North America Fermented Ingredient Market Analysis - Size and Forecast 2024-2028

North America Fermented Ingredient Market Size and Trends

The North America fermented ingredient market size is forecast to increase by USD 1.04 billion at a CAGR of 2.7% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. The aging population and increasing health consciousness are fueling the demand for fermented ingredients, particularly those with health advantages such as probiotics. These beneficial bacteria aid in digestion and boost immunity, making them essential in the prevention and management of chronic diseases. Furthermore, the use of fermented substances extends beyond health benefits, as they are also gaining popularity in skincare due to their prebiotic and postbiotic properties. Strict regulations and guidelines ensure the quality and safety of these ingredients, making them a reliable choice for food processing applications. In summary, the fermented substances market is witnessing growth due to the increasing demand for healthier food options, their role in skincare, and the need for regulatory compliance.

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The market have gained substantial attention in the food industry due to their numerous health benefits and role in food preservation. These substances, derived from various food sources through the process of fermentation, offer a solution for consumers following specific diets and those sensitive to wheat or lactose. Fermented ingredients cater to the increasing demand for clean-label ingredients and convenience foods. The health consciousness trend in the market has led to a rise in demand for foods with a low glycemic index, making fermented foods an attractive option for consumers seeking to manage lifestyle-related diseases such as obesity and digestive disorders. Fermented ingredients provide essential organic acids and vitamin B, contributing to improved digestion and enhanced immune function. Probiotics, a key component of fermented foods, support the growth of beneficial gut flora, promoting overall well-being. The food preservation properties of fermented ingredients offer extended shelf-life benefits for manufacturers, reducing food waste and ensuring product freshness.

In the animal nutrition sector, fermented substances are used to improve the nutritional content of feed, contributing to better animal health and productivity. The market for fermented ingredients is expanding, driven by the increasing popularity of fermented beverages and the growing demand for real, whole foods. The versatility of fermented ingredients allows for their inclusion in various food preparation methods, further increasing their market potential. Fermented ingredients offer a sustainable solution for food manufacturers, as they require minimal processing and generate less waste compared to traditional food additives. As consumers continue to prioritize health and wellness, the demand for fermented foods and beverages is expected to remain strong. In conclusion, the significance of fermented ingredients in the food industry is on the rise, driven by their health benefits, role in food preservation, and consumer demand for clean-label, whole foods. The versatility of fermented ingredients and their potential to address various health concerns make them an attractive option for manufacturers and consumers alike.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application
  • Food and beverages
  • Pharmaceuticals
  • Others
• Geography
  • North America
    • Canada
    • Mexico
    • US

By Application Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.  In North America, the food additives market, specifically fermented substances, holds significant importance due to their use in enhancing the quality and nutritional value of food and beverages. These ingredients, derived from gut flora, play a pivotal role in food production, particularly in the manufacture of beer, cheese, yogurt, and bread.

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The food and beverages segment was valued at USD 4.87 billion in 2018. By improving digestion, boosting immunity, and aiding in the prevention and management of chronic diseases, fermented ingredients offer numerous health advantages. Furthermore, they serve as prebiotics and postbiotics, contributing to the overall wellness of consumers. The expanding food and beverages industry, marked by growth in alcoholic beverages and packaged food items, fuels the demand for these ingredients.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

North America Fermented Ingredient Market in Driver

The growing aging population and health concerns are notably driving the market growth. In North America, there is a growing trend towards plant-based diets and sustainable food products as individuals prioritize their health and well-being. With an aging population, there is a heightened focus on maintaining a balanced diet to prevent health diseases and vitamin deficiencies. Fermented foods have gained popularity as they offer numerous health benefits, including the production of prebiotics and postbiotics that support gut health.

Vinegar, cider, and craft beverages are among the fermented ingredients that are increasingly being consumed. These foods not only provide essential nutrients but also enhance the taste and texture of dishes. As people strive to lead healthier lives, the demand for these fermented ingredients is expected to continue growing. Consumption of these ingredients can help manage digestive issues, boost immunity, and promote overall wellness. Therefore, it is essential to incorporate fermented foods into your daily diet to maintain optimal health. Thus, such factors are driving the growth of the market during the forecast period.

