol. These players are focusing on expansion in developing regions, new product launches catering to various end-use applications.
Get more insights on this topic: https://www.insightprobing.com/nutritional-yeast-market-size-and-share/
