Food Ingredients Market
PUBLISHED: 2024 ID: SMRC26894
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Food Ingredients Market

Food Ingredients Market Forecasts to 2030 - Global Analysis By Type (Preservatives, Acidulants, Colorants, Sweeteners, Texturizers, Emulsifiers and Other Types), Function, Source, Distribution Channel, Application, End User and By Geography

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4.4 (40 reviews)
Published: 2024 ID: SMRC26894

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Food Ingredients Market is accounted for $358.1 billion in 2024 and is expected to reach $531.4 billion by 2030 growing at a CAGR of 6.8% during the forecast period. Food ingredients are substances used to produce or enhance the flavor, texture, color, or nutritional value of food products. They include natural and artificial components such as spices, oils, flavorings, sweeteners, preservatives, and emulsifiers. Ingredients can be derived from plants, animals, or synthetically manufactured. They play crucial roles in food processing, impacting the taste, appearance, and shelf life of the final product. Understanding food ingredients is essential for both culinary arts and food safety.

According to the India Brand Equity Foundation (IBEF), 2017, the Indian food processing industry accounts for 32% of the country’s total food market.

Market Dynamics: 

Driver: 

Increasing health and wellness focus

The market is experiencing a surge in focus on health and wellness, driven by growing consumer awareness of nutrition and well-being. This shift is leading to a demand for natural, organic, and functional ingredients that support a healthier lifestyle. Key trends include the incorporation of plant-based proteins, probiotics, and low-sugar alternatives. As consumers seek products that enhance health benefits, manufacturers are reformulating recipes and investing in innovative ingredients to meet these evolving preferences, reshaping the market.

Restraint:

Consumer concerns about food safety

Consumer concerns about food safety are a major challenge in the market. As awareness grows regarding foodborne illnesses and contaminants, there is increasing pressure on manufacturers to ensure the safety and quality of their ingredients. Consumers demand transparency in sourcing and production processes, which compels companies to adopt stringent safety protocols and certifications. This heightened scrutiny drives the need for continuous innovation and rigorous testing to meet safety standards and maintain consumer trust in the market.

Opportunity:

Rising demand for convenience foods

The market is experiencing a significant surge in demand for convenience foods, driven by changing lifestyles and busy schedules. Consumers increasingly seek ready-to-eat and easy-to-prepare options that align with their fast-paced lives. This trend is prompting manufacturers to innovate and offer products that combine convenience with nutritional value. As a result, the market for food ingredients that enhance the flavor, texture, and shelf life of convenience foods is expanding, reflecting a broader shift toward time-saving solutions in food consumption.

Threat:

Fluctuations in raw material prices

Volatile costs for essential inputs like grains, oils, and proteins can disrupt production schedules and inflate ingredient costs, impacting overall profitability. Manufacturers often face difficulties in maintaining price stability for end products, which can strain customer relationships and erode market competitiveness. Additionally, unpredictable raw material prices complicate budgeting and financial planning, forcing companies to adapt strategies to mitigate these economic uncertainties and sustain operational efficiency.

Covid-19 Impact: 

The COVID-19 pandemic significantly impacted the market, causing supply chain disruptions and shortages of raw materials. Lockdowns and restrictions led to decreased production and logistical challenges. Consumer behavior shifted towards home cooking, increasing demand for convenient and shelf-stable ingredients. The pandemic accelerated trends towards digitalization in the supply chain and highlighted the need for greater supply chain resilience and flexibility.

The preservatives segment is expected to be the largest during the forecast period

The preservatives is expected to be the largest during the forecast period due to increasing demand for processed and convenience foods. The shift towards healthier and clean-label products is influencing the market, with consumers and manufacturers showing a preference for natural and organic preservatives over synthetic ones. Additionally, regulatory developments and standards related to food safety are shaping the market dynamics, as compliance with these regulations is essential for market entry and product acceptance.

The bakery segment is expected to have the highest CAGR during the forecast period

The bakery segment is expected to have the highest CAGR during the forecast period due to increasing demand for functional ingredients that not only enhance flavor and texture but also offer nutritional benefits. Health-conscious consumers are driving the demand for ingredients like whole grains, low-sugar, and gluten-free options, leading to innovations in ingredient formulations. Additionally, the rise in convenience foods and the growing popularity of artisanal and specialty baked goods are further fueling demand.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by increasing consumer demand for convenience foods. Key segments include flavorings, colorants, preservatives, and functional ingredients, with a notable rise in plant-based and clean-label products. The market benefits from advanced food processing technologies and a strong emphasis on health and wellness. Companies are investing in R&D to cater to evolving consumer preferences, enhancing the market's dynamism and competitiveness.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period due to rising consumer demand for nutritious food products. This market is driven by the increasing population, and changing dietary preferences that emphasize health and wellness. The rise in disposable incomes and the influence of Western dietary trends further contribute to market expansion. Additionally, technological advancements in food processing and ingredient innovation are supporting market growth by offering improved functionality and quality.

