The global food ingredients market is poised for steady growth, driven by increasing consumer demand for diverse and innovative food products. A consistent compound annual growth rate (CAGR) reflects the market's resilience and its capacity to expand, propelled by evolving consumer preferences and industry innovations.The market for food ingredients is set to expand significantly in the coming years, with an estimated value of US$ 35.99 billion in 2024, projected to reach approximately US$ 50.7 billion by 2031.
Manufacturers are increasingly entering the natural food flavors segment, attracted by high-profit margins and the growing consumer inclination towards natural and biotech-labeled products. This trend is expected to drive significant growth in the global food flavor market, with more companies anticipated to launch biotech-flavored products in the coming years. This influx of new players will likely contribute to the market's expansion over the forecast period.
North America continues to dominate the fast food industry, a trend that shows no signs of slowing down. Latin America is following suit, with a growing appetite for fast food and related products. This increase in fast food consumption has directly impacted the demand for food ingredients and additives, which are essential for achieving the desired taste, texture, and sensory appeal of fast food products.
The millennial generation has played a significant role in this trend, introducing new food trends that influence various classes of food ingredients. For instance, the trend of colored food products, which gained popularity recently, has significantly increased the demand for food colors, particularly in North America and Latin America. Similar trends have driven demand for food texturizers and gums, highlighting food's growing role in personal expression and celebrations.
2. Rising Demand for Convenience Foods in Developing Economies:
With increasing consumer purchasing power and busier lifestyles, the demand for convenience food is on the rise. This trend is particularly evident in developing economies such as India, China, Brazil, and countries in the Middle East and Africa, where per capita expenditure on food is increasing alongside rising incomes.
The growing demand for bakery and confectionery products correlates directly with the increased demand for food enzymes, flavors, and colors. Additionally, the demand for healthy convenience foods, such as protein and nutrition bars, is driving the demand for natural and synthetic gums and starches.
3. Growing Demand for Low-Calorie, Healthy Food Products:
Obesity has been a longstanding issue in North America and Europe, where more than 30% of the population is considered obese. Efforts by governments, increased awareness, and social media influence have led to a growing preference for low-calorie food products. One way to achieve lower calorie content in food products is through the use of hydrocolloids such as gums, thickening agents, and artificial flavors and sweeteners.
This rising demand for low-calorie food products benefits both consumers and producers. Hydrocolloids and thickening agents help reduce production costs while meeting consumer demand for healthier options, contributing to their growing popularity in North America and Europe.
4. Increased Preference for Specialty Beverages:
Specialty beverages, including dairy alternatives, sports drinks, and novel soft drinks, are becoming an increasingly important part of the diet, driven by the growing vegan population, awareness of animal cruelty, rising incomes, and social media influence. The demand for these beverages is rapidly increasing, with significant implications for the food ingredients market.
The demand for alcoholic beverages is also on the rise, spurred by the growing dine-out culture and greater acceptance of alcohol in general. This trend has led to increased demand for food ingredients such as gums, pectin, starches, sweeteners, flavors, colors, emulsifiers, and vegetable fats and oils, further driving market growth.
Regional and local players also hold a significant market share, targeting the expanding food ingredients market in the Asia Pacific and Middle East regions. These companies are responding to the growing demand for bakery, dairy, meat-based products, sauces, dressings, and other food products.
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Food Ingredients Consumption Analysis
The food ingredients market has demonstrated significant expansion in recent years. This growth has been underpinned by rising global consumption patterns, particularly in the flavor segment, which is seeing robust demand. As consumer preferences increasingly lean towards natural and biotech flavors, manufacturers are capitalizing on this trend, resulting in a notable rise in the demand for natural food flavors worldwide.Manufacturers are increasingly entering the natural food flavors segment, attracted by high-profit margins and the growing consumer inclination towards natural and biotech-labeled products. This trend is expected to drive significant growth in the global food flavor market, with more companies anticipated to launch biotech-flavored products in the coming years. This influx of new players will likely contribute to the market's expansion over the forecast period.
