Specialty Food Ingredients Market Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Specialty Food Ingredients Market Analysis & Share. The market is Segmented by Product Type (Functional Food Ingredient, Specialty Starch and Texturants, Sweeteners, Food Flavors and Enhancers, Acidulants, Preservatives, Emulsifiers, Colorants, Enzymes, Proteins, Specialty Fats and Oils, Food Hydrocolloids and Polysaccharides, Anti-Caking Agents, Yeast, and Food-Grade Glycerin), Application (Bakery Products, Beverages, Meat, Poultry and Seafood, Dairy Products, Confectionery, Fats and Oils, Dressings/Condiments/Sauces/Marinade, Pasta, Soup and Noodles, Prepared Food, Plant-based Food and Beverage, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The market size and forecasts are provided in terms of value (USD million) for all the above segments.

Specialty Food Ingredients Market Size

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Specialty Food Ingredients Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 80.98 Billion
Market Size (2029) USD 104.83 Billion
CAGR (2024 - 2029) 5.30 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Specialty Food Ingredients Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Specialty Food Ingredients Market Analysis

The Specialty Food Ingredients Market size is estimated at USD 80.98 billion in 2024, and is expected to reach USD 104.83 billion by 2029, growing at a CAGR of 5.30% during the forecast period (2024-2029).

Over the medium term, the industry for specialty food ingredients essentially thrives on the wider technological and functional benefits that these ingredients confer in terms of high quality, safety, affordability, nutrition, and deliciousness of processed food products. The rise in popularity of ready-to-cook and ready-to-eat food products is driving the market for preservatives across the world. Additionally, as the "clean label" trend is thriving in many consumer product categories, Massachusetts-based biotech company, Conagen announced the launch of a natural preservative, p-Coumaric Acid (PCA), in August 2021.

Moreover, the preference for certain food products is identifiable with some consumers' identities, especially in developed economies, which drives the demand for specialty food ingredients. There is a strong correlation between the specialty food ingredient market and the processed food market, with the former conferring functional benefits and customized value-addition per the end-user applications. The globally recognized companies that manufacture specialty food ingredients utilize smart technology or intellectual property to develop innovative ingredients and solutions. However, new product development is a highly capital-intensive process.

Specialty Food Ingredients Market Trends

Escalated Demand for Fortified Processed Food

Fortified foods contain essential nutrients which enhance their nutritional value and help address a nutrient deficiency. Increasing demand for fortified foods is creating an opportunity for manufacturers, which in turn is boosting the demand for specialty functional ingredients like vitamins, minerals, protein, omega-3, and others. Consumers increasingly opted for foods and beverages with specific healthy ingredients. Fiber, protein, vitamins and minerals, calcium, probiotics, and prebiotics, are healthy ingredients that most consumers try to add to their diet. Dietary fiber ingredients are gaining attention from consumers as they are perceived as healthy, and thus demand for fiber-rich food products is increasing. For instance, in 2021, according to International Food Information Council (IFIC), the food and health survey showed that 56% of consumers actively try to consume fiber.

To cater to the rising demand, manufacturers of food additives and specialty food ingredients adapted the production of organic and fortified additives that can be helpful while developing healthy food products. These organic food additives found their applications in varied products, including egg replacement in low- and high-fat vegan food, dressings, white cooking sauces, ready meals, and other applications. Thus, food and beverage manufacturers have been increasingly reformulating their products to meet the changing consumer demand for natural ingredients. In October 2022, Roquette launched a new line of organic pea ingredients, including organic pea protein and organic pea starch adapted for non-dairy or alternative meat and specialized nutrition category. The company aimed to cater to the demand of food manufacturers, who are focused on developing products with organic ingredients to cater to consumers' growing demand for healthy and sustainable food.

Specialty Food Ingredients Market - Consumer Knowledge Regarding Fortified Food & Beverages, United States, 2021

North America Holds the Largest Market Share

The increasing incidence of chronic and lifestyle health issues among a significant part of the population and the growing adoption of healthier lifestyles fueled the demand for food products with functional and specialty ingredients in the region. Moreover, specialty foods are outpacing their non-specialty counterparts in almost every category due to a rise in fortified food trends. The Canadian food specialty ingredients industry has a lot of potential because of the rising demand for bakery, confectionery, and beverage products. According to the U.S. Department of Agriculture (2022), baked goods, fresh fruits and vegetables, and food preparation are among the top export commodities to Canada. Also, Health Canada has currently authorized the use of 850 distinct food additives nationwide, which drives their use in the food industry.

Additionally, the growing trend of veganism, especially in Europe and the North American region, provides food manufacturers with opportunities. Players operating in the market are establishing strategic partnerships with food manufacturers to supply various ingredients that can support food companies in developing products in line with consumer demand. In September 2022, Shiru Inc., a functional ingredient manufacturer, partnered with Puratos to develop and evaluate next-generation egg replacement. The partnership aimed to formulate new ingredient alternatives for plant-based baked foods using Shiru's protein discovery process. Shiru uses bioinformatics and machine learning to sift through millions of naturally-occurring proteins and find a potential functional ingredient.

Specialty Food Ingredients Market - Market Size (%), Global, 2022

Specialty Food Ingredients Industry Overview

The specialty food ingredients market is moderately fragmented. Major players in the market include Cargill Incorporated, Kerry Group PLC, and Koninklijke DSM NV. Product innovation and development is the most adopted strategy by the players operating in the market, followed by mergers and acquisitions and expansions for increasing their visibility and product portfolios. Manufacturers focus on providing all-natural specialty ingredients that increase the product's shelf-life and enable the manufacturer to label its products as '100% all-natural', addressing consumer demand for 'clean labels.'