Key players in the market

Some of the key players in Food Ingredients market include Archer Daniels Midland Company (ADM), BASF SE, Cargill, Incorporated, Ingredion Incorporated, Tate & Lyle PLC, DuPont de Nemours, Inc., Syngenta AG, Kerry Group plc, Ajinomoto Co., Inc., SABIC, DSM Nutritional Products, Naturex S.A., Sensient Technologies Corporation, Kalsec Inc., Tereos S.A., MGP Ingredients, Inc., Hawkins Watts Limited and Lonza Group Ltd.

Key Developments:

In May 2024, ADM has launched a new online storefront at ADMbuydirect.com that provides accessibility to ingredients for producers in the US food industry. It is designed for audiences such as bakers, chefs, brewers, entrepreneurs and product manufacturers.

In February 2024, Ingredion Incorporated announced NOVATION® Indulge 2940 starch, expanding their line of clean label texturizers with the first non-GMO functional native corn starch that provides a unique texture for gelling and co-texturizing for popular dairy and alternative dairy products and desserts.

Types Covered:
• Preservatives
• Acidulants
• Colorants
• Sweeteners
• Texturizers
• Emulsifiers
• Other Types

Functions Covered:
• Preservation
• Flavor Enhancement
• Texture Improvement
• Nutritional Enhancement

Sources Covered:
• Natural
• Synthetic

Distribution Channels Covered:
• Direct Sales
• Distributors
• Retail
• Online

Applications Covered:
• Cakes
• Cheese
• Chips
• Sauces
• Alcoholic Drinks
• Chocolates
• Other Applications

End Users Covered:
• Bakery and Confectionery
• Dairy Products
• Beverages
• Snacks
• Meat Products
• Other End Users 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary         
           
2 Preface          
 2.1 Abstract         
 2.2 Stake Holders        
 2.3 Research Scope        
 2.4 Research Methodology       
  2.4.1 Data Mining       
  2.4.2 Data Analysis       
  2.4.3 Data Validation       
  2.4.4 Research Approach       
 2.5 Research Sources        
  2.5.1 Primary Research Sources      
  2.5.2 Secondary Research Sources      
  2.5.3 Assumptions       
           
3 Market Trend Analysis        
 3.1 Introduction        
 3.2 Drivers         
 3.3 Restraints        
 3.4 Opportunities        
 3.5 Threats         
 3.6 Application Analysis       
 3.7 End User Analysis        
 3.8 Emerging Markets        
 3.9 Impact of Covid-19        
           
4 Porters Five Force Analysis        
 4.1 Bargaining power of suppliers       
 4.2 Bargaining power of buyers       
 4.3 Threat of substitutes       
 4.4 Threat of new entrants       
 4.5 Competitive rivalry        
           
5 Global Food Ingredients Market, By Type      
 5.1 Introduction        
 5.2 Preservatives        
 5.3 Acidulants        
 5.4 Colorants         
 5.5 Sweeteners        
 5.6 Texturizers        
 5.7 Emulsifiers        
 5.8 Other Types        
           
6 Global Food Ingredients Market, By Function      
 6.1 Introduction        
 6.2 Preservation        
 6.3 Flavor Enhancement       
 6.4 Texture Improvement       
 6.5 Nutritional Enhancement       
           
7 Global Food Ingredients Market, By Source      
 7.1 Introduction        
 7.2 Natural         
 7.3 Synthetic         
           
8 Global Food Ingredients Market, By Distribution Channel     
 8.1 Introduction        
 8.2 Direct Sales        
 8.3 Distributors        
 8.4 Retail         
 8.5 Online         
           
9 Global Food Ingredients Market, By Application      
 9.1 Introduction        
 9.2 Cakes         
 9.3 Cheese         
 9.4 Chips         
 9.5 Sauces         
 9.6 Alcoholic Drinks        
 9.7 Chocolates        
 9.8 Other Applications        
           
10 Global Food Ingredients Market, By End User      
 10.1 Introduction        
 10.2 Bakery and Confectionery       
 10.3 Dairy Products        
 10.4 Beverages        
 10.5 Snacks         
 10.6 Meat Products        
 10.7 Other End Users        
           
11 Global Food Ingredients Market, By Geography      
 11.1 Introduction        
 11.2 North America        
  11.2.1 US        
  11.2.2 Canada        
  11.2.3 Mexico        
 11.3 Europe         
  11.3.1 Germany        
  11.3.2 UK        
  11.3.3 Italy        
  11.3.4 France        
  11.3.5 Spain        
  11.3.6 Rest of Europe       
 11.4 Asia Pacific        
  11.4.1 Japan        
  11.4.2 China        
  11.4.3 India        
  11.4.4 Australia        
  11.4.5 New Zealand       
  11.4.6 South Korea       
  11.4.7 Rest of Asia Pacific       
 11.5 South America        
  11.5.1 Argentina       
  11.5.2 Brazil        
  11.5.3 Chile        
  11.5.4 Rest of South America      
 11.6 Middle East & Africa       
  11.6.1 Saudi Arabia       
  11.6.2 UAE        
  11.6.3 Qatar        
  11.6.4 South Africa       
  11.6.5 Rest of Middle East & Africa      
           
