Yeast is used as an additive in animal feed. It helps in improving animal health and increase productivity in cattle. Feed yeast products are not solely made from yeast cells, it is a yeast fermented product which is designed to provide fermented metabolites resulting from a specific fermentation process. The Feed yeast is nutritional yeast which are used as supplements in animal feeds as it contains high amount of protein and amino acid, energy, and micronutrient content as compared to common grains and oilseed meals when given to animals. The most common yeast used in dairy diets is Saccharomyces cerevisiae is also called brewers or bakery yeast. The yeast helps in increasing milk production, helps in improving digestive system of animals, increase platter size, helps in gaining weight particularly chicken, prevent from various diseases, improve gut health and performance of the farm animal.

1. Feed Yeast Market Drivers:
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.

2. 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.

3. 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.