The global market for food ingredients has been estimated by Persistence Market Research’s report to exhibit an impressive 6% CAGR during the six-year forecast period (2017-2022). Global sales of food ingredients are estimated to surpass revenues worth US$ 400,000 Mn by 2022-end.
Shifting Demand for Organic Foodstuff
Food ingredients have been utilized over several years for preserving, flavoring, blending, thickening, and coloring foods, playing an indispensable role in catering to serious nutritional deficiencies of consumers across the globe. Availability of convenience food has surged along with robust demand from consumers, especially in developing and developed regions where people have less time for preparing meals owing to their hectic lifestyle. In addition, ready-to-eat foods are gaining popularity on the back of increasing women workforce, thereby fuelling demand for ingredients to enhance their shelf-life. With shifting demand for organic foodstuff among consumers, a slew of organic technologies have been formulated over the recent past for processing of reagents, flavor components, processing aids, nutritional supplements and ingredients.
Several companies in the global food ingredients market are entering into robust mergers & acquisitions for increasing their product portfolio and catering to constantly changing consumer preferences. A major trend being witnessed in the market is multinational industries focusing on the acquisition of medium-sized companies, which specialize in technology advancements but lack in funds for expansion.
APEJ to Remain Most Lucrative Market for Food Ingredients
Asia-Pacific excluding Japan (APEJ) is anticipated to remain the most lucrative market for food ingredients, as the region hosts a large number of food processing industries. In addition, several predominant players are focusing on relocating their production bases to emerging APEJ countries such as India, Vietnam and Thailand, as these regions have cheap yet skilled workforce. North America is expected to remain the second largest market for food ingredients. Europe will also remain a lucrative region for the food ingredients market, owing to presence of numerous confectionary and processing companies in Germany and the U.K., which in turn propel demand and production of food ingredients.
By function, sweeteners are expected to retain their dominance in the global food ingredients market, with sales poised to surpass US$ 110,000 Mn by 2022-end. However, sales of food ingredients for sweeteners are projected to expand at a relatively lower CAGR than all the other function segments through 2022. In addition, witnessing a parallel expansion in sales through 2022, emulsifiers, and stabilizers, thickeners, binders, and texturizers will collectively account for over one-third revenue share of the market in 2017. Nutrients function of food ingredients are projected to witness the fastest expansion in sales through 2022.
Frozen Foods & Functional Foods to Account for Approximately Similar Revenues by 2022-end
Frozen foods and functional foods application of food ingredients are expected to account for approximately similar revenues in the global market by 2022-end. However, sales of food ingredients for application in functional foods will register a relatively higher CAGR through 2022. In addition, bakery will continue to be the largest application of food ingredients, with sales projected to account for more than one-third revenue share of the market in 2017. However, bakery application segment will witness a slight decline in its market revenue share by 2022-end.
Starches will continue to be sought-after among products in the global food ingredients market, expanding at a steady CAGR through 2022. The largest share of revenues from sales of starches will be accounted by North America over the forecast period. Functional ingredients are projected to emerge as the fastest expanding product segment in the market through 2022, followed by enzymes & antioxidants and natural flavorings & colors.
Key market players identified by PMR’s report include Koninklijke DSM N.V., Kerry Group Plc, Ingredion Incorporated, Glanbia Plc, Givaudan SA, Fonterra Co-operative Group Limited, Cargill, Inc., Bunge Limited, Associated Milk Producers, Inc., Arla Foods amba, Archer Daniels Midland Company, and AngelYeast Co., Ltd.
For further insights into the global food ingredients market, write in to Persistence Market Research analysts at email@example.com.