Global Bulk Food Ingredients Market - 2022-2029

Global Bulk Food Ingredients Market - 2022-2029

Market Overview

Bulk food ingredients are components used in processed, packaged, and ready-to-eat foods. Bulk food ingredients were utilized as raw material in foods such as biscuits, chocolates, drinks, and confectionery items. Food items such as nuts, spices, grocery items, chocolates, and beverages are examples of bulk food ingredients. Bulk food ingredients are accessible in both processed and unprocessed forms.

Rapidly changing consumer preferences and eating habits, along with adopting western eating habits. Fostering demand for snacks and confectionery products is expected to positively influence the bulk food ingredients market during the forecast period. Furthermore, increasing health consciousness among consumers is projected to fuel the demand for organic bulk food ingredients in the upcoming years.

The global bulk food ingredients market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 4.57% during the forecast period (2022-2029).

Market DynamicsIncreasing demand for convenience foods drives the market

Rising demand for prepared and convenient food products, such as baked goods, snacks, yogurt, ice cream, beverages, and other ready meals among consumers, have been witnessed with an increasing trend. It is due to the benefits of convenience food, such as lesser preparation time and easy handling, that offers an advantage to the consumers in their busy life schedule. Food ingredients purchased in bulk by the primary manufacturing companies make up a large part of the final product and significantly impact the final product. Furthermore, the market is driven by evolving lifestyle factors, such as demand for packaged convenience and ready-to-eat foods like confectionery items, biscuits, beverages, and chocolates. The robust growth in food service retail chains with an increase in the number of eateries and cafes, which purchases a huge quantity of food ingredients from the wholesale supplier, has further boosted the market growth.

Additionally, key players are also launching new products, which is expected to drive market growth. For instance, on September 14, 2022, Nestlé CEREGROW™ expanded its portfolio by launching a new sub-brand, CEREGROW™ Grain Selection™. Inspired by traditional ingredients, the 1st product being launched in this range is nutritious cereal for toddlers made from ragi, mixed fruits, and ghee. Furthermore, on November 14, 2019, Limagrain Ingredients launched puffed whole grains and toasted broken pulses, providing their products with taste, nutrition and texture.

However, the high cost associated with processed and ready meals is expected to restrain the market growth during the forecast years. The perishable nature of some processed food is projected to hinder further the growth of the global market in the upcoming years.

Market Segmentation:The herbs and spices segment accounted for the highest share of the global bulk food ingredients market

The herbs and spices segment accounted for the largest revenue market share in 2021 owing to rising consumption and increased demand for a high-quality product, which is expected to drive market expansion. The use of spices & herbs as food ingredients in various culinary preparations contributes significantly to the overall flavor of the food. Herbs and spices like coriander, capsicum, pepper, cloves, cardamom, mint, parsley, basil, chives, and thyme are commