Yeast for Poultry Feed Market Size (2024– 2030)

The Yeast for Poultry Feed Market recorded a valuation of USD 2.32 billion and is anticipated to achieve a market size of USD 3.38 billion by the culmination of 2030. Spanning the forecast period from 2024 to 2030, the market is poised to expand at a Compound Annual Growth Rate (CAGR) of 5.5%.

Overview of the Yeast for Poultry Feed Market

The utilization of yeast in animal feed is acknowledged as a principal source of protein-rich components, effectively converting non-food cellulose biomass into valuable protein resources. Renowned for its notably high protein, amino acid, energy, and micronutrient content, yeast serves as a supplementary component in animal feeds, outperforming other alternatives. Its inclusion aids in enhancing feed consumption, fostering the population of rumen bacteria, while concurrently reducing protozoa and methanogen populations in livestock. Crucially, yeast in feed formulations caters to a diverse array of animals including pets such as dogs, cats, and horses, aquatic species, poultry, pigs, and ruminants, among others. Beyond nutritional enhancement, it contributes to flea control and promotes overall wellbeing encompassing healthy skin, coat, and ocular health for dogs and cats alike.

The European Union has demonstrated heightened interest in evaluating the impact of yeast products on gastrointestinal ecology, rumen microbial populations, and overall animal performance. Consequently, there is a burgeoning demand for feed yeast across various livestock sectors globally. Furthermore, regulatory frameworks pertaining to pet welfare, health, and nutrition are gaining prominence in numerous nations worldwide. The imposition of stringent regulations underscores the potential for growth in the Global & Asia Pacific Feed Yeast Market throughout the forecast period.

Additionally, ensuring animal welfare assumes paramount importance as the health of animals directly impacts human well-being. Optimal nutrition plays a pivotal role in fortifying the immune system of animals. Feed yeast emerges as a vital contributor, augmenting immune response, providing digestive support, and enhancing palatability of animal feed. Nonetheless, the application of yeast extends across diverse industry verticals including agriculture, food and beverages, pharmaceuticals, and additives. Consequently, heightened demand from these sectors poses challenges to the supply of yeast and its raw materials within the feed yeast industry. Intense competition for raw materials essential for yeast production, alongside other factors, may impede market growth over the forecasted period.

Impact of COVID-19 on the Yeast for Poultry Feed Market

The global organic soybean supply chain, primarily facilitated by China, has encountered disruptions due to stringent measures enacted to curb the spread of the Covid-19 pandemic. Compounding the issue are logistical challenges pertaining to container and vessel availability, exacerbating the transportation of crucial micro-ingredients. The Indian Government's directive to partially close international ports has further exacerbated disruptions in the animal feed supply chain.

The closure of restaurants worldwide has also adversely affected the animal feed industry. The profound shift in consumer consumption patterns in light of the SARS-CoV-2 outbreak has compelled manufacturers to reassess their policies and strategies. Sectors such as lamb production, aquaculture, pork, and veal have been particularly hard hit. Aquaculture farmers and EU livestock producers have resorted to crisis management measures to mitigate the impact of Covid-19, with private storage aid being a primary demand from aquaculture farmers.

Market Drivers:

The increasing recognition of nutritional benefits from yeast-based feed products is propelling market growth.

Yeasts are abundantly present in the environment, sourced from natural products such as honey, fruits, soil, water, as well as various plant parts. Notably, certain yeast species, including Saccharomyces cerevisiae, Kluyveromyces marxianus, and Candida utilis, confer positive effects on animal health, providing essential nutrients and thus find extensive usage as feed additives.

Innovations in the feed industry are driving market expansion.

Technological advancements in the animal feed sector have spurred the development of novel products in the animal nutrition and feed additives segments. Yeast-based innovations have emerged as a viable alternative to antibiotic use, enhancing animal health and performance. Given the ban on antibiotics in the animal feed sector, such yeast-based bioactive technologies offer promising solutions for livestock producers in the foreseeable future.

Market Restraints:

Intensifying competition for essential raw materials poses a constraint on market growth.

The global supply of raw materials for yeast production significantly influences the manufacturing of feed yeast and its derivatives. Yeast production primarily relies on sugar by-products, with molasses serving as a crucial raw material. However, scarcity of molasses poses a major challenge to the global yeast market due to fierce competition from various industries including food, pharmaceuticals, and feed. Factors contributing to this scarcity include poor yields of sugarcane and sugar beet. Consequently, this scarcity is expected to impede yeast ingredient production and supply.

Yeast for Poultry Feed Market- Type:

• Yeast Derivatives
• Spent Yeast
• Live Yeast

Categorized by type, the market comprises Yeast Derivatives, Spent Yeast, and Live Yeast. Yeast Derivatives hold the largest market share and are expected to exhibit the most significant Compound Annual Growth Rate (CAGR) of 5.70% over the forecast period. Yeasts are renowned for their utilization in brewing, alcohol fermentation, as well as wine and bread production. Within the food industry, Yeast Derivatives are extensively utilized for their functional characteristics such as high nutritional value and the ability to partially substitute salt for flavor enhancement.

