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Why the demand for brewer’s yeast may drive up prices

Brewer’s yeast, derived from the beer brewing fermentation process, is in high demand due to being more broadly used in vegan food products.

As an increased number of manufacturers have started exploring ways to integrate the yeast into products, the global brewer’s yeast market size has been forecast to reach US$12 billion by 2030. A prediction that is set to see it expanding at a 9.6% compound annual growth rate (CAGR) from 2023 to 2030.

According to a recent market report eyeing ingredients, brewers yeast has been outlined as an “ideal ingredient for plant-based and vegan diets” since it “serves as a valuable source of protein and essential nutrients, catering to those seeking non-animal-based alternatives”.

“Brewer’s yeast has garnered recognition for its myriad of health benefits, leading to its widespread adoption across diverse demographics,” said the report findings which also highlighted that “brewer’s yeast stands out as a rich source of essential nutrients, including B vitamins, minerals, protein, and fibre, making it a prized dietary supplement”.

The report also outlined how brewers yeast “boasts a treasure trove of bioactive compounds, such as beta-glucans, renowned for their immune-boosting properties” and “burgeoning preference for natural and organic products within the food and beverage industry has further propelled the brewer’s yeast sector”.

The report added: “As consumers increasingly prioritise clean labels and seek natural alternatives, brewer’s yeast has emerged as a prime choice due to its natural origin and nutrient-packed composition. This has led to its incorporation into an extensive range of products”. Plus, it reiterated “the expanding demand for plant-based and vegan products has also played a pivotal role”.

As demand soars, so too is the concern that prices may also follow with the world’s biggest brewing businesses in a more powerful role than the craft sector. Despite this, the newly-communicated benefits of brewer’s yeast is also due to have a halo effect on the way consumers perceive beer – for its natural “bioactive” ingredients rather than the outdated misconception of being perceived as unhealthy.

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