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Specialty Food Ingredients Market Size, Share Global Analysis Report, 2023 – 2030
Specialty Food Ingredients Market Size, Share, Growth Analysis Report By Application (Personal Care, Pharmaceutical, And Food & Beverage), By Product (Functional, Sensory, And Others), And By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030
Industry Insights
[226+ Pages Report] According to the report published by Facts & Factors, the global specialty food ingredients market size was valued at USD 147.69 billion in 2022 and is predicted to surpass USD 235.46 billion by the end of 2030. The specialty food ingredients market is expected to grow by a CAGR of 6.01%.
The research report includes industry trends, growth factors, pricing analysis, and restraints of the global specialty food ingredients industry. Furthermore, it also explores the geographical and competitive landscape of the industry.
Market Overview
Specialty food ingredients are high-quality niche ingredients that are utilized to improve the appearance, texture, flavor, and overall quality of the food products. These ingredients are widely sourced for different regions and have unique characteristics. These ingredients are often related to artisanal foods or gourmets and are expected to offer consumers a premium or specialized culinary experience.
Key Insights
- As per the analysis shared by our research analyst, the global specialty food ingredients market size is estimated to grow annually at a CAGR of around 6.01% over the forecast period (2023-2030).
- In terms of revenue, the global specialty food ingredients market size was valued at around USD 147.69 billion in 2022 and is projected to reach USD 235.46 billion by 2030.
- The growing interest of people in plant-based diets is likely to drive the growth of the global specialty food ingredients market.
- Based on the application, the sensory segment holds the largest share of the global market.
- Based on the product, the food and beverage segment is expected to be the fastest-growing segment in the global market.
- Based on region, Asia Pacific is expected to dominate the market during the forecast period.
Growth Drivers
- Growing health awareness among people is expected to propel the growth of the global market.
The demand for food fortification is on the rise due to its social, economic, and health benefits. The increasing trend of conscious eating and rising health awareness is the key factor expected to boost the growth of the global specialty food ingredients market. Scientific breakthroughs and technological advancements are further supporting manufacturers to offer innovative ingredients with unique characteristics.
However, the availability of a wide variety of specialty ingredients for myriad purposes like dressings, sauces, beverages, dairy, confectionery, bakery, and convenience food is further boosting its demand. The adaptability and versatility of these ingredients are likely to expand the market reach and thereby increase the market share and volume in the forthcoming years. For instance, Cargill, in 2021, acquired a leading supplier of specialty ingredients and cake decorations named Leman Decoration Group to diversify their food menu portfolio.
Restraints
- Increasing use of synthetic ingredients is expected to restrict the growth of the global market.
People are adulterating natural substances with synthetic ingredients. Synthetic ingredients pose a significant risk to human health; thereby, it is expected to hamper the growth of the global specialty food ingredients industry. For example, benzaldehyde compounds which are used as a common flooring agent, cause central nervous system depression because they consist of hydrogen cyanide acid as a sub-ingredient.
Opportunities
- Technology advancements in the ingredients industry are expected to offer opportunities in the global market.
The technology leading factor is expected to offer lucrative growth opportunities in the global specialty food ingredients market. New product launches and growing demand for innovative health-related food, color, and flavors are further expected to foster developments in the global market.
Also, the first expansion of food service sectors, including hotels, cafes, and restaurants, has further increased the scope of specialty food ingredients. Manufacturing companies are looking forward to unique ingredients to cater premium and evolving cuisines to the customer, which in turn will support the growth trajectory of the global market.
For instance, Kerry Group, in June 2020020, came up with 13 fresh plant-based protein ingredients prepared with the help of sunflower, rice, and pea under its portfolio umbrella ProDiem and Hyprol. It is expected to strengthen the profile of plant-based products in the company.
Challenges
- Emergence of substitute ingredients in the industry is a big challenge in the global market.
Certain companies and startups are coming up with substitute ingredients offering the same characteristics as specialty food ingredients which are expected to be a big challenge in the global specialty food ingredients industry. The cost efficiency and technological advancements are making these substitute ingredients more accessible, thereby expected to slow down the demand for specialty food ingredients in the global market.
Segmentation Analysis
The global specialty food ingredients market can be segmented into application, product, and region.
By application, the market can be segmented into personal care, pharmaceutical, and food & beverage. The food & beverage can further be bifurcated into non-alcoholic, alcoholic, sauces, baby food, meat & seafood, frozen foods, breakfast cereals, dairy products, confectionery, bakery, snacks, and others.
The food and beverage segment is expected to be the fastest-growing segment in the global market. The segment swiped around 70% of the market share and volume in 2022. The rise in market share is significantly due to the fast-expanding food manufacturing sector.
