Food Inclusions Market Report 2025

The food inclusions market size has grown strongly in recent years. It will grow from $14.54 billion in 2024 to $15.72 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to consumer demand for novelty, taste and texture enhancement, growth in snack industry, premiumization of products, bakery and confectionery industry growth, marketing and branding strategies.

The food inclusions market size is expected to see strong growth in the next few years. It will grow to $21.17 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to clean label movement, plant-based and alternative proteins, globalization of flavors, focus on sustainability, e-commerce growth, functional ingredients demand. Major trends in the forecast period include innovations in textures, customized and personalized nutrition, technology-driven innovation, partnerships and collaborations, investments in research and development.

The rising demand for processed food is anticipated to drive growth in the food inclusion market moving forward. Processed food refers to any raw agricultural commodity that has undergone processes such as washing, cleansing, milling, chopping, heating, pasteurizing, blanching, cooking, canning, freezing, drying, dehydrating, blending, or packing. This category also includes the addition of preservatives, flavors, nutrients, and other food additives, as well as permissible ingredients like salt, sugars, and fats. Food inclusions enhance processed foods by contributing flavor, texture, fragrance, color, and nutrition, making products unique and appealing to consumers. For example, in April 2024, data from the National Association of Convenience Stores (NACS), a U.S.-based trade association, revealed that total industry foodservice sales accounted for 26.9% of in-store sales in 2023, up from 25.6% in 2022, with prepared food sales increasing by 12.2% per store per month, establishing it as the leading in-store category. Thus, the rising demand for processed food is expected to boost the food inclusion market.

The increasing focus on organic ingredients is projected to propel growth in the food inclusion market in the future. Organic ingredients are agricultural products grown and processed according to stringent guidelines that promote ecological balance, preserve and enhance soil and water quality, and minimize the use of synthetic materials. These organic ingredients are incorporated into food inclusions, which are additional ingredients added to food to enhance its sensory attributes and overall quality. For instance, in May 2023, the Organic Trade Association (OTA), a U.S.-based business association for the organic industry, reported that organic food sales in the United States reached $61.7 billion in 2022, reflecting a growth of 4.3% from $59.1 billion in 2021 and marking the first time sales surpassed the $60 billion threshold. Therefore, the growing emphasis on organic ingredients in processed food is expected to drive demand for the food inclusion market.

A prominent trend shaping the food inclusion market is product innovation. Major companies within this market are actively pursuing innovative approaches, introducing new premium flavors and organic products. For instance, in October 2022, Macphie Ltd., a UK-based ingredient manufacturer, expanded its o.t.t. dessert toppings line with five new dessert sauces. These offerings include two fruit-based options and three indulgent premium flavors, including speculoos, milk chocolate, white chocolate, mixed berry, mango, and passionfruit variations. These innovations aim to cater to diverse consumer preferences while also focusing on calorie-conscious choices for dessert toppings utilized in various culinary establishments such as ice cream shops, restaurants, and bakeries.

In December 2022, Ferrero SpA, an Italian confectionery manufacturing company, completed the acquisition of Wells Enterprises for an undisclosed sum. This strategic move is aimed at bolstering Ferrero's presence in the ice cream sector by merging expertise in ice cream and confectionery. The acquisition brings together the proficiency of ice cream specialists and confectionery leaders, fostering the delivery of high-quality products backed by a rich heritage. Wells Enterprises Inc., based in the US, specializes in producing confectionery fillings.

In August 2022, Investindustrial VII L.P., a UK-based investment firm, successfully acquired Parker Food Group from The Riverside Company, a US-based investment entity, for an undisclosed value. Through this acquisition, Parker Food Group (PFG) intends to collaborate closely with its R&D team and customers' product development teams. This partnership aims to craft tailor-made products that specifically address individual customer needs. Parker Food Group, based in the US, is renowned for its specialization in creating specialty, value-added ingredients, particularly focusing on inclusions and toppings.

Major companies operating in the food inclusions market include Archer Daniels Midland Company, Agarna Beteiligungs AG, Barry Callebaut AG, Cargill Inc., Georgia Nut Company Inc., Kerry Group PLC, Puratos N.V., Sensient Technologies Corporation, Tate And Lyle Plc., Taura Natural Ingredients Ltd., Nimbus Foods Ltd, Trufoodmfg LLC., Inclusion Technologies LLC, Diana Food SAS, Doehler, Olam International, GEA Group, Pecan Deluxe Candy Company, Sensapure, Kanegrade, PreGel, Skjodt-Barrett, Tree Top, DMH Ingredients, The Scoular Company, Chaucer Foods, Paradiesfrucht, Dawn Foods, Candico.

North America was the largest region in the food inclusion market in 2024. The regions covered in the food inclusions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food inclusions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Food inclusions refer to ingredients incorporated into food items to enhance their texture or organoleptic properties. These additives play a crucial role in elevating the overall value and sensory qualities of foods, contributing to factors such as flavor, texture, aroma, color, and nutrition.

The primary types of food inclusions include chocolate, fruit and nut, cereal, flavored sugar and caramel, confectionery, and others. A chocolate inclusion involves the addition of natural elements to chocolate bars, beverages, paste, or liquor. These can take various forms such as pieces, nuts, chips, flakes, crunches, powder, and liquid. They find application in a diverse range of products, including cereal items, snacks and bars, bakery products, dairy and frozen desserts, as well as chocolate and confectionery products, among others.

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

The food inclusion market consists of sales of herbs, spices, aromatic seeds, fruits, and vegetables. 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 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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