Global Food Inclusions Market Size By Type, By Form, By Application, By Geographic Scope And Forecast

Food Inclusions Market Size and Forecast

Food Inclusions Market size was valued at USD 14.83 Billion in 2024 and is projected to reach USD 23.99 Billion by 2031, growing at a CAGR of 6.20% from 2024 to 2031.

Food inclusions are small ingredients added to food products to improve texture, flavor, appearance, and nutritional value. These inclusions can take the form of chunks, flakes, or nuggets, and may comprise dried fruits, nuts, chocolate pieces, and unusual grains.

Their primary applications are in the baking and confectionery sectors, where they enhance the sensory experience of items such as cookies, cakes, and breads. Inclusions not only improve the aesthetic appeal and flavor character of these items, but they also raise their nutritional value, providing benefits such as additional proteins, fiber, and vital fatty acids.

Furthermore, this versatility makes inclusions an important tool for food makers looking to create differentiated and appealing products for consumers.

Global Food Inclusions Market Dynamics

The key market dynamics that are shaping the food inclusions market include:

Key Market Drivers

Growing Demand for Premium and Indulgent Food Products: Consumers are increasingly demanding high-end, rich culinary experiences, which is boosting demand for food inclusions in a variety of products. According to Verified Market Research, global launches of products with "premium" claims climbed by 4% per year between 2016 and 2020. According to the survey, 56% of worldwide customers are willing to pay more for food and drink that is a "real treat." This trend is driving up the usage of high-quality food inclusions in confectionery, bakery, and dairy goods.

Rising Health Consciousness and Demand for Functional Foods: The growing emphasis on health and wellness is fueling the market for functional food inclusions. According to a survey conducted by the International Food Information Council (IFIC), 65% of Americans seek functional benefits from their food and beverages. This development is driving up the demand for nutritious dietary inclusions such as nuts, seeds, and dried fruits.

Expanding Plant-based Food Sector: The rapid growth of the plant-based food market is opening up new avenues for plant-based food inclusion. According to the Plant-Based Foods Association, retail sales of plant-based foods in the United States increased by 27% in 2020, totaling USD 7 Billion. The plant-based food market in Europe increased by 49% between 2018 and 2020, reaching €3.6 billion, according to the European Union's Smart Protein project. This trend is pushing innovation in plant-based food inclusions for a variety of purposes.

Key Challenges:

High Raw Material Costs: Rising raw material prices pose a challenge to the food inclusions market, particularly for products such as nuts, dried fruits, and chocolate. Factors such as supply chain interruptions, climate change, and geopolitical tensions all contribute to commodity price volatility. This makes it difficult for producers to maintain consistent pricing and profit margins, which impede market expansion.

Consumer Skepticism: Some people are still suspicious about the nutritional advantages and safety of food additives, particularly synthetic or highly processed components. There are concerns regarding potential allergies, genetically modified organisms, and the use of artificial additives. To gain consumer trust, manufacturers must address these concerns with transparent labeling, clean-label formulas, and effective marketing.

Key Trends:

Growing Demand for Clean Label Products: Consumers are increasingly preferring clean-label items made with natural, minimally processed components. This trend is pushing producers to include foods that are seen as healthy, such as whole fruits, nuts, and seeds. Consumers are more likely to prefer products that clearly describe their contents, driving companies to develop components that meet these clean label requirements, improving both flavor and nutritional value.

Rise of Plant-Based Inclusions: The increasing vegan and vegetarian population is driving a major shift in the food inclusions market toward plant-based inclusions. Consumers are looking for healthier and more sustainable options, therefore manufacturers are developing additions made from plant-based components including beans, grains, and veggies. This trend not only caters to dietary needs but also connects with a larger movement toward food sustainability, making it appealing to ecologically conscientious consumers.

Innovation in Flavor Profiles: Innovative taste combinations are becoming increasingly popular in the food inclusions market, as manufacturers experiment with new and exotic flavors to entice customers. The addition of various ingredients, such as spices, herbs, and international flavors, into traditional items is becoming increasingly popular. This trend represents a growing customer desire for innovative taste experiences, prompting firms to differentiate their offers and appeal to adventurous diners looking for new culinary experiences.

Global Food Inclusions Market Regional Analysis

Here is a more detailed regional analysis of the food inclusions market:

Europe:

According to Verified Market Research, Europe is estimated to dominate the food inclusions market over the forecast period. European consumers are becoming more health-conscious, which is boosting demand for functional and nutritious food inclusions. According to the European Food Safety Authority (EFSA), 7 out of 10 European customers think about the nutritional value of food before making a purchase. Also, an FMCG Gurus survey in 2021 revealed that 80% of European consumers planned to eat and drink more healthily as a result of COVID-19. This trend is driving up the demand for healthy food ingredients such as seeds, nuts, and dried fruits.

Furthermore, Europe's plant-based food market is rapidly expanding, opening more potential for plant-based food inclusions. According to a report from the EU-funded Smart Protein project, the European plant-based food market increased by 49% between 2018 and 2020, reaching €3.6 billion. The survey also states that plant-based milk replacements showed a 20% increase in sales value between 2018 and 2020. This expansion is fueling innovation in plant-based food inclusions for a variety of uses, including dairy substitutes and plant-based confectionary.

