Owing to rising interest in bakery products across Indonesia, the demand for active yeast and fresh yeast would witness significant growth in forthcoming years as it is mostly used in baking active and fresh yeasts are utilised as they are more convenient and easier to use.

Yeast Market size was valued at US$ 4.68 Bn in 2022 and the total revenue is expected to grow at 9.61 % from 2023 to 2029, reaching nearly US$ 8.90 Bn. Indonesia Yeast Market revenue size is projected to grow at a CAGR of 5.1% from 2023E-2029F.

According to Research and Markets’ Indonesia Yeast Market 2023 report, the consumption of bakery products in the country is increasing and the demand for yeast is increasing day by day. According to the data of the Indonesian Wheat Flour Producers Association, increasing wheat consumption makes the yeast market a more competitive market.

The market is expected to grow in the future due to an increasing demand for bakery goods in Indonesia along with increased disposable incomes, evolving lifestyles, and a growing desire for quick and easy meals, which in turn may benefit the yeast industry.

Additionally, major hotel chains are expanding their presence in the country for instance IHG announced intentions to expand its Holiday Inn, Holiday Inn Express, and Crowne Plaza hotel brands by opening 15 additional properties throughout Indonesia by 2024 this would result into an increase in the demand for yeast in the restaurants and hotel chains, and it will further boost the Indonesia Yeast Industry.

Indonesia Yeast Market witnessed a significant growth in recent years owing to growing food and beverage industries in Indonesia. The food and beverage industry grew by 3.75% in the first quarter of 2022, higher than the first quarter of 2021 which recorded 2.45% growth. According to Indonesian Wheat Flour Producers Association (Aptindo) Indonesia’s consumption of wheat has increased, from 0.4% in 2020 to 4.6% in 2021

Moreover, in ethanol industry, the Indonesian government is planning to invest in the production of biofuels, particularly ethanol for instance by 2025, the government urges to record a 25% increase in the proportion of biofuels in the nation’s energy mix which would further drive the demand for ethanol. Yeast used as a primary ingredient in the production of biofuel is expected to drive the growth of ethanol market. However, Indonesia yeast market witnessed contraction, in revenues, during 2020 on the account of fall in revenues from the commercial sector, halting of several projects on account of nationwide lockdowns owing to the spread of COVID-19.

MARKET DEPENDENT ON IMPORTS

Indonesia Yeast Market registered a growth of 6.49% in value shipments in 2021 as compared to 2020 and a decrease of -3.38% CAGR in 2021 over a period of 2017. In Yeast Market Indonesia is becoming more competitive as the HHI index in 2021 was 7672 while in 2017 it was 8850. Herfindahl Index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means less numbers of players or countries exporting in the market.

Indonesia has reportedly relied more on imports to meet its growing demand in Yeast Market. India is shifting towards local production to meet its demand as we see the trend is shifting towards reducing imports. The import factor of Yeast Market in 2021 was 151.96 while in 2017 it was 765.62.

China, France, Belgium, Singapore and Switzerland were among the top players of the market in 2021, where China acquired the largest market share of 87.1% with a shipment value of 14.37 million USD in 2022 China also offered the product above the average market price, but remained at the leadership position indicating the trust it holds in the Yeast Market.

In 2017 China had the largest market share of 93.89% with the shipment value of 17.28 million USD. The country was offering its product with an average price which is lower than the average market price offered in the country. As China price is lower than the average price, it provided a significant edge among other competitor in 2017.

MARKET BY TYPE

Baker’s yeast is expected to witness a significant growth in the coming years in comparison to its counterpart’s brewer’s yeast, wine yeast bioethanol yeast and feed yeast as it is being predominantly used for the baking purposes. Baker’s yeast segment which is becoming increasingly popular will become one of the most significant reasons for the Indonesia Yeast Market Growth.

Owing to rising interest in bakery products across Indonesia, the demand for active yeast and fresh yeast would witness significant growth in forthcoming years as it is mostly used in baking active and fresh yeasts are utilised as they are more convenient and easier to use.

MARKET BY APPLICATION

As the population grows overall and middle- to upper-class consumer classes also grows, it is anticipated that the food along with beverage market will continue to expand steadily in Indonesia, which is anticipated to expand the application of yeast in the food industry.

On account of Java being the most populous region in Indonesia, along with key developments in the food and beverage industry, Java is projected to grow faster in comparison to other regions, i.e, Sumatra, Kalimantan, Sulawesi; thus, the Java region is likely to generate more revenues in Indonesia Yeast Market in near future.

EXPORTS AND IMPORTS

In 2021, Indonesia exported $4.79M in Yeast, making it the 53rd largest exporter of Yeast in the world. At the same year, Yeast was the 669th most exported product in Indonesia. The main destination of Yeast exports from Indonesia are: Japan ($1.06M), Vietnam ($982k), Nigeria ($567k), Timor-Leste ($537k), and Chinese Taipei ($500k). The fastest growing export markets for Yeast of Indonesia between 2020 and 2021 were Vietnam ($528k), Timor-Leste ($286k), and Chinese Taipei ($233k).

In 2021, Indonesia imported $29.4M in Yeast, becoming the 28th largest importer of Yeast in the world. At the same year, Yeast was the 581st most imported product in Indonesia. Indonesia imports Yeast primarily from: China ($18.4M), Vietnam ($3.87M), Turkey ($2.05M), Malaysia ($1.28M), and Brazil ($1.21M). The fastest growing import markets in Yeast for Indonesia between 2020 and 2021 were China ($3.68M), Vietnam ($1.04M), and Belgium ($301k).