Enjoy complimentary customisation on priority with our Enterprise License!
The food processing ingredient market size is forecast to increase by USD 10.83 billion at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to the rising demand for processed foods and ready-to-eat items. Consumers' preferences for convenient and time-saving meals are driving market expansion. However, health concerns, such as high cholesterol levels and insulin sensitivity, are prompting the food industry to focus on developing healthier alternatives. This includes the use of ingredients like resistant starch, which supports digestive health and improves insulin sensitivity in the small intestine.
Additionally, there is a growing trend towards the use of natural color additives, preservatives, fat replacers, binders, and pH control agents to enhance food quality and extend shelf life. Bacteria in the large intestine play a crucial role in digestion, and the market is witnessing an increase in the use of probiotics and prebiotics to promote gut health. Furthermore, the demand for nutrients and nutraceuticals is on the rise, as consumers seek functional foods that offer health benefits beyond basic nutrition.
The market caters to the demand for high-quality additives, enhancers, and fortifiers in branded food products. This market encompasses a wide range of ingredients, including yeast, enzymes, acidity regulators, antioxidants, and more. These ingredients play essential roles in food production, contributing to bone formation, wound healing, and immune system strengthening. Consumer focus is a key trend in the market, driving the demand for organic food and convenience food products. Organic food ingredients, derived from natural sources, cater to health-conscious consumers. In contrast, convenience foods require ingredients in both dry and liquid forms to ensure taste, color, and texture consistency.
Furthermore, marketing strategies for food processing ingredients prioritize product innovation and sustainability. Ingredients derived from synthetic sources are under scrutiny due to health concerns. As a result, there is a growing preference for natural sources in food processing. Yeast, enzymes, acidity regulators, antioxidants, and other additives are integral to the production of beverages and convenience foods. Their functions include improving taste, extending shelf life, and enhancing nutritional value. As the market evolves, expect continued innovation and development in food processing ingredients to meet consumer demands.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for 2024-2028, as well as historical data from 2018-2022 for the following segments.
The natural segment is estimated to witness significant growth during the forecast period. The food processing industry is witnessing a significant shift towards natural ingredients as consumers become increasingly health-conscious. The use of emulsifiers, yeast, enzymes, acidity regulators, and antioxidants, among others, in food processing is a common practice. These ingredients are available in both natural and synthetic sources and come in various forms, including dry and liquid. The demand for natural sources is on the rise due to growing concerns over the health effects of artificial additives. Natural ingredients are extensively used in various food and beverage applications such as convenience foods, beverages, and baked goods. They provide numerous benefits, including enhancing taste, color, and texture.
Furthermore, natural emulsifiers derived from plant sources, for instance, are preferred over synthetic ones due to their health advantages. Similarly, natural antioxidants, such as vitamin C and E, are preferred over synthetic ones due to their health benefits and consumer acceptance. The trend towards natural ingredients is expected to continue, with a focus on functional foods, sports drinks, nutritional supplements, and medically prepared foods. These food items offer additional health benefits and cater to specific dietary needs. As a result, food processing companies are investing in research and development to incorporate natural ingredients into their products. This shift towards natural ingredients is a positive development for the food processing industry, as it aligns with consumers' evolving preferences and priorities.
Get a glance at the market share of various segments Request Free Sample
The natural segment was valued at USD 22.06 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The European region dominated the market, accounting for a significant market share. Key contributors to this market in Europe include Germany and the UK. Consumers in Europe are increasingly health-conscious, leading to a demand for food processing ingredients as natural preservatives. Additionally, the popularity of convenience foods, such as ready-to-eat food products, which rely on food processing ingredients like preservatives, is driving market growth. Natural sources of flavors, particularly herbs and spices, are in high demand in countries like Germany, France, and Spain. Emulsifiers, yeast, enzymes, acidity regulators, and antioxidants are essential food processing ingredients used in various applications.
Furthermore, these ingredients are available in both dry and liquid forms and are widely used in beverages and convenience foods. Emulsifiers help improve texture and stability in food products, while yeast is used for fermentation and leavening. Enzymes aid in the digestion of food, and acidity regulators maintain the desired pH level. Antioxidants extend the shelf life of food products and protect them from oxidation. Food processing ingredients are used to enhance taste, color, and texture in food products. They are available from both natural and synthetic sources. Natural sources are gaining popularity due to consumer preference for clean-label products. Synthetic sources offer advantages such as longer shelf life and better stability. The market is expected to grow significantly during the forecast period due to the increasing demand for convenience foods and the need for food preservation.
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.
The rising demand for processed foods is the key driver of the market. The market has experienced significant growth due to the increasing consumer preference for branded and convenience food products in both developed and emerging economies. As economic conditions and disposable income levels have improved, the demand for packaged and processed foods has risen. In response, food processing and packaging solutions have evolved to meet consumer demands. Manufacturers of processed foods are prioritizing product differentiation as a key marketing strategy to stand out in the competitive market. The last decade has seen a notable increase in demand for frozen foods and packaged goods, driven by changing dietary habits brought about by urbanization.
