Angel Yeast Announces Plans to Beef up Supply and Innovation Capabilities In Response to Increasing Global Yeast Demand
The rising demand for yeast-based products over the past few years heralds steady growth of the market in the future, which also poses new challenges that require manufacturers to catalyze innovation and ramp up production and technology development to meet the evolving needs of their customers. It is the implication of the latest report, Trends in Yeast and Yeast Products released by Innova Market Insights, which uncovers the trend and potential of the yeast market, as well as the changes necessary for industry players to stay ahead of the competition.
Guided by the latest customer insights and driven by its goal to offer healthy and sustainable yeast products for global customers, Angel Yeast, (SH600298), the world's leading yeast manufacturer, announced its 2023 brand development strategy centered around addressing the market pain points and delivering innovative solutions through strategic investment and partnerships that enable the company to expand its supply and R&D capabilities. Angel aims to bring premium quality yeasts to households worldwide and to the global F&B industry, allowing customers to experience a better quality of life through the exceptional taste, aroma, and nutritional value that Angel's products bring to their meals and daily food.
According to the study, the rapid growth of the yeast market is propelled by the roles of yeast in food and beverage products as a flavor enhancer and nutritional booster. The use of yeast in new product development has increased across all regions between 2018 and 2022.
Western Europe is still at the forefront of utilizing traditional yeast in developing new products, while the use of yeast extracts in Asia is higher than the global average. As Western Europe continues to hold its leadership in beer innovation and development, the region accounts for almost half of the new yeast-based alcohol products. Keeping up with the demand to grasp market opportunities is a challenging feat. It means companies need to improve their yeast production capabilities while establishing agile and robust supply chains adaptive to market growth.
Today, fresh bread is the daily staple of more than a third of consumers worldwide, and 63% of people consume biscuits at least once a week, with 50% eating cake at least once a week. In 2022, bread accounted for 53% of all new baked goods containing yeast, with Western Europe and Latin America seeing the highest volume of newly launched yeast-fermented baked goods on the market.
Artisan bread, particularly sourdough, is becoming increasingly popular in Europe and North America. The trend highlights a shift in consumers' tastes and preferences and underscores the importance for manufacturers to explore new sources of yeast and experiment with new applications to keep up with dynamic customer needs.
Finally, as the market for plant-based and flavored foods continues to grow, the versatility of yeast as a natural ingredient will be crucial to developing novel products, and it is expected that yeast proteins and yeast extracts will gain more traction as flavor enhancers for food. In the coming years, plant-based foods will remain the primary focus, with more sophisticated techniques emerging to produce meat and dairy alternatives with richer textures and tastes. All of these point to the need for to company need to place a stronger emphasis on its innovation ability, which is the key to manufacturers to capture a greater share of customer base.
Aligning its business strategy with the latest industry trends and advancements, Angel Group is poised to embrace the challenges and opportunities to sharpen its competitive edges and build up its long-term success with its new brand development strategy. The company's investment in 2022 has now surpassed RMB 3.3 billion (USD 485 million), with 18 completed construction projects and 29 new projects underway. With the establishment of its subsidiary in Russia and the expansion of the Egyptian branch, Angel is well-positioned to meet the growing demands of yeast-based products.
Aiming to improve the penetration rate of its products in the downstream markets, including fermented pasta, baked food, condiments, alcoholic beverages, supplements, and cosmetics, Angel is investing in the development of 20 in-house R&D platforms dedicated to yeast resource development, yeast fermentation, nutrition, flavoring and other application technologies and biosynthesis technology. The company will also continue collaborating with global universities and research institutions, joining forces with top-notch scientists and industry experts to discover new technological solutions to accelerate industry innovation.
"Angel's business success is not only built on its technological expertise, but also its robust ability to capture market trends that enables us to stay in tune with the needs of global customers. We conduct in-depth research to target market demands, which allows us to identify growth opportunities as we seek innovation to drive our business forward and stay ahead of the competition. With our new strategy, we will continue to expand our global footprint by strengthening cooperation with our partners, leveraging our leadership in yeast manufacturing and global resources to tap into new customer groups," said Xiao Minghua, General Manager of Angel.