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Food Processing Ingredients Market Segmented By Synthetic and Natural/Organic Nature in Minerals, Vitamins, Proteins, Antioxidants, Enzymes, Coloring Agents and Sweeteners Ingredient
The processed food products industry is changing rapidly across the globe, rising with changing demographics, increasing demand for branded and convenience food products, growing consumer focus towards organic food and clean label food products. Organic food products are gaining traction among the consumers, owing to environment friendly cultivation of organic food without the use of pesticides.
Despite being an expensive commodity, consumers are willing to pay more of organic food products majorly to adopt healthy eating habits and are concerned about the environment. Growing intention to purchase organic products is also been witnessed in developing countries due to the affluence of food safety and quality trend among the consumers.
Processed food products include, range of minimally processed food products to complex food preparations that combine a wide array of food processing ingredients.
Food processing ingredients covers ingredient such as, spices, enzymes, emulsifiers, flavors, stabilizers, texturizers, preservatives and others. Changing lifestyle, increasing working women’s and increasing consumption of ready to eat food products in urban areas is pushing the market for food processing products, ultimately the market for food processing ingredients.
A shift in consumer’s behavior towards food safety has been driving the market for processed food ingredients. Consumers are becoming agile regarding the sourcing and production process of the food consumed by them. Thus to suffice the quality and safety standards expected by the consumers, the companies are developing certified food processing ingredients.
Innovation is a vital part of processed food industry as processors are looking to reduce costs in the face of rising raw materials prices and cheaper competition from Asian suppliers, as well as the fact that consumers are demanding healthier, convenient, and premium foods processed with food processing ingredients.
The food ingredient manufacturers are seeking advantages of the increasing consumer demand for healthier food and beverages and thus driving increasing mergers and acquisitions, to cater to the requirements of the industry towards food processing ingredients.
The food processing ingredients provides specific properties to food such as texture, flow, taste, and hydration. Further, the developers of food processing ingredients that have proven nutritional benefits are attracting the acquisition targets.
The key stakeholders operating in the global food processing ingredients market are, Corbion N.V., Arla Foods amba, E. I. Du Pont De Nemours and Company, Cargill, Inc., Kerry Group, Tate & Lyle Public Limited Company, Archer Daniels Midland Company, BASF SE, Dairy Crest Group PLC, Koninklijke DSM N.V., Global Specialty Ingredients (M) Sdn. Bhd., Excellent Health Products Co., Ltd (EHP) among others.
In March 2015, the Ingredion Inc. acquired Penford Corporation (Penford), one of the leading companies offering food processing ingredients. This acquisition expands the company's higher-value food processing ingredients portfolio. It also strengthens the company's presence in nature-based hydrocolloid ingredients, and establishes manufacturing of specialty potato starches in North America.
FMC has streamlined its portfolio over the past six years to focus on technology-driven end markets with attractive long-term demand trends. The actions taken over the past year has resulted in better positioning and capitalizing on future growth opportunities in food processing ingredients.
The food processing ingredient market is being driven by a number of factors. The long term success in the food ingredients market is contingent on constant innovation, global presence, negotiating power and the development of substantial production capabilities.
The absence of the mid-sized players in the food processing ingredients industry thus prompts various small scale companies to seek consolidation as they lack the financial resources and economies of scale necessary to compete with large companies.
Another major reason for the consolidation of food processing ingredients is the increased negotiation powers with food producers and commodity suppliers with multinationals such as Nestle and Kraft.
The changing consumer’s tastes and preference has also stimulated growth in the food processing ingredients market.
The global trend rising amongst the consumers is the multi-cuisine dining experiences. For instance, one of the popular Filipino inspired dessert, haluhalo. The dessert consist of sweetened condensed milk and layers of different textures of mango, jackfruit, coconut, gel and shave ice. Condensed milk is drizzled over and topped with ice-cream.
These types of deserts and food products are gaining traction amongst the consumers in the region. The dish consist of all different layers of ingredients.