Food Ingredient Market

Food Ingredient Market Outlook (2024 to 2034)

The global food ingredient market size is estimated to reach US$ 35.15 billion in 2024. Projections are that the market will expand at a CAGR of 4.9% to end up at US$ 56.79 billion by 2034.

In the food ingredient business space, flavors are rapidly evolving. The global market for natural food flavors is expected to grow significantly, mainly driven by rising consumer preference for natural and biotech flavors and more manufacturers tapping into this niche market.

• The market in South Korea is forecasted to expand at a CAGR of 6.2% through 2034.
• Canada is projected to hold a market share of 20.2% in North America, while the Mexico market is evaluated to expand at a CAGR of 5.2% between 2024 and 2034.
• The meat and poultry segment is projected to reach a value of US$ 5.85 billion by 2034.

Because natural food tastes have such large profit margins, more and more firms are entering the industry. In the next five to six years, several firms are expected to release goods with biotech flavors. In addition, producers should advertise their goods under natural and biotech labels to draw in more consumers and new ones. New entrants are anticipated to fuel the global food flavor market's expansion, making the food ingredient market size reach new heights.

Superfoods are defined as foods with extraordinarily high nutritional profiles and therapeutic qualities. Superfoods like matcha, chia, baobab, and turmeric are already popular. Social media makes it possible to spread the word about these food products that include superfoods, therefore there is a hopeful future for the demand for superfood components produced from plants, thus contributing to food ingredient market growth.

Essential food components used in the processed food and beverages industry to make packaged foods include stabilizers, thickeners, emulsifiers, and sweeteners. Because sugar solutions create a high osmotic pressure, they impart flavor, texture, and viscosity while also serving as a preservative. However, as the world's population grows and people get more stressed out by their jobs, they turn to packaged and processed meals to cut down on time and satiate their hunger. Additionally, as processed food becomes more widely available, consumer eating patterns are changing significantly.

Report Attribute	Detail
Food Ingredient Market Size (2024E)	US$ 35.15 Billion
Forecasted Market Value (2034F)	US$ 56.79 Billion
Global Market Growth Rate (2024 to 2034)	4.9% CAGR
United States Market Share (2034F)	73.1%
Japan Market Growth Rate (2024 to 2034)	5.8% CAGR
North America Market Share (2024E)	22.6%
East Asia Market Growth Rate (2024 to 2034)	5.5% CAGR
Key Companies Profiled	Cargill, Incorporated; Archer Daniels Midland Company (ADM); DuPont de Nemours, Inc.; Kerry Group; Ingredion Incorporated; Tate & Lyle PLC; Chr. Hansen Holding A/S; FMC Corporation; Naturex (Givaudan); Sensient Technologies Corporation; Corbion NV; DSM Nutritional Products; BASF SE; Associated British Foods plc (ABF); Ajinomoto Co., Inc.

What is Aiding Suppliers of Food Ingredients in Increasing Their Profit Margins?

“Market Benefiting from Growing Appetite for Fast Food Worldwide”

Growing demand for fast foods has been significantly influenced by the millennial generation. They introduce fresh culinary fads, which have a long-term impact on various ingredient classes. Food texturizers and gums have seen an increase in demand throughout time, and this trend is expected to continue as people's use of food for celebration and expression grows more and more common.

North America accounts for a high portion of the global fast food business. As neighboring countries also show a growing appetite for fast food and related products, demand in North America and Latin America remains strong. This rise in fast food consumption has increased the need for food additives and components that enhance the taste, texture, and sensory appeal of these products.

“Rising Demand for Food Enzymes, Flavors, and Colors”

Rising demand for bakery goods, fast food items, and desserts is indicative of a growing consumer preference for convenience food. Convenience food consumption is rising, with notable increases seen in Middle Eastern and African nations, China, Brazil, India, and other countries where per capita food expenditure rises in tandem with rising per capita income. The additives that give convenience meals their requisite organoleptic qualities and provide them a longer shelf life than average–both of which increase customer appeal–make up a significant portion of these products.

Demand for food enzymes, flavors, and colors rises in direct proportion to the growth in bread and confectionery food consumption. The rising demand for nutritious convenience meals like various kinds of protein and nutrition bars can be linked to a rise in the need for other food ingredients like starches and natural and synthetic gums.

What is Hurting Market Growth of Food and Ingredient Suppliers?

“Low Stability of Special Ingredients and Limited Shelf Life”

Limited shelf life and volatility of several specialized ingredients lead to significant challenges for suppliers of specialty food ingredients. Specialty components sometimes possess unique properties that add value for applications; yet, the same properties can also contribute to their unstable nature and short shelf life.

Many natural sources of specialized ingredients, such as fruits, vegetables, and herbs, are susceptible to degradation and expiry over time. These compounds could include flavorings, volatile substances, or active ingredients that spoil or lose their potency in the presence of air, light, or moisture. Because of this, some constituents may have a lower shelf life than highly processed or synthetic compounds.

