Specialty food ingredients emulsify, preserves, and provide color and texture to improve processed or cooked food's nutritional value. With these factors, the industry can meet the consumer's demand. This market essentially flourishes on the broad technological and functional benefits that these ingredients speak, in terms of high quality, affordability, safety, nutrition, and deliciousness of the processed food products. There is a strong correlation between the processed food market and the specialty food ingredient market. The former stated about functional benefits and customized value-addition as per the end-user applications.
The specialty food ingredients market size was worth US$ XX billion in 2019 and further expected to reach US$ XX billion by 2027, with a CAGR of XX% during the forecast period (2022-2029).
Rising demand Plant-based Specialty Food Ingredients
The increasing trend for vegan and organic food in the market and the people's changing lifestyle is the driving factor for the specialty food ingredient market. This food contains proper nutrients as people become more health-conscious and prefer organic and nutritious food. This factor will also drive demand for fortified food.
Improvement in Technology by several companies
The global market has witnessed a large number of participants from multinational companies. Several companies are actively taking over and acquiring to increase their product portfolio to meet current changing customer needs and preferences based on food manufacturers' customized requirements. MNCs are acquiring medium or small-sized companies specializing in technological development but suffer from a lack of funds to expand the same. Such type of initiatives is in trend and have led the entire market.
COVID-19 Impact Analysis
COVID-19 pandemic has adversely impacted companies operating in dressings, condiments, sauces, confectionery, and beverages verticals. Manufacturers are continuously trying to reduce production costs to sustain competitive prices and manage healthy revenue cycles. Moreover, increasing raw materials prices and supply chain disruptions amidst the COVID-19 outbreak may negatively influence the global specialty food ingredients market. Major companies faced revenue loss during the COVID 19, which has declined the overall market growth.
Based on the type, the specialty food ingredients market has been classified into functional food ingredients, specialty starch and texturants, sweetener, flavors, acidulants, preservative, and others.
The functional food ingredients segment lead the specialty food ingredients market
The functional food ingredients segment accounted for the highest market share worldwide and highlighted its dominance in the market over the forecast period. Functional food ingredients include acidulants, antioxidants, preservatives, and other constituents that add nutritional qualities to foodstuff. Moreover, the rising geriatric population, healthcare costs, consumer awareness towards healthy living, and changing sedentary lifestyles are some factors that are estimated to lead to the segment’s growth.
Based on the applications, the specialty food ingredients market has been classified into beverages, sauces, dressings, and condiments, bakery, dairy, confectionery, dried processed food, and others.
The beverages segment lead the specialty food ingredients market
The beverage segment accounted for the highest market share worldwide and highlighted its dominance in the market over the forecast period. The segment's growth is primarily driven by the increasing urban population coupled with rising disposable income is increasing the penetration for packaged and convenience food items. Additionally, the rising rate of diabetes and obesity in both developed and developing countries prompts the consumer to focus more on healthier lifestyles and demand for health and wellness food ingredients from food and beverage manufacturing companies. This is also driving the global specialty food ingredients market to some extent.
Based on geography, the study analyzes the specialty food ingredients market in the global market, including Asia-Pacific, Europe, North America, South America, and the Middle East & Africa.
North America leads the specialty food ingredients market throughout the forecast period
North America dominates the specialty food ingredients market in terms of value and volume, primarily driven due to the high population in the region, increased purchasing capacity, and consumers looking for various functional and comfort food. The shift in people's consumption habits due to increased awareness about healthy food and beverages also increases the demand for specialty food ingredients. This has created the need for functional foods, specialty enzymes, proteins, and sugar substitutes. The millennial population is increasing the demand for immunity boosting food & beverages, which is again a driving factor for the specialty food ingredient market.
However, the Asia Pacific region is expected to witness the highest growth in the coming future. Emerging markets of China, India, and Brazil are further expected to boost the global specialty food ingredients market. Increasing the urban population coupled with rising disposable income levels increases the penetration for packaged and convenience food items, increasing the demand for specialty food ingredients.
International players dominate the global specialty food ingredients market. DuPont stands at a prominent position in the market, closely followed by Cargill. The key players providing growth to the global market include Cargill, ADM, DuPont, Ingredion, Kerry Group Plc, DSM, Chr. Hansen, Sensient, Tate & Lyle, Givaudan, Biocatalysts, Omega Protein, Enzyme Supplies, Brenntag, Sichuan Weizhinong Food Co., Ltd, and Sichuan Hengxing Food Co., Ltd
Stringent regulations globally are seen as more favorable for the organic or naturally derived food ingredients than the artificially derived ingredients. The initial apprehension in the present scenario is the preparation procedures of the organic raw materials and minimal consumption of artificially derived elements with strict adherence to the regulations.
Overview: Cargill provides agricultural products. The company produces grains and oilseeds, provides farmer services and risk management solutions, and offers animal nutrition, biofuels, meat and poultry, food, and industrial products. Cargill serves customers worldwide. It offers various products under carbon solutions, animal nutrition, food & beverage, bioindustrial, food service, agriculture, risk management, meat & poultry, industrial, beauty, pharmaceutical, and transportation. In the food & beverage segment, it further provides ingredients, resources, and expertise for creating successful food and beverage products
Product Portfolio: The company product portfolio comprises functional food ingredients, specialty starch, texturants, sweetener, flavors, acidulants, and preservative, among others.
The specialty food ingredients market report would provide access to an approx. 60 market data table, 56 figures, and 270 pages.