Integrated Food Ingredients Market

Integrated Food Ingredients Market Outlook (2023 to 2033)

The global Integrated Food Ingredients Market is projected to have a moderate-paced CAGR of 5.2% during the forecast period. The current valuation of the market is USD 69,510.0 million in 2023.

The market value of the integrated food ingredients market is anticipated to reach a high of USD 1,12,848.7 million by the year 2033. A historical CAGR of 4.3% has been recorded by the experts of Future Market Insights for the market concerned.

Attribute	Details
Market Size Value in 2023	USD 69,510.0 million
Market Forecast Value in 2033	USD 1,12,848.7 million
Global Growth Rate (2023 to 2033)	5.2% CAGR
Forecast Period	2023 to 2033
Market Share of North America	38%

Integrated food ingredients are anticipated to gain rapid traction in the global food and beverages market. In recent times there has been a rise in the demand for integrated food ingredients owing to their ability to add taste, flavor, and enhancement of shelf-life for products. The expert analysts at FMI have revealed that integrated food ingredients include additives to obtain the desired effect.

It is identified during analyzing the market that the integrated food ingredients market is witnessing an unprecedented surge in its usage owing to the inkling of consumer preference towards a diverse range of savories, snacks, and bakery products.

It is anticipated that the global integrated food ingredients market is making allowance for the food and beverage manufacturers to add value and differentiate their product offerings based on specific ingredients.

In many products, integrated food ingredients help in reducing the effect of harmful properties without changing the original taste, and this is one of the pivotal aspects behind the expanding market. Therefore, it is expected that the integrated food ingredients market is likely to have significant growth during the forecast period.

A Contrast with the Historical Market Scenario

The integrated food ingredients market is projected to grow at a faster pace due to rapid changes in the daily lifestyle of the populace. There has been a considerable rise in the CAGR, from 4.3% in recent years to 5.2% during the estimated period of study.

This gradual rise can be attributed to several factors that are influencing the market growth and paving the way for a better grip on the market soon. There is increasing use of integrated food ingredients in frozen foods, bakery & confectionery, and beverages employing this product to enhance the flavors and lengthen the shelf-life

Additionally, the increasingly busy schedule of the consumers is likely to translate into surging demand for processed and convenience food, which has major contributed to the expanding growth rate in the base year and is expected to further bolster the integrated food ingredients market expansion during the period 2023 to 2033.

Market-O-Nomics: Identification of the Demand Drivers and the Curbing Elements

A large number of factors are fueling the market growth of integrated food ingredients globally. Besides the growth propelling factors, the expert analysts at FMI have also revealed that a number of aspects are likely to deter the expansion of the forum in the coming years and affect its growth to a certain extent.

Let’s take a stroll across the factors boosting and inhibiting the market growth through 2033:

DRIVERS

The potential drivers identified in the market are:

• Macroeconomic variables are favorably affecting the global integrated food ingredients market with the development of high-efficiency equipment and an increase in the number of end-use applications.
• Hydrocolloids have been identified to have a wide range of applications due to the versatility of the integrated food ingredients and are likely to impact the forum positively.
• Technological advancements like food encapsulation techniques are in tandem with the growth of the integrated food ingredients markets.
• Nutrition and taste convergence serve as pivotal drivers as the populace has a surging demand for natural flavors and fragrances.
• Consumers are inclining more towards convenience and processed food due to the changing lifestyles and preferences, which is likely to swell the integrated food ingredients market.
• There is a rise in demand for clean-label products in developed economies, coupled with a rising trend in functional flavors, which is likely to boost the opportunity for the growth of integrated food ingredients.

RESTRAINTS

The inhibiting elements identified in the market are:

• The high cost associated with the development of innovative integrated food ingredients is likely to hamper the market’s growth rate.
• A dearth of infrastructure has been identified, along with storage management and availability of raw materials, which is anticipated to obstruct the overall growth of the integrated food ingredients market.
• Stringent regulations on food additives may somewhat restrain the market expansion.

Category-wise Insights

Dominate Segments in the Integrated Food Ingredients Market:

Segment	Frozen Food - By End-use
Statistics	The frozen food segment is projected to advance at a CAGR of 5.98% during the forecast period.
Description	The aspects attributing to the dominance of this segment can be defined as - Versatility of ingredient extraction methods to produce a variety of ingredients with enhanced shelf-life is driving the market demand from frozen food product manufacturers.

Segment	Functional Ingredients - By Type
Statistics	The functional ingredients category is likely to dominate the type of segment, recording a CAGR of 6.8% through 2033.
Description	The dominance of the functional ingredients segment can be attributed to the increasing use of bioactive compounds in food products to provide health benefits to consumers, coupled with the rising adoption of lactose and gluten-free products.

Regional Outlook

Performance of North America in the Integrated Food Ingredients Market

North America is expected to account for a significant global integrated food ingredients market revenue share during the forecast period. This region accounted for a total of 38% market share during the base year and is projected to advance at a CAGR of 5.6% through 2033.

The factors responsible for the huge revenue shares held are:

• The presence of key market players in countries in the region is expected to drive market revenue growth.
• The number of food ingredient manufacturers and established e-commerce businesses is increasing in North America, which is boosting North America integrated food ingredients market revenue growth.
• Rising consumer awareness about the consumption of nutritious food and changing lifestyles are other factors expected to drive the growth of the market.

Growth Analysis of Europe Integrated Food Ingredients Market

The market In Europe is projected to register a steady CAGR of 4.96% over the forecast period. The factors owing to the expansion of the integrated food ingredients market in Europe are as follows:

• The growing population and rapid urbanization are driving market growth in the region.
• Increasing demand for processed food that requires additional flavors is expected to boost Europe’s integrated food ingredients market revenue growth.
• The rising demand for natural food additives and organic food and beverages among the population is increasing the demand for organic and plant-based food ingredients.

Start-up Ecosystem

Start-ups Revolutionizing the Market

The new entrants in the integrated food ingredients market are proactive with their attempts, and frequent innovations are being made to the integrated food ingredients. The start-ups are focused on staying ahead of the technology curve and strengthening their competitive advantage. They are bringing new products to the market to appeal to the wide consumer base and further expand the market size.

Top Start-ups to Watch For

Start-up Firms	Snuk Foods United State-based Startup
Founding Year	2018
Description	The startup connects traders to consumers, allowing for the accessibility of specialty ingredients. The startup’s network builds personal connections between supply chain members, journalists, traders, farmers, chefs, and others. This allows consumers to get hold of ingredients that hold strong against scrutiny. The startup’s specialty vinegar can be used for a variety of dishes, including salads, garnishing, or dip. For example, OMED Rose Vinegar is a specialty vinegar made from rose wine. Gold Plum Chinkiang Vinegar is suitable for cooking Chinese dishes.

Start-up Firms	Bake Eat Love United States-based Startup
Founding Year	2021
Description	The startup’s service consists of specialty ingredients, baking impediments, recipes, and video tutorials. The boxes containing these components arrive at the user’s doorstep each month. It contains pre-measured & unrefrigerated ingredients, recipes that feature specialty ingredients, like lavender extract, and highlights creative flavor combinations.

Start-up Firms	Libellula Italian Start-up
Founding Year	2016
Description	The startup grows the olives free from pesticides and harvests them by hand. Classico is its extra virgin olive oil that goes through the cold-pressing production process, whereas Riserva contains high levels of polyphenols and chlorophyll, imparting it a distinctive green color.

Competitive Landscape

How are the Key Market Players Stirring Up the Dynamics?

The key companies are continuously launching diverse integrated food ingredients to fulfill the consumer’s demands and appeal to the wide food & beverage industry.

With integrated food ingredients, manufacturers offer a variety of non-alcoholic ferments that will improve the smoothness, texture, and nutritional value of the drinks. The market for Integrated Food Ingredients is anticipated to be driven by this trend.

The use of food encapsulation technology is becoming more common in the food and beverage sector. Manufacturers are also investing in extensive food technology to boost production capacity and shorten production times.

Recent Developments

• In June 2021, Kerry Group, an Ireland-based food company offering food and beverage ingredients, acquired Niacet for USD 1,011.80 million (€853 million). Through this acquisition, Kerry integrated Niacet into its global food protection and preservation platform, enhancing its food protection, food ingredients, and preservation strategy to offer new products and technologies in a broader market. Niacet is a United States-based company that offers food ingredients.
• In February 2019, Motif Ingredients, a United States-based food ingredients company, is leveraging biotechnology to develop unique food solutions that provide consumers with more options without sacrificing taste or nutrition.
• In December 2019, PureCircle, the world’s leading producer and innovator of stevia, launched Sigma Syrup, which is a great testing stevia leaf sweetener with advanced solubility properties.
• In January 2018, Arjuna Natural Ltd. India launched Natural Preservatives to extend the shelf life of frying oil, which will slow down the oxidative degradation of frying oil and extend the shelf life of oil.
• In 2016, the Food and Drug Administration of the United States announced Guar Gum as a natural substance and can be used in food products up to a specified limit.
• In July 2023, Cargill Regenconnect and John Deere collaborated to enable new revenue streams for farmers adopting sustainable practices.
• As of June 2023, Tate & Lyle as a part of its growth strategy expanded its business by opening a customer innovation and collaboration center in Indonesia.

Some of the key players proliferating in the market are

• Archer Daniels Midland Company
• BASF SE
• Cargill, Incorporated
• E. I. du Pont de Nemours and Company
• Firmenich SA
• International Flavors & Fragrances Inc.
• Kerry Group
• Koninklijke DSM N.V.,
• Symrise
• Tate & Lyle PLC

Key Segments in the Integrated Food Ingredients Market

By Source:

• Microbial & Fermented
• Artificial
• Animal
• Plant
• Seaweed

By Product Type:

• Sweeteners
• Vegetable Fats & Oils
• Food Hydrocolloids
• Food Enzymes
• Food Colors and Flavors

By End-Use:

• Dairy Products
• Frozen Foods
• Meat, Poultry, Seafood
• Pet Food
• Sauces, Dressings, and Condiments
• Beverages
• Bakery and Confectionery
• Snacks

By Functionality:

• Stabilizer
• Thickener
• Leavening Agent
• Emulsifiers
• Fortifiers
• Gelling Agent
• Flavoring and Coloring Agent
• Preservatives

By Region:

• North America
• Latin America
• Asia Pacific
• MEA
• Europe

Frequently Asked Questions

Which Region holds high Lucrativeness?

North America is projected to emerge as a lucrative market.

What is the Growth Potential of the Integrated Food Ingredients Market?

The growth potential of the global market is 5.2% through 2033.

What Limits the Growth Potential of the Integrated Food Ingredients Market?

The rising high cost of materials is likely to limit market growth.

Which is the Fastest-growing Region?

The North America is estimated as the fastest-growing region.

What is the Current Market Valuation?

The market is estimated to secure a valuation of USD 69,510 million in 2023.