Food Ingredients Global Market Report 2024

The food ingredients market size has grown strongly in recent years. It will grow from $66.08 billion in 2023 to $70.5 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The expansion observed in the historical period can be attributed to strong economic growth in emerging markets, an increased demand for processed foods, a heightened awareness of the benefits of organic products, and a growth in the number of health-conscious consumers.

The food ingredients market size is expected to see strong growth in the next few years. It will grow to $91.11 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth in the forecast period can be attributed to the rise in the global population, increasing urbanization, a growing demand for ready-to-eat products, and an increasing demand from the food processing industry. Key trends expected in the forecast period encompass the introduction of natural food colors, facility expansions, the development of 'plug and play' solutions to create innovative products, the creation of sustainable products, and a focus on partnerships and collaborations.

The food ingredients market is poised for growth, driven by an increasing awareness of fitness and a growing number of health-conscious consumers. Bioactive food ingredients such as omega-3 fatty acids, antioxidants, probiotics, soy protein, and beta-carotene are being actively incorporated into meals by consumers aiming to maintain good health. The Sports Business Journal reported in June 2022 that the total number of active sports and fitness participants in the US increased from 229.7 million in 2020 to 232.6 million in 2021, indicating a 76.3% participation rate. This surge in fitness awareness and health-conscious consumers is expected to be a key driver for the food ingredients market.

The growth of the food ingredients market is further fueled by the increasing demand for ready-to-eat products. Consumers are embracing the convenience offered by ready-to-eat food items such as ice creams, sandwiches, biscuits, soups, pasta, and pizza. The Soft Copy reported a 20% increase in sales of ready-to-eat food products, with sales reaching 70% in 2023 compared to 50% in 2022. This rise in demand for ready-to-eat products is anticipated to have a positive impact on the food ingredients market.

An emerging trend in the food ingredients market is the introduction of technologically advanced solutions. Major food ingredients firms are focusing on innovative solutions, leveraging precision fermentation techniques. For instance, Kalsec, a US-based food ingredient company, partnered with Infinome Biosciences to develop microbial-based food ingredients through precision fermentation.

Companies in the food ingredients market are increasingly emphasizing natural food colors to enhance their product offerings. Sun Chemical, a US-based producer of inks and pigments, launched SUNFOODSTM Natural Colorants, a product line applicable in the Americas, Europe, Middle East, and Africa for various food and beverage products. Additionally, Divi’s Nutraceuticals introduced CaroNat, a naturally sourced food ingredient for dark yellow to orange coloration in foods and beverages, made from concentrated carrot juice and containing beta-carotene.

In June 2021, Kerry Group, an Ireland-based food company offering food and beverage ingredients, acquired Niacet for $1,011.80 million (€853 million). This strategic acquisition integrated Niacet into Kerry's global food protection and preservation platform, enhancing its food protection, food ingredient, and preservation capabilities to introduce new products and technologies in a broader market. Niacet is a US-based company specializing in food ingredients.

Major companies operating in the food ingredients market report are Cargill Incorporated, Archer Daniels Midland Company, Kerry Group, International Flavors & Fragrances, Ingredion Incorporated, Koninklijke DSM NV, Tate & Lyle PLC, Novozymes A/S, Symrise AG, Givaudan International S.A., Global Specialty Ingredients, Qingdao Haixingyuan Biotechnology Co. Ltd., Wilmar International, Musim Mas, Mewah International, The Nisshin Oillio Group, Miyoshi Oil & Fat Co Ltd., IOI Group, Fairchem, Australian Chemical Industries Int Co, Jayant Oils And Derivatives Ltd., Atlas Chemicals, Shanghai Yan'an Grease Chemical Co Ltd., Gysmecol (Guangzhou) Technology Co Ltd., Vita Manufacture, Townview Foods Ltd., Brett Beardsell Consulting, Quattro Foods, Harrogate Indian Supermarket, Rigest Trading Limited, Special Ingredients Ltd., Andrew Ingredients Ltd., Flytex Llc, Nhl Corporate Group, Foodmix Llc, Ochakovo Factory Of Food Ingredients Co. Ltd., Constanta Llc, Stevia First Corporation, Bunge Limited, First Choice Ingredients, Vogler Ingredients, Olam Agricola Ltda, ARSTE FI, Ars Technica, Afribon, AJWA Group Food Industries.

North America was the largest region in the food ingredients market in 2023. Europe was the second-largest market in the food ingredients market. The regions covered in the food ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of products in food ingredients include starches, vegetable oils and fats, natural sweeteners, enzymes and antioxidants, natural flavorings and colors, functional ingredients, and others. Starches, for example, serve as additives in food processing, commonly used as thickeners and stabilizers in a variety of food products such as puddings, custards, soups, sauces, gravies, pie fillings, salad dressings, noodles, and meat products. Different functional types of food ingredients encompass flavors and color additives, preservatives, fat replacers, sweeteners, emulsifiers, stabilizers and binders, thickeners, pH control agents, nutrients, among others. These ingredients find applications in various sectors, including pharmaceuticals, food and beverages, animal feed, and other industries.

The food ingredients market research report is one of a series of new reports that provides food ingredients market statistics, including food ingredients industry global market size, regional shares, competitors with a food ingredients market share, detailed food ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the food ingredients industry. This food ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The food ingredients market consists of sales of starches, vegetable oils and fats, natural sweeteners, enzymes and antioxidants, natural flavorings and colors, functional ingredients, and other food 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.