The bulk food ingredients market is estimated to capture a valuation of USD 736.90 billion in 2023 and is projected to reach USD 1,071.8 billion by 2033. The market is estimated to secure a CAGR of 3.9% during the forecast period.
Plant-based Ingredients are Creating New Opportunities for Key Stakeholders
In response to rising consumer awareness, manufacturers seek ways to leverage lesser-known, highly-nutritious plant-derived ingredients. Ingredients in food categories, including bakery, ready-to-eat meals, and savory snacks, swiftly replace chemical and animal-derived products.
The main reason behind these dietary changes is increasing medical-based claims related to the benefits of plant-based products, along with public health authorities encouraging consumption. Apart from this, perceived negative effects of animal-based food and environmental factors lead consumers to reduce meat intake, if not eliminate it.
Plant-based foods play a crucial role in basic human nutrition and well-being. Renewed interest in the health benefits obtained from plant-based foods can be subjected to the need for alternative strategies for disease control.
Plants accumulate many complex compounds called phytochemicals essential for preventing certain chronic ailments. Phytochemicals comprise organic and inorganic compounds with nutrients and vitamins, including vitamins A, C and E, calcium, iron, potassium, magnesium and zinc, which can potentially improve health and digestion.
Due to these factors, plant-based ingredients are gaining significance among consumers and food producers. Consumers are also looking for legumes, grains, vegetables and fruits in convenient formats for easy incorporation and longer shelf life.
Besides this, the prevalence of glutton-free and vegan food culture is a chief factor driving demand for plant-based bulk food ingredients. Diversification in plant-based ingredients allows manufacturers to develop meat-like food products, replicating the texture, protein blends and flavors.
Ingredients such as pulses, legumes, and beans can provide clean-label alternatives for egg protein. Similarly, almond-derived milk alternatives and soy milk are gaining popularity among consumers suffering from lactose intolerance.
In addition, a cleaner label concept focusing on minimal processing and a shorter ingredient list has propelled the adoption of plant-based food ingredients. This factor creates avenues for innovation and new product launches for applying bulk food ingredients in ready-to-eat meals, sauces & dressings and frozen food products.
| Attribute | Details |
|---|---|
| Market CAGR (2023 to 2033) | 3.9% |
| Market Valuation (2023) | USD 736.90 billion |
| Market Valuation (2033) | USD 1,071.8 billion |
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The increasing prevalence of urbanization and Western influence in emerging economies is boosting packaged food product sales, resulting in high demand for bulk food ingredients in the food and beverage industry.
Due to hectic lifestyles and tight work schedules, individuals find it hard to dedicate the required time to meal prepping and cooking. Consumers rely on packaged food and ready-to-eat meals to reduce the time involved in cooking and prepping.
In addition to reduced cooking time, packaged food products can be consumed on the go, making them great options for working individuals and travel enthusiasts. This factor has largely impacted the bulk food ingredients market, with increasing demand from the packaged food industry.
In tandem with fluctuating consumer preferences, food brands are launching interesting flavour profiles and ingredients in packaged food products. Apart from this, sales of products targeting health concerns, such as sugar-free bakery products, diet sauces and condiments and glutton-free snacks and biscuits, are gaining traction, propelling bulk food ingredient sales.
As per Future Market Insights (FMI), the global market grew at a steady CAGR of 2% between 2018 and 2022. The market captured a valuation of USD 655.70 billion in 2018 and USD 708.56 billion in 2022.
In 2022, consumers and retailers stockpiled instant foods like noodles and pasta, snacks, bakery goods and ready-to-eat meals in response to the global lockdown restrictions. This process increased sales of such products. However, severe gaps in demand and supply of bulk food ingredients were observed.
However, fast-tracked vaccination drives have proven a boon for the food and beverage industry. With production, supply and retail slowly gaining ground. As per FMI’s analysis, these factors are estimated to continue supplementing growth, projecting the global market to expand at a healthy CAGR through 2033.
As per FMI’s market analysis, processed herbs & spices are anticipated to capture maximum sales in the global market. Herbs and spices enhance the taste and aroma of home cooking and processed and packaged food products, making them the market's most preferred bulk food ingredient.
Incorporation of spices and herbs such as black pepper, oregano, parsley, sage, cardamom, ginger, cloves, nutmeg, and bay leaf in various categories, including processed meat, beverages, ready-to-eat meals, and savory snacks is anticipated to emerge as a critical growth accelerator.
As consumers juggle between work and personal life, ready meals are emerging as a handy option for a quick lunch or dinner. Owing to this factor, many consumers choose ready meals, seeking high-quality ingredients and diverse flavor profiles in the products.