North America Fermented Ingredient Market Trends

Growing demand from food processing applications is the key trend in the market. Fermented ingredients, derived from microorganisms through advanced technologies, enhance the properties of food products by providing antistaling, digestive, and softening attributes, thereby extending their shelf-life. Commonly used enzymes like protease, lipase, and carbohydrase are employed in various sectors such as meat products, bakery, dairy, frozen food, oils and fats, and confectioneries to preserve nutritional content amidst the intricacies of the global food supply chain. The escalating need for processed and packaged food items due to food security and safety concerns is driving the growth of the market in North America.

Consumers are becoming increasingly conscious of the health and nutritional advantages of fermented food products, thereby fueling market expansion. Organic acids and vitamin B present in these ingredients offer additional health benefits, making them a preferred choice for wheat-sensitive consumers and those following specific diets, such as low glycemic index diets. Food preservation is a significant aspect of the food industry, and the use of fermented ingredients not only ensures the freshness and safety of food but also enhances its taste and texture. The long shelf-life of fermented products is a major selling point, making them an attractive option for food manufacturers and retailers. Thus, such trends will shape the growth of the market during the forecast period.

North America Fermented Ingredient Market Challenge

The need for adherence to stringent regulations and guidelines is the major challenge that affects the growth of the market. The production of fermented ingredients adheres to stringent regulations set by the Food and Drug Administration (FDA). These guidelines cover various aspects of manufacturing, including permits, residual management, and expiry dates for products such as organic acids, enzymes, vitamins, and antibiotics. Proper disposal of chemical substances used in the fermentation process is essential to minimize environmental harm. Artisanal fermented products, such as hard ciders, are gaining popularity due to their nutrient absorption benefits and positive impact on gut microbiota. As disposable incomes rise and cultural traditions persist, the demand for these personalized medicine alternatives continues to grow.

E-commerce platforms have made it easier for consumers to access these niche items. The nutritional profiles of fermented ingredients, particularly probiotics, have become increasingly relevant in diets. Manufacturers must ensure their products meet the highest standards of quality and safety. Sustainability concerns are also a significant factor, with consumers increasingly demanding eco-friendly production methods. Key players include companies specializing in organic acids, enzymes, vitamins, and antibiotics. These businesses invest in research and development to create innovative, high-quality fermented ingredients that cater to diverse consumer needs. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AngelYeast Co. Ltd. - The company offers fermented ingredients such as yeast, bread improver, and baking ingredients

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Ajinomoto Co. Inc.
• BASF SE
• Cargill Inc.
• Chr Hansen AS
• Dawn Food Products Inc.
• Dohler GmbH
• Ingredion Inc.
• International Flavors and Fragrances Inc.
• Kerry Group Plc
• Koninklijke DSM NV
• Kyowa Hakko USA Inc.
• Lallemand Inc.
• Lesaffre and Cie
• Lonza Group Ltd.
• Motif FoodWorks Inc.
• Puratos
• RFI Ingredients
• Roquette Freres SA
• Smallfood Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

The market is witnessing significant growth due to the increasing awareness of health benefits associated with these products. Fermented substances, such as kefir, offer advantages for consumers following specific diets, including those who are wheat-sensitive or require a low glycemic index. These ingredients provide organic acids, vitamin B, and other nutrients that contribute to food preservation and improved shelf-life. Fermented foods and beverages offer various health advantages, including improved digestion, enhanced immune function, and potential prevention of chronic diseases. The production of these ingredients involves real, whole foods, making them an attractive alternative to food additives in the market. The health benefits of fermented ingredients extend beyond human consumption. They also play a crucial role in animal nutrition and biopharmaceutical applications. The convenience of fermented foods and beverages, along with the growing health consciousness, is driving their popularity as an alternative to processed and lifestyle-related diseases, such as obesity and digestive disorders.

The market is expanding to include cosmetics, plant-based diets, and sustainable products. Prebiotics and postbiotics, metabolites produced during the fermentation process, are gaining attention for their potential in personalized medicine and nutrient absorption. The growing trend of e-commerce platforms and sustainability concerns is further fueling the growth of the fermented ingredients market. Fermented ingredients, such as vinegar, cider, and craft beverages, offer a rich nutritional profile and contribute to a balanced diet. The artisanal production of these ingredients adds to their appeal, as consumers seek clean-label ingredients and production efficiency for improved product quality. Fermented ingredients are also finding applications in the cosmetics industry, providing benefits for skin health and care.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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