Specialty Food Ingredients Market

Specialty Food Ingredients Market Size, Growth (2023-2028)

The Global Specialty Food Ingredients Market Size was worth US$ 79.81 billion in 2022, and it is estimated to value US 121.6 billion by the end of 2028, expanding at an annual compound rate of 6.2% between 2023 and 2028.

Market Overview:

Special food ingredients are elements commonly used in the texture, color, emulsion, and preservation of food. These ingredients improve the nutritional profile of processed foods. Specialty food ingredients provide the requirements to promote overall melting from the farm gate level to the final stage of value-added processed foods. Special food ingredients offer technical and functional benefits that play an essential role in the development of a wide range of safe, qualitative, tasty, healthy and affordable food. Special food ingredients are synthesized naturally or artificially. These ingredients are designed and used for essential recipes and other specific purposes. Food and beverage manufacturers use unique food ingredients to improve the texture, appearance, and taste of the finished product.

In addition, these ingredients extend the shelf life of food. The US Food and Drug Administration (US FDA) and other food safety agencies around the world carefully monitor specialty food ingredients to ensure accurate labeling and safe food intake. The improvements in technology are supporting the companies functioning in this industry to create novel products and solutions.

Recent Developments in Specialty Food Ingredients Industry:

• In March 2019, ingredient supplier Ingredion Incorporated announced the acquisition of Western Polymer, a company that supplies high-quality starch products. The addition will enhance the business of high value-added specialty materials and processing capabilities.
• In April 2019, conglomerate Cargill Incorporated announced that it would acquire Smet, a Belgium-based chocolate supplier, to expand its portfolio of products and services for global gourmet chocolate activities.
• Archer Daniels Midland (USA) has announced an expansion project to diversify and improve the efficiency of seed treatment facilities in Omomouc, Czech Republic. Expansion projects include the purchase of new equipment to expand the plant's product range, increase storage capacity, and improve production processes.
• DuPont (USA) has launched a modern probiotic mixing and packaging facility in China. The new site in Beijing is to include probiotics, DuPont's first step in nutrition and health, in a commercially available product. This enables DuPont to provide improved speed, quality and flexibility to customers in the market.

REPORT COVERAGE:

Specialty Food Ingredients Market Growth:

The industry is expected to grow substantially during the forecast period as the application of these products increases in the modern processing sector to meet a wide range of demands for different product qualities.

Drivers:

Functional foods include some bacterial strains and products of plant and animal origin that contain bioactive compounds that are beneficial to human health and help reduce the risk of chronic disease. Increased consumer awareness of various types of functional food ingredients, including protein and amino acids, vitamins, essential oils, minerals, omega 3 and 6 fatty acids, prebiotics, probiotics, flavonoids, and carotenoids and hydrocolloids; And its health benefits are driving a significant market share in the global specialty food ingredient industry. As the demand for processed and convenience foods increases and the need for nutritious organic products increases, the industry is supposed to be boosted.

Unique ingredients are essential products to ensure the well-being of a wide range of processed foods. From a wide range of macro components like fiber, carbohydrates, fats, and specific proteins to other micro components that include minerals, vitamins, and enzymes, a variety of unique ingredients generally perform a variety of functional activities to improve the quality and taste of your diet. The health, nutrition and technology-related features of this product make meals enjoyable, delicious, safe, healthy and affordable. Therefore, these benefits associated with unique food ingredients are expected to be the main driving force in the industry. In addition to these benefits, these ingredients are considered one of the few top suitable options for sustainable food processing. These ingredients provide solutions that improve the efficiency of your resources by reducing downstream losses and overall value chains due to their highly effective impact on food storage and processing.

Some of the specialty ingredients, such as packaging gas and preservatives, help reduce food waste by extending the shelf life of the finished/processed product. The benefits of these factors are the main factors that are supposed to increase additional demand during the outlook period. The global industry has witnessed a large number of participants from multinational companies. There are several companies that are actively taking over and acquiring to enhance their product portfolio to meet changing consumer preferences based on the customized needs of food manufacturers. Multinational companies are acquiring medium-sized companies that are specialized in technological development but lack funds for expansion. These initiatives are one of the main trends in the industry and have led the entire market in recent years.

Restraints:

Stringent regulations and rigorous inspections of the food industry are key factors in slowing the growth of the worldwide specialty food ingredients market during the prediction period. Various regulatory agencies, such as the United Nations Food and Drug Administration and the Food and Agriculture Organization, continue to monitor the use of chemicals in food. Due to these regulations, manufacturers must be approved for the manufacture and distribution of products, which delays the entire process.

Specialty Food Ingredients Market Segmentation Analysis:

By Type:

• Functional Food Ingredients       
• Sugar Alternatives  
• Specialty Starches  
• Nutraceuticals       
• Preservatives
• Emulsifiers  
• Enzymes     
• Colors and Flavors 

By Application:      

• Bakery & Confectionery    
• Dairy & Frozen Foods       
• Meat Products       
• Functional Foods & Beverages    
• Dietary Supplements        

By Source:             

• Natural        
• Synthetic     

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus

Regional Analysis:

The Asia Pacific was the world's largest regional market and is anticipated to generate more than $ 39 billion in sales by 2025, which is home to the world's largest food processing industry. China has the most significant number of unique materials manufacturing and processing companies in the region. Along with this, some industry players are moving their production bases to emerge economies such as India, Thailand, and Vietnam as skilled but affordable labor becomes available. China is also among the leading exporters of these specialty food ingredients. Due to these factors, demand in the Asia-Pacific region is expected to remain at the highest level in the world.

Europe was the second-largest market. Europe has been known for its world-famous cuisine, and with changes in consumer demand, various innovations sometimes occur in new receipts. Countries such as France, Italy and Belgium are the largest importers of unique ingredients. Production and demand for specialty food ingredients increase when there are a reasonable number of confectionery and processing companies in Germany and the UK.

Key Players in the Market:

Major Key Players in the Global Specialty Food Ingredients Market are

• Archer Daniels Midland Company
• Cargill, Incorporated        
• Ingredion Incorporated     
• Tate & Lyle  
• Naturex S.A 
• Prinova Group LLC 
• HR Hansen Group  
• Koninklijke DSM N.V        
• Royal DSM N.V.