Specialty Food Ingredients Global Market Report 2024

The specialty food ingredients market size has grown strongly in recent years. It will grow from $162.12 billion in 2023 to $173.73 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. The growth observed in the historical period can be credited to several factors, including shifts in consumer preferences, the expansion of the food and beverage industry, heightened awareness regarding health and nutrition, the globalization of food trends, and the trend towards clean label and natural products.

The specialty food ingredients market size is expected to see strong growth in the next few years. It will grow to $239.2 billion in 2028 at a compound annual growth rate (CAGR) of 8.3%. The projected growth in the upcoming period is expected to stem from increased demand for plant-based alternatives, a pronounced emphasis on sustainable and ethical sourcing practices, ongoing innovation in functional foods, the trend towards customization and personalization in the food sector, and the expansion of the convenience food segment. Major trends anticipated for the forecast period encompass growth in functional and fortified ingredients, the broadening of exotic and global flavor offerings, the incorporation of clean meat and cultured ingredients, a focus on texture and mouthfeel enhancers, and the development of customized and tailor-made solutions in the food industry.

The specialty food ingredients market is experiencing growth due to increased consumption of health-oriented products. A growing health-conscious population demands nutritious and sustainable dietary options. Specialty food components are instrumental in enhancing nutritional value, preserving, and improving the quality of food. Reports from the CSIRO highlighted Australians' adherence to dietary guidelines, scoring 93 out of 100 in their beverage choices. The escalating demand for healthier products fuels the growth of the specialty food ingredients market.

Anticipated growth in the food and beverage industry is expected to boost the specialty food ingredients market. Specialty ingredients cater to diverse needs, enhancing flavor profiles, textures, shelf life, and dietary requirements in food and beverage products. In July 2022, food and drink exports from the UK were valued at $31.80 billion (£25 billion), and total turnover increased by 14.4%, with domestic sales rising by 13%. Therefore, the increasing demand from the food and beverage industry drives the specialty food ingredients market.

Product innovation fuels the growth of the specialty food ingredients market, with major players striving to meet consumer demands. In August 2023, Vantage Specialty Chemicals, a US-based company, launched the SIMPLY KAKE emulsifier, designed as an alternative to conventional baking aids. This innovation caters to food manufacturers seeking clean label solutions, offering improved cake structure without the complexities associated with enzymes.

Major players in the specialty food ingredients market focus on innovative solutions such as tapioca starches to meet the surging demand for natural, gluten-free options in food and beverages. Tapioca starch, extracted from cassava roots, acts as a thickening agent and offers appealing textural qualities to various foods. For instance, in January 2021, Tate & Lyle, a US-based provider of food and beverage solutions, introduced REZISTA MAX thickening starches and BRIOGEL gelling starches. These tapioca starch innovations, enhancing texture, fluidity, and process tolerance, empower food manufacturers to create superior products, particularly in dairy desserts, sauces, confectionery, and processed cheese.

In July 2021, Orkla Food Ingredients, a Denmark-based company specializing in food ingredients, completed the acquisition of Hans Kaspar AG. The details of the transaction were not disclosed. This acquisition is anticipated to reinforce Orkla Food Ingredients' presence in the ice cream and confectionery ingredient segments. Hans Kaspar AG, situated in Switzerland, is recognized for its production of specialty food ingredients.

Major companies operating in the specialty food ingredients market report are Cargill Incorporated, Archer Daniels Midland Company, BASF SE, Brenntag AG, Evonik Industries AG, International Flavors & Fragrances Inc., Ajinomoto Co. Inc., Kerry Group PLC, Koninklijke DSM NV, Ingredion Incorporated, Givaudan SA, Lonza Group AG, Firmenich International SA, Symrise AG, DuPont Nutrition & Biosciences, Dohler GmbH, Novozymes A/S, Ashland Global Holdings Inc., Tate & Lyle PLC, Corbion NV, Chr. Hansen Holding A/S, Sensient Technologies Corporation, Balchem Corporation, Naturex SA, Kemin Industries Inc., Frutarom Industries Ltd., Kalsec Inc., Amano Enzyme Inc., Axiom Foods Inc., Crespel & Dieters GmbH & Co. KG, FMC Corporation, Wacker Chemie AG, Kewpie Corporation, AAK AB, Rousselot BV, CP Kelco U.S. Inc.

North America was the largest region in the specialty food ingredients market in 2023. Asia-Pacific is expected to be the fastest-growing region in the specialty food ingredients market share during the forecast period. The regions covered in the specialty food ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the specialty food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Specialty food ingredients encompass a range of products including functional food ingredients, sugar substitutes, F&B starter cultures, specialty starches, enzymes, emulsifiers, preservatives, and more. Functional food ingredients, spanning high-proteins, superfoods, beverages, and vegetable-rich items, are particularly prominent in various applications. These ingredients are utilized across distribution channels such as direct sales, serving as essential raw materials derived from sources such as wheat, rice, maize, among others. Their versatile usage extends to beverages, sauces, dressings, condiments, bakery items, dairy products, confectionery, and a host of other food categories.

The specialty food ingredients market research report is one of a series of new reports that provides specialty food ingredients market statistics, including specialty food ingredients industry global market size, regional shares, competitors with a specialty food ingredients market share, detailed specialty food ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the specialty food ingredients industry. This specialty 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 specialty food ingredients market consists of sales of vitamins products, minerals, prebiotics, probiotics, hydrocolloidss. 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 specialty food ingredients 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.