Growing health concerns and increased awareness globally are creating promising market opportunities for healthy and nutritious ingredients. As a by-product, Yeast Derivatives offer affordable food and supplements that are safe for both human and animal consumption. The rising consumption of food products like baked goods and dairy items is propelling the demand for Yeast Derivatives in the global market.

Yeast for Poultry Feed Market - By Application:

• Poultry
• Ruminants
• Swine
• Aquatic Animals
• Pet Animals
• Other Livestock

Segmented by application, the market includes Poultry, Ruminants, Swine, Aquatic Animals, Pet Animals, and Other Livestock. Poultry holds the largest market share and is anticipated to grow at a CAGR of 5.39% during the forecast period. Poultry encompasses chickens, ducks, turkeys, and geese, among others. Among these, chickens, ducks, turkeys, and geese are of significant commercial importance due to their high demand for consumption worldwide. Although there are other birds such as guinea fowl and squabs, their demand is primarily regional or local.

According to the Department of Animal Biosciences, University of Guelph, Canada, in December 2019, incorporating yeast derivatives into poultry feed helps mitigate the adverse effects of Coccidiosis on intestinal health and function in broiler chickens. Moreover, both live and dead yeast, along with their derivatives, can modulate coccidiosis and contribute beneficially to stimulating the restoration of the intestinal mucosal surface in chickens. The poultry segment retains the largest share of the Global Feed Yeast Market.

Yeast for Poultry Feed Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

In terms of geography, Asia Pacific dominates the market with a revenue share exceeding 31.00% in 2021. This dominance is attributed to the increasing production of livestock products in the region driven by various factors including dietary shifts, population growth, and rapid urbanization. The Asia Pacific region is a major hub for pig breeding, necessitating a high volume of animal feed. China, with the largest live pig population globally at 415.9 million, has witnessed rapid growth in its livestock industry as diets shift towards animal proteins. China stands out as one of the prominent producers of animal feed and livestock products, driving rapid growth in feed production for sheep, aquaculture, egg-laying poultry, and livestock.

This growth in China has spurred demand for high-quality feed ingredients, further fueling market growth over the forecast period. Europe accounted for the second-largest revenue share in 2021, driven by increasing consumption of processed meat and meat products alongside growing livestock production. European countries like the U.K., Germany, Italy, and France have witnessed a surge in meat consumption in recent years. The rising use of yeast extract in animal feed to enhance animal growth performance and digestibility is expected to drive market growth. Additionally, increasing demand for premium meat and meat products is anticipated to bolster market growth in the region.

Yeast for Poultry Feed Market Share by Company:

Companies such as:

1. Archer Daniels Midland Company
2. Angel Yeast Co., Ltd.
3. Lallemand Inc.,
4. Leadfree
5. Leiber GmbH
6. Associated British Foods Inc.,
7. Nutreco N.V.,
8. Cargill Incorporated
9. Alltech
10. Diamond
11. Biomin GmbH
12. Titan Biotech
13. Liaoning Joysun Group Co., Ltd,
14. Futures Group Co. Limited
15. Lesaffre
16. Bio Sunkeen Co.

And others play a crucial role in the market.

For instance, Ohly (UK) and Lallemand (Canada) forged a strategic partnership for the divestment of Ohly’s Hutchinson Torula Yeast facility and associated Torula whole cell business in the US. This long-term supply partnership aims to benefit Ohly by ensuring the sustainable security of the Hutchinson site.

Nutreco N.V. acquired Bigsal from H.I.G. Capital, strengthening Trouw Nutrition’s business in northern Brazil and expanding the availability of feed yeast products in the country.

The global market is highly competitive due to the strong presence of multinational companies striving to gain a strategic and competitive edge. The competitive landscape of yeast extracts in the animal feed market has encouraged players to implement various growth strategies. Key strategies adopted by yeast extract manufacturers include new product launches, distribution agreements, and mergers & acquisitions. Manufacturers have been actively engaging with market leaders to produce yeast extracts to enhance their market penetration and product positioning on national and international levels.

NOTABLE EVENTS IN THE GLOBAL YEAST FOR POULTRY FEED MARKET IN THE RECENT PAST:

• Acquisition: In March 2021, Nutreco NV acquired Bigsal from H.I.G. Capital, integrating it into Nutreco’s animal nutrition division Trouw Nutrition. This move aims to expand and strengthen Trouw Nutrition’s presence in northern Brazil and increase the availability of feed yeast products in the country.
• Acquisition: In June 2021, ADM acquired Neovia (Chicago), a global leader in value-added products and solutions for both production and companion animals.