In response to increasing demand for ready meals, food manufacturers are launching international variants ranging from soups, full course meals to premade sauces and condiments. As a result, sales of bulk food ingredients are forecast to gain momentum in the upcoming years.
| Countries | Current Market Share |
|---|---|
| United States | 24.9% |
| Germany | 10.4% |
| Japan | 0.8% |
| Australia | 0.4% |
| Countries | Current Market CAGR |
|---|---|
| China | 8.6% |
| India | 9.7% |
| United Kingdom | 6.7% |
As per ESOMAR-certified consulting firm FMI, the United States is anticipated to witness high demand for bulk food ingredients. The United States is securing a share of 24.9% in the global market by 2033.
The United States is home to technological advancements and innovations in the food and beverage industry. The emergence of vegan, glutton-free and keto diets is encouraging product developments in the food and beverage industry, thereby bolstering sales of bulk food ingredients.
Increasing awareness regarding plant-based ingredients in packaged and ready-to-eat meals is a crucial factor propelling expansions in the market. Rising per capita expenditure in the country and the prevalence of leading players such as Dupont, Archer Daniels Midland Company and Cargill Foods Inc. are expected to significantly drive sales of bulk food ingredients during the assessment period.
Growing demand for convenience food products such as baked goods, snacks, yoghurt and dairy beverage among consumers in the United Kingdom. The global market growth with a favourable demand outlook in the United Kingdom market to grow at a steady 6.7% CAGR through 2033.
Benefits of convenience foods such as longer shelf life, minimal preparation time and easy availability through online and offline retail channels are key factors fostering sales in the United Kingdom.
In addition, a high preference for speciality and gourmet products comprising low-fat dressings, processed meat products, premium quality nuts and pulses in the restaurant industry is ushering innovations in the market.
Amid rapid urbanization and improving consumers' lifestyles, the growth of the market in China is on the card. Fast-track schedules and the growing need for more convenient and easy-to-store food products in the country attract sales. During the forecast period, China is estimated to capture a CAGR of 8.6% in the global market.
In a fast-growing economy like China, sales of ready-to-eat meals are increasingly gaining momentum. Furthermore, incorporating Western ingredients and demand for global foods in the country fosters sales of bulk food ingredients.
However, skepticism regarding the shelf life and ingredients used in processed foods may hamper sales in the market. To counter this issue, food producers are retailing products with cleaner ingredient lists, creating market innovation opportunities.
The booming agriculture industry in India is placing the country as an attractive bulk food ingredients market. As the Indian population embraces Western food culture, demand for bulk food ingredients is estimated to continue rising, opines FMI. India is securing a CAGR of 9.7% in the global market by 2033.
Demand for global foods such as instant noodles, pasta, salad dressings, bakery products and breakfast cereals is encouraging global bulk food ingredient producers to expand their operations in India.
Additionally, high-quality agricultural output in India regarding grains, pulses, tea, coffee, and sugar attracts attention in Western markets, providing tailwinds to bulk food ingredient sales.
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According to FMI’s market survey, leading players invest in acquisitions, collaborations and partnerships to source locally grown premium ingredients to improve sales.
Top players in the global market include DuPont, Cargill Foods Inc., Archer Daniels Midland Company, Associated British Foods plc, and Koninklijke DSM N.V., holding 20-25% of the total market share.
Besides this, new product launches and production facility expansions are estimated to remain key growth strategies among stakeholders in the global market.
Other Prominent Players in the Global Market are:
Recent Developments in the Global Market are:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Product Type, Application Type, Region |
| Key Companies Profiled | DuPont; Archer Daniels Midland Company; Cargill Foods Inc.; Tate & Lyle PLC; Associated British Foods plc; Olam International; Ingredion Incorporated; EHL Ingredients; Wilmar International; Suntory; Koninklijke DSM N.V.; Symrise AG; Kerry Group Plc; Bunge Limited; Ajinomoto; George Weston; Sysco Corporation; Conagra Brands; Kirin Holdings; CHS Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The key Asian countries are China, India, and Japan.
The food and beverage industry is the main user of bulk food ingredients.
Between 2023 and 2033, the United Kingdom captured a CAGR of 6.7%.
The global market for bulk food ingredients was estimated at USD 736.9 billion.
The worldwide bulk food ingredients industry is expected to reach USD 1,071.8 billion by 2033.
| Estimated Market Size (2024E) | USD 4 billion |
|---|---|
| Projected Market Value (2034F) | USD 7.6 billion |
| Value-based CAGR (2024 to 2034) | 6.6% |
| Market Size in 2023 | USD 363 million |
|---|---|
| Market Size by 2033 | USD 471 million |
| Forecasted Value CAGR (2023 to 2033) | 2.6% |
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