Also, the fast-changing consumer food preferences and lifestyle is further expected to propel the growth of the segment in the forthcoming years. The high consumption rate of non-alcoholic and alcoholic drinks among the youth population is also likely to support the growth trajectory of the global market. The surge in health problems globally is making people conscious regarding their consumption habits and food preferences. As a result, there is high demand for functional food products globally.
By product, the specialty food ingredients industry can be segmented into functional, sensory, and others.
Also, the functional food segment can further be bifurcated into preservatives, antioxidants, minerals, vitamins, and others. The sensory segment can further be bifurcated into colorants, flavors, emulsifiers, enzymes, and others. The sensory segment holds the largest share of the global market. It swiped around 59% of the total market share and volume in 2022. Its significant growth can be attributed to its ability to offer enhanced texture, flavor, smell, and taste of food products. The high demand for these ingredients in convenience and packaged foodstuff is another major reason fueling its demand in the market.
However, among all the categories of the sensory segment, the flavor segment is expected to dominate the global market owing to its natural and organic ingredients. There is a significant shift in consumer preferences across the globe for different types of flavors, which is expected to boost its demand in the market. The flavor sector is highly influenced by the consumption of different foods and beverages.
However, the demand for ready-to-eat products is rising significantly, which is expected to further foster growth opportunities in the segment. Also, the increasing demand for natural flavors among consumers is another vital factor expected to encourage the growth of the segment in the forthcoming years. Emulsifiers, colorants, enzymes, and flavors are essential elements.
However, the enzymes are widely utilized by manufacturers due to their active nature of enhanced function and reaction along with their unique ability to control the process time, flavors, and texture. For instance, Chr. Hansen successfully took over HSO Health Care GmbH in April 2020 to expand its business of functional ingredients.
Report Scope
Report Attribute |
Details |
Market Size in 2022 |
USD 147.69 Billion |
Projected Market Size in 2030 |
USD 235.46 Billion |
CAGR Growth Rate |
6.01% CAGR |
Base Year |
2022 |
Forecast Years |
2023-2030 |
Key Market Players |
CHR. Hansen, Tate & Lyle, Diana Group SA, DSM, Wild Flavors GmbH, Cargill Inc, Archer Daniels Midland Company, Ashland Inc, Agropur Cooperative, Kerry Group, Associated British Foods Plc, Ingredion, KF Specialty Ingredients, Eli Fried Inc., Givaudan, Naturex., and others. |
Key Segment |
By Application, Product, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Regional Analysis
- Asia Pacific is projected to lead the global market during the forecast timeline
Asia Pacific is the fastest-growing region in the global specialty food ingredients market. The region held around 34% of the total market volume in 2022. The growth is due to the high demand for the emulsifier owing to the growing popularity of convenience food in the region. China is said to be the largest market in the Asia Pacific in the emulsifiers segment.
Furthermore, the fast-growing population in the region is widening the scope of pharmaceutical, food & beverage, and personal care sectors in the region. Changing lifestyles and urbanization in the region have resulted in a significant shift in dietary preferences which is expected to boost the demand for specialty food ingredients in the region.
Europe is expected to be the second largest market in the global specialty food ingredients industry in the forthcoming years. This is because the region is known for its famous cuisines and fine dining. Also, the ongoing technological innovations in the food sector are further expected to expand the regional market during the predicted period.
North America is expected to witness robust growth from 2023 to 2030 owing to the high penetration of organized retail in the region. The rising economic activities and the emergence of e-retail worldwide are other leading factors driving the growth of the regional market in the forthcoming years.
Competitive Analysis
- CHR. Hansen
- Tate & Lyle
- Diana Group SA
- DSM
- Wild Flavors GmbH
- Cargill Inc
- Archer Daniels Midland Company
- Ashland Inc
- Agropur Cooperative
- Kerry Group
- Associated British Foods Plc
- Ingredion
- KF Specialty Ingredients
- Eli Fried Inc.
- Givaudan
- Naturex.
The global specialty food ingredients market is segmented as follows:
By Application Segment Analysis
- Personal Care
- Pharmaceutical
- Food & Beverage
By Product Segment Analysis
- Functional
- Sensory
- Others
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- CHR. Hansen
- Tate & Lyle
- Diana Group SA
- DSM
- Wild Flavors GmbH
- Cargill Inc
- Archer Daniels Midland Company
- Ashland Inc
- Agropur Cooperative
- Kerry Group
- Associated British Foods Plc
- Ingredion
- KF Specialty Ingredients
- Eli Fried Inc.
- Givaudan
- Naturex.
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