PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1323870
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1323870
The specialty food ingredients market is projected to grow from USD 179.8 Billion in 2023 to USD 240.9 Billion by 2028, at a CAGR of 6.0% during the forecast period. The increasing global population, coupled with urbanization trends, has a direct impact on the specialty food ingredients market. As more people move to urban areas, the demand for ready-to-eat food and beverage products rises, creating a higher demand for specialty food ingredients.
The sugar substitutes segment in ingredient type is expected to be one of the dominant segments in the market.
Consumers are looking for healthier substitutes as they become more aware of the harmful health implications of excessive sugar consumption, such as obesity, diabetes, and tooth decay. According to the National Library of Medicine (US) survey on "Consumer willingness to pay for healthier food products", the majority of consumers, as observed in 88.5% of the 26 experiments, are willing to pay a price premium ranging from 5.6% to 91.5% (with a mean of 30.7%) for healthier food options. This consumer behavior aligns with the growing demand for specialty food ingredients, which often cater to the preferences of health-conscious individuals seeking nutritious and better-for-you products. With no taste loss, sugar alternatives provide a means to cut calories and control blood sugar levels. The market for sugar alternatives, including artificial sweeteners like aspartame, saccharin, and stevia-based natural sweeteners, is increasing as health consciousness spreads.
The expansion of the sugar replacements ingredient type category has been spurred by a mix of factors, including increased health consciousness, the prevalence of diabetes, governmental backing, technical advancements, and product diversity. The market for sugar substitutes is anticipated to increase steadily over the next few years as people look for healthier alternatives to regular sugar.
Food color is one of the segments that is projected to grow in the ingredient type segment during the forecast period.
Food colors are essential for improving the aesthetic appeal of food and drink items. Bright, eye-catching colors can draw customers and make things more alluring. Food manufacturers use a wide variety of both artificial and natural food colors to distinguish their goods in a competitive marketplace. In industries like candy, bakery, and drinks, where visual appeal plays a big role in consumer purchasing decisions, eye-catching colors are especially crucial.
The food color category within specialty food ingredients is expected to have consistent expansion as customer desires for aesthetically pleasing, natural, and secure food products continue to drive the market. The industry's emphasis on innovation, the use of colors as a tool for product distinction, consumer perception, and legal compliance are driving the expansion of this segment.
Prominent companies include ADM (US), DSM (Netherlands), International Flavors & Fragrances Inc. IFF (US), Kerry Group plc. (Ireland), Cargill, Incorporated (US) and among others.
This research report categorizes the specialty food ingredients market by Type (Acidulant, Colors, Flavors, Enzymes, Emulsifiers, F&B Starter Culture, Preservatives, Functional Food Ingredients, Specialty Starches, Sugar Substitutes), Distribution Channel (Distributors and Manufacturers) and Region (North America, Europe, Asia Pacific, South America, and Rest of the World). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the specialty food ingredients market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, new product & service launches, mergers and acquisitions, and recent developments associated with the specialty food ingredients market. Competitive analysis of upcoming startups in the specialty food ingredients market ecosystem is covered in this report.
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall specialty food ingredients market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
Analysis of key drivers (Growth in demand for fortified food owing to rising health awareness, Shift in consumer preferences for food & beverages), restraints (High cost and limited availability of raw materials, Increase in instances of allergies and intolerances related to few ingredients), opportunity (Rise in the number of end-use applications, Product-based and technological innovations in the ingredient industry), and challenges (Lack of consistency in regulations about various ingredients, Threat of substitutes) influencing the growth of the specialty food ingredients market.