The yeast market is looking to be one that’s poised for rapid growth from 2021 to 2025. While the segment is forecasted to expand, there is a concern regarding meeting this demand. There is also currently a molasses shortage, which has made it difficult to produce yeast-based ingredients.
To address future capacity gaps and further strengthen its position in the industry, Angel Yeast has announced its acquisition of Bio Sunkeen’s yeast business and related assets. Angel Yeast will be able to upgrade its technological capabilities using the tools and processes from Bio sunken.
Bio Sunkeen produces up to 15,000 tons of yeast and yeast extract, and these are used in raw materials for food and compound seasoning, among others. With the acquisition, Angel Yeast is expected to boost production of yeast from hydrolyzed corn glycogen, which enables them to utilise local resources in place of molasses.
“Angel Yeast will utilize Bio Sunkeen’s existing facilities, with further expansion plans in the future. This joint venture project is in line with Angel Yeast’s 2025 strategy focusing on yeast biotechnology, nutrition and health products, and food ingredients,” said Chen Hongwei, General Manager of Angel Yeast (Jining).
Additionally, this acquisition will also help consolidate the local yeast industry wherein previous competitors turn into partners and collaborators. This will give China a strong foothold in the global space as the market segment continues to expand.