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Food Ingredients Market Segmented By Starches, Vegetable Oils and Fats, Natural Sweeteners, Enzymes and Antioxidants, Natural Flavorings and Colours, Functional Ingredients Product Types
The market for food ingredients can be expected to expand at a value based CAGR of 4.8% and show an increase in revenue from US$ 34,357.1 Mn to around US$ 54,907.2 Mn by 2033.
Food Ingredients Market Size (2023E)
US$ 34,357.1 Mn
Projected Sales of Food Ingredients (2033F)
US$ 54,907.2 Mn
Value CAGR (2023-2033)
Value Share of Top 4 Countries (2022E)
The global food ingredients market has witnessed significant growth in the historical period registering a CAGR of 4.8% in the historical period and was valued at US$ 34,357.1 Mn in 2023. The market is expected to grow steadily with the increasing consumption of food ingredients.
Flavor is one of the high growth segments in the overall food ingredients market. Consumer preference for natural and biotech flavors coupled with manufacturers leveraging opportunity arising from this niche consumer segment is expected to result is a significant increase in demand for natural food flavors across the globe in the near future.
Various manufacturers are increasingly entering the natural food flavors market owing to high profit margins. Many companies are anticipated to unveil biotech flavored products in the upcoming five to six years. Moreover, manufacturers are also expected to market their products with natural and biotech labels, to attract existing, and increase the number of new customers. Entry of new players is expected to drive growth of the global food flavor market to a significant extent over the forecast period.
Superfoods can be elaborated as foods that are exceptionally rich in nutritional profile and medicinal properties. Superfoods like turmeric, baobab, chia, matcha are already trending. Social media enables to spread the word about these superfoods incorporated food products, so the demand for plant derived superfood ingredients have a promising future of growth.
The market is likely to expand and reach a value of US$ 54,907.2 Mn in 2033 at a value based compounded annual growth rate of 4.8%.
“Increased Instances of Fast Food Trends Among the Millennial Population”
North America holds the largest market for the fast food industry and has been that way since it was introduced last century. The demand for fast food has no indication of slowing down in North America, and Latin America, picking after the neighbor has also been displaying an increased hunger for fast food and related food products. With the increased fast food consumption, comes the increased demand for food ingredients and additives which help to provide the desired taste, texture, sensory appeal to the fast food product.
In specific, the millennial population has been of a major influence on the increased demand for fast food products. They bring in new food trends, which affect different classes of food ingredients over time. For example, the colored food products trend was popularized last year which affected the food colors demand from the north America and Latin America. The same pattern of food trends affected the demand for food texturizers and gums over the time and will continue to do so as food becomes an innate part of expression and celebrations for people.
“Increasing Demand for Convenience Foods in Developing Economies”
With the growing purchasing power of the consumers, coupled with a busier lifestyle patterns, the demand for convenience food has been on a constant rise. This increased demand for convenience food can also be observed in the increased demand for bakery food products, fast food products and desserts. The increase in demand of convenience foods can be observed more prominently in India, China, Brazil, and also in Middle East and African countries as the per capita expenditure on food increases with increased per capita income in the countries. A major part of convenience foods is the food ingredients that go into providing the food with the necessary organoleptic properties required, as well as to provide the food product with an longer than average shelf life so as to appeal to the consumers more.
Growth in the demand for bakery and confectionery food directly correlates to the increased demand for food enzymes, flavors and colors. Increase in demand for other types of food ingredients such as natural and synthetic gums, starches can be attributed to the increased demand for healthy convenience foods such as protein bars and nutrition bars of different kind.
“Augmenting Demand for Low Calorie, Healthy Food Products”
North America and Europe has been prone to the issue of obesity from decades now. More than 30% population has been found to be obese in U.S. and Western European countries. Increasing efforts from government, increased awareness and social media influence has led people to be in favor of low calorie food products. One of the major ways lowering the calorie content of the food product is achieved is through the use of hydrocolloids such as gums, thickening agents and artificial flavors and sweeteners.
