Global Feed Yeast Market - 2023-2030

Overview

Global Feed Yeast Market reached US$ 2.0 billion in 2022 and is expected to reach US$ 2.6 million by 2030, growing with a CAGR of 5.1% during the forecast period 2023-2030.

According to FAO's estimation in comparison to the base period average of 2018-2020, the expected growth in meat protein consumption during the following 1o years is 14%. The respective fact will in turn, resulted in an increased demand for livestock feed, including feed additives like feed yeast.

Many companies are launching various innovative technologies for the efficient use of yeast as a feed additive. For instance, 'Yeast Bioactives' launched by Canadian Bio-Systems Inc, is a yeast-based innovation and developed for the use of yeast as a feed additive in the diets of swine, ruminants, and poultry. Such advancements result in the growth of the feed yeast market.

In the global feed yeast market, aquatic animals account for a significant market of 1/4th, reflecting their substantial consumption of yeast-based feed additives. North America is among the growing regions in the market covering more than 1/3rd of the market due to their large feed production capacity and capability.

Dynamics

Ban On the Use of Antibiotics in Feed

Antibiotics have long been used in animal feed to aid with growth and illness prevention. However, concerns about antibiotic resistance in both animals and humans have caused regulatory restrictions and bans on their use in many regions On January 28, 2022, a new law enacted by the European Union that bans routine antibiotic feeding of farmed animals came into force.

Feed yeast products, particularly those containing live yeast cultures, can help modulate the gut microbiota of animals. Yeast-based additives contain bioactive compounds that can support the animal's immune system. A strengthened immune response helps animals fight off infections without the need for antibiotics. This is crucial in livestock production systems that prioritize reduced antibiotic use.

Rising Awareness About the Benefits of Feed Yeast for Animal Health and Productivity

Feed yeast contains compounds that aid in breaking down complex nutrients and improving their absorption in the digestive system. The respective fact leads to enhanced nutrient utilization, better feed conversion rates, and improved overall animal performance. In June 2022, ADM, introduced AquaTrax, a novel yeast feed additive to support better outcomes in aquaculture.

Yeast-based additives, particularly those with live yeast cultures or yeast cell components, have been shown to positively influence the composition of the gut microbiota. A balanced and diverse gut microbiota contributes to better digestion, reduced pathogen colonization, and improved immune response. The aforementioned connection between gut health and overall animal health resonates with farmers seeking optimal livestock performance.

Competition from Alternative Additives

Competition from alternative additives is constraining the growth of the feed yeast market. As livestock and aquaculture industries seek diverse nutritional solutions, they are exploring substitutes for traditional yeast-based additives. Such innovations includes plant-based proteins, synthetic amino acids, and other novel supplements.

Additionally, advancements in research and technology have led to the development of innovative feed additives with comparable benefits. In May 2022, METEX NOOVISTAGO, an animal nutrition expert launched a new solution range: inneus for pigs and poultry. The inneus range of products is based on amino acids and it influences intestinal health.

Such alternatives often boast competitive prices and customizable nutritional profiles, challenging the dominance of yeast products. The intensifying competition drives feed manufacturers to reassess their ingredient choices, thereby dampening the growth potential of the feed yeast market.

Segment Analysis

The global feed yeast market is segmented based on type, livestock, genus, distribution channel, form and region.

Rising Demand For Seafood

To meet the rising demand for seafood, the aquaculture industry is rapidly growing. For instance, according to FAO, in 2020 in Europe, aquaculture farming resulted in 1.1 million tonnes of aquatic organisms which was worth 5.3 billion euros. Yeast products were being used for their potential to enhance the nutritional value of aquaculture feeds and improve the health of farmed fish and other aquatic species.

For maximum growth and health, aquatic animals must have to satisfy their specific nutritional requirements. Aquatic animals' immune systems can be boosted by yeast-based feed additives, making them more resistant to diseases. For the growth and development of fish and other aquatic species, yeast-based feed additives can offer vital nutrients, vitamins, and minerals driving the feed yeast market growth.

Geographical Penetration

North America's Growing Livestock Industry and the Growing Demand for Animal Protein

North America has a large and well-developed livestock industry, including beef cattle, poultry, swine, and dairy production. Hence, there is a growing compound feed production in that region. According to an article published by Feed & Additive Magazine, U.S. is the second largest feed producer in the world having 231.5 million tons of production in 2021.

The demand for animal protein is rising in North America due to the growing population and increasing disposable income. By adding yeast to feed, the gut health of the animal is improved and the feed conversion ratio is also increased. Hence, the growing production of animal feed in that region is demanding feed yeast which in turn drives the market growth.

Competitive Landscape

The major global players include: DSM, AB Agri Ltd, ADM, Alltech, AngelYeast Co., Ltd., Phileo by Lesaffre, Lallemand Inc., Phibro Animal Health Corporation, Kothari Fermentation and Biochem Ltd. and Eklavya Biotech Private Limited.

COVID-19 Impact Analysis

The COVID-19 pandemic has caused significant disruptions to various industries, including agriculture and animal feed. Lockdowns, restrictions in movement, and labor shortages in different parts of the world led to challenges in sourcing raw materials, manufacturing, transportation, and distribution. Such challenges cause a disrupted supply chain for feed yeast products.

The closure of restaurants, hotels, and food service establishments due to lockdowns could have affected the demand for certain animal products like meat and seafood. The aforementioned fact in turn, impacted the demand for animal feed, including feed additives like yeast. Disruptions in the availability of labor, transportation, and processing facilities have led to reduced farm production impacting the overall demand for feed yeast.

Russia- Ukraine War Impact

Russia- Ukraine conflicts led to disruptions in supply chains, including the availability of raw materials and transportation of various feed products including yeast. The conflict caused challenges in maintaining a consistent supply of these products. Instability caused by conflicts led to challenges in livestock production, which further impacted the overall demand for feed and feed additives including feed yeast.

For more than 20 years, Russian feed production had been increasing rapidly, but as the economic crisis caused by its invasion of Ukraine feed production decreased in that country. In 2020, the Feed Producers Union predicted that Russian feed production would increase to 40 million tons annually by 2025. Now, that figure looks unattainable as the livestock industry braces for a perfect storm and a potential fall in productivity.

By Type

• Yeast Derivatives
  • Beta-Glucans
  • Nucleotides
  • Mannooligosaccharides

• Probiotic Yeast
• Brewer's Yeast

• Specialty Yeast
  • Selenium Yeast
  • Chromium Yeast

By Livestock

• Ruminants
  • Beef Cattle
  • Dairy Cattle
  • Others

• Poultry
  • Broiler
  • Layer
  • Others

• Aquatic Animals
• Fish
• Shrimp
• Others
• Swine
• Pets
• Equine

By Genus

• Saccharomyces Spp.
• Kluyveromyces Spp.
• Others

By Distribution Channel

• E-Commerce
• Hypermarket/ Supermarket
• Specialty Stores
• Others

By Form

• Fresh
• Dry
• Instant

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In January 2023, Phileo Lesaffre, a manufacturer of animal welfare and performance solutions introduced Actisaf Sc 47 HR+ probiotic yeast for swine feed and poultry feed.
• In May 2023, Lallemand introduced its new companion animal product line, LALPROBIOME. A wide range of yeast and bacterial strains are available in this new product line, enabling the customization of food, treatments, and supplements.
• In August 2022l, Angel Yeast acquired Shandong Bio Sunkeen Co., Ltd., a China-based manufacturer of yeast products for human and animal nutrition. The acquisition is consistent with Angel Yeast's aim of enhancing its position as a premier Asian yeast company.

Why Purchase the Report?

• To visualize the global feed yeast market segmentation based on type, livestock, genus, distribution channel, form and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Feed Yeast market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global feed yeast market report would provide approximately 77 tables, 82 figures and 278 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies