|Study Period:||2016 -2027|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global specialty food ingredients market is projected to grow at a CAGR of 5.30% during the forecast period (2022-2027).
The COVID-19 pandemic was seen disrupting the market growth, in the initial few months of lockdowns, where even with the rising demand for specialty ingredients, key players and organizations across the globe reported their inability to battle logistical concern. However, the market has been recovering making the impact marginal over the past few months, as the food & beverage sector continued to combat new daily challenges, supply chain disruption being major of it. Furthermore, the pandemic also resulted in the generation of opportunities for many private players to emerge in the markets, to cater to the inflated demand for food products, which, in turn, benefitted the ingredient manufacturer. The need for innovative snack products was consistently high in developed countries like the United States, the United Kingdom, Germany, Spain, and Italy, due to the associated convenience of storing, usage, and rapid provision of nutrition and energy on consumption.
Over the medium term, the industry for speciality 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 the processed food products.
Moreover, the preference for certain types of food products is now core to some consumers’ identities, especially in developed economies, which is driving 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 as per the end-user applications. The globally recognized companies operating in the specialty food ingredients market utilize smart technology or intellectual property to develop innovative ingredients and solutions. However, new product development is a highly capital-intensive process.
Scope of the Report
Specialty food ingredients are ingredients that offer technological and/or functional benefits and are essential in providing today's consumer with a wide range of tasty, safe, healthy, affordable, qualitative and sustainably produced food. These are used in food processing sectors like dehydrated, frozen, canned and refrigerated foods, cereals, ice cream, pasta, sauces and dressings, snacks, and packaged food like meat, fish, bread products, dairy, and confectionery.
The report on the global specialty food ingredient market (henceforth, referred to as the market studied) offers key insights into the latest developments.
Based on the type of ingredient, the global specialty food ingredient market is segmented into Functional Food Ingredient, Specialty Starch and Texturants, Sweetener, Flavors, Acidulants, Preservative, Emulsifier, Colorants, Enzyme, Culture, Proteins, Specialty Oil, and Yeast. By application, the global specialty food ingredient market is segmented into Beverages, Sauces, Dressings, and Condiments, Bakery, Dairy, Confectionery, Dried Processed Food, Frozen/Chilled Processed Food, Sweet and Savory Snacks and Other Applications. On the basis of geography the market is segmented as North America, South America, Europe, Asia Pacific and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
|Functional Food Ingredient|
|Specialty Starch and Texturants|
|Sauces, Dressings, and Condiments|
|Dried Processed Food|
|Frozen/Chilled Processed Food|
|Sweet and Savory Snacks|
Key Market Trends
Growing Demand for Natural & Label-Friendly Food Colorants
With increasing preference for clean label products, the demand for natural colorants 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. With increasing applications and demands specialty ingredients manufacturers continue to innovate and offer new label friendly products ultimating boosting the growth of the market.
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North America Holds the Largest Market Share
The market for specialty food ingredients in North America is driven by rising rates of diabetes and obesity, which is warning consumers to focus on healthier lifestyles, and thus, fueling the demand for food products with functional & specialty ingredients. The American population is increasing becoming health-conscious and thus increasingly demand for helathy food products and thus manufacturers tend to launch products with specialty food ingredients. Specialty foods are outpacing their non-specialty counterparts in almost every category, due to the rise in awareness regarding food quality.
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The global speciality food ingredients market is highly competitive, and dominated by international players. Major players in the market include DuPont de Nemours Inc., Cargill Incorporated, Kerry Group, and Koninklijke DSM NV, among others. Product innovation and development is the most adopted strategy by the players operating in the market followed by mergers & acquisitions, and expansions for increasing their visibility, and portfolio of offerings. Manufacturers are focusing on providing all-natural speciality ingredients that increase the shelf-life of the product and enable the manufacturer to label its products as “100% all-natural”, addressing consumer demand for “clean labels”.
In 2021, Indian company Divi's Nutraceuticals launched "CaroNat", a naturally-sourced food ingredient intended for the dark yellow to orange coloration of a variety of food and beverage products including the application in the dairy industry. CaroNat is an organic food colorant made from concentrated carrot juice, contains good amount of beta-carotene, is free-from artificial colors, and is vegan & vegetarian.
In 2021, International Flavors & Fragrances annouced completion of its merger with DuPont's Nutrition & Biosciences Business. The merger and the combined portfolio, the company is expected to have leadership positions in high-value ingredients and solutions for the Food & Beverage, Home & Personal Care and Health & Wellness markets.
In 2020, Cargill Inc. launched specialty and label-friendly sweetener, C✩TruSweet 01795, with 30% sugar and calorie reduction in beverages as well as various other food applications for European market.
In 2020, Kerry introduced 13 new plant-based, allergen-free protein options made from pea, rice and sunflower protein sources. The ingredients are sold under the company’s Hyprol and ProDiem lines and can be used in a range of products, from infant formulas to senior protein beverages.
In 2020, DuPont Nutrition & Biosciences (DuPont) announced the North American launch of Versilk™ range of enzymes to help yogurt and beverage manufacturers achieve optimal texture and taste in yogurts, drinkable dairy products and other drinkable fermented products.
Table of Contents
1.1 Study Assumptions and 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 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Functional Food Ingredient
5.1.2 Specialty Starch and Texturants
5.1.12 Speciality Oils
5.2 By Application
5.2.2 Sauces, Dressings, and Condiments
5.2.6 Dried Processed Food
5.2.7 Frozen/Chilled Processed Food
5.2.8 Sweet and Savory Snacks
5.2.9 Other Applications
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle East & Africa
188.8.131.52 South Africa
184.108.40.206 Saudi Arabia
220.127.116.11 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Most Adopted Strategy
6.4 Company Profiles
6.4.1 Cargill Incorporated
6.4.2 International Flavors & Fragrances (IFF)
6.4.3 Tate & Lyle PLC
6.4.4 Kerry Group
6.4.5 Archer Daniels Midland Company
6.4.6 KONINKLIJKE DSM NV
6.4.7 Ingredion Incorporated
6.4.8 Sensient Technologies
6.4.9 Axiom Foods Inc.
6.4.10 DuPont de Nemours, Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Specialty Food Ingredients Market market is studied from 2016 - 2027.
What is the growth rate of Specialty Food Ingredients Market?
The Specialty Food Ingredients Market is growing at a CAGR of 5.3% over the next 5 years.
Which region has highest growth rate in Specialty Food Ingredients Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Specialty Food Ingredients Market?
North America holds highest share in 2021.
Who are the key players in Specialty Food Ingredients Market?
Cargill, Incorporated, Kerry Group PLC, International Flavors & Fragrances, Koninklijke DSM NV, DuPont de Nemours, Inc. are the major companies operating in Specialty Food Ingredients Market.