According to Future Market Insights research, the global specialty food ingredients market is expected to grow at a CAGR of 4.8% during the projected period. The overall specialty food ingredients market share is also projected to increase from USD 88.6 billion in 2023 to USD 142.2 billion by 2033.
Specialty ingredients are vital additives that assure the health of a wide range of processed meals by performing a number of tasks and have increased the taste and nutritious food quality. Aside from these benefits, specialized food additives help to reduce downstream and value-added losses by having a strong impact on food processing and storage that is projected to be the major factor for the specialty food ingredient market growth in these years
Specialty components, which include a wide range of macro ingredients and particularly proteins, all perform diverse functions to improve the diet's quality and flavor, giving rise to specialty food ingredient market trends in non-traditional regions as well.
| Attributes | Details |
|---|---|
| Market Size Value in 2023 | USD 88.6 billion |
| Market Forecast Value in 2033 | USD 142.2 billion |
| Global Growth Rate (2023 to 2033) | 4.8% CAGR |
| Forecast Period | 2023 to 2033 |
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As per FMI - market research over the last 5 years, the global market value for specialty food ingredients has been boosted owing to increased application of the product in various areas, including food, beverages, etc. Also, because of the growing population of health-conscious customers and their changing dietary preferences, the worldwide market is expected to grow at a faster rate than the previous decade, as evident from the previous specialty food ingredient market survey report.
Even with the increased need for specialist components, the COVID-19 pandemic was seen affecting the market growth in the first few months of lockdowns, where significant firms and organizations around the world revealed their incapacity to combat logistical concerns. However, the market has recovered completely following the control of the pandemic. Furthermore, the pandemic created possibilities for several private/local firms to enter the market to meet the inflated demand for food goods, which benefited the specialty food ingredient manufacturer.
The specialized ingredients for the food market are growing at a rapid pace after the pandemic years, thanks to their adaptability and wide range of uses in commercial food preparation points. Specialty ingredients are used to give processed or cooked food products their own texture, color, flavor, functionality, and nutrition. These days, specialty ingredients are sought because of their unique properties and features, such as nutritional enhancement, coloring, emulsification, enhancing stability and shelf life, and preservation.
However, an increase in the consumption of convenient meals, as well as greater spending power and living standards among the growing urban population, is predicted to drive the worldwide specialty food ingredients market over the forecasted years.
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The greatest market for specialty food ingredients is predicted to remain in North America, with 2023 sales expected to total over USD 24,000 million. The market for specialty food ingredients is anticipated to develop at the quickest rate in Asia Pacific outside of Japan.
The demand for healthy foods is rising as the American public grows more health conscious, which has prompted manufacturers to release goods using specialty food ingredients. Moreover in the United States, specialty foods are outperforming their non-specialty ingredient rivals in almost every category as a result of people's growing knowledge of food quality and enhancement.
Also in line with this development, IMCD Group noted that it would open its new American headquarters in 2020 in the Cleveland neighborhood of Westlake, Ohio which has emerged to be a global specialty ingredient supplier today. Siting this growing sales of specialty food ingredients, the firm opened a second site to accommodate its expanding operations and to support its global digitization initiatives, which serve markets all throughout the United States.
Germany's specialty food ingredients market is projected to grow at a CAGR of around 13.4% over the next ten years. People in Germany and the majority of other developed European countries have easy access to low-cost, high-calorie fast food and readymade meals. As a result, the country's average body mass index (BMI) has risen, creating a huge demand for specialty food ingredients.
On the other hand, the functional food ingredients segment of the German market is being driven by rapid technological breakthroughs and companies' efforts to develop goods with multifunctional applications.
Brazil is noted for its growing consumer purchasing power and desire for innovative, safe, and high-quality food items. Premium food consumption has risen in tandem with consumer income levels that are anticipated to have given rise to specialty food ingredients market opportunities in recent years.
Owing to the rising prevalence of overweight and obesity among Brazilian consumers, the demand for fortified drinks and functional meals has also surged. Furthermore, an older population is becoming increasingly interested in achieving wellness through a healthy diet, resulting in increased sales of specialty food ingredients in Brazil and Latin America as well.
In China, because of the popularity of on-the-go drinks and the demand for healthy drinks as the desired class of food options, particularly handy container shapes have been established. Non-alcoholic ferments are widely used as specialized food components in beverages, including soft drinks and malt-based juices, resulting in an emerging trend in the specialty food ingredient market in China as well as other South East Asian countries.
As malt-based juices are refreshing and nutritious alternatives to carbonated beverages, the use of specialty food ingredients for such drinks has witnessed a significant rise in the last few years with the ever-increasing youth population of this region. Furthermore, Chinese customers are also health-conscious and seek organic ingredients in their beverages, leading to the introduction of new products and ingredient advancements, which has boosted the specialty food ingredient market growth.
The greatest market for specialty food ingredients is expected to be bakeries & confectionaries, closely followed by convenience food items. Nevertheless, until 2023, functional food, drinks, and nutritional supplement sales are expected to see a considerably greater CAGR than those of specialty food components used in meat products.
Due to a growing preference for clean-label products, natural colorants are expected to expand rapidly in demand all through the projection period. This segment of the global specialty food ingredient market is, till now, the highest-selling category. However, natural colors are safe but have some consistency issues that have limited its sale and made room for other segments to contribute. Also, the creation of such additive colors is getting expensive day by day due to the paucity of raw materials that may hamper the overall specialty food ingredient market future trends.
Enzymes are utilized because of their highly active nature, allowing them to control flavor, texture, processing time, shelf life, and fewer chemical additives. This segment of the specialty food ingredient industry is known for being innovative, technological, and specialized, and its development drivers include changing consumer lifestyles and rising demand for convenience foods.
Adopting novel technologies further enhances resource efficiency in most categories of the specialty food ingredient market share. The emergence of new technologies, such as the decaffeination of coffee beans, has contributed to furthering the popularity of specialty food ingredient substances, reducing induced gastric reflux in healthy people and patients.
With the ongoing trend for organic products, various technologies have been adopted to process organic specialty food ingredients, flavor components, and reagents. Organic food demand is changing, which is significant market development.
| Category | Sensory Ingredients |
|---|---|
| Leading Segment | Enzymes |
| Market Share | 32.1% |
| Category | Functional Ingredients |
|---|---|
| Leading Segment | Vitamins |
| Market Share | 28.9% |
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Due to numerous fully integrated multinationals with well-established distribution and procurement systems worldwide, the global specialty food ingredients market is tremendously competitive.
To combat nutritional deficits in the Asia Pacific and international markets, multinational food firms are adopting a variety of actions for fortifying food supplies. Companies like Nestlé and Unilever have adopted a collaborative strategy to include macronutrients and micronutrients in their food products. In order to address nutritional inadequacies, Nestlé (Switzerland) entered into a relationship with the Harvest Plus program (biofortification) and agricultural research associates in Indian states that could prove to be a game changer for the specialty food ingredient market share in this region.
Some of the primary strategies used by significant specialized food ingredient companies operating in the market are the introduction of new products and technical advancements. Technological advancements are also getting driven by several new start-ups entering the market.
The specialty food ingredients market key players are quickly embracing various technologies to combine functional and aromatic components to create better effective, and tailored food items for customers to satisfy the expanding culinary supply. For instance, the USDA created recombinant fungal strains that generate beta-carotene and lycopene using a novel universal cloning technique, stimulating the need for functional carotenoids.
On the other hand, organically derived or organic food ingredients are viewed as having more stringent standards than artificially created food ingredients around the world. The main concern in the current situation is the organic raw material preparation techniques, the use of minimal artificially generated ingredients, and rigorous adherence to rules.
International Flavours & Fragrances announced in 2021 that its merger with DuPont's Nutrition & Biosciences Business had been completed. The company is intended to have leadership positions in high-value ingredients and solutions for the Food & Beverage, Home & Personal Care, and Health & Wellness markets as a result of the transaction and the combined portfolio.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2023 |
| Market Analysis | USD Million for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; Oceania; Middle East & Africa (MEA) |
| Key Countries Covered | The USA, Canada, Mexico, Germany, The UK, France, Italy, Spain, China, Japan, India, South Korea, Australia, Brazil, Argentina, South Africa, UAE |
| Key Segments Covered | Nature, Type, End-Use, Distribution Channel, Region |
| Key Companies Profiled | Evonik; Archer Daniels Midland Company; PPG Industries; KF Specialty Ingredients; Koninklijke DSM N.V.; Specialty Commodities Inc.; Ingredion Incorporated; Prinova Group; LLC; Naturex; Kerry Group Plc; E. I. Dupont De Nemours and Company; Cargill Inc.; Frutarom; Woodland Foods Inc.; Tate & Lyle Plc; AmTech Ingredients LLC; Roquette Frères S.A.; Vidhi Specialty Food Ingredients Limited; Sensient Technologies Corporation. |
| Report Coverage | Market Forecast, Company Share Analysis, Competitive Landscape, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The United States, Germany, and Japan dominate the global market.
The market is forecast to register a CAGR of 4.8% through 2033.
From 2018 to 2022, the market recorded a CAGR of 4.8%.
Technological advancement disrupts the current market trends.
The global market size is expected to reach USD 142.2 million by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 5.1. Organic 5.2. Conventional 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 6.1. Antioxidants 6.2. Colorants 6.3. Emulsifiers 6.4. Enzymes 6.5. Flavors 6.6. Minerals 6.7. Preservatives 6.8. Vitamins 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Food and Beverages 7.1.1. Bakery 7.1.2. Confectionery 7.1.3. Beverages 7.1.4. Dietary Supplements 7.1.5. Convenience Foods 7.1.6. Dairy & Frozen Foods 7.1.7. Functional Foods 7.1.8. Meat Products 7.2. Personal Care 7.3. Nutrition and Health 7.3.1. Nutraceutical Ingredients 7.3.2. Active Pharmaceutical Ingredients 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 8.1. Direct 8.2. Indirect 8.2.1. Hypermarkets 8.2.2. Supermarkets 8.2.3. Convenience Stores 8.2.4. Specialty Retail Stores 8.2.5. Online Retailers 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Evonik 19.2. Archer Daniels Midland Company 19.3. PPG Industries 19.4. KF Specialty Ingredients 19.5. Koninklijke DSM N.V. 19.6. Specialty Commodities Inc. 19.7. Ingredion Incorporated 19.8. Prinova Group 19.9. LLC 19.10. Naturex 19.11. Kerry Group Plc 19.12. E. I. Dupont De Nemours and Company 19.13. Cargill Inc. 19.14. Frutarom 19.15. Woodland Foods Inc. 19.16. Tate & Lyle Plc 19.17. AmTech Ingredients LLC 19.18. Roquette Frères S.A. 19.19. Vidhi Limited 19.20. Sensient Technologies Corporation 20. Assumptions & Acronyms Used 21. Research Methodology
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Specialty Food Ingredients Market
