The growing prevalence of the use of nutritional supplements for livestock is primarily to fuel the demand of the market.
In many countries, yeast is being used as a nutritional supplement for livestock as government authorities keep stringent rules and regulations to not use antibiotics that are harmful. Therefore, the growing demand for the use of yeast in feed for livestock is escalating the growth rate of the market. The World Health Organization strictly warned all institutes to strictly ban the use of antibiotics that are harmful to animal growth. Yeast can be produced from natural products like fruits, soil, water, honey, and others, which means we can produce a high quantity of yeast from the environment. Yeast produced from natural products will show positive health effects on the animals. Hence, the demand for feed yeast has been growing enormously for a couple of years.
Increasing infectious diseases among animals are elevating the feed yeast market demand.
It is important to prevent infectious diseases in animals by providing healthy and nutritional feed. For decades, yeast has been acting as a major supplement in promoting animal productivity and health. It has been studied that yeast will increase the overall performance level of the animal by preventing infectious diseases. Therefore, the growing need to prevent the spread of infectious diseases is prompting the market growth rate to an extent.
Rising awareness over the management of animal health by various organizations through campaigns and social media is greatly influencing the feed yeast market demand. Also, increasing investments from both the public and private sectors to improve animal health and productivity are anticipated to fuel the market share.
In addition, the growing use of microbial protein in animal feed that contains a high concentration of amino acids is impacting the demand of the market positively. 46.5% of crude protein is present in the Brewer’s yeast. This is equivalent to the grain-based protein source soybean meal. Thus, the demand for the feed yeast market is surging with the increasing demand for microbial protein in animal feed.
Restraints:
Difficulty in the availability of raw materials is hindering the feed yeast market size:
The production rate of the yeast is hugely dependent on the supply chain of the raw materials. The majority of the yeast is produced from molasses, a sugar-based product. There is a decreased production rate of molasses with the growing demand from various industries like feed, pharmaceuticals, food, and beverages. The competition between these industries is growing enormously for the production of yeast, leading to difficulty in the availability of raw materials. This is directly impacting the supply chain of the yeast production rate across the globe. Hence, the difficulty in the availability of raw materials is impeding the growth rate of the feed yeast market.
In emerging countries, the market growth rate is limited due to a lack of awareness of the benefits associated with the use of feed yeast. Also, government initiatives and steps in launching stringent rules and regulations to manufacture and label the yeast are degrading the market demand.
Opportunities:
Focus on developing innovative yeast additives is likely to create growth opportunities for the feed yeast market in the near future.
The rapid adoption of technological advancements in the animal feed sector is set to create new opportunities for the feed yeast market. Increasing research and development activities is also likely to gear up the market demand eventually in the coming years. The launch of innovative feed yeast additives that promote animal growth without the use of any antibiotics is likely to showcase the feed yeast market growth during the forecast period.
Challenges:
Easy availability of low-quality yeast products due to lack of transparency is a challenging factor for the key players.
Local manufacturers merely develop low-quality yeast products at incredibly low prices, which is a major concern for the key players across the globe. Many local key players sell yeast products without any labeling or brand name. This can restrain the growth rate of the feed yeast market.

COVID-19 impact on the Feed Yeast market
The COVID-19 pandemic showed negative effects in the initial months of 2020. However, the demand for the supply of raw materials and products continued to grow at a higher rate. Despite lockdown restrictions and supply chain disruptions, the feed yeast market demand continued to surge with the launch of new protocols by government authorities to continue the supply of productivity by ensuring the safety of the farmers. There was a mild impact on the shares of the market, but due to its ample productivity available from the environment, the demand for the feed yeast continued to grow actively even during the COVID-19 pandemic. The feed yeast market shares are expected to grow even better in the coming years.
Segment Analysis:
By Type:
• Probiotic Yeast
• Brewer’s Yeast
• Specialty Yeast
• Yeast Derivatives
The probiotic yeast segment is leading with the dominant shares of the feed yeast market, whereas Brewer’s yeast segment is likely to hit the highest CAGR by the end of 2028. Probiotic yeast is proven to improve the health and milk production rate in ruminants, and that is elevating the segment’s growth. Brewer’s yeast is the most commonly used ingredient in animal feed due to its nutritional value. Brewer’s yeast contains vitamins, specialty amino acids, and mineral supplements.
By Form:
• Powder
• Liquid
• Others
The powder form segment is likely to have the dominant share during the forecast period, whereas the liquid form segment is esteemed to show the fastest growth rate.
By Livestock:
• Ruminants
• Poultry
• Swine
• Aquatic Animals
• Pets
• Equine
The aquatic animals segment is leading with the dominant shares of the feed yeast market. Rising fish farming activities, especially in the Asia Pacific region, amplify the demand for the aquatic animals feed yeast market size. The growing fish consumption rate is also escalating the growth rate of this segment. In addition, feeding yeast to aquatic animals is one essential nutrient that promotes the productivity rate. Poultry and swine are next in holding the prominent shares of the feed yeast market. The poultry segment is expected to grow at 10% CAGR during the forecast period.
By Genus:
• Saccharomyces spp.
• Kluyveromyces spp.
• Others (Torula spp. And Pichia spp.)
The saccharomyces spp. The segment is gaining traction over the shares of the feed yeast market. Saccharomyces spp. has been widely adopted in many applications along with the animal feed sector. This formulation is approved by the Food and Drug Administration as it is highly safe in producing quality feed yeast without any side effects. Many key players are into this formulation in feed application, which is accelerating the growth rate of this segment.
Kluyveromyces spp. The segment is to have a potential growth rate during the forecast period.
Regional Analysis:
Asia Pacific feed yeast market value was at USD 400 million in 2022, owing to a growing economy and increasing investments in the development of animal feed production. The increasing consumption rate of meat, especially in China, Japan, India, and Thailand, is gearing up the market shares in this region. Livestock farming is growing at rapid speed in this region with the increasing supply of dairy products. The launch of many key players to improve their feed additive manufacturing units is also a factor in leveling up the market growth. The growing popularity of the addition of yeast in animal feed is ascribed to boost the market size. For instance, the addition of yeast in the poultry feed will lead to increasing quality in boiler chicken that will solely impact the meat yield.
North American feed yeast market value was accounted at USD 187.7 million in 2022. Stringent rules and regulations by organizations to completely restrict the use of antibiotics leveraged the feed yeast market growth rate. Growing awareness among pet owners, cattle owners, and poultry farmers over the benefits of adding nutritional supplements in the feed as it directly leads to improving the overall health performance of the animals.
Europe's feed yeast market share is USD 175.6 million in 2023. The increasing presence of key players and rising demand to produce animal feed quantity are likely to fuel the market shares in the European region. Increasing disposable income and rising prominence for the quick adoption of new technologies are anticipated to surge the market demand.
Latin America, the Middle East & Africa are deemed to showcase huge growth opportunities for the feed yeast market in the coming years.
Key Developments:
In May 2023, Alltech acquired Agolin, a animal national company. The acquisition is intended to develop innovative products with the combination of Alltech’s nutritional portfolio and Agolin’s essential oil blends.
In 2023, Cargill announced their plan to build a feed supplement plant in Mato Grosso. The construction of the plant is expected to be finished by the end of 2020. Cargill invested around USD 20 million in this venture and also plans to acquire a pig feed manufacturing facility in Parana state.