Ingredients Market Report 2025

The ingredients market size has grown strongly in recent years. It will grow from $220.43 billion in 2024 to $236.55 billion in 2025 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to health and wellness trends, cultural and ethnic influences, economic factors, supply chain dynamics, marketing and consumer education.

The ingredients market size is expected to see strong growth in the next few years. It will grow to $334.09 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to continued health focus, globalization of tastes, economic growth in emerging markets, supply chain resilience, and educational initiatives. Major trends in the forecast period include personalization of ingredients, culinary and exotic ingredients exploration, clean meat and cultured ingredients, innovative sweeteners and flavor enhancers, and zero-waste ingredient utilization.

The ingredients market size is expected to see strong growth in the next few years. It will grow to $304.86 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The anticipated growth in the forecast period can be attributed to a sustained focus on health, the globalization of culinary preferences, economic expansion in emerging markets, the resilience of supply chains, and educational initiatives. Major trends in this period include the customization of ingredients, exploration of culinary and exotic ingredients, the development of clean meat and cultured ingredients, the creation of innovative sweeteners and flavor enhancers, and the promotion of zero-waste ingredient utilization.

The rising popularity of fast-food trends among the millennial population is anticipated to drive growth in the ingredients market in the future. Fast foods are characterized as quick, convenient, and affordable alternatives to home-cooked meals, and their preparation involves various ingredients such as salt, sugar, processed chemicals, and more, which is expected to boost ingredient sales. For example, in October 2024, a report from Made in Canada, a certification platform dedicated to showcasing Canadian-made products, noted that Canada had 19,989 fast-food restaurants in 2023, reflecting a 0.5% increase from 2022. Additionally, 16% of Canadians reported purchasing food or snacks from fast-food outlets daily, with consumers aged 18-34 typically buying a meal or snack approximately twice a week on average. Therefore, the growing prevalence of fast-food trends is propelling the growth of the ingredients market.

The anticipated surge in consumer awareness regarding health and wellness is poised to drive the growth of the ingredient market in the foreseeable future. Health embodies a state of complete physical, mental, and social well-being, extending beyond the absence of disease or infirmity. Meanwhile, wellness represents an ongoing process where individuals actively make choices toward a more fulfilling existence. Customers are increasingly prioritizing their health, seeking out food and beverage options that promote overall well-being and offer enhanced nutritional value. This elevated consciousness has resulted in heightened demand for health-boosting compounds such as vitamins, minerals, antioxidants, probiotics, and other functional components. For instance, as per the Great Green Wall initiative in January 2024, approximately 40% of Americans claim to adhere to specific diets, with 20% actively seeking out healthy food options. Consequently, the growing consumer emphasis on health and wellness stands as a driving force behind the expansion of the ingredient market.

Major companies in the ingredients market are concentrating on product innovation through technology, such as the development of the honey truffle sweetener, to gain a competitive advantage. The honey truffle sweetener is a high-intensity sweetener derived from the honey truffle and produced using proprietary fermentation technology. For example, in July 2023, MycoTechnology Inc., a US-based food ingredient company, launched this honey truffle sweetener. This natural sweetener is reported to be 1,500 to 2,500 times sweeter than sugar and serves as an alternative to both traditional sugar and artificial sweeteners. The honey truffle sweetener is a sustainable ingredient that can be utilized across various applications, including low- and no-sugar products, functional foods, and specialty beverages.

Major companies in the ingredients market are prioritizing product innovation by developing clean-label options to cater to consumer demand for healthier and simpler ingredients. Clean-label products refer to foods and beverages made with straightforward, recognizable, and minimally processed ingredients, free from artificial additives, preservatives, colors, or flavors. For example, in June 2023, CarobWay, Ltd., an Israel-based food and agri-tech company, introduced a low glycemic sweetener. This sweetener is clean-label, vegan, gluten-free, and non-GMO (genetically modified organism), derived from whole carob fruit. It features a mild, caramel-like flavor and serves as a one-to-one sugar replacer in various food and beverage applications. The low glycemic index sweetener contains a blend of sugars, polyol D-pinitol, trace soluble fibers, and polyphenols, making it an ideal ingredient for clean-label products.

In May 2022, Above Food Corp., a Canada-based food processing company, acquired Northern Quinoa Production Corp. (NorQuin) for an undisclosed amount. This strategic acquisition is intended to enhance Above Food Corp.'s specialty ingredient and consumer-facing business, while also expanding its expertise in genetics and plant breeding. The knowledge gained from NorQuin's operations is expected to be applied to a wider range of protein sources. Northern Quinoa Production Corp. (NorQuin) specializes in providing quinoa-based ingredients, which align with the growing consumer demand for plant-based foods and healthier ingredient options.

Major companies operating in the ingredients market include Cargill Incorporated, Nestlé S.A., Archer Daniels Midland Company, PepsiCo Inc., The Coca-Cola Company, Danone S.A., Associated British Foods plc, Kellogg Company, Hermes Sweeteners Ltd., International Flavors & Fragrances Inc., ConAgra Brands Inc., ICL Food Specialties Ltd., Kerry Group plc, Ingredion Incorporated, Koninklijke DSM N.V., Meiji Co. Ltd., Givaudan SA, Symrise AG, Yakult Honsha Co. Ltd., Ashland Global Holdings Inc., Tate & Lyle plc, Corbion Purac N.V., Chr. Hansen Holding A/S, Tata Chemicals Limited, Palsgaard A/S, Essentia Protein Solutions, LycoRed Limited, Symega Food Ingredients Ltd., Glanbia plc, H.C. Brill AG & Co. KG, ABITEC Corporation, ACH Food Companies Inc., Parker Products Inc., Paulaur Corporation, Sweetener Supply Corp.

Ingredients are components or constituent portions used in preparing a specific dish, cuisine, or product. They are essential for creating the desired end product.

The primary types of ingredients include starches, vegetable oils and fats, natural sweeteners, enzymes and antioxidants, natural flavorings and colors, functional ingredients, and others. Starch is a mixture of two distinct polysaccharides made of glucose units that result in a tasteless white powder when refined. These ingredients serve various functions such as sweeteners, emulsifiers, flavors and color additives, preservatives, fat replacers, nutrients, stabilizers, thickeners, binders, and others. They are used in a wide range of applications including beverages, fortified food products, bakery and confectionery products, dairy and dairy products, meat and fish products, among others.

The ingredients market size has grown strongly in recent years. It will grow from $205.41 billion in 2023 to $220.43 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to health and wellness trends, cultural and ethnic influences, economic factors, supply chain dynamics, marketing and consumer education.

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

The ingredients market consists of sales of specialty food ingredients, personal care active ingredients, active pharmaceutical ingredients, nutraceutical ingredients, and cereal ingredients. 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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