Specialty Food Ingredients Market Leaders

  1. Cargill, Incorporated

  2. Kerry Group PLC

  3. International Flavors & Fragrances

  4. Koninklijke DSM NV

  5. Archer Daniels Midland Company

*Disclaimer: Major Players sorted in no particular order

Specialty Food Ingredients Market Concentration
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Specialty Food Ingredients Market News

  • Nov 2022: Tate & Lyle launched a new sweetener, Erytesse erythritol. It announced that through a strategic partnership distribution agreement with a leading supplier of erythritol, this addition would expand its ability to help customers deliver on consumer demand for healthier and sugar and calorie-reduced products.
  • Oct 2022: International Flavors and Fragrance Inc. invested USD 30 million to expand its regional footprint in Singapore. The Nourish, Health & Biosciences, Scent, and Pharma Solutions business divisions are all integrated into the new Singapore innovation center. It is the largest IFF property in the area at almost 11,000 sq m.
  • Sept 2022: Royal DSM signed an agreement to acquire First Choice Ingredients, a leading supplier of dairy-based savory flavorings, for an enterprise value of USD 453 million. First Choice Ingredients develops clean-label, fermented dairy and dairy-based savory flavorings for taste and functional solutions across various applications.

Specialty Food Ingredients Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Functional Food Ingredient

      2. 5.1.2 Specialty Starch and Texturants

      3. 5.1.3 Sweetener

      4. 5.1.4 Food Flavors and Enhancers

      5. 5.1.5 Acidulants

      6. 5.1.6 Preservatives

      7. 5.1.7 Emulsifiers

      8. 5.1.8 Colorants

      9. 5.1.9 Enzymes

      10. 5.1.10 Cultures

      11. 5.1.11 Proteins

      12. 5.1.12 Speciality Fats and Oils

      13. 5.1.13 Food Hydrocolloids and Polysaccharides

      14. 5.1.14 Anti-Caking Agents

      15. 5.1.15 Yeast

      16. 5.1.16 Food-Grade Glycerin

    2. 5.2 Application

      1. 5.2.1 Bakery Products

      2. 5.2.2 Beverages

      3. 5.2.3 Meat, Poultry and Seafood

      4. 5.2.4 Dairy Products

      5. 5.2.5 Confectionery

      6. 5.2.6 Fats and Oils

      7. 5.2.7 Dressings/Condiments/Sauces/Marinade

      8. 5.2.8 Pasta, Soup and Noodles

      9. 5.2.9 Prepared Food

      10. 5.2.10 Plant-based Food & Beverage

      11. 5.2.11 Other Applications

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Spain

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Russia

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Strategies Adopted by Leading Players

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Cargill Incorporated

      2. 6.3.2 International Flavors & Fragrances Inc.

      3. 6.3.3 Tate & Lyle PLC

      4. 6.3.4 Kerry Group PLC

      5. 6.3.5 Archer Daniels Midland Company

      6. 6.3.6 Koninklijke DSM NV

      7. 6.3.7 Ingredion Incorporated

      8. 6.3.8 Sensient Technologies

      9. 6.3.9 Axiom Foods Inc.

      10. 6.3.10 Novozymes A/S

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Specialty Food Ingredients Industry Segmentation

Specialty food ingredients offer technological and functional benefits and provide consumers with a wide range of tasty, safe, healthy, affordable, qualitative, and sustainably produced food options. 

The Specialty Food Ingredients Market is Segmented by Product Type (Functional Food Ingredient, Specialty Starch and Texturants, Sweeteners, Food Flavors and Enhancers, Acidulants, Preservatives, Emulsifiers, Colorants, Enzymes, Proteins, Specialty Fats and Oils, Food Hydrocolloids and Polysaccharides, Anti-Caking Agents, Yeast, and Food-Grade Glycerin), Application (Bakery Products, Beverages, Meat, Poultry and Seafood, Dairy Products, Confectionery, Fats and Oils, Dressings/Condiments/Sauces/Marinade, Pasta, Soup and Noodles, Prepared Food, Plant-based Food and Beverage, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers market size and forecasts in terms of value in USD million for all the above segments.

Product Type
Functional Food Ingredient
Specialty Starch and Texturants
Sweetener
Food Flavors and Enhancers
Acidulants
Preservatives
Emulsifiers
Colorants
Enzymes
Cultures
Proteins
Speciality Fats and Oils
Food Hydrocolloids and Polysaccharides
Anti-Caking Agents
Yeast
Food-Grade Glycerin
Application
Bakery Products
Beverages
Meat, Poultry and Seafood
Dairy Products
Confectionery
Fats and Oils
Dressings/Condiments/Sauces/Marinade
Pasta, Soup and Noodles
Prepared Food
Plant-based Food & Beverage
Other Applications
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Spain
Italy
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
United Arab Emirates
South Africa
Rest of Middle East & Africa
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Specialty Food Ingredients Market Research FAQs

The Specialty Food Ingredients Market size is expected to reach USD 80.98 billion in 2024 and grow at a CAGR of 5.30% to reach USD 104.83 billion by 2029.

In 2024, the Specialty Food Ingredients Market size is expected to reach USD 80.98 billion.

Cargill, Incorporated, Kerry Group PLC, International Flavors & Fragrances, Koninklijke DSM NV and Archer Daniels Midland Company are the major companies operating in the Specialty Food Ingredients Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Specialty Food Ingredients Market.

In 2023, the Specialty Food Ingredients Market size was estimated at USD 76.90 billion. The report covers the Specialty Food Ingredients Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Specialty Food Ingredients Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Specialty Food Ingredients Industry Report

Statistics for the 2024 Specialty Food Ingredients market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Specialty Food Ingredients analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Specialty Food Ingredients Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)