North America:

North America is estimated to exhibit substantial growth within the market during the forecast period. The increasing rise of the plant-based food market in North America is opening up new potential for plant-based food inclusions. The Plant Based Foods Association and The Good Food Institute estimate that plant-based food retail sales in the United States will increase by 27% in 2020, reaching USD 7 Billion. The plant-based meat category alone generated USD 1.4 Billion in sales, a 45% increase from 2019 to 2020. The plant-based food market in Canada was estimated at $412 million in 2020, up 31% from the previous year, according to the Plant-Based Foods of Canada. This trend is accelerating innovation in plant-based food inclusions for a variety of purposes in the North American market.

Furthermore, consumers in North America are increasingly looking for clean labels and natural food items, which is driving up demand for natural food inclusions. According to the International Food Information Council's (IFIC) 2020 Food and Health Survey, 43% of US consumers always or frequently choose clean-label goods and beverages. Also, a Label Insight survey indicated that 93% of customers believe brands and manufacturers must provide detailed information about what is in food and how it is produced. This trend is increasing the usage of natural food ingredients such as fruits, nuts, and seeds in diverse food products throughout North America.

Asia Pacific:

The Asia Pacific region is estimated to exhibit the highest growth during the forecast period. There is a growing emphasis on health and wellbeing in the Asia Pacific region, which is driving up demand for functional and nutritious food inclusions. According to a survey conducted by Food Industry Asia (FIA), 68% of regional customers are willing to pay a premium for food products that provide health benefits. In Japan, the market for foods with health claims reached ¥1.2 trillion (roughly $10.9 billion) in 2019, according to the Japanese Ministry of Agriculture, Forestry and Fisheries. This trend is driving the adoption of nutritious food inclusions including nuts, seeds, and dried fruits into a variety of food products throughout the region.

Furthermore, the rising disposable incomes in the Asia Pacific are driving changes in consumer preferences, with a growing hunger for luxury and indulgent culinary goods. According to the Asian Development Bank, the Asia Pacific middle class is predicted to grow to 3.5 billion by 2030, accounting for 65% of the global middle class. According to India's Ministry of Statistics and Programme Implementation, per capita disposable income increased by 6.8% from 2021 to 2022. This economic expansion is encouraging customers to seek out more diverse and high-quality food products, hence increasing the use of food inclusions in a variety of applications.

Global Food Inclusions Market: Segmentation Analysis

The Food Inclusions Market is segmented based on Type, Form, Application, and Geography.

Food Inclusions Market, By Type

Chocolate

Fruits and Nuts

Cereals

Flavored Sugar and Caramel

Confectionery

Others

Based on Type, the market is segmented into Chocolates, Fruits & Nuts, Cereals, Flavored Sugar & Caramel, Confectionery, and Others. The fruits & nuts segment is estimated to dominate the food inclusions market. Fruits and nuts are popular inclusions because of their natural flavors, textures, and supposed health advantages. Their versatility in applications across a variety of food sectors, including bakery, confectionery, and snacks, contributes to their market leadership.

Food Inclusions Market, By Form

Solid & Semi-solid

Liquid

Based on Form, the market is segmented into Solid & Semi-solid and Liquid. The solid & semi-solid segment is estimated to dominate the food inclusions market during the forecast period due to the adaptability and customization choices that solid inclusions provide, allowing manufacturers to create a variety of forms and textures while also improving flavor and visual appeal. Solid inclusions, such as chocolate chips, almonds, and dried fruits, are popular in baked goods, snacks, and desserts, appealing to consumers' need for unique and pleasurable culinary experiences.

Food Inclusions Market, By Application

Bakery Products

Snacks & Bars

Dairy & Frozen Desserts

Confectionery

Others

Based on Application, the market is segmented into Bakery Products, Snacks & Bars, Dairy & Frozen Desserts, Confectionery, and Others. The bakery products segment is estimated to dominate the food inclusions market. This domination is fueled by the increasing demand for baked goods such as cookies, cakes, and bread, which include inclusions such as chocolate chips, almonds, and dried fruits to improve flavor, texture, and visual appeal. The segment is predicted to increase at a higher pace, which reflects consumers' continued desire for creative and decadent bakery products.

Food Inclusions Market, By Geography

North America

Europe

Asia Pacific

Rest of the World

Based on Geography, the Food Inclusions Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. According to the VMR analyst, the European region is estimated to dominate during the forecasted period due to the region's well-established food industry, particularly in the confectionery and pastry sectors, where food inclusions are commonly used. Consumer demand for premium and tasty products, combined with a growing preference for clean-label components, is driving market expansion in Europe. This trend reflects the region's cultural preference for innovative and varied gastronomic experiences.

Key Players

• The "Food Inclusions Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Cargill Incorporated, Archer Daniels Midland Company, Barry Callebaut Group, Kerry Group plc, Tate & Lyle PLC, Sensient Technologies Corporation, Puratos Group, Taura Natural Ingredients Ltd., Georgia Nut Company, and SensoryEffects Flavor Systems.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

• Food Inclusions Market Recent Developments
• In March 2023, Kellogg's launched a new Barista edition crunchy granola nut cereal with a chocolate mocha taste. The new product line includes sliced almonds with an appealing coffee flavor.
• In May 2022, Mars Incorporated introduced Mars Triple Treat, a nutritious chocolate bar made with date paste, almonds, and raisins.