The global specialty food ingredients market size was valued at USD 118.04 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2030. The rapidexpansionof key application industries including food and beverages, pharmaceuticals, and personal care and growing penetration of organized as well as e-retail across the world are primarily fueling growth in the industry. Specialty food ingredients typically preserve, texture, emulsify, color, and help to process and add an extra health dimension to produced food. They are all key to guaranteeing a wide range of processed foods offered today to the consumers. They range from micro-ingredients like vitamins, minerals, and enzymes to macro-ingredients like specific proteins, fats, carbohydrates, fibers, and other substances.
With their technological, nutritional, and health-related functions, they make the food tasty, pleasant to eat, safe, sustainable, healthy, and affordable. Specialty foods are outpacing their non-specialty counterparts in almost all categories due to the rise in awareness regarding the overall food quality. Specific categories aligned with better-for-you options, health and wellness, and freshness are growing at the fastest rate.
In the U.S. market, the functional specialty food ingredients under the product segment are expected to witness robust growth from 2022 to 2030. The high penetration of organized retail across the country has also significantly contributed to the large share of specialty food ingredients in the country. The changing lifestyles, growing urban population, rising economic activities in emerging countries, and increasing penetration of e-retail worldwide are a few macro factors driving the global market.
Besides, the demand for food is poised to grow as the world population is expected to increase from 7.3 billion in 2015 to 9.7 billion in 2050, which, in turn, is anticipated to fuel the demand for specialty food ingredients. Furthermore, as consumer shopping habits have drastically changed due to the COVID-19 outbreak, specialty ingredients companies that service center-of-the-store retail categories have observed an increase in sales over the past few weeks as consumers have drastically increased their purchases of center-of-the-store products.
Sensory specialty food ingredients accounted for the largest revenue share of over 55.0% in 2021 as sensory ingredients are vital for enhancing the taste, smell, flavor, and texture of food products. Increasing demand for these ingredients in packaged and convenience foodstuffs and confectioneries is expected to be a major factor driving product demand.
Moreover, the flavor product market is driven by organic and natural ingredients. The ever-changing consumer preferences lead to the demand for different types of flavors. The flavor industry has chiefly been influenced by the consumption of various food and beverages. Due to the fast-changing customer preferences, the demand for ready-to-eat food products has been increasing. Thus, this aids in the growth of the food flavor market. The increasing demand for natural ingredients is a primary factor driving the global food flavor market.
Flavors, enzymes, colorants, and emulsifiers are the key sensory elements. Enzymes are used owing to their highly active nature of enhanced reactions and function uniquely to control flavor, texture, process time, extended shelf life, and less use of chemical additives. Flavors are among the most significant constituents as they give taste to the finished cuisine or product. This segment is characterized as innovative, technical, and specialized in nature and its growth parameters include changing lifestyle of consumers and increased demand for convenience food.
Vitamins have widespread uses in meals, fortification in oils and fats, supplements, and infant formula. The type of vitamins to be used depends upon the formulation requirements. Minerals are among the significant components of a balanced diet consumed by humans. One another application of minerals is aiding the function of certain vitamins such as calcium, which helps in the absorbance of vitamin D by the cells from the diet.
Antioxidant as key ingredient has the function to protect finished products against fouling such as fat rancidity and color changes due to oxidation caused by bacteria, fungi, molds, and yeasts. The types of antioxidants are dependent upon the formulation requirement of the type of diet. Preservatives are used for preserving the quality for a longer period without any harm. Changing consumer preference for safe and hygienic packed sustenance items, especially in the developed regions, is expected to be the major driver for the market. These explicit product qualities have helped the manufacturers cater to the specific requirements of the processors, which is anticipated to boost the market growth in the next eight years.
The food and beverage application segment led the industry in 2021 with over 75.0% share of the global revenue and is expected to witness substantial growth during the forecast period. Changing consumer lifestyles and food preferences have led to the growth of the processed food manufacturing sector, which, in turn, is likely to propel the demand for specialty food ingredients. Also, increasing consumption of alcoholic and non-alcoholic beverages, especially among the young population, is expected to support the industry growth.
With a rise in health problems among consumers, they are now more cautious about their consumption habits. This has resulted in the demand for functional food items and has become more prominent in the consumer market. This is due to people’s interest in protecting and preserving their health, and in return, has increased the demand for healthier ingredients in packaged products, food service industry, and food and beverage industry.
The personal care industry has witnessed significant growth owing to increasing consumer awareness regarding ingredients used for making such products. Consumers are opting for more natural and healthy products that do not involve harmful chemicals. Thus, manufacturers are widely using such special ingredients in their product offerings.
The pharmaceutical industry is anticipated to expand at the fastest CAGR of 7.8% over the forecast period owing to the increasing use of food ingredients and research and development in the field. Moreover, the productionexpansion of generic medicines is anticipated to augment the demand for specialty food ingredients in the pharmaceutical application segment.
The Asia Pacific region held the largest revenue share of over 25.0% in 2021 and is expected to witness the fastest growth over the forecast period. The popularity of convenience food has boosted the demand for emulsifiers in the food industry, making China the largest market for emulsifiers in Asia Pacific. Moreover, the high population in the country supports the expansion of the food and beverage, pharmaceutical, and personal care industries, which are anticipated to act as key drivers for the industry in the country.
