Specialty Food Ingredients Market Report 2025

The specialty food ingredients market size has grown strongly in recent years. It will grow from $173.73 billion in 2024 to $186.16 billion in 2025 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to changing consumer preferences, growth in food and beverage industry, increasing awareness of health and nutrition, globalization of food trends, clean label and natural products trend.

The specialty food ingredients market size is expected to see strong growth in the next few years. It will grow to $261.92 billion in 2029 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to rising demand for plant-based alternatives, focus on sustainable and ethical sourcing, innovation in functional foods, customization and personalization in food, expansion of convenience food sector. Major trends in the forecast period include growth in functional and fortified ingredients, expansion of exotic and global flavor offerings, incorporation of clean meat and cultured ingredients, focus on texture and mouthfeel enhancers, development of customized and tailor-made solutions.

The increasing consumption of health-focused products is fueling growth in the specialty food ingredients market. As demand for healthier food options rises, more consumers are prioritizing choices that support sustainable and nutritious diets, which can improve gastrointestinal health, cholesterol levels, bone strength, and other wellness factors. Specialty food ingredients play a vital role in preserving, coloring, emulsifying, texturing, and enhancing the nutritional content of foods. For example, in May 2023, the Organic Trade Association (OTA) reported that organic food sales in the United States reached $61.7 billion in 2022, marking a 4.3% increase from $59.1 billion in 2021 and surpassing the $60 billion milestone for the first time. Thus, the growing preference for healthy products is set to drive expansion in the specialty food ingredients market.

The rising demand from the food and beverage industry is set to drive growth in the specialty food ingredients market. This industry includes a wide range of businesses involved in producing, distributing, and selling food and beverages, from agriculture and manufacturing to restaurants and retail. Specialty ingredients are used to enhance flavor, improve texture, extend shelf life, and meet specific dietary or functional needs demanded by today’s consumers. For example, in July 2022, the Food and Drink Federation reported that UK food and drink exports reached $31.8 billion (£25 billion), with a 14.4% increase in total turnover to $162.8 billion (£128 billion). Additionally, the British Soft Drinks Association's 2024 report showed that soft drink consumption rose from 14.11 billion liters in 2021 to 15.34 billion liters in 2023. These trends illustrate how the growing demand within the food and beverage sector is bolstering the specialty food ingredients market.

Product innovation fuels the growth of the specialty food ingredients market, with major players striving to meet consumer demands. In August 2023, Vantage Specialty Chemicals, a US-based company, launched the SIMPLY KAKE emulsifier, designed as an alternative to conventional baking aids. This innovation caters to food manufacturers seeking clean label solutions, offering improved cake structure without the complexities associated with enzymes.

Major companies in the specialty food ingredients market are increasingly focused on advanced solutions, such as innovative enzyme solutions, to enhance chemical reactions, improve efficiency, and promote sustainability in food and beverage production. These innovative enzyme applications involve engineered enzymes designed to optimize processes across various industries. For instance, in June 2023, Kerry Group plc, an Ireland-based company known for its development and production of diverse food ingredients, launched Biobake EgR. This innovative enzyme solution significantly reduces the need for eggs in baking applications, enabling manufacturers to shift from caged to free-range or organic eggs without incurring additional costs. By allowing bakers to decrease egg usage by up to 30%, Biobake EgR supports ethical labeling claims and can result in potential CO2 emission savings of up to 14%, all while ensuring that product quality in terms of texture, volume, and taste is maintained. Such advancements reflect a broader trend toward sustainability and efficiency in the specialty food ingredients sector.

In November 2023, SK Capital Partners, LP, a US-based private investment firm, completed the acquisition of J&K Ingredients, Inc. for an undisclosed amount. This strategic acquisition is aimed at fostering J&K's growth and enhancing its portfolio of clean label, natural, and organic product offerings within the food and beverage industry. J&K Ingredients, Inc. specializes in food preservation solutions, making this acquisition significant for SK Capital as it seeks to expand its presence in the increasingly important sector of sustainable and health-oriented food products. The move aligns with the growing consumer demand for transparency and quality in food ingredients.

Major companies operating in the specialty food ingredients market include Cargill Incorporated, Archer Daniels Midland Company, BASF SE, Brenntag AG, Evonik Industries AG, International Flavors & Fragrances Inc., Ajinomoto Co Inc., Kerry Group plc, Koninklijke DSM NV, Ingredion Incorporated, Givaudan SA, Lonza Group AG, Firmenich International SA, Symrise AG, DuPont Nutrition & Biosciences, Dohler GmbH, Novozymes A/S, Ashland Global Holdings Inc., Tate & Lyle plc, Corbion NV, Chr. Hansen Holding A/S, Sensient Technologies Corporation, Balchem Corporation, Kemin Industries Inc., Kalsec Inc., Amano Enzyme Inc., Axiom Foods Inc., Crespel & Dieters GmbH & Co KG, FMC Corporation, Wacker Chemie AG, Kewpie Corporation, AAK AB, Rousselot BV, CP Kelco U.S. Inc.

North America was the largest region in the specialty food ingredients market in 2024. Asia-Pacific is expected to be the fastest-growing region in the specialty food ingredients market share during the forecast period. The regions covered in the specialty food ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the specialty food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Specialty food ingredients play a pivotal role in augmenting the core recipes of food products, offering technological and functional benefits that result in high-quality, long-lasting, safe, and cost-effective food options for consumers. Often referred to as cleaner ingredients, they enhance food quality and longevity.

Specialty food ingredients encompass a range of products including functional food ingredients, sugar substitutes, F&B starter cultures, specialty starches, enzymes, emulsifiers, preservatives, and more. Functional food ingredients, spanning high-proteins, superfoods, beverages, and vegetable-rich items, are particularly prominent in various applications. These ingredients are utilized across distribution channels such as direct sales, serving as essential raw materials derived from sources such as wheat, rice, maize, among others. Their versatile usage extends to beverages, sauces, dressings, condiments, bakery items, dairy products, confectionery, and a host of other food categories.

The specialty food ingredients market research report is one of a series of new reports that provides specialty food ingredients market statistics, including specialty food ingredients industry global market size, regional shares, competitors with a specialty food ingredients market share, detailed specialty food ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the specialty food ingredients industry. This specialty food ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The specialty food ingredients market consists of sales of vitamins products, minerals, prebiotics, probiotics, hydrocolloidss. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this specialty food ingredients market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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