Feed Yeast Market to Showcase Continued Growth in the Coming Years

The global feed yeast market size was valued at USD 1.8 billion in 2020 and is projected to reach USD 2.3 billion by 2025, recording a CAGR of 5.1% during the forecast period. The feed yeast market is driven by factors such as ban on the use of antibiotics in feed as a growth promoter and increasing use of yeast as a nutritional supplement for livestock. Also, rising concern regarding animal health and feed quality has been driving the growth of this market.



Feed Yeast Market Drivers:

1. Increased demand for livestock and poultry products: With the rising demand for meat, dairy, and egg products, there has been an increase in the demand for feed yeast, which acts as a source of essential nutrients for the animals.
2. Growing awareness of animal health and nutrition: Farmers and livestock owners are becoming increasingly aware of the importance of providing their animals with a balanced diet. Feed yeast provides essential vitamins and minerals, leading to healthier and more productive animals.
3. Advancements in yeast production technology: The advancement in yeast production technology has resulted in improved quality, consistency, and quantity of feed yeast, leading to increased demand in the market.
4. Growing demand for organic and natural feed ingredients: The increasing demand for organic and natural feed ingredients has led to an increase in the demand for feed yeast, as it is a natural source of nutrients for animals.
5. Government regulations and initiatives: Governments around the world have implemented regulations that promote the use of natural and organic feed ingredients, leading to an increase in the demand for feed yeast.
6. Growing global population and rising income levels: With the growing global population and rising income levels, there has been an increase in the demand for animal-based products, leading to an increase in the demand for feed yeast.
7. Growing aquaculture industry: The growing aquaculture industry is also driving the demand for feed yeast, as it is a crucial ingredient in fish feed.

Opportunity: Innovations in the animal feed industry

Technological innovations in the animal feed sector had created significant opportunities for the manufacturers to come up with new products in the animal nutrition and feed additives segments. For instance, Canadian Bio-Systems Inc (Canada) launched a new category of feed technology with broad advantages for the livestock industry. This technology, which is a yeast-based innovation, was developed for the use of yeast as a feed additive in the diets of swine, ruminants, and poultry. This is one of the best replacements for antibiotic use to improve animal health and performance. As the use of antibiotics is banned in the animal feed sector, such yeast-based bioactive technology can serve as a suitable alternative for livestock producers in the coming years. As a bio-based feed ingredient, yeast can be mixed with the feed and can be fed at farm sites. Apart from the above-stated innovation, various other innovations are patented in terms of feed yeast; these include developments for the production of multifunctional probiotics that include Bacillus and Saccharomyces yeast strains, which can provide combined essential benefits of these multiple strains. The innovation is said to improve antibacterial properties as well as increase enzyme activity in the final feed products.

What is the current size of the global feed yeast market?

Many domestic and global players provide feed yeast to improve animal health and performance. Major manufacturers have their presence in the European and Asian countries. The key companies in the global market are Associated British Foods PLC. (UK), Archer Daniels Midland (US), Alltech Inc. (US), Cargill, Incorporated (US), Angel Yeast Co. Ltd. (China), Chr. Hansen (Denmark), and Lesaffre (France), Various strategies, such as expansions, mergers & acquisitions, and new product launches, were adopted by the key companies to remain competitive in the market.