12 Key Developments         
 12.1 Agreements, Partnerships, Collaborations and Joint Ventures    
 12.2 Acquisitions & Mergers       
 12.3 New Product Launch       
 12.4 Expansions        
 12.5 Other Key Strategies       
           
13 Company Profiling         
 13.1 Archer Daniels Midland Company (ADM)      
 13.2 BASF SE         
 13.3 Cargill, Incorporated       
 13.4 Ingredion Incorporated       
 13.5 Tate & Lyle PLC        
 13.6 DuPont de Nemours, Inc.       
 13.7 Syngenta AG        
 13.8 Kerry Group plc        
 13.9 Ajinomoto Co., Inc.        
 13.10 SABIC         
 13.11 DSM Nutritional Products       
 13.12 Naturex S.A.        
 13.13 Sensient Technologies Corporation      
 13.14 Kalsec Inc.        
 13.15 Tereos S.A.        
 13.16 MGP Ingredients, Inc.       
 13.17 Hawkins Watts Limited       
 13.18 Lonza Group Ltd.        
           
List of Tables          
1 Global Food Ingredients Market Outlook, By Region (2022-2030) ($MN)    
2 Global Food Ingredients Market Outlook, By Type (2022-2030) ($MN)    
3 Global Food Ingredients Market Outlook, By Preservatives (2022-2030) ($MN)   
4 Global Food Ingredients Market Outlook, By Acidulants (2022-2030) ($MN)   
5 Global Food Ingredients Market Outlook, By Colorants (2022-2030) ($MN)   
6 Global Food Ingredients Market Outlook, By Sweeteners (2022-2030) ($MN)   
7 Global Food Ingredients Market Outlook, By Texturizers (2022-2030) ($MN)   
8 Global Food Ingredients Market Outlook, By Emulsifiers (2022-2030) ($MN)   
9 Global Food Ingredients Market Outlook, By Other Types (2022-2030) ($MN)   
10 Global Food Ingredients Market Outlook, By Function (2022-2030) ($MN)    
11 Global Food Ingredients Market Outlook, By Preservation (2022-2030) ($MN)   
12 Global Food Ingredients Market Outlook, By Flavor Enhancement (2022-2030) ($MN)  
13 Global Food Ingredients Market Outlook, By Texture Improvement (2022-2030) ($MN)  
14 Global Food Ingredients Market Outlook, By Nutritional Enhancement (2022-2030) ($MN)  
15 Global Food Ingredients Market Outlook, By Source (2022-2030) ($MN)    
16 Global Food Ingredients Market Outlook, By Natural (2022-2030) ($MN)    
17 Global Food Ingredients Market Outlook, By Synthetic (2022-2030) ($MN)   
18 Global Food Ingredients Market Outlook, By Distribution Channel (2022-2030) ($MN)  
19 Global Food Ingredients Market Outlook, By Direct Sales (2022-2030) ($MN)   
20 Global Food Ingredients Market Outlook, By Distributors (2022-2030) ($MN)   
21 Global Food Ingredients Market Outlook, By Retail (2022-2030) ($MN)    
22 Global Food Ingredients Market Outlook, By Online (2022-2030) ($MN)    
23 Global Food Ingredients Market Outlook, By Application (2022-2030) ($MN)   
24 Global Food Ingredients Market Outlook, By Cakes (2022-2030) ($MN)    
25 Global Food Ingredients Market Outlook, By Cheese (2022-2030) ($MN)    
26 Global Food Ingredients Market Outlook, By Chips (2022-2030) ($MN)    
27 Global Food Ingredients Market Outlook, By Sauces (2022-2030) ($MN)    
28 Global Food Ingredients Market Outlook, By Alcoholic Drinks (2022-2030) ($MN)   
29 Global Food Ingredients Market Outlook, By Chocolates (2022-2030) ($MN)   
30 Global Food Ingredients Market Outlook, By Other Applications (2022-2030) ($MN)   
31 Global Food Ingredients Market Outlook, By End User (2022-2030) ($MN)    
32 Global Food Ingredients Market Outlook, By Bakery and Confectionery (2022-2030) ($MN)  
33 Global Food Ingredients Market Outlook, By Dairy Products (2022-2030) ($MN)   
34 Global Food Ingredients Market Outlook, By Beverages (2022-2030) ($MN)   
35 Global Food Ingredients Market Outlook, By Snacks (2022-2030) ($MN)    
36 Global Food Ingredients Market Outlook, By Meat Products (2022-2030) ($MN)   
37 Global Food Ingredients Market Outlook, By Other End Users (2022-2030) ($MN)   
           
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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