Global Specialty Food Ingredient Market - Outlook & Forecast 2023-2028

The global specialty food ingredients market is expected to grow at a CAGR of approximately 6.70% from 2022 to 2028.

High Adoption of Sugar-Free Food Ingredients

With each growing day, consumer requirements are evolving and varying. This buried varying consumer demand leads to the specified trends such as the demand for specialty food ingredients, which are sugar-free, saturated fat, and salt, deliver more fiber, and are fortified with health-supporting ingredients. With the central focus of people to improve their immunity and health, the demand for sugar-free food ingredients has increased. Moreover, the rising number of diabetes cases, rising demand for food with low calories, and sugar taxes imposed on sugary drinks are the main reasons driving the growth of the sugar-free food ingredients products market.

For instance, companies such as Tate & Lyle are leading specialty food ingredient vendors. In 2022, Tate & Lyle focused on the research and development sector to produce Polyols, sugar-free sweeteners. These sweetening solutions can help reduce sugar without sacrificing the sweetness consumers enjoy. Moreover, Tate & Lyle’s sub-brand SPLENDA Sucralose was introduced, reshaping the sweetener landscape in 2022. Sucralose is a sweetener, which is a zero-calorie sweetener. SPLENDA Sucralose processed to create sucralose – 600 times sweeter, with no-calorie sweetener. Its ability to maintain sweetness through various food processing conditions, pH, and long shelf life.

Increasing Demand for Premiumization

Consumers are willing to pay a premium price for food ingredients that offer superior taste, unique flavors, innovative blends, and perceived health and wellness benefits. Consumers seek beverages that align with their wellness goals as they become more health-conscious. Premium food ingredients often use natural and functional ingredients like antioxidants, herbal extracts, and other beneficial components, which attract health-conscious consumers. Furthermore, some consumers view premium products, including specialty food ingredients, as status symbols or lifestyle choices. By choosing premium specialty food ingredients, they feel they are making a statement about their taste, sophistication, and lifestyle preferences. Such factors have a positive side on the specialty food ingredients market growth.

SEGMENTATION INSIGHTS

INSIGHTS BY APPLICATION

Specialty food ingredient is widely used in food and beverage, bakery, and confectionery and can also be used in nutritional supplement to reduce sugar & lower calorie and carbohydrate. The global specialty food ingredients market by application is segmented into beverages, food, bakery, dairy products, confectionery, processed foods, and others. The beverages application segment held the most prominent global market share in 2022. Rising levels of obesity and diabetes have created push factors, including massive awareness among consumers who have increasingly cut down their sugar consumption. It has also spurred the national regulators to reformulate their products. Low-sugar options also witness growing consumer demand for products supporting health and wellness. There is an increasing demand for ingredients that can reduce sugar content across several categories, including soft drinks, various beverages, dairy, bakery, confectionery, soups, sauces, and dressing, with an exceptionally high demand for sugar substitutes from natural sources.

Segmentation by Application

• Beverage
• Food
• Bakery
• Dairy Products
• Confectionery
• Processed Foods
• Others

INSIGHTS BY COMPONENT TYPE

The global specialty food ingredients market by component types is classified into two segments: specialty sensory ingredients and specialty functional ingredients. Specialty food ingredients typically preserve, emulsify, color, texture, help processing, and add an extra health dimension to produced food. The sensory ingredients segments dominated the global market in 2022. The growing demand for clean-label and natural ingredients is one of the primary drivers of the sensory additives market. Consumers are more focused on their products' environmental and health impact and seek products with recognizable and natural ingredients.

Segmentation by Components

• Specialty Sensory Ingredients
• Specialty Functional Ingredients

INSIGHTS BY SPECIALTY SENSORY INGREDIENTS

The flavors and fragrances specialty food ingredient segment dominated the global specialty food ingredients market in 2022 and was valued at over USD 9.54 billion in 2022. As customer expectations for packaged and convenience foods rise and competition intensifies, demand for sensory ingredients is expected to rise. Sensory ingredients, such as odor, flavor, appearance, taste, and texture of foods detectable by human senses, are often used to evaluate food quality. Increasing demand for these ingredients in packaged and convenience foodstuffs and confectioneries is expected to drive product demand.

Segmentation by Specialty Sensory Ingredients

• Flavors and Fragrances
• Texturant
• Enzymes
• Emulsifiers
• Enhancer
• Others

INSIGHTS BY SPECIALTY FUNCTIONAL INGREDIENTS

The global specialty food ingredients market by specialty functional ingredients is segmented into probiotics, antioxidants, vitamins, preservatives, minerals, and others. In 2022, the probiotics segment dominated the market and is projected to continue its dominance over the forecast period. Customers are more well-being cognizant and zeroing in on their ways of life and diets, bringing about a blast popular for probiotic-strengthened food varieties and drinks worldwide. The growing use of probiotic ingredients in functional beverages & food due to their health benefits helped to raise the demand for probiotic ingredients during the forecast period.

Segmentation by Specialty Functional Ingredients

• Probiotics
• Antioxidant
• Vitamins
• Preservative
• Minerals
• Others

INSIGHTS BY SOURCE

The natural source segment is prominent in the global specialty food ingredients market. In 2022, the global specialty food ingredients market by natural ingredients was valued at over USD 40 billion. This rise in the demand for natural specialty food ingredients can be attributed to the increasing prevalence of health and wellness trends among more health-conscious consumers. Heightened awareness of the potential health risks associated with excessive food ingredient consumption, including obesity, diabetes, and tooth decay, has motivated individuals to seek healthier specialty food ingredients for sweetening their foods and beverages.

Segmentation by Source

• Natural
• Synthetic

GEOGRAPHICAL ANALYSIS

APAC region dominated the global specialty food ingredients market in 2022, valued at over USD 26 billion. The region is expected to continue to flourish its trend of dominance during the forecast period owing to the growth and expansion of the food and beverages market, especially in emerging economies. Asia-Pacific is set to register a high growth rate during the forecast period owing to the increasing adoption of natural specialty ingredients in Asian food products, such as pickles and flavored sauces, globalization, westernization, changing lifestyles, and increasing personal disposable income.

Segmentation by Geography

• APAC
• China
• Japan
• India
• Australia
• South Korea
• North America
• The U.S.
• Canada
• Europe
• Germany
• The U.K.
• France
• Italy
• Spain
• Latin America
• Brazil
• Mexico
• Argentina
• Middle East & Africa
• Saudi Arabia
• UAE
• South Africa

VENDOR LANDSCAPE

The global specialty food ingredients market is highly fragmented, with numerous local, regional, and international vendors across the globe. The leading global specialty food ingredients market vendors are Tate & Lyle PLC, Cargill, Incorporated, Ingredion Incorporated, Archer Daniels Midland, Givaudan S.A., Kerry Group plc, International Flavors & Fragrances and Heartland Food Products Group. However, the number of global players is limited, and the growing trend of natural specialty food ingredients in food products has given rise to numerous domestic and local vendors in the market that pose a tough challenge to reputed vendors across all geographies.

Key Company Profiles

• Tate & Lyle PLC
• Cargill, Incorporated
• Ingredion Incorporated
• Archer Daniels Midland
• Givaudan S.A.
• Kerry Group plc
• International Flavors & Fragrances
• Heartland Food Products Group

Other Prominent Vendors

• DuPont de Nemours, Inc
• AJINOMOTO
• BASF
• Dow
• Evonik
• Clariant
• Arkema
• ANGUS Chemical Company
• Lonza
• The Lubrizol Corporation
• Solvay
• Sensient Technologies Corporation
• Croda
• Univar Solutions
• ASHLAND
• Nouryon
• Wacker Chemie AG
• Stepan
• Corbion
• Oxiteno
• Galaxy Surfactants
• Colonial Chemical
• Aarti Surfactants
• Whole Earth Sweetener
• Beckmann-Kenko
• Fraken Biochem

KEY QUESTIONS ANSWERED:

1. How big is the specialty food ingredients market?
2. What is the growth rate of the global specialty food ingredients market?
3. Which region dominates the global specialty food ingredients market share?
4. What are the significant trends in the specialty food ingredients market?
5. Who are the key players in the global specialty food ingredients market?