Key Trends in the Food Ingredients Market
1. Fast Food Trends Among Millennials:North America continues to dominate the fast food industry, a trend that shows no signs of slowing down. Latin America is following suit, with a growing appetite for fast food and related products. This increase in fast food consumption has directly impacted the demand for food ingredients and additives, which are essential for achieving the desired taste, texture, and sensory appeal of fast food products.
The millennial generation has played a significant role in this trend, introducing new food trends that influence various classes of food ingredients. For instance, the trend of colored food products, which gained popularity recently, has significantly increased the demand for food colors, particularly in North America and Latin America. Similar trends have driven demand for food texturizers and gums, highlighting food's growing role in personal expression and celebrations.
2. Rising Demand for Convenience Foods in Developing Economies:
With increasing consumer purchasing power and busier lifestyles, the demand for convenience food is on the rise. This trend is particularly evident in developing economies such as India, China, Brazil, and countries in the Middle East and Africa, where per capita expenditure on food is increasing alongside rising incomes.
The growing demand for bakery and confectionery products correlates directly with the increased demand for food enzymes, flavors, and colors. Additionally, the demand for healthy convenience foods, such as protein and nutrition bars, is driving the demand for natural and synthetic gums and starches.
3. Growing Demand for Low-Calorie, Healthy Food Products:
Obesity has been a longstanding issue in North America and Europe, where more than 30% of the population is considered obese. Efforts by governments, increased awareness, and social media influence have led to a growing preference for low-calorie food products. One way to achieve lower calorie content in food products is through the use of hydrocolloids such as gums, thickening agents, and artificial flavors and sweeteners.
This rising demand for low-calorie food products benefits both consumers and producers. Hydrocolloids and thickening agents help reduce production costs while meeting consumer demand for healthier options, contributing to their growing popularity in North America and Europe.
4. Increased Preference for Specialty Beverages:
Specialty beverages, including dairy alternatives, sports drinks, and novel soft drinks, are becoming an increasingly important part of the diet, driven by the growing vegan population, awareness of animal cruelty, rising incomes, and social media influence. The demand for these beverages is rapidly increasing, with significant implications for the food ingredients market.
The demand for alcoholic beverages is also on the rise, spurred by the growing dine-out culture and greater acceptance of alcohol in general. This trend has led to increased demand for food ingredients such as gums, pectin, starches, sweeteners, flavors, colors, emulsifiers, and vegetable fats and oils, further driving market growth.
Regional Insights
South Asia and Pacific:
The South Asia and Pacific region holds a significant share of the global food ingredients market, driven by high population density and rapid urbanization in developing countries. Increased consumption and rising incomes in this region contribute to its leading position in the market.North America:
The North American food ingredients market is characterized by a highly developed food and beverage manufacturing industry with a substantial global presence. This region accounts for a significant share of the market, supported by its well-established industry and ongoing innovation in food production.Category Insights
High Revenue Generation from Food Flavors:
Food flavors represent a significant portion of the food ingredients market, driven by the growing consumption of fast food and the increasing emphasis on visual aesthetics to attract consumers. This has led to greater investment in food colors, which continues to drive the value of this segment.Emulsifiers Leading in Functional Food Ingredients:
Emulsifiers hold the greatest market value among food ingredients, thanks to their wide applicability in the foodservice sector. They play a crucial role in improving the texture and flavor of food products, particularly dairy offerings. As consumption of dairy and dairy-derived products continues to rise, the demand for emulsifiers is expected to grow, solidifying their position as a key functional ingredient in the market.Competitive Landscape
The global food ingredients market is dominated by a large number of regional and multinational companies. Multinational players account for a substantial share of the market, offering food ingredients products under their own brands, particularly in North America and Europe. Key players in the market include Cargill, Incorporated, DowDupont, Inc., and Archer Daniels Midland Company, which operate globally with a strong presence in North America, Latin America, and the Asia Pacific.Regional and local players also hold a significant market share, targeting the expanding food ingredients market in the Asia Pacific and Middle East regions. These companies are responding to the growing demand for bakery, dairy, meat-based products, sauces, dressings, and other food products.