This increase in the demand for low calorie food products due to an increased prevalence of obesity is beneficial for the consumers and the producers as the incorporation of hydrocolloids and thickening agents in food products decreases the total production cost of a food products and achieves the low calorie goal for the consumer which makes is appealing to the customer. This multifaceted beneficial nature of the hydrocolloids such as gums and thickeners has been proven to be beneficial for the growth in demand for the same in the North America and European countries.
“Increased Preference for Specialty Beverages Affecting the Food Ingredients Market in a Positive Way”
Beverages, specialty beverages such as dairy alternatives, sports drinks, novel soft drinks have not been a crucial part of diet, until now. The increased vegan population, increased awareness against animal cruelty, increased per capita income and influence of social media have has had a congregated effect on the demand of these specialty beverages, and the demand is growing rapidly.
The demand for alcoholic beverages has been on the rise as well owing to the increased dine out culture and acceptance of alcoholic beverages through the general public. This increased beverage consumption and demand directly results in the increased demand for food ingredients such as gums, pectin, starches sweeteners, flavors and colors, emulsifiers and vegetable fats and oils.
What is the value held across the regions for the food ingredients market?
South Asia and Pacific region consists of almost US$ 10 Bn and a CAGR of 7.7%, the highest across all the regions.
South Asia and Pacific region accounts for the majority value share due to the high population density in the developing nations. With rapid urbanization and increased consumption has led to the region having the high value share.
How is the North American Food Ingredients Market Faring?
North America has a current value of US$ 8.5 Bn and a value CAGR of 3.1% over the forecast period. The North American market is characterized by a highly developed food and beverage manufacturing industry with a substantial global presence which accounts for the value share occupied by the region.
Which Type of Food Ingredients Accounts for High Revenue Generation?
Food Flavours account for the highest value of around US$ 16 Bn and a CAGR of 5.1% across the forecast duration.
Increased consumption of fast food and efforts on increasing the visual aesthetics of food to attract consumers has led to more investment into food colours and the subsequent rise in value of segment.
Which Function of Food Ingredients is seen more across the World?
Based on the function, emulsifiers hold the greatest market value of around US$ 7.5 Bn and is expected to rise at a value CAGR of 4.8%.
Emulsifiers have various applicability in the foodservice sector by reducing stickiness and increasing texture & flavour. They are used as thickening ingredients in numerous dairy product offerings across the globe. With rise in the consumption of dairy and dairy derived products, emulsifiers are also becoming increasingly popular thereby resulting in maximum market value share.
Global food ingredients market is primarily characterized by a large number of regional and multinational companies. An approximate share of 40-45% is accounted by multinational players who offer food ingredients products under their own brands. North America and Europe accounts majority of a share in the global food ingredients market. Companies such as Cargill, Incorporated, DowDupont, Inc., and Archer Daniels Midland Company offers their products globally. Primarily these players are operating in North America, Latin America, and Asia Pacific market. Further regional and local players account for a market share of 20-30% and 10-20% respectively. It includes CHS Inc., Kerry Group Plc, Ingredion Inc., Koninklijke DSM N.V., Tate & Lyle PLC, Givaudan SA, Novozymes A/S, Symrise AG, and others. Currently, these regional players are targeting to expand their business operations in Asia Pacific and Middle East food ingredients market owing to owing to the increasing demand among bakery, dairy, meat-based products, sauces & dressings, dairy, and others.
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The global market for food ingredients has a value of US$ 34,357.1 Mn in 2023.
The global market for food ingredients has a value CAGR of 4.8% from 2017-2022.
The global market for food ingredients has a value of US$ 54,907.2 Mn in 2033.
The global market for food ingredients has a value CAGR of 4.8% from 2023-2033.
The top players in the global food ingredients market includes Cargill, Incorporated, DowDupont Inc., Archer Daniels Midland Company, Koninklijke DSM N.V., Kerry Group Plc, Ingredion Inc., & Tate & Lyle PLC occupying around 35% of the market share.