Furthermore, these food types are popular among the global urbanized population, making up a significant portion of the consumer base for food processing ingredients. Moreover, consumer focus on health and wellness has led to a growing demand for organic food, food products that aid in bone formation, wound healing, and immune system strengthening. Food processing ingredients such as modified starch, starch derivatives, proteins, and food stabilizers play a crucial role in ensuring the quality and functionality of these products. By meeting the evolving needs of consumers, the market is poised for continued growth.
Rising consumption of ready-to-eat food products is the upcoming trend in the market. The market for food processing ingredients continues to expand as consumer preferences shift towards branded and convenience food products. With the rise of dual-income households and hectic lifestyles, the demand for time-saving and ready-to-eat food options has significantly increased. According to a 2020 report by Standard Process Inc., processed foods accounted for approximately 70% of the American diet. During the pandemic, this trend intensified as individuals worked from home and countries implemented lockdowns, leading to a rise in demand for ready-to-eat food products. In India, online grocery sales in the ready-to-eat category experienced a 17% increase, while readymade meals and mixes saw a 31% increase, and frozen food sales rose by 41%, according to Blinkit (formerly Grofers).
Moreover, as consumer focus on health and wellness grows, there is a rising demand for organic food and food processing ingredients that support bone formation, wound healing, and immune system strengthening. Food processing ingredients, such as modified starch, starch derivatives, proteins, and food stabilizers, play a crucial role in enhancing the quality and functionality of branded and convenience food products. Marketing strategies that highlight the health benefits of these ingredients are expected to drive growth in the market. If you require an exclusive sample copy of market research reports on this topic, please contact US for further information. The food processing ingredients market definition encompasses the production and supply of various additives used in the food industry to improve the texture, taste, and shelf life of food products. This market is expected to experience steady growth due to the increasing demand for convenience food products and the continuous development of innovative food processing technologies.
The lack of proper infrastructure in emerging economies is a key challenge affecting market growth. The market in emerging economies, particularly in the Asia Pacific region, is experiencing significant growth due to increasing consumer focus on branded and convenience food products, as well as a growing awareness of the importance of maintaining good health. This expansion is driven by improving economic conditions and urbanization. However, despite the high demand for food processing ingredients, such as preservatives, emulsifiers, enzymes, and modified starches, the infrastructure for their proper storage and manufacturing in the Asia Pacific region is lacking. Proper handling and care, including maintaining specific temperatures and preventing contamination, are essential to preserve the chemical compositions of these ingredients and ensure their effectiveness in food products.
Furthermore, key applications of food processing ingredients include bone formation, wound healing, and immune system strengthening. Marketing strategies for food processing ingredient companies in this region may include offering exclusive sample copies to potential customers and collaborating with local food manufacturers to ensure the highest quality and safety standards. The market definition includes products such as starch derivatives, proteins, and food stabilizers.
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
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.
Agropur Dairy Cooperative - The company specializes in providing high-quality human nutrition ingredients for use in the food, beverage, and supplement industries.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 food processing ingredients market caters to the demand for branded food products and convenience food items, with a strong consumer focus on health and wellness. Organic food is a significant segment, as consumers seek ingredients that support bone formation, wound healing, and immune system strengthening. Marketing strategies for food processing ingredients include exclusive sample copies and a shift towards clean-label ingredients. Modifications in starches and their derivatives, proteins, food stabilizers, emulsifiers, and enzymes are key ingredients in various end-use industries, including bakery & confectionery, dairy products, meat & poultry, and seafood. These ingredients contribute to taste, color, texture, gloss, viscosity, pH balance, emulsion stability, and preservation.
Furthermore, sweeteners, thickeners, stabilizers, and binders are essential in packed foods, beverages, and convenience foods. Natural sources and synthetic sources are used interchangeably based on consumer preferences and cost-effectiveness. Acidity regulators, antioxidants, and preservatives ensure the desired taste, color, and texture in various food applications. The global population's rise in sales of carbonated sugary sodas, fast food, and convenience foods has led to increased demand for food processing ingredients. Natural colors, such as carotenoids, curcumin, and anthocyanin, are gaining popularity due to the clean-label trend. However, synthetic colors, allergens, and other additives remain a concern for consumers. Raw materials, such as corn, wheat, pea starch, rice starch, and cholesterol-reducing fats, are crucial for food processing ingredient production. These raw materials are used to create a wide range of food additives, including resistant starch, color additives, preservatives, fat replacers, and nutrients. Additionally, food processing ingredients find applications in textiles, medicine, bioplastics, and animal feed.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
146 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
|
Market growth 2024-2028 |
USD 10.83 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.23 |
|
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 39% |
|
Key countries |
US, China, Germany, UK, and Japan |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Agropur Dairy Cooperative, Archer Daniels Midland Co., Arla Foods Ingredients Group PS, Ashland Inc., Associated British Foods Plc, BASF SE, Batory Foods, Cargill Inc., Chr Hansen Holding AS, Clariant International Ltd., DuPont de Nemours Inc., EPI INGREDIENTS, Ingredion Inc., Kerry Group Plc, Koninklijke DSM NV, Olam Group Ltd., PRIME Ingredients Inc., Puris, Solvay SA, and Tate and Lyle PLC |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