Notable Strategic Initiatives
Kerry Group Plc:
Kerry Group Plc is focused on expanding its presence in the global food ingredients market through acquisitions. The company aims to achieve growth through innovation, offering products tailored to customer requirements. Strategic acquisitions have been a key part of Kerry Group's growth strategy, allowing the company to enhance its product offerings and reach new markets.Tate & Lyle Plc:
Tate & Lyle Plc emphasizes collaboration with other leading food specialty ingredient manufacturers to strengthen its market presence. The company's strategic acquisitions, such as its stake in a global stevia ingredients company, aim to meet the growing demand for sweeteners and expand its product portfolio across food ingredients such as sweeteners, texturants, and fibers.Givaudan SA:
Givaudan SA has made significant investments in expanding its technical and commercial capabilities, particularly in emerging markets. The company's new facilities in regions like Maghreb and West Africa are part of its strategy to meet the evolving needs of its food and beverage consumers and support its long-term growth objectives.DuPont:
DuPont continues to innovate within the food ingredients market, with the release of new generation enzymes for the bakery industry. These innovations are designed to bring substantial benefits to the baking industry, supporting more robust manufacturing processes and delivering economic advantages.Key Companies Profiled
- Kerry Group Plc
- Tate & Lyle PLC
- Givaudan SA
- DowDupont, Inc.
- Cargill, Incorporated
- Ashland Global Holdings Inc.
- Novozymes A/S
- Firmenich SA
- International Flavors and Fragrances
- CP Kelco
- Archer Daniels Midland Company
- Koninklijke DSM N.V.
- Ingredion Inc.
- Sensient Technologies Corporation
- Symrise AG
Food Ingredients Industry Segmentation
By Type:
- Food Hydrocolloids
- Plant Source: Gum Arabic, Guar Gum, Locust Bean Gum, Pectin, Starches, Others
- Microbial Source: Xanthan Gum, Curdlan, Gellan Gum
- Seaweed Source: Carrageenan, Agar-Agar, Alginate
- Synthetic Source: Carboxy Methyl Cellulose (CMC), Methyl Cellulose (MC)
- Animal Source: Gelatin
- Food Enzymes
- Food Flavors
- Food Colors
By End Use:
- Dairy Products & Frozen Food
- Bakery & Confectionery
- Sauces, Dressings, & Condiments
- Beverages
- Snacks & Savory
- Meat & Poultry Products
- Pet Food
By Function:
- Thickener
- Stabilizer
- Gelling Agent
- Leavening Agent
- pH Control Agents
- Flavoring & Coloring Agents
- Emulsifiers
By Region:
- North America
- Latin America
- Europe
- South Asia & Pacific
- East Asia
- Middle East & Africa
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Table of Contents
1. Executive Summary
2. Market Overview
3. Global Food Ingredients Market Outlook, 2019 - 2031
4. North America Food Ingredients Market Outlook, 2019 - 2031
5. Europe Food Ingredients Market Outlook, 2019 - 2031
6. Asia Pacific Food Ingredients Market Outlook, 2019 - 2031
7. Latin America Food Ingredients Market Outlook, 2019 - 2031
8. Middle East & Africa Food Ingredients Market Outlook, 2019 - 2031
9. Competitive Landscape
10. Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Kerry Group Plc
- Tate & Lyle PLC
- Givaudan SA
- DowDupont, Inc.
- Cargill, Incorporated
- Ashland Global Holdings Inc.
- Novozymes A/S
- Firmenich SA
- International Flavors and Fragrances
- CP Kelco
- Archer Daniels Midland Company
- Koninklijke DSM N.V.
- Ingredion Inc.
- Sensient Technologies Corporation
- Symrise AG
Methodology
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