Global Specialty Food Ingredient Market Outlook Report 2023: Market to be Worth $104.79 Billion by 2028 - High Competition Among Vendors and Growing Demand for Organic Specialty Food Ingredients

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Nov 21, 2023, 12:30 ET

DUBLIN, Nov. 21, 2023 /PRNewswire/ -- The "Global Specialty Food Ingredient Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The global specialty food ingredients market is expected reach a value of $104.79 billion by 2028 from $71 billion in 2022, growing at a CAGR of approximately 6.7%

In 2022, the Asia-Pacific (APAC) region asserted its dominance in the global specialty food ingredients market, with a market value exceeding USD 26 billion. This region is poised to maintain its leading position during the forecast period, driven by the robust growth and expansion of the food and beverages market, particularly in emerging economies.

The APAC region is anticipated to experience a significant growth rate in the coming years, primarily due to the increasing adoption of natural specialty ingredients in Asian food products, such as pickles and flavored sauces. Factors contributing to this growth include globalization, westernization, changing lifestyles, and the rise in personal disposable income.

Diverse consumer preferences have led to a rising demand for specialty food ingredients that are sugar-free, low in saturated fat and salt, enriched with fiber, and fortified with health-supporting components. As people increasingly focus on enhancing their immunity and overall health, the demand for sugar-free food ingredients has surged.

The global specialty food ingredients market exhibits a high degree of fragmentation, characterized by the presence of numerous local, regional, and international vendors worldwide.

Furthermore, factors such as the increasing prevalence of diabetes, the growing preference for low-calorie foods, and the imposition of sugar taxes on sugary beverages are driving the growth of the sugar-free food ingredients products market.

Among the leading players in the global specialty food ingredients market are prominent names like Tate & Lyle PLC, Cargill, Incorporated, Ingredion Incorporated, Archer Daniels Midland, Givaudan S.A., Kerry Group plc, International Flavors & Fragrances, and Heartland Food Products Group.

However, it's important to note that the number of global players is limited, and the growing trend of natural specialty food ingredients in food products has given rise to numerous domestic and local vendors in the market. These newcomers pose a formidable challenge to established vendors across various geographical regions.

MARKET TRENDS

High Adoption of Sugar-Free Food Ingredients

In 2022, Tate & Lyle focused on the research and development sector to produce Polyols, sugar-free sweeteners. These sweetening solutions can help reduce sugar without sacrificing the sweetness consumers enjoy.

Moreover, Tate & Lyle's sub-brand SPLENDA Sucralose was introduced, reshaping the sweetener landscape in 2022. Sucralose is a sweetener, which is a zero-calorie sweetener. SPLENDA Sucralose processed to create sucralose - 600 times sweeter, with no-calorie sweetener. Its ability to maintain sweetness through various food processing conditions, pH, and long shelf life.

Increasing Demand for Premiumization

Consumers are willing to pay a premium price for food ingredients that offer superior taste, unique flavors, innovative blends, and perceived health and wellness benefits. Consumers seek beverages that align with their wellness goals as they become more health-conscious.

Premium food ingredients often use natural and functional ingredients like antioxidants, herbal extracts, and other beneficial components, which attract health-conscious consumers. Furthermore, some consumers view premium products, including specialty food ingredients, as status symbols or lifestyle choices.

By choosing premium specialty food ingredients, they feel they are making a statement about their taste, sophistication, and lifestyle preferences. Such factors have a positive side on the specialty food ingredients market growth.

SEGMENTATION INSIGHTS

Applications

The beverages application segment held the most prominent global market share in 2022. Rising levels of obesity and diabetes have created push factors, including massive awareness among consumers who have increasingly cut down their sugar consumption. It has also spurred the national regulators to reformulate their products.

Low-sugar options also witness growing consumer demand for products supporting health and wellness. There is an increasing demand for ingredients that can reduce sugar content across several categories, including soft drinks, various beverages, dairy, bakery, confectionery, soups, sauces, and dressing, with an exceptionally high demand for sugar substitutes from natural sources.

Component

Specialty food ingredients typically preserve, emulsify, color, texture, help processing, and add an extra health dimension to produced food. The sensory ingredients segments dominated the global market in 2022.

The growing demand for clean-label and natural ingredients is one of the primary drivers of the sensory additives market. Consumers are more focused on their products' environmental and health impact and seek products with recognizable and natural ingredients.

INSIGHTS BY SPECIALTY SENSORY INGREDIENTS

The flavors and fragrances specialty food ingredient segment dominated the global specialty food ingredients market in 2022 and was valued at over USD 9.54 billion in 2022.

As customer expectations for packaged and convenience foods rise and competition intensifies, demand for sensory ingredients is expected to rise. Sensory ingredients, such as odor, flavor, appearance, taste, and texture of foods detectable by human senses, are often used to evaluate food quality. Increasing demand for these ingredients in packaged and convenience foodstuffs and confectioneries is expected to drive product demand.

INSIGHTS BY SPECIALTY FUNCTIONAL INGREDIENTS

In 2022, the probiotics segment dominated the market and is projected to continue its dominance over the forecast period.

Customers are more well-being cognizant and zeroing in on their ways of life and diets, bringing about a blast popular for probiotic-strengthened food varieties and drinks worldwide. The growing use of probiotic ingredients in functional beverages & food due to their health benefits helped to raise the demand for probiotic ingredients during the forecast period.

INSIGHTS BY SOURCE

The natural source segment is prominent in the global specialty food ingredients market. In 2022, the global specialty food ingredients market by natural ingredients was valued at over USD 40 billion.

This rise in the demand for natural specialty food ingredients can be attributed to the increasing prevalence of health and wellness trends among more health-conscious consumers. Heightened awareness of the potential health risks associated with excessive food ingredient consumption, including obesity, diabetes, and tooth decay, has motivated individuals to seek healthier specialty food ingredients for sweetening their foods and beverages.

KEY QUESTIONS ANSWERED:

How big is the specialty food ingredients market?
What is the growth rate of the global specialty food ingredients market?
Which region dominates the global specialty food ingredients market share?
What are the significant trends in the specialty food ingredients market?
Who are the key players in the global specialty food ingredients market?

Market Opportunities & Trends

Growing Demand for Organic Specialty Food Ingredients
Market Reach of Organic Food Ingredients
High Adoption of Sugar-Free Fortified Food Ingredients
Surging R&D in Specialty Food Ingredients
Arising Demand for Texturizing Agents from Food and Beverages
Mouthfeel & Texturisers: Future Perspective

Market Growth Enablers

Increasing Demand for Premiumization
Rising Health Concerns & Awareness Regarding Food Consumption
Profit Volatility in APAC

Market Restraints

High Competition Among Vendors
Regulations Regarding Labelling & Packaging
High Complexities of Regulatory Framework
Turbulent Global Political & Trade Relations

Vendors Marketing Analysis

Adoption Rate of Specialty Food Ingredients Among End-users
Specialty Food Ingredient Market Analysis
Strategic Planning and Objective

Key Company Profiles

Tate & Lyle PLC
Cargill, Incorporated
Ingredion Incorporated
Archer Daniels Midland
Givaudan S.A.
Kerry Group plc
International Flavors & Fragrances
Heartland Food Products Group

Other Prominent Vendors

DuPont de Nemours, Inc
AJINOMOTO
BASF
Dow
Evonik
Clariant
Arkema
ANGUS Chemical Company
Lonza
The Lubrizol Corporation
Solvay
Sensient Technologies Corporation
Croda
Univar Solutions
ASHLAND
Nouryon
Wacker Chemie AG
Stepan
Corbion
Oxiteno
Galaxy Surfactants
Colonial Chemical
Aarti Surfactants
Whole Earth Sweetener
Beckmann-Kenko
Fraken Biochem

Segmentation by Specialty Functional Ingredients

Probiotics
Antioxidant
Vitamins
Preservative
Minerals
Others

Segmentation by Source

Natural
Synthetic

Segmentation by Application

Beverage
Food
Bakery
Dairy Products
Confectionery
Processed Foods
Others

Segmentation by Components

Specialty Sensory Ingredients
Specialty Functional Ingredients

Segmentation by Specialty Sensory Ingredients

Flavors and Fragrances
Texturant
Enzymes
Emulsifiers
Enhancer
Others

For more information about this report visit https://www.researchandmarkets.com/r/3kswzv

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