More and more awareness of food safety from the authorities and from the food industry, as well as the adoption of an updated National Standard of Food Safety & the Code of Food Additives Usage (GB2760, version 2011), are seen to be key drivers impacting the growth of the yeast extract market in China.

FLEXNEWS spoke to Mark Yu, General Manager of Angel Yeast Co. Ltd, Asia’s leading yeast extract producer and third biggest global yeast manufacturer, to find out about the opportunities ahead for yeast extracts.

Mark Yu, first of all, wished to stress the importance of GB2760 2011. He said that, the new standard is stricter. It not only redefines the scope and dosage for permitted food additives, but it also adjusts partial food classification. It is expected that the new regulation will help yeast and yeast extract (classified as food) by offering more application prospects.

He explained: “Yeast extract is the only one classified as food in the main three flavoring substances in the Chinese food industry today (yeast extract, MSG, and I + G). However, yeast extract is the most welcome in the food and flavor industry as a new, natural and nutritional flavor agent”.

Redefinition of its food property again clarified the former misunderstanding to yeast extracts. The status of yeast extract confirmed by the new standard is expected to help and promote its usage in the food industry and boost its sales in the near future”, he added.

Yeast extracts are produced using natural baker’s yeast. The flavoring agents abstracted from yeast are nutritionally-rich and contains glutamic acid, inosinic acid and guanylate. Besides, yeast extracts are high-quality organic nutrient sources for microbiological media, which are widely applicable for labs and factories as an important source of culture medium.

Global food industry manufacturers are committed to reducing the sodium content of their products. In Mark Yu's opinion, yeast extract provides an excellent solution that is different from the MSG and I + G, in low-salt foods. It is gives good flavor and also enhances taste. Mark Yu, said: "Adding a certain amount of yeast extract in food and flavoring with a salt content of less than 4%, could significantly improve and enhance good flavor and taste, which MSG and I + G fail to do. So the usage of yeast extract can reduce the consumers’ salt intake”.

It has recently been estimated that annual demand growth for yeast extract is higher than 10% in Chinese market, while it is about 5% in the U.S. and European markets. Mark Yu estimates that the global output for yeast extract is around 160,000 tons.

Angel Yeast has equipped three plants for yeast extract production, located in Yichang, Yili and Chongzhuo China. And, to meet this growth in Chinese demand, Angel Yeast is planning to set up a new facility with a yeast extract capacity of up to 20,000 tons per annum. All these plants are automated and use international and modern equipment and technology. Angel Yeast says that its total yeast extract capacity will reach 46,000 tons in 2013, making the company the world's largest manufacturer of the product.

Meanwhile, Bio-Springer and ABF, both Europe based companies, are also expanding their yeast extract production capacity in China.

“It is expected that the Chinese market will continue to maintain this growth rate in 2012 and future years”. Mark said.

Angel Yeast thinks this growth in global demand, which is mainly triggered by the food and pharmaceutical sectors, has prompted the company to increase its sales reach to Japan, South Korea, the US and European countries.

Angel Yeast predicts that its yeast extract business will surpass its baking yeast business and become the company's leading segment in terms of sales in the upcoming years.

“We are very optimistic with our relatively new yeast extract business. We expect that it will become our most important business segment by 2016”, added Mark Yu.

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