Country-wise Analysis

Demand for food ingredients has always been global. The market is expected to have a profitable future worldwide, particularly in major countries such as the United States, China, Japan, Canada, and South Korea, with the United States holding a significant food ingredient market share in North America.

What’s Increasing Revenue Streams of Suppliers in the United States?

“Rising Demand for Low-Calorie Food Products and Reduction in Overall Food Production Costs”

Attribute	United States
Market Value (2024E)	US$ 5.89 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 8.8 Billion

Using hydrocolloids, such as gums, thickening agents, artificial flavors, and sweeteners, is one of the main strategies to reduce the calorie content of the food product. Because thickening agents and hydrocolloids lower the overall cost of food production while also helping products meet the low-calorie target for the consumer, which increases product appeal, both consumers and producers benefit from increased demand for low-calorie food products brought on by the rising prevalence of obesity. The several advantages of hydrocolloids, such as gums and thickeners, have been demonstrated to be advantageous for the rise in demand in the United States.

What is Favoring Food Ingredient Manufacturers in China?

“Expansion of Clean Label Movement Complementing Food Ingredient Sales Growth”

Attribute	China
Market Value (2024E)	US$ 5.98 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 10.02 Billion

More consumers are looking for products with natural, identifiable ingredients over artificial additions, preservatives, and chemicals. A burgeoning market for natural flavorings, colorants, and preservatives has resulted from food producers reformulating their goods with clean-label ingredients in response to this trend.

Manufacturers of food ingredients are coming up with creative ways to provide a broad array of clean-label options, such as natural extracts, plant-based components, and non-GMO substitutes. This movement is driving market expansion overall by encouraging producers to acquire high-quality, ethically sourced products, in addition to having an impact on consumer purchase decisions.

Category-wise Analysis

The market is divided into various categories, and suppliers are concentrating on different segments to ensure they maximize their profits globally.

What is Driving Preference for Diverse Food Flavors Over Specific Ingredients?

“Shift toward Engaging and Enjoyable Food Consumption”

Attribute	Food Flavors
Segment Value (2024E)	US$ 11.04 Billion
Growth Rate (2024 to 2034)	4.5% CAGR
Projected Value (2034F)	US$ 17.09 Billion

Consumers are now primarily focused on food flavors available in the market. Instead of preferring specific food ingredients, they are showing a high level of interest in and enjoyment of various flavors. Whether it is the enticing aroma of vanilla, the comforting taste of cinnamon, or the refreshing zest of citrus, consumers are drawn to culinary flavors. This growing trend indicates a shift towards a more engaging and enjoyable way of consuming food products.

What is a Key Trend in the Bakery and Confectionery Segment?

“Focus on Innovation to Meet Changing Consumer Eating Preferences”

Attribute	Bakery & Confectionary
Segment Value (2024E)	US$ 8.75 Billion
Growth Rate (2024 to 2034)	4.7% CAGR
Projected Value (2034F)	US$ 13.91 Billion

The culinary ingredients market is expanding, driven significantly by the bread and confectionery sectors. These industries utilize a diverse array of food items for various purposes, leading to an increasing demand for ingredients. This food ingredient market trend is fueled by evolving consumer preferences and the continuous introduction of new products, solidifying the bakery and confectionery sectors.

Market Competition

Key players in the food ingredient market are trying to launch new product lines involving plant protein ingredients and natural food colors.

• In 2022, Tate & Lyle signed a strategic distribution collaboration with a leading erythritol supplier to launch Erytesse, a new sweetener. With this acquisition, Tate & Lyle is better able to help clients fulfill the growing demand from consumers for goods that are lower in calories, sugar, and/or fat.
• For a total enterprise value of US$ 453 million, Royal DSM and First Choice Ingredients, a well-known provider of savory flavorings derived from dairy, reached an agreement in 2022. First Choice Ingredients, with a focus on savory flavorings derived from dairy and fermented dairy products, is a company that enhances taste and functionality for a variety of food industry applications.

Fact.MR provides detailed information about the price points of key food ingredient manufacturers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Key Segments of Food Ingredient Market Research

• By Product Type :

  • Food Hydrocolloids
    • Plant Source
    • Gun Arabic
    • Guar Gum
    • Locust Bean Gum
    • Pectin
    • Starches
    • Others
  • Microbial Source
    • Xanthan Gum
    • Curdlan
    • Gellan Gum
  • Seaweed Source
    • Carrageenan
    • Agar-Agar
    • Alginate
  • Synthetic Source
    • Carboxymethylcellulose
    • Methyl Cellulose
    • Animal Source
  • Food Enzymes
  • Food Flavors
  • Food Colors

• By End Use :

  • Dairy Products & Frozen Food
  • Bakery & Confectionary
  • Sauces, Dressings & Condiments
  • Beverages
  • Snacks & Savory
  • Meat & Poultry Products
  • Pet Food

• By Function :

  • Thickeners
  • Stabilizers
  • Gelling Agents
  • Leavening Agents
  • pH Control Agents
  • Flavoring & Coloring Agents
  • Emulsifiers

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa