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The Specialty Food Ingredients Market size is forecast to increase by USD 59.02 billion, at a CAGR of 6.94% between 2023 and 2028.
North America significantly influences the worldwide specialty food ingredients market, driven by the rising demand and the extensive functional food industry in the region. Advanced Food Systems Inc. provides specialty food ingredient solutions tailored for meat and poultry products, frozen foods, as well as sauces and marinades. This underlines the pivotal role of North America in shaping the growth, consumption, and trends within the global market
The market shows an accelerated CAGR during the forecast period.
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One of the key factors driving the market growth is the growing demand for plant-based specialty food ingredients. Plant-based ingredients are emerging as a significant driver in the global specialty food ingredient market, driven by changing consumer preferences towards healthier, sustainable, and ethically sourced food options. In addition, with the rising popularity of plant-based diets and increased awareness of the environmental and ethical implications of animal agriculture, the demand for plant-derived ingredients is experiencing unprecedented growth.
Moreover, consumers are seeking alternatives to traditional animal-based ingredients, such as proteins, fats, fibers, flavors, and colors, driving innovation in plant-based specialty food ingredients. In addition, manufacturers are responding by developing a diverse range of plant-based ingredients sourced from grains, legumes, nuts, seeds, fruits, and vegetables, offering functional properties and nutritional benefits comparable to their animal-derived counterparts. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the growing demand for natural and label-friendly food colorants. Natural colorants are predicted to grow tremendously in demand, due to a growing preference for clean-label products. In addition, natural colors are safer, but they have a few mythical difficulties, such as uniformity.
Moreover, high production costs and a scarcity of raw materials are involved in the creation of such hues. In addition, natural colorants can be used in a variety of specialty meals. Many processed goods, such as snack foods, margarine, candy, cheese, soft drinks, jams/jellies, gelatins, pudding, and pie fillings, use food colors. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Potential side effects of consuming specialty food ingredients are one of the key challenges hindering market growth. While specialty food ingredients are mainly designed to improve flavor, texture, and nutritional value, they may also have unintended consequences or indirect side effects for some consumers. In addition, these side effects include allergic reactions, digestive discomfort, or adverse reactions to certain additives or preservatives.
For instance, common allergens such as nuts, gluten, or dairy may be present in specialty food ingredients, posing risks for individuals with allergies or intolerances. In addition, artificial additives, flavors, and preservatives used in some specialty food products may trigger adverse reactions or sensitivities in some consumers. Furthermore, concerns about the long-term health effects of certain specialty ingredients, such as artificial sweeteners or synthetic colors, have led to consumer skepticism and regulatory scrutiny. Hence, such factors are hindering the market growth during the forecast period.
Several applications of specialty food ingredients in the bakery and confectionary segment will increase the market growth. Specialty ingredients including emulsifiers, flavorings, colors, and texturizers play crucial roles in enhancing the taste, texture, appearance, and shelf life of baked goods and confectionery products. In addition, emulsifiers improve dough consistency and structure, while flavorings and colors add variety and appeal. Moreover, texturizers enhance mouthfeel and stability, ensuring desirable product characteristics. In addition, one of the most commonly used ingredients in bakery products, like muffins, cookies, biscuits, and others, is preservatives. Furthermore, preservatives are necessary to increase the shelf-life of confectionary and bakery products as the latter are highly perishable and cannot be stored for a long time. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The nutraceutical ingredients segment is estimated to witness significant growth during the forecast period. In the global market, nutraceutical by-products play a crucial role due to their multifunctional properties and growing consumer demand for natural, health-promoting ingredients. In addition, nutraceutical ingredients are those that provide both nutritional and pharmaceutical benefits. Furthermore, they are used in a number of end-user industries, particularly food and beverage, owing to their benefits.
The nutraceutical ingredients segment was the largest segment and was valued at USD 32.75 billion in 2018.
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Moreover, these ingredients can be a portion of food or whole food, having health or medical benefits, which aid in the prevention, diagnosis, and treatment of several chronic diseases such as obesity, cancer, high blood pressure, and diabetes. In addition, nutraceutical ingredients also have a wide range of applications in the personal care and animal nutrition industries. Furthermore, common nutraceutical by-products include extracts from fruits, vegetables, herbs, and marine sources. In addition, by-products from olive oil production, such as olive leaf extracts, are valued for their cardiovascular health benefits due to their high polyphenol content. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
North America is estimated to contribute 28% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several consumers in North America are health-conscious, owing to the rising rates of obesity and other diseases. In addition, this creates a demand for specialty food ingredients like vitamins, minerals, proteins, and dietary supplement ingredients that help in the prevention of multiple health issues. Moreover, the consumption of overall specialty food ingredients in North America will grow at a constant and moderate pace during the forecast period. In addition, companies need to focus on innovation and research to enhance the functionality and purposes of these ingredients and to increase the growth rate of the market at large. Furthermore, the major countries contributing to the market in North America are the US and Canada. Hence, such factors are driving the market growth in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Axiom Foods Inc., Barentz International BV, Cargill Inc., Chr Hansen Holding AS, DuPont de Nemours Inc., Fonterra Cooperative Group Ltd., Givaudan SA, Ingredion Inc., Kerry Group Plc, Koninklijke DSM NV, Nagase and Co. Ltd., Roquette Freres SA, Sensient Technologies Corp., SubNutra Food Ingredients Pvt. Ltd., Tate and Lyle PLC, and Woodland Foods Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Specialty food ingredients continue to shape culinary experiences worldwide, emphasizing healthier alternatives and clear labels. As consumers increasingly prioritize health and well-being, the demand for natural products and clean eating rises. The global embrace of diverse cuisines and spices drives the need for flavor enhancers from natural sources. In emerging economies, growing disposable incomes and an expanding middle class fuel new product development in the market. Health-conscious consumers explore dietary choices such as plant-based proteins, natural sweeteners, and gluten-free options, fostering a trend towards vegan and organic alternatives. Despite sourcing challenges, the market adapts to meet the evolving preferences of consumers seeking functional additives and unique food flavors.
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Specialty Food Ingredients Market Scope |
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Report Coverage |
Details |
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Page number |
188 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.94% |
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Market Growth 2024-2028 |
USD 59.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.86 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 28% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced Food Systems Inc., Archer Daniels Midland Co., Ashland Inc., Axiom Foods Inc., Barentz International BV, Cargill Inc., Chr Hansen Holding AS, DuPont de Nemours Inc., Fonterra Cooperative Group Ltd., Givaudan SA, Ingredion Inc., Kerry Group Plc, Koninklijke DSM NV, Nagase and Co. Ltd., Roquette Freres SA, Sensient Technologies Corp., SubNutra Food Ingredients Pvt. Ltd., Tate and Lyle PLC, and Woodland Foods Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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