Food Decorations and Inclusions Market Report 2026

The food decorations and inclusions market size has grown strongly in recent years. It will grow from $9.79 billion in 2025 to $10.55 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to expansion of artisanal bakery culture, growth of confectionery consumption, rising demand for premium desserts, increased use of decorative ingredients in food processing, availability of diverse decoration formats.

The food decorations and inclusions market size is expected to see strong growth in the next few years. It will grow to $14.8 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to increasing demand for visually differentiated food products, rising focus on natural and organic decorations, expansion of premium bakery and patisserie segments, growing innovation in texture-enhancing inclusions, increasing demand from foodservice chains. Major trends in the forecast period include increasing demand for premium decorative ingredients, rising adoption of clean-label inclusions, growing customization in dessert decoration, expansion of ready-to-use decorative solutions, enhanced focus on visual appeal and texture innovation.

The hospitality industry is expected to propel the growth of the food decorations and inclusions market going forward. The hospitality industry encompasses services aimed at guest comfort and enjoyment, including lodging, food services, entertainment, tourism, and related activities. Food decorations and inclusions play an essential role within the hospitality sector, particularly in restaurants and hotels, by enhancing presentation and elevating the overall dining experience for customers. For instance, in May 2024, according to UN Tourism, a Spain-based specialized agency of the United Nations, 285 million tourists traveled internationally during the first three months of 2024, representing an increase of around 20% compared to the same period in 2023. Therefore, the hospitality industry is driving the growth of the food decorations and inclusions market.

Major companies operating in the food decorations and inclusions market are concentrating on the development of advanced solutions, such as festive finishing sugars, to improve visual appeal, enhance flavor profiles, and deliver richer multisensory experiences in baked goods, beverages, and desserts. Festive finishing sugars are decorative, flavored sugar blends designed to add visual texture along with seasonal taste across a wide range of food applications. For example, in September 2024, McCormick, a US-based spice and extract manufacturing company, introduced a set of six limited-edition Holiday Finishing Sugars featuring distinctive seasonal flavor combinations. The collection includes Candy Cane with peppermint-flavored red and white crystals, English Toffee with rich vanilla and toffee notes, Gingerbread Spice combining warm spices such as cinnamon and nutmeg, Hot Cocoa with chocolate and cocoa aromas, Salted Caramel blending smooth caramel with a hint of salt, and White Frosting offering a vanilla-flavored, snow-like crunch. These finishing sugars deliver festive colors, textures, and flavors, aligning with growing consumer demand for visually appealing and seasonally inspired food creations.

In November 2023, Orkla ASA, a Norway-based bakery and ice cream ingredients company, acquired Denali Ingredients for a total value of $200 million. Through this acquisition, Orkla ASA strengthened its position as a leading supplier of ingredients to the bakery, ice cream, and confectionery industries. Denali Ingredients is a US-based company specializing in the development and manufacture of ingredients for ice cream products.

Major companies operating in the food decorations and inclusions market are Barry Callebaut AG, Dawn Food Products Inc., Pecan Deluxe Candy Company, Dr August Oetker Nahrungsmittel KG, Ferrero International SA, The Hershey Company, Mars Incorporated, Nestlé SA, Mondelez International Inc., Cémoi Group, Icam SpA, Ulmer Schokoladen GmbH & Co KG, Delicia Foods India Pvt Ltd, Carmemoli SpA, Sensient Technologies Corporation, Kerry Group plc, Orkla ASA, Olam International, Cargill Incorporated, FrieslandCampina Kievit BV.

Europe was the largest region in the food decorations and inclusions market in 2025.Asia-Pacific is expected to be the fastest-growing region in the global food decorations and inclusions market report during the forecast period. The regions covered in the food decorations and inclusions market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the food decorations and inclusions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The food decorations and inclusions market consists of sales of decorations and inclusions for products such as chocolates, cakes, desserts, patisseries, fruits, nuts, and others. 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.

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