2016 - 2026
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The Brazil Food Ingredient Market is projected to reach USD 23,150.3 million in 2026, growing at a CAGR of 1.18% during the forecast period (2021 - 2026).
- The COVID-19 pandemic transformed the way consumer eat, and increased the consumers’ desire to know where their food comes from, while food affordability was a greater concern before purchase. The speculations about the demand for food ingredients affected companies like Kerry that laid off about 8 % of its workforce in Brazil due to the coronavirus outbreak. Although the country did not record major food shortages and food supply disruption, the increase in food prices caused certain segments of the population to face food insecurity.
- The demand for synthetic food ingredients from Brazil and other South American countries is declining significantly, as consumers are adopting plant-based food ingredients. Brazilian consumers, especially the millennials, are adopting a healthier and active lifestyle, and thus, there is a significant shift in food preferences, from junk food to more natural and healthier food choices. Consumers are following the labels to get information regarding calories, total fat, cholesterol, sugar, proteins, preservatives, carbohydrate, gluten, and sodium.
- As per the report published by USDA, the Brazilian Health Regulatory Agency (ANVISA) is revising the current nutritional labeling legislation. The objective is to make nutritional data on labels more visible and readable. Therefore, although consumers continue to be price-sensitive and more careful with food purchases, premium products and ingredients with competitive prices, more differentiation, and perceived added value still have a competitive advantage.
Scope of the Report
Food ingredients are added to a variety of food products to perform various functions, such as improving overall safety and effectiveness, maintaining the nutritional value of food products, and improving taste, texture, and appearance of the final food product. Brazil food ingredients market is segmented by type and application. Based on type, the market has been segmented into functional food ingredients, starch and sweetener, flavors and colorants, acidulants and emulsifiers, preservatives, enzymes, edible oil and fats, and other types. Based on application, the Brazil food ingredient market has been segmented into bakery products, beverages, meat, poultry, and seafood, dairy products, confectionery, and other applications.
|Functional Food Ingredients|
|Starch and Sweeteners|
|Flavors and Colorants|
|Acidulants and Emulsifiers|
|Edible Oils and Fats|
|Meat. Poultry, and Seafood|
|Sweet and Savory Snacks|
Key Market Trends
Growing Demand for Natural Food Colorants
With increasing preference for clean label products, the demand for natural colors is expected to increase exponentially during the forecast period. Although natural colors are safer, they have a few fictional issues, like consistency. This production of such colors involve high production costs and lack of raw material availability. Natural colorants have varied applications in functional foods. Food colors find application in many processed foods including candies, snack foods, margarine, cheese, soft drinks, jams/jellies, gelatins, pudding, and pie fillings. The main constraint of the industry is the high cost of production, chemical instability due to fluctuating temperature/pH conditions and increased regulations. Paprika is a natural food color that is ground, and is made from the chili peppers (capsicum). It is used as a garnish in many recipes to create vibrant colors. WILD Flavors and Specialty Ingredients offers a line of natural food and beverage colors, Colors from Nature . These colors provide a natural, heat and light-stable product with appealing color hues.
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Health and Wellness Trend to Uplift Ingredients Value Sales
nHealth is a key driver in Brazil, with increasing rates of obesity, diabetes, and heart disease leading consumers toward more natural, healthy, and organic products. The Brazilian Institute of Geography and Statistics, about 1 in every 4 Brazilian was obese in 2019. Moreover, the shifting demographics of thecountry, which is aging rapidly with falling birth rates and increasing life expectancy, is pushing consumers to be more proactive toward their health. With the rise in health consciousness, consumers are pivoting their interest from carbs to protein-based diets. A recent survey commissioned by Arla Foods Ingredients found that nearly two-thirds of South Americans would be willing to pay extra for food or beverage products that are higher in protein, presenting a clear market opportunity for ingredients suppliers. The survey projected Brazil as the second most prominent country in the region, with about 60% consumers stating to have willingness to spend more for health-oriented food products. Hence, the shift propelled by consumers, food manufacturers, and governing bodies toward a healthier ingredients is anticipated to boost the value sales of the market, considering the higher relative cost of value-added ingredients than conventional.
The market studied is fragmented, and includes regional and global competitors. The market is dominated by players, like Cargill Inc., Koninklijke DSM NV, AAK AB, and DuPont. There are various small and medium local players holding a significant share in the market. The leading players in the market studied enjoy a dominant presence across the country. These players focus on leveraging opportunities posed by food industries to expand their product portfolio, in order to cater to the requirements for various product segments under the food industry. Cargill, one of the global ingredient suppliers, joined hands with major domestic players for sugar production, thus increasing the market share in Brazil. Many companies from Europe and the United States have strong ties with local distributors, and traders, which help them sell products to local sellers.
- In 2020, Cargill Brazil had launched a new fat that can reduce the saturated fat content in ice cream, creams and dairy drinks by up to 30%. Lévia+c was a blend of vegetable oils (mainly soyabean oil) and emulsifiers that had the same physical structure as a traditional fat but a saturated fat content of 35% and a maximum trans fat content of 2%.
- In 2020, Regulators in Brazil have approved a health claim of Kerry probiotic ingredients such as GanedenBC30®, which the company said creates a new opportunity to meet the growing demands for products with digestive health benefits.
- In 2020, ADM established a joint venture with beef processor Marfrig Global Foods called PlantPlus Foods to introduce and cater plant-based products in North American and South American markets. The joint venture accounts for a 70% share of Marfrig, while ADM will own a 30% share. Marfrig will be responsible for production and distribution, while ADM will supply technical expertise, application development, and plant-based ingredients and flavors.
Table of Contents
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.1 Functional Food Ingredients
5.1.2 Starch and Sweeteners
5.1.3 Flavors and Colorants
5.1.4 Acidulants and Emulsifiers
5.1.7 Edible Oils and Fats
5.1.8 Other Types
5.2 By Application
5.2.1 Bakery Products
5.2.3 Meat. Poultry, and Seafood
5.2.4 Dairy Products
5.2.6 Sweet and Savory Snacks
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Most Active companies
6.4 Company Profiles
6.4.1 Olam International
6.4.2 Cargill Incorporated
6.4.3 Koninklijke DSM NV
6.4.4 AAK AB
6.4.5 Sensient Technologies
6.4.6 Ingredion Incorporated
6.4.7 Archer Daniels Midland Company
6.4.8 Kerry Inc.
6.4.9 Tate & Lyle PLC
6.4.10 Associated British Foods PLC
6.4.11 Givaudan SA
6.4.12 Bunge Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON MARKET
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Frequently Asked Questions
What is the study period of this market?
The Brazil Food Ingredient Market market is studied from 2016 - 2026.
What is the growth rate of Brazil Food Ingredient Market?
The Brazil Food Ingredient Market is growing at a CAGR of 0% over the next 5 years.
Who are the key players in Brazil Food Ingredient Market?
- Olam International
- Cargill Inc.
- KONINKLIJKE DSM NV
- AAK AB
Are the major companies operating in Brazil Food Ingredient Market.