Food Ingredients Global Market Opportunities And Strategies To 2032

This report describes and explains the food ingredients market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global food ingredients market reached a value of nearly $62,148.2 million in 2022, having grown at a compound annual growth rate (CAGR) of 3.2% since 2017. The market is expected to grow from $62,148.2 million in 2022 to $84,611.5 million in 2027 at a rate of 6.4%. The market is then expected to grow at a CAGR of 6.9% from 2027 and reach $117,970.7 million in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, the increased demand for processed foods, the rise in awareness of the benefits of organic products and growth in the number of health-conscious consumers.

Going forward, the rise in global population, rising urbanization, the increasing demand for ready-to-eat products and the increasing demand from the food processing industry will drive the growth. Factors that could hinder the growth of the food ingredients market in the future include stringent regulations and the Russia-Ukraine War impact.

The food ingredients market is segmented by product type into starches, vegetable oils and fats, natural sweeteners, enzymes and antioxidants, natural flavorings and colors, functional ingredients and other product types. The functional ingredients market was the largest segment of the food ingredients market segmented by product type, accounting for 23.9% of the total in 2022. Going forward, the natural flavorings and colors segment is expected to be the fastest growing segment in the food ingredients market segmented by product type, at a CAGR of 6.8% during 2022-2027.

The food ingredients market is segmented by function into flavors and color additives, preservatives, fat replacers, sweeteners, emulsifier, stabilizers and binders, thickeners, pH control agents, nutrients and other functions. The sweeteners market was the largest segment of the food ingredients market segmented by function, accounting for 42.7% of the total in 2022. Going forward, the flavors and color additives segment is expected to be the fastest growing segment in the food ingredients market segmented by function, at a CAGR of 6.6% during 2022-2027.

The food ingredients market is segmented by application into pharmaceuticals, food and beverages, animal feed and other applications. The food and beverages market was the largest segment of the food ingredients market segmented by application, accounting for 55.1% of the total in 2022. Going forward, the food and beverages segment is expected to be the fastest growing segment in the food ingredients market segmented by application, at a CAGR of 6.5% during 2022-2027.

Asia Pacific was the largest region in the food ingredients market, accounting for 37.3% of the total in 2022. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the food ingredients market will be Asia Pacific and South America where growth will be at CAGRs of 7.8% and 7.0% respectively. These will be followed by the Middle East and Africa where the markets are expected to grow at CAGRs of 6.2% and 5.8% respectively.

The food ingredients market is moderately concentrated, with a few large players. The top ten competitors in the market made up to 47.88% of the total market in 2021. Cargill Incorporated was the largest competitor with 11.53% share of the market, followed by Archer Daniels Midland Company with 7.66%, Kerry Group with 6.77%, International Flavors & Fragrances (IFF) with 6.31%, Ingredion Incorporated with 4.63%, Koninklijke DSM NV with 2.61%, Tate & Lyle PLC with 2.24%, Novozymes A/S with 2.24%, Symrise AG with 2.05%, and Givaudan International S.A. with 1.85%.

The top opportunities in the food ingredients market segmented by product type will arise in the functional ingredients segment, which will gain $5,532.6 million of global annual sales by 2027. The top opportunities in the food ingredients market segmented by function will arise in the sweeteners segment, which will gain $9,661.5 million of global annual sales by 2027. The top opportunities in the food ingredients market segmented by application will arise in the food and beverages segment, which will gain $12,599.5 million of global annual sales by 2027. The food ingredients market size will gain the most in China at $5,068.4 million.

Market-trend-based strategies for the food ingredients market include focus on introduction of natural food colors, facility expansions, development of ‘plug and play’ solutions to develop innovative products, development of sustainable products and focus on partnerships and collaborations.

Player-adopted strategies in the food ingredients market include enhancing business capabilities and strengthening operational capabilities through the launch of new products and meeting the growing demand for new protein solutions and expanding business operations through strategic acquisitions.

To take advantage of the opportunities, the publisher recommends the food ingredients companies to increase focus on natural food colors, focus on sustainable products, focus on development of ‘plug and play’ solutions, focus on facility expansion, focus on fast-growing product types, expand in emerging markets, continue to focus on developed markets, focus on partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and continue to focus on fast-growing applications.