Food Processing Ingredient Market by Source and Geography - Forecast and Analysis 2022-2026

The food processing ingredient market share is expected to increase by USD 14.53 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.84%.

The food processing ingredient market has been broadly categorized into the following demographic segmentations: 

• Source - Natural and synthetic
• Geography - Europe, APAC, North America, South America, and Middle East and Africa

This food processing ingredient market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. The food processing ingredient market report offers information on several market vendors, including Agropur Dairy Cooperative, Archer Daniels Midland Co., Arla Foods Ingredients Group PS, Ashland Global Holdings Inc., Associated British Foods plc, BASF SE, Batory Foods, Cargill Inc., Chr Hansen Holding AS, Clariant International Ltd., Koninklijke DSM NV, Du Pont De Nemours Inc., EPI INGREDIENTS, Ingredion Inc., Kerry Group Plc, Olam International Ltd., PRIME Ingredients Inc., Puris, Solvay SA, and Tate and Lyle Plc among others.

What will the Food Processing Ingredient Market Size be During the Forecast Period?

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Food Processing Ingredient Market: Key Drivers, Trends, and Challenges

The rising demand for processed food is notably driving the food processing ingredient market growth, although factors such as lack of proper infrastructure in emerging economies may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the food processing ingredient industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Food Processing Ingredient Market Driver

• The rising demand for processed food is one of the key drivers fueling the food processing ingredient market growth.
• Manufacturers of processed foods are increasingly focusing on product differentiation to help them compete in the market. 
• The increased demand for processed foods is fueled by an expanding global middle class and an increase in the number of working women.
• For frozen goods, long shelf life is an important marketing feature. Frozen food makers come up with new techniques to extend the shelf life of their products.
• Dietary fiber is added to frozen meat and frozen ready-to-eat food products for emulsion and stabilization. This extends the shelf life of the products concerned. This factor will drive the food processing ingredient market growth during the forecast period.

Key Food Processing Ingredient Market Trend

• The rising consumption of ready-to-eat food products is one of the key food processing ingredient market trends supporting the market growth.
• The consumer demand for ready-to-cook and ready-to-eat food is increasing as a result of dual-income homes and hectic lifestyles.
• Processed foods, for example, accounted for nearly 70% of the American diet, according to research issued in 2020 by Standard Process Inc., a US-based food supplements firm.
• During the pandemic in 2020, there was a massive increase in demand for ready-to-eat food products as most individuals were working from home and countries were under lockdowns.
• For instance, in 2020, one of India's online grocery stores, Blinkit, reported a 17% increase in sales in the ready-to-eat category, a 31% increase in readymade meals and mixes, and a 41% increase in frozen food, indicating a sudden consumer shift from home-cooked food to ready-to-eat food products. Thus, it can be predicted that this shift in consumer behavior will significantly boost the food processing ingredient market during the forecast period.

Key Food Processing Ingredient Market Challenge

• The lack of proper infrastructure in emerging economies is one of the challenges hindering the food processing ingredient market growth.
• The food processing ingredients need proper handling and care in terms of maintaining a specific temperature for their storage and preventing them from contamination as it may lead to changes in their chemical compositions.
• Typically, the storage and manufacturing facilities are not only needed at the final site where they are sold but also during the supply chain to retain their original properties.
• Significantly, the technologies used for producing the food processing ingredients in emerging countries are not as advanced as compared to those used in developed nations such as the US and Canada. This is due to the high cost incurred in R&D or procurement of the latest technologies from developed nations. Such factors may hinder the growth of the global food processing ingredient market during the forecast period.

This food processing ingredient market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the food processing ingredient market as a part of the global packaged foods and meats market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the food processing ingredient market during the forecast period.

Who are the Major Food Processing Ingredient Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Agropur Dairy Cooperative
• Archer Daniels Midland Co.
• Arla Foods Ingredients Group PS
• Ashland Global Holdings Inc.
• Associated British Foods plc
• BASF SE
• Batory Foods
• Cargill Inc.
• Chr Hansen Holding AS
• Clariant International Ltd.
• Koninklijke DSM NV
• Du Pont De Nemours Inc.
• EPI INGREDIENTS
• Ingredion Inc.
• Kerry Group Plc
• Olam International Ltd.
• PRIME Ingredients Inc.
• Puris
• Solvay SA
• Tate and Lyle Plc

This statistical study of the food processing ingredient market encompasses successful business strategies deployed by the key vendors. 

The food processing ingredient market is fragmented and the vendors are deploying the following growth strategies to compete in the market such as:

• Quality
• Price
• Service
• Brand /image
• Distribution
• Marketing

Product Insights and News

• Agropur.com - The company offers a wide range of ingredients such as Alpha-Lactalbuminarrow icon, Casein glycomacropeptidearrow icon, and Casein phosphopeptidearrow icon which support nutrition in the early life stages from pregnancy to infancy and toddler years.
• Ashland.com - The company offers Knouck out as sport nutrition ingredients that can help in muscle recovery, joint comfort, weight management, or a healthy gut.
• Abf.co.uk - The company offers ingredients, supplying bread improvers, dough conditioners and bakery mixes to industrial and craft bakers through the brand AB Mauri and speciality ingredients for food, nutrition, pharmaceutical, animal feed and industrial sectors through brand ABF Ingredients.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The food processing ingredient market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Food Processing Ingredient Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the food processing ingredient market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Food Processing Ingredient Market?

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38% of the market's growth will originate from Europe during the forecast period. Germany and the UK are the key markets for the food processing ingredient market in Europe. Market growth in this region will be slower than the growth of the market in APAC and South America.

The increasing preference for convenience foods such as ready-to-eat food products will facilitate the food processing ingredient market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the COVID-19 pandemic negatively impacted most European countries, which resulted in the temporary closure of various industries, including those manufacturing food processing ingredients. However, in 2021, the demand for food processing ingredients rebounded as significant application segments such as the food and beverages industry reopened manufacturing units due to the COVID-19 vaccination drives and subsequent lifting of lockdown restrictions. These factors will drive the growth of the regional food processing ingredient market growth during the forecast period.

What are the Revenue-generating Source Segments in the Food Processing Ingredient Market?

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The food processing ingredient market share growth by the natural segment will be significant during the forecast period. Natural ingredients are used in a wide range of food and beverage items, including functional foods, sports drinks, nutritional supplements, and medically prepared foods, due to their numerous medicinal benefits. Consumers today are highly conscious about the food they consume. As a result, they prefer healthy and natural ingredients in food and beverage products. Such benefits of consuming natural ingredients will drive the food processing ingredient market growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the food processing ingredient market size and actionable market insights on the post-COVID-19 impact on each segment.

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What are the Key Data Covered in this Food Processing Ingredient Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive food processing ingredient market growth during the next five years
• Precise estimation of the food processing ingredient market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the food processing ingredient industry across Europe, APAC, North America, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of food processing ingredient market vendors

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