North America emerged as the second-largest revenue share in 2021 and is projected to expand at a considerable CAGR from 2022 to 2030. In North America, the U.S. dominated the market in 2021 owing to the growing demand for safe and plant-based products. The young generation in the country is focusing on transparency in food ingredients and demanding more healthy and natural food products.
In 2021, Europe emerged as the third-largest regional market for specialty food ingredients after North America; however, it is anticipated to witness sluggish growth over the forecast period. Europe has always been known for its world-famous cuisines and with a shift in consumer demand, various innovations of new recipes happen from time to time. Countries in the region such as France, Italy, and Belgium are some of the largest importers of specialty ingredients. The presence of a reasonable number of processing and confectionery companies in Germany and the U.K. adds to the production and demand for specialty food ingredients.
Key Companies & Market Share Insights
The market is highly fragmented with the presence of large-sized international companies as well as small- and medium-sized domestic players. Large companies are adopting emerging technologies to innovate and craft better products. For instance, Kraft Heinz opened a new digital hub to create digitally powered strategies and help launch new food ideas that can successfully capture a huge segment of the market. Moreover, technologies like blockchain will continue to gain popularity as more food companies become a part of this trend.
Key companies operating in the industry are majorly adopting expansion strategies to expand their manufacturing capabilities and geographical presence. For instance, in December 2021, ICL Specialty Products Inc. opened its new USD 18 million alternative-protein facilities. It is the company’s first-ever plant-based protein facility that will address the food sustainability problems and will produce plant-based meat substitutes for food companies, distributors, restaurants, and grocery chains. It is expected that the facility will make more than 15 million pounds of product annually at full capacity. Some prominent players in the global specialty food ingredients market include:
Eli Fried Inc.
KF Specialty Ingredients
Associated British Foods Plc
Archer Daniels Midland CompanySee Also15 BEST Keyword Research Tools for SEO [2022 Reviews]30 Natural Food Sources Of Creatine (+ How Much To Eat) – FitbodDr. Brown Bottles Vs. Philips Avent: What’s The Difference & Which Baby Bottle Brand Is Better? Nipple Sizes, Anti Colic, Safety, etc. - Motherhood Community14 Spirulina and Chlorella Benefits You’ll Enjoy When Taken Together | PlantBasedFAQs.com | Learn About Plant-Based Foods
Wild Flavors GmbH
Diana Group SA
Tate & Lyle
Specialty Food Ingredients Market Report Scope
Market size value in 2022
USD 124.9 billion
Revenue forecast in 2030
USD 193.7 billion
CAGR of 6.4% from 2022 to 2030
Base year for estimation
2017 - 2020
2022 - 2030
Revenue in USD billion and CAGR from 2022 - 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan; Brazil; Saudi Arabia
Key companies profiled
Naturex; Givaudan; Eli Fried Inc.; KF Specialty Ingredients; Ingredion; Associated British Foods Plc; Kerry Group; Agropur Cooperative; Ashland Inc; Archer Daniels Midland Company; Cargill Inc.; Wild Flavors GmbH; DSM; Diana Group SA; Tate & Lyle; CHR. Hansen
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Global Specialty Food Ingredients Market Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global specialty food ingredients market report based on product, application, and region:
Product Outlook (Revenue, USD Billion, 2017 - 2030)
Food & Beverage Starter Cultures
Protein and Amino Acids
Omega-3 & 6 Fatty Acids
Application Outlook (Revenue, USD Billion, 2017 - 2030)See Alsospencer klavan boyfriend joshHow to get rid of liver spots and skin pigmentationBest Weight Loss Pills That Claim Guaranteed Weight LossEffects of alcohol on skin and how to repair the damage
Food & Beverage
Meat, Poultry & Seafood
Sauces, Dressings & Condiments
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
Central & South America
Middle East & Africa
Frequently Asked Questions About This Report
How big is the specialty food ingredients market?
b. The global specialty food ingredients market size was estimated at USD 118.04 billion in 2021 and is expected to reach USD 124.9 billion in 2022.
What is the specialty food ingredients market growth?
b. The global specialty food ingredients market is expected to grow at a compound annual growth rate of 6.4% from 2022 to 2030 to reach USD 193.7 billion by 2030.
Which segment accounted for the largest specialty food ingredients market share?
b. Asia Pacific dominated the specialty food ingredients market with a share of 28.49% in 2021. This is attributable to popularity of convenience food and expansion of end-use industries in the economies of China.
Who are the key players in specialty food ingredients market?
b. Some key players operating in the specialty food ingredients market include Naturex, Givaudan, Eli Fried Inc., KF Specialty Ingredients, Ingredion, Associated British Foods Plc, Kerry Group, Agropur Cooperative, Ashland Inc, Archer Daniels Midland Company, Cargill Inc., Wild Flavors GmbH, and DSM, to name a few.
What are the factors driving the specialty food ingredients market?
b. Key factors that are driving the specialty food ingredients market growth include shift in consumer focus towards organic products coupled with growing demand for anti-ageing and environmental defense skin care products.