PUBLISHER: The Business Research Company | PRODUCT CODE: 1436404
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436404
Ingredients are components or constituent portions used in preparing a specific dish, cuisine, or product. They are essential for creating the desired end product.
The primary types of ingredients include starches, vegetable oils and fats, natural sweeteners, enzymes and antioxidants, natural flavorings and colors, functional ingredients, and others. Starch is a mixture of two distinct polysaccharides made of glucose units that result in a tasteless white powder when refined. These ingredients serve various functions such as sweeteners, emulsifiers, flavors and color additives, preservatives, fat replacers, nutrients, stabilizers, thickeners, binders, and others. They are used in a wide range of applications including beverages, fortified food products, bakery and confectionery products, dairy and dairy products, meat and fish products, among others.
The ingredients market size has grown strongly in recent years. It will grow from $205.41 billion in 2023 to $220.43 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to health and wellness trends, cultural and ethnic influences, economic factors, supply chain dynamics, marketing and consumer education.
The ingredients market size is expected to see strong growth in the next few years. It will grow to $304.86 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to continued health focus, globalization of tastes, economic growth in emerging markets, supply chain resilience, educational initiatives. Major trends in the forecast period include personalization of ingredients, culinary and exotic ingredients exploration, clean meat and cultured ingredients, innovative sweeteners and flavor enhancers, zero-waste ingredient utilization.
The ingredients market size has grown strongly in recent years. It will grow from $205.41 billion in 2023 to $220.43 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to health and wellness trends, cultural and ethnic influences, economic factors, supply chain dynamics, and marketing and consumer education. These factors have collectively contributed to the growth of the industry during that time.
The ingredients market size is expected to see strong growth in the next few years. It will grow to $304.86 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The anticipated growth in the forecast period can be attributed to a sustained focus on health, the globalization of culinary preferences, economic expansion in emerging markets, the resilience of supply chains, and educational initiatives. Major trends in this period include the customization of ingredients, exploration of culinary and exotic ingredients, the development of clean meat and cultured ingredients, the creation of innovative sweeteners and flavor enhancers, and the promotion of zero-waste ingredient utilization.
The growing trend of fast-food consumption among millennials is expected to boost the ingredients market. With a significant portion of the population consuming fast food regularly, there is a rising demand for ingredients used in fast food preparation. For example, in the USA, a large percentage of adults and children consume fast food multiple times a week, leading to increased sales in the fast-food industry. Similarly, in the UK, there has been a substantial increase in restaurant revenues, particularly in fast food, indicating a growing market for ingredients used in this sector.
The anticipated surge in consumer awareness regarding health and wellness is poised to drive the growth of the ingredient market in the foreseeable future. Health embodies a state of complete physical, mental, and social well-being, extending beyond the absence of disease or infirmity. Meanwhile, wellness represents an ongoing process where individuals actively make choices toward a more fulfilling existence. Customers are increasingly prioritizing their health, seeking out food and beverage options that promote overall well-being and offer enhanced nutritional value. This elevated consciousness has resulted in heightened demand for health-boosting compounds such as vitamins, minerals, antioxidants, probiotics, and other functional components. For instance, as per the Great Green Wall initiative in January 2024, approximately 40% of Americans claim to adhere to specific diets, with 20% actively seeking out healthy food options. Consequently, the growing consumer emphasis on health and wellness stands as a driving force behind the expansion of the ingredient market.
Major players within the ingredient market are emphasizing innovative products such as Virslik to invigorate yogurt innovation, focusing on both health benefits and enhanced taste. Virslik, a specialized processing aid, is crafted to improve the texture and flavor of yogurt products. For example, in February 2021, DuPont, a US-based chemical company, introduced Virslik as part of a new line of ingredients aimed at elevating the protein content of healthy yogurts. This launch not only aims to enhance yogurt quality but also sets higher benchmarks for product development. Positioned among DuPont's range of solutions comprising cultures, proteins, enzymes, and functional options, Versilk stands out as the latest addition. This versatile ingredient not only contributes to better nutrition and taste but also offers companies increased adaptability, enabling rapid responses to shifts in the market landscape.
Major players in the ingredient market are actively engaging in strategic partnerships to deliver dependable services to their customers. A strategic partnership refers to a collaborative alliance between multiple companies or organizations aimed at mutual benefit and achieving shared objectives. For example, in November 2021, BDF Natural Ingredients, a European biotech company specializing in innovative additives for food and nutrition, formed a strategic partnership with A&B Ingredients, a prominent US-based provider of clean-label, functional ingredient solutions in the food and beverage industry. This partnership aims to introduce BDF Natural Ingredients' Transglutaminase enzyme to the North American market, offering customers access to premium ingredients and comprehensive technical support from the sales and application teams. The featured product, PROBIND, within the transglutaminase (TG) category, possesses exceptional protein-binding properties, making it highly versatile for applications in meat, fish, dairy, and vegan products. PROBIND enhances food texture, protein binding, and facilitates the creation of new products while being allergy-free.
In September 2021, Kerry, an Ireland-based cheese manufacturing company, acquired Niacet Corporation for $1,015 million. This strategic acquisition is aimed at strengthening Kerry's leadership position by incorporating complementary technologies and accelerating its expansion. Niacet Corporation, based in the US, is known for its production of specialty ingredients used in food, feed, and pharmaceutical applications.
Major companies operating in the ingredients market report are Cargill Incorporated, Nestle S.A., Archer Daniels Midland Company, PepsiCo Inc., The Coca-Cola Company, Danone S.A., Associated British Foods PLC, Kellogg Company, Hermes Sweeteners Ltd., International Flavors & Fragrances Inc., ConAgra Brands Inc., ICL Food Specialties Ltd., Kerry Group PLC, Ingredion Incorporated, Koninklijke DSM N.V., Meiji Co. Ltd., Givaudan SA, Symrise AG, Yakult Honsha Co. Ltd., Ashland Global Holdings Inc., Tate & Lyle PLC, Corbion Purac N.V., Chr. Hansen Holding A/S, Tata Chemicals Limited, Palsgaard A/S, Essentia Protein Solutions, LycoRed Limited, Symega Food Ingredients Ltd., Glanbia PLC, H.C. Brill AG & Co. KG, A.E. Staley Manufacturing Company, ABITEC Corporation, ACH Food Companies Inc., Pacific Harvest Products Inc., Parker Products Inc., Paulaur Corporation, Penford Food Ingredients Co., Sweetener Supply Corp., TeaTech Inc.
North America was the largest region in the ingredients market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global ingredients market report during the forecast period. The regions covered in the ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The ingredients market consists of sales of specialty food ingredients, personal care active ingredients, active pharmaceutical ingredients, nutraceutical ingredients, and cereal ingredients. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Ingredients Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on ingredients market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for ingredients ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ingredients market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.