Specialty Food Ingredients Market – Insights and Trends
by Mit K. SEOThe
global specialty
food ingredient market size is estimated to be valued at USD 134.7
billion in 2020 and projected to reach USD 178.3 billion by 2025, recording a
CAGR of 5.8% during the forecast period. The demand for specialty food
ingredient is increasing significantly,
as they have various functional benefits and the awareness regarding clean
label products have been increased in recent times.
Key Market Players in the Market:
• Cargill (US)
• ADM (US)
• DuPont (US)
• Ingredion (US)
• Kerry (Ireland)
• DSM (Netherlands)
• Chr. Hansen (Denmark)
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Market Dynamics
Drivers: Growth in demand for fortified
food owing to rising health awareness
The
global demand for fortified food is expanding at a robust pace. Functional food
ingredients such as vitamins, minerals, antioxidants, hydrocolloids,
prebiotics, amino acids, plant extracts, and carotenoids are the key
ingredients of fortified food. The health-conscious population is rapidly
expanding in emerging markets, which will drive the demand for the
fortification of food. The nutritional consumption differences across regions
contribute greatly to the apparent differences in the health of populations
across the countries. Various factors such as increasing instances of chronic
diseases and micronutrient deficiencies, growth of the middle class in emerging
economies, new government fortification programs, growth of the world’s older
population in regions such as Europe, and growing interest in health and
wellness, owing to COVID-19, is expected to drive the sales of fortified foods,
further driving the demand for functional and specialty food ingredients.
Restraints: High cost and limited
availability of raw materials
Price
is one of the major restraining factors in the specialty food ingredients
market. Functional foods and premium products are comparatively uneconomical,
owing to the ingredients used in them, which is likely to impact its growth in
price-sensitive markets such as India, China, and South Africa. Specialty food
ingredients are relatively expensive, owing to their superior quality. There
are various fluctuations in raw material prices such as the prices of starch
and sugar for sweetener ingredients. According to a report published by the
FAO, in 2018, the starch price was quoted at nearly USD 507/ton, 44% higher
than in October 2017. In addition, the quotations have exhibited considerable
volatility throughout 2018. The price of sugar across the world keeps on
fluctuating. According to FAO, the sugar price index has increased by 5.5% from
December 2019 to January 2020, making the fourth consecutive monthly increase.
The latest increase was propelled by a 17% drop in India’s sugar output, a 66%
production fall in Brazil, one of the largest sugar-producing countries, and a
25% contraction in Mexico’s harvest.
Opportunities: Rise in number of end-use
applications
The
rising number of end-use applications, owing to the multifunctional attributes
of various ingredients, is projected to create opportunities for growth within
the specialty food ingredients market. Food processing ingredients such as
emulsifiers are mostly utilized in bakery & confectionery, convenience
foods, dairy & frozen desserts, and meat products. Flavors and colors are
also mostly used for bakery and beverage applications.
Challenges: Lack of consistency in
regulations pertaining to various ingredients
The
food ingredient industry faces a legal obligation to abide by the norms and
standards of various regulatory standards. International bodies such as the
National Food Safety and Quality Service (SENASA), Argentina; Canadian Food
Inspection Agency (CFIA), Canada; Food and Drug Administration (FDA); World
Health Organization (WHO); and Committee on the Environment; Public Health and
Food Safety (EU) are associated with food safety and quality regulations. These
organizations have control over the usage of different ingredients and
chemicals, including bitterness, used in food processing, directly or
indirectly.
Target Audience:
• Raw material suppliers
• Specialty food ingredient
manufacturers and suppliers
• Food safety agencies
• Food & beverage
manufacturers/suppliers
• Commercial research &
development (R&D) institutions and financial institutions
• Importers and exporters of
specialty food ingredient
• Food & beverage traders,
distributors, and suppliers
• Government organizations, research
organizations, consulting firms, trade associations, and industry bodies
• Associations, regulatory bodies,
and other industry-related bodies
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The food & beverages segment is
projected to witness significant growth during the forecast period.
Based
on type, the specialty food ingredient market is dominated by the food &
beverage segment. The consumer trends such as easy-to-use, health &
wellness, and clean label trends influence the overall market. The easy-to-use
trend is due to the rapid urbanization in emergent markets. Consumers demand
healthier ingredients in their food products. The growing obesity and diabetes
incidences compel the consumers in emerging and developed economies to focus on
an improved lifestyle.
The European region/ North American
dominates the specialty food ingredients
market with the largest share in 2019, whereas the Asia Pacific is expected to
witness the highest growth rate.
In
North America, the US dominated the specialty food ingredient market due to the
high production and demand for clean label food & beverages. The global specialty food ingredients market
is primarily driven by the rising demand for safe and plant-based products. The
specialty food ingredients industry functions with legislators and regulators
to deliver qualitative products to its end users. In the major markets.
The
increase in the developed economy and per capita income has enabled the consumers
to invest in more health and health-related services, in the Asia Pacific
region. This is one of the major drivers for specialty food ingredients in the
region. Apart from that, the millennial consumers are more health-conscious and
open to experimenting with various ingredients, this is also thriving the
market in the Asia Pacific.
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Created on Mar 22nd 2021 06:43. Viewed 332 times.