Global Specialty Food Ingredients Market Overview
Specialty Food Ingredients Market Size was valued at USD 153.2 billion in 2023. The specialty food ingredients industry is projected to grow from USD 166.3 Billion in 2024 to USD 296.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.6% during the forecast period (2024 - 2032). The consumption of ready-to-eat (RTE) food items, which require little preparation and cooking time, is encouraged by rapid urbanization, hectic lifestyles, rising disposable incomes, and the growing tendency of nuclear families are the key market drivers enhancing the market growth. Additionally, the growing emphasis on health and wellness is fueled by the need for natural, plant-based specialty food ingredients to create high-quality, multipurpose products.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Specialty Food Ingredients Market Trends
- Rising prevalence of obesity to boost the market growth
The association between calorie intake and social rank has largely been inverted in the other manner with regard to meal quantity. People in most industrialized nations have easy access to cheap, high-calorie fast food and ready-to-eat meals. The outcome has been a sharp increase in the average body mass index (BMI) throughout the industrialized world and beyond. Based on the latest recent data from EU countries, the World Health Organization estimates that 10–30% of adults in Europe are obese and that 30-70% of adults in Europe are overweight. Furthermore, the WHO reports that one in three 11-year-olds in the EU is overweight or obese. Thus to limit the food intake with proper nutritional support, the demand for specialty food ingredients is increasing worldwide. Therefore, the growing prevalence of obesity has enhanced the market CARG across the globe.
Figure 1: Estimated population suffering from obesity from 2013 to 2028
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The specialty food ingredients market is anticipated to increase due to consumers' growing awareness of the health advantages of nutrient-rich meals and the rising demand for them due to busy lifestyles. On-the-go snacks with extra nutrients that offer immediate nutrition are in higher demand. The demand for specialty food ingredients has expanded due to consumer interest in nutrition and health. To lower their chance of developing certain medical illnesses, such as obesity, weight loss, diabetes, and cardiovascular diseases, consumers are drawn to meals with functional components. Such health conditions are becoming more common due to frantic lifestyles and rising stress. The bulk of those with diabetes, 422 million people ly, reside in low- and middle-income nations, and diabetes is directly responsible for 1.5 million fatalities annually. The expanding awareness regarding healthy eating is another factor driving the growth of the specialty food ingredients market revenue.
Specialty Food Ingredients Segment Insights
Specialty Food Ingredients Insights
The specialty food ingredients market segmentation, based on ingredients, includes vitamins, minerals, antioxidants, sugar substitutes, flavors, specialty starches, acidulants, emulsifiers, and enzymes. Probiotics dominated the market during the forecast period. With the increased consumer awareness of the health advantages of probiotics, the rising use of probiotics as an antibiotic substitute, and expanding research on probiotics, the probiotics category is anticipated to experience the greatest CAGR throughout the projected period.
March 2021: BioGaia launched Osfortis in the Chinese market through the cross-border e-commerce (CBEC) channel. Osfortis is a proprietary lactic acid probiotic dietary supplement. China is BioGaia's first Asian market, and the company hopes to capitalize on the region's tremendous demand potential. This creation has further broadened the growth opportunity for the specialty food ingredients industry.
The second fastest-growing segment in the specialty food ingredients industry is the enzyme segment. Food enzyme use has also been aided by consumers' changing dietary choices toward natural, organic, and chemical-free foods. Hence, the rising use of enzymes positively impacts market growth.
Specialty Food Ingredients Application Insights
The specialty food ingredients market data has been bifurcated by application into bakery & confectionery, beverages, dairy & frozen foods, convenience foods, meat products, functional foods/beverages/dietary supplements. In the specialty food ingredients market, it is predicted that the bakery and confectionary industry will be the largest with respect to the specialty food ingredients market revenue. The bakery industry is one of the leading consumer food industries. Nowadays, the vast majority of people rely on bread goods as essential food staples.
Figure 2: Specialty Food Ingredients Market, by Application, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the specialty food ingredients industry is the functional food sector. The prevalence of health issues among consumers has made them more watchful of their consumption patterns. Functional food products are now increasingly in demand in the consumer market.
Specialty Food Ingredients Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American specialty food ingredients market accounted for USD 66.6 billion in 2021 and is expected to exhibit a significant CAGR of 43.5 percent growth during the study period. Increased incidences of diabetes and obesity in North America are driving the demand for specialty food components and urging people to concentrate on leading healthier lifestyles. Food items with functional and specialty ingredients are in high demand due to this. The US Food and Drug Administration also controls specialty food ingredients, such as sugar replacements as food additives (FDA). This implies that the FDA must evaluate scientific data to confirm the safety of a sugar substitute before it may be utilized in foods and beverages.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: SPECIALTY FOOD INGREDIENTS MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's specialty food ingredients market accounts for the second-largest market share. Europe has long been known for its delectable cuisines, and as consumer tastes change, new recipes are occasionally developed. A respectable number of processing and confectionary businesses in Germany and the United Kingdom increase the production and demand for specialty food ingredients. Further, the German specialty food ingredients market held the largest market share, and the UK specialty food ingredients market was the fastest-growing market in the European region.
The Asia-Pacific Specialty Food Ingredients Market is expected to grow at the fastest CAGR from 2022 to 2030. China is now the largest specialty food ingredients market for emulsifiers in the Asia Pacific due to the popularity of convenience foods, which has increased demand for emulsifiers in the food industry. Additionally, consumers in China and Japan who are concerned about their health choose natural components in their energy drinks, which has spurred specialty food ingredients market expansion in the Asia-Pacific region and led to the introduction of new products and improved specialty food ingredients. The amount of money spent on organic food in China rose to roughly 521.86 billion yuan in 2021. Moreover, China's specialty food ingredients market held the largest market share, and the Indian specialty food ingredients market was the fastest-growing market in the Asia-Pacific region.
Specialty Food Ingredients Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the specialty food ingredients market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the specialty food ingredients industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the specialty food ingredients industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the specialty food ingredients industry has provided medicine with some of the most significant benefits. The specialty food ingredients market major player such as Archer Daniels Midland Company, Associated British Foods Plc, Cargill Incorporated, DuPont de Nemours Inc, Kerry Group plc., and others are working on expanding the market demand by investing in research and development activities.
Royal DSM is a, purpose-driven, science-based firm founded in 1902 and traded on Euronext Amsterdam. They are a health, nutrition, and bioscience leader that, through our products and solutions, aspires to address some of the world's most pressing concerns while generating profitable growth to give economic, environmental, and societal value to all. In April 2020, Royal DSM, a science-based corporation focused on nutrition, health, and sustainable living, completed its acquisition of Glycom, a leading supplier of Human Milk Oligosaccharides (HMOs). DSM expands its position in the Early Life Nutrition and Dietary Supplements area with the acquisition of Glycom.
Also, Kerry Group PLC is a multibillion-pound transnational food conglomerate. The Group creates, manufactures, and distributes new flavor solutions and nutritional and functional components for the food, beverage, and pharmaceutical industries. Frozen dinners, hot and cold pies, processed meats, and dairy spreads are among the company's offerings. In June 2020, Kerry unveiled 13 new allergen-free plant-based protein alternatives derived from pea, rice, and sunflower protein sources. The chemicals are sold under the Hyprol and ProDiem brand names and can be found in various products ranging from newborn formulae to senior protein beverages.
Key Companies in the specialty food ingredients market include
- Archer Daniels Midland Company
- Associated British Foods Plc
- Cargill Incorporated
- DuPont de Nemours Inc
- Kerry Group plc
Specialty Food Ingredients Industry Developments
In March 2023, Archer Daniels Midland Company launched the brand Knwble Grwn with the aim of providing its consumers with ethically sourced, wholesome, plant-based food ingredients. Such safe food ingredients will be sourced from small or minority farmers who would be using regenerative agricultural methods within their farming practices, making a positive impact on the sustainability of the food products being used.
In November 2022, with respect to the new sweetener product, Erytesse erythritol, which Tate & Lyle introduced, the Company indicated that such a product to be added will, because of their new strategic collaboration distribution contract with an established erythritol supplier, assist its clients in meeting the consumer tendentious towards healthier and reduced calories and sugar products.
In October 2022, Flavors and Fragrance Inc. of International invested USD 30 million in the effort to broaden its presence in Singapore. The newly built center in Singapore represents an integrated center housing the Nourish, Health & Biosciences, Scent, and Pharma Solutions divisions. It is the largest IFF property in the area at almost 11,000 square meters.
In October 2022, Roquette initiated selling its new range of organic ingredients including organic pea starch and organic pea protein for non-dairy or alternative meat and specialized nutrition category. The goal was to address the needs of food manufacturers that are oriented towards supplying the rapidly growing needs of consumers who desire healthy organic sustainable food products. This was done with the goal of supplementing the organic ingredients and increasing sales.
In September 2022, Egg replacement manufacturer Shiru Inc., alongside Puratos, partnered to launch an egg replacement suitable for the next generation. This partnership between the two was meant to use Shiru’s newer generation protein discovery to create alternative ingredients that could be used to make plant-based baked products. The bioinformatics machine learning tool that Shiru uses uniquely enables them to scan millions of substances to find proteins, the active ingredients of many functional materials, directly in nature.
Specialty Food Ingredients Market Segmentation
Specialty Food Ingredients Outlook
- Vitamins
- Minerals
- Antioxidants
- Sugar Substitutes
- Flavors
- Specialty Starches
- Acidulants
- Emulsifiers
- Enzymes
Specialty Food Ingredients Application Outlook
- Bakery & Confectionery
- Beverages
- Dairy & Frozen foods
- Convenience foods
- Meat Products
- Functional Foods/Beverages/Dietary Supplements
Specialty Food Ingredients Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 153.2 billion |
| Market Size 2024 |
USD 166.3 billion |
| Market Size 2032 |
USD 296.4 billion |
| Compound Annual Growth Rate (CAGR) |
8.60% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019 & 2021 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Ingredients and Application |
| Geographies Covered |
Europe, Asia Pacific, North America, and Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Archer Daniels Midland Company, Associated British Foods Plc, Cargill Incorporated, DuPont de Nemours Inc, and Kerry Group plc. |
| Key Market Opportunities |
A rise in the number of end-use applications |
| Key Market Dynamics |
Growth in demand for fortified food owing to rising health awareness, Consumer awareness of micronutrient deficiencies |
Specialty Food Ingredients Market Highlights:
Frequently Asked Questions (FAQ) :
The specialty food ingredients market size was valued at USD 153.2 Billion in 2021.
The market is estimated to expand at a CAGR of 8.60% during the forecast period 2022-2030.
The largest market share was held by North America.
The key players in the market are Archer Daniels Midland Company, Associated British Foods Plc, Cargill Incorporated, DuPont de Nemours Inc, and Kerry Group plc.
The probiotics specialty food ingredients category dominated the market in 2021.
The bakery application had the largest share of the specialty food ingredients market.
