Food Decorations and Inclusions Market Report 2025

The food decorations and inclusions market size has grown strongly in recent years. It will grow from $9.21 billion in 2024 to $9.87 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to consumer demand for artisanal and premium foods, expansion of the bakery and confectionery industry, growing interest in food presentation, globalization of food culture.

The food decorations and inclusions market size is expected to see strong growth in the next few years. It will grow to $13.59 billion in 2029 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to rising demand for plant-based and natural ingredients, customization and personalization trends, e-commerce growth in food retail, continued emphasis on food aesthetics, increased focus on sustainable and eco-friendly practices. Major trends in the forecast period include natural and clean label, plant-based options, innovative textures and shape, edible glitters and metallics, innovation in food processing technologies.

The rising consumption of bakery products is expected to drive the growth of the food decoration and inclusions market in the future. Decorations and inclusions are essential for enhancing the appearance of bakery items such as cakes, desserts, and pastries, making them visually appealing. As the consumption of bakery products increases, so does the demand for food decorations and inclusions. These elements are necessary to finish and elevate the overall appeal and enjoyment of baked goods. For example, a report published in November 2023 by Agriculture and Agri-Food Canada (AAFC), a Canadian government department, revealed that in 2022, the United Kingdom was the second-largest global market for baked goods, with imports reaching $3.6 billion, accounting for a 7.8% market share. Thus, the growing consumption of bakery products is fueling the growth of the food decorations and inclusions market.

The hospitality industry is anticipated to drive the growth of the food decorations and inclusions market in the future. This sector encompasses services focused on guest comfort and enjoyment, including lodging, food, entertainment, tourism, and related businesses. Food decorations and inclusions play a crucial role in the hospitality industry, particularly in restaurants and hotels, as they significantly enhance the overall dining experience for guests. For example, in October 2023, Eurostat, a government agency based in Luxembourg, reported that the EU's tourism sector began its recovery in 2021, reaching two-thirds of pre-pandemic levels, and continued to improve in 2022, reaching 96%. This recovery trend was clearly visible in the first half of 2023. Thus, the hospitality industry is a key driver of the growth in the food decorations and inclusions market.

The anticipated growth in the food decorations and inclusions market is expected to be driven by the increasing demand for these products in the food and beverage industry. The food and beverage industry encompasses businesses involved in the processing, packaging, and distribution of raw food. Food decorations and inclusions play a multifaceted role, serving not only ornamental purposes but also contributing to the overall experience, taste, and market appeal of various food and beverage products. For instance, in 2023, according to the Food & Drink Federation, which represents and advises UK food and drink manufacturers, Scotland had 1,185 registered companies engaged in food and beverage manufacturing. In 2022, exports of food and beverages from Scotland increased by 31% to reach $10.18 billion (£8.1 billion). Moreover, the turnover of the food and beverages sector amounted to $12.5 billion (£10.3 billion), constituting 33% of total Scottish manufacturing. Therefore, the rising demand from end-users, particularly the food and beverage industry, is a key driver of the food decorations and inclusions market.

Companies operating in this market are actively engaged in developing and introducing innovative products to maintain their competitive positions. For example, in February 2022, The Supplant Company, a UK-based biotechnology company specializing in natural food ingredients, launched premium inclusions made with Supplant sugars derived from fiber, providing a sugar alternative that bakes, cooks, and caramelizes such as traditional sugar but with fewer calories and a low glycemic response. This innovative product also acts as a prebiotic.

In November 2023, Orkla ASA, a Norway-based company specializing in bakery and ice cream ingredients, acquired Denali Ingredients for a total of $200 million. This strategic acquisition strengthened Orkla ASA's position as a leading supplier of ingredients to the bakery, ice cream, and confectionery industries. Denali Ingredients, based in the United States, is known for developing and manufacturing ingredients for ice creams.

Major companies operating in the food decorations and inclusions market include Barry Callebaut AG, Cargill Incorporated, Carmemoli SPA, Carroll Industries NZ Ltd., Dawn Food Products Inc., Delicia Foods India Pvt. Ltd., Dobla BV, HLR Praline BVBA, Icam SpA, Kanegrade Flavours & Ingredients Pvt Ltd., Nimbus Foods Ltd., Orkla ASA, PCB Creation SAS, Pecan Deluxe Candy Company, Ulmer Schokoladen Gmbh & Co. KG, Dr. August Oetker Nahrungsmittel KG, Tate & Lyle plc, Archer Daniels Midland Company, Cémoi Group, Olam International, Sensient Technologies Corporation, Kerry Group plc, Ingredion Incorporated, AarhusKarlshamn publ AB, FrieslandCampina Kievit BV, The Hershey Company, Mars Incorporated, Nestlé S.A., Mondelez International Inc., Ferrero International SA.

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

Decoration is the meticulous process of enhancing the visual appeal of cakes, desserts, patisserie, and other culinary creations, making them more attractive. This involves various techniques such as curls, shavings, tubes, sprinkle stars, fans, leaves, assortment boxes, and others, contributing to the aesthetic value of the products and ensuring they stand out. Inclusions, on the other hand, are additives strategically incorporated into the final formulation to elevate the product's appeal, enjoyment, and overall value.

The primary product categories within the realm of food decorations and inclusions encompass chocolate decorations and inclusions, sugar decorations and inclusions, nuts, preserved/freeze-dried fruits, sugar paste and icing, glazes, marzipan, and others. Chocolate decorations and inclusions involve the use of chocolate to add an attractive finish to products, incorporating chocolate additives into the final formulation for an enhanced and enjoyable end product. These diverse food decoration and inclusion products find application across various end-user segments, including food and beverage processing, bakeries and pastry shops, confectionery shops, restaurants and hotels, households, and others. The distribution channels for these products encompass both business-to-business (B2B) and business-to-consumer (B2C) channels.

The food decorations and inclusions market research report is one of a series of new reports that provides food decorations and inclusions market statistics, including food decorations and inclusions industry global market size, regional shares, competitors with a food decorations and inclusions market share, detailed food decorations and inclusions market segments, market trends and opportunities, and any further data you may need to thrive in the food decorations and inclusions industry. This food decorations and inclusions 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 food decorations and inclusions market consists of sales of decorations and inclusions for products such as chocolates, cakes, desserts, patisseries, fruits, nuts, and others. 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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