The global food processing ingredient market was worth around USD 48.12 billion in 2021 and is estimated to grow to about USD 76.23 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.9 percent over the forecast period.
Industry Prospective:
The global food processing ingredient market was worth around USD 48.12 billion in 2021 and is estimated to grow to about USD 76.23 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.9 percent over the forecast period. The report analyzes the food processing ingredient market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the food processing ingredient market.
Food Processing Ingredient Market: Overview
The processed food products sector is fast evolving around the globe, with shifting demographics, rising demand for convenience & branded foods, and an increasing customer emphasis on clean label & organic food products. Food processing ingredients add minerals and vitamins to meals to extend their shelf life or improve the nutritional content of the food. It's used to preserve food's color, thickness, texture, and flavor. Thus, it has a wide range of applications in the food and beverage industry.
COVID-19 Impact:
Covid-19 has compelled producers to seek high-quality materials and consumer goods. People have become more aware of what they consume and where it comes from following COVID-19. As a result, high-end items are in great demand. Quality is the primary goal of consumer psychology, with a rising number of individuals prepared to pay more for the highest quality goods. The market for food processing ingredients will benefit as a result of this. Manufacturers of food processing ingredients have an opportunity to profit from the growing demand for food processing ingredients, but they must assure a steady supply. The market will benefit from increased health awareness as a result of COVID-19 and is estimated to drive the market post-Covid-19 era in the predicted years.
Food Processing Ingredient Market: Growth Drivers
Rising consumption of processed food products is anticipated to fuel the market growth
The global food processing ingredient market is been propelled by a change in buyer behavior regarding the safety of food. Consumers are being more flexible in terms of where their food comes from and how it is produced. Thus, firms are developing certified food processing ingredients to fulfill the safety standards and high quality demanded by consumers. Manufacturers are attempting to cut costs in the face of growing raw material prices and lower competition from Asian suppliers, and also customers' demands for healthier, more convenient, and premium meals prepared with food processing ingredients. This has led to a rise in the consumption of processed food products thereby boosting the demand for food processing ingredients. In addition to this, an increase in demand for organic or natural food ingredients and a growing preference for healthy food & beverages are also some of the key aspects that are fostering the market growth. Moreover, food processing ingredients give food certain qualities including moisture, flavor, flow, and texture resulting in the growth of consumption of processed food products thereby driving the market growth.
Food Processing Ingredient Market: Restraints
Volatile cost of raw materials may impede the growth of the market
The global food processing ingredient market's growth might be hampered by the volatile cost of raw materials and the availability & affordability of ingredients made by local firms. Furthermore, rising health consciousness among consumers, as well as the possible health risks of excessive intake of foods containing these ingredients, may limit market development to some extent. In addition to this, increased laws on the production and use of food processing ingredients, as well as the varied fraud related to food act, are also some of the key factors that are estimated to restrain the market's growth.
Food Processing Ingredient Market: Opportunities
Rise in introduction of significant manufacturing capabilities expected to generate key opportunities for market growth
Food ingredient companies are attempting to capitalize on rising customer demand for healthier foods and drinks by expanding mergers and acquisitions in order to meet the industry's needs for food processing ingredients. Key players are also investing heavily in the establishment of innovative and substantial manufacturing facilities to meet the growing demand of the consumer. Additionally, manufacturers are focusing majorly on continuous innovation, worldwide presence, and bargaining strength for long-term success in the food ingredients business. Technological improvements like the spinning cone column and reverse osmosis present a variety of chances for wine market innovation, which is projected to boost demand for yeast as an ingredient. All such factors are projected to create ample opportunities for the growth of the market.
Report Scope:
Report Attribute | Details |
---|---|
Base Year | 2020 |
Historic Years | 2016 - 2020 |
Forecast Years | 2021 - 2028 |
Segments Covered | By Product Type, By Application, and By End Use |
Forecast Units | Value (USD Billion), and Volume (Units) |
Quantitative Units | Revenue in USD million/billion and CAGR from 2021 to 2028 |
Regions Covered | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
Countries Covered | U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
Number of Companies Covered | 10 companies with scope for including additional 15 companies upon request |
Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Customization Scope | Avail customized purchase options to meet your exact research needs. |
Food Processing Ingredient Market: Challenges.
Low penetration of the market in the low-income countries likely to act as challenge for market growth
To some extent, low penetration of the market is been observed in countries with low and middle income. This is majorly attributed to low disposable income, less spending & purchasing power, and low preference of the consumer toward processed food products.
Food Processing Ingredient Market: Segmentation
The global food processing ingredient market is segregated based on ingredient, nature, end-use, application, and region. Based on the ingredient, the global market is categorized into antioxidants, proteins, vitamins, minerals, sweeteners, coloring agents, and enzymes. The nature segment is classified into natural/organic and synthetic. The end-use of the food processing ingredient market are emulsifiers, stabilizers, thickeners, leavening agents, and texturizers. The application segment is divided into meat & seafood products, dairy products, bakery & confectionery, beverages, cereal products, and others.
Recent Developments
Food Processing Ingredient Market: Regional Landscape
Europe is estimated to lead the global food processing ingredient market
Geographically, Europe is anticipated to dominate the market for food processing ingredient. This is majorly due to well-developed food industry, high consumption of confectionery & bakery items, and high consumption of alcoholic drinks among consumers in nations. Thus, the European market is likely to account for the biggest revenue share during the forecast period as well. Furthermore, in comparison to other areas, consumption of various other processed food items is significantly greater in this region, which is predicted to increase ingredient adoption and enhance Europe’s market growth. During the projected period, Asia Pacific market is likely to grow at a rapid pace. This is attributable to rising consumer disposable income, a shift in inclination toward western cuisines & processed meals, lengthy & exhausting working hours, and a need for healthful foods.
Food Processing Ingredient Market: Competitive Landscape
Some of the prominent players that are operating in the global food processing ingredient market include Kerry Group, Cargill, Inc., E. I. Du Pont De Nemours and Company, Arla Foods amba, Corbion N.V., Koninklijke DSM N.V., Dairy Crest Group PLC, Ingredion, Archer Daniels Midland Company, and Tate & Lyle Public Limited Company.
Global food processing ingredient market is segmented as follows:
By Ingredient
By Nature
By End Use
By Application
By Region
Food processing ingredients market is a rapidly growing industry on account of demand from several regions of the world. In 2017, global food processing ingredient market was worth around USD 42.08 billion. Food processing ingredients market constitutes of all emulsifiers, proteins, starch derivatives & modified starch, yeast, enzymes, acidity regulators, antioxidants, food stabilizers, and release agents.
Rapid urbanization and changing lifestyles have created awareness among the population regarding the practice of using food processing ingredients. The rising demand for protein and antioxidants products is expected to be a major driver for the food processing ingredient market. The growing awareness among the population regarding the adverse effects of the varying climatic and environmental conditions on the health has further increased the demand for food processing ingredients.
Rising GDPs and disposable incomes in various regions across the globe is also expected to augment the growth of the food processing ingredient market. Moreover, increasing food-related fraud has adverse side effects in the long term. Intense competition and huge market dominance by the key players are expected to restrain the entry of new players in the market. However, use of branded products and growing trend towards ready to eat food products is expected to present opportunities for the food processing ingredient market within the forecast period. Attractive marketing strategies and convenient packaging are also expected to draw in more customers.
The food processing ingredient market can be segmented into categories like emulsifiers, proteins, yeast, starch derivatives & modified starch, enzymes, antioxidants, release agents, acidity regulators, and food stabilizers. Protein segment accounted for over 35.0% of the global revenue 2017 and is expected to witness significant growth over the next six years owing to the rising demand for nutritious food. Yeast and enzyme emerged as the second leading segment and is expected to grow on account of increasing demand for convenience, confectionery & bakery, and fast food products. Antioxidant segment is expected to witness significant growth within the forecast period owing to high additional health benefits and rising demand from the Asia Pacific region.
Europe region held the largest market share in 2017. Rising standard of living and health benefits of food processing ingredients is expected to fuel the growth of food processing ingredient market.
Asia Pacific also accounted for a good global market share and is expected to grow in light of urbanization and rising disposable incomes in the countries of the region. The enormous population in countries such as India and China are also expected to be a major point of attraction for the key market players.
Latin American food processing ingredient market is expected to witness significant growth over the forecast period as a result of increasing demand for ready to eat and prepared food products in Brazil. The rising disposable incomes and increasing awareness among the consumers are expected to fuel the growth of the food processing ingredients market in the region. In addition, effective marketing strategies by companies such as digital advertising campaigns will spur the convenient food sector.
The key players in this industry are Tate & Lyle, Kerry Group, DuPont, Ingredion, Cargill, and ADM.
Request the coronavirus impact analysis across industries and markets
The global food processing ingredient market is been propelled by a shift in customer behavior toward food safety. In addition to this, an increase in demand for organic or natural food ingredients and a growing preference for healthy food & beverages are also some of the key aspects that are fostering the market growth. Moreover, food processing ingredients give food certain qualities including moisture, flavor, flow, and texture resulting in the growth of consumption of processed food products thereby driving the market growth.
According to the Zion Market Research report, the global food processing ingredient market was worth about 48.12 (USD billion) in 2021 and is predicted to grow to around 76.23 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 5.9 percent.
Geographically, Europe is anticipated to dominate the market for food processing ingredient. This is majorly due to well-developed food industry, high consumption of confectionery & bakery items, and high consumption of alcoholic drinks among consumers in nations.
Some of the prominent players that are operating in the global food processing ingredient market include Kerry Group, Cargill, Inc., E. I. Du Pont De Nemours and Company, Arla Foods amba, Corbion N.V., Koninklijke DSM N.V., Dairy Crest Group PLC, Ingredion, Archer Daniels Midland Company, and Tate & Lyle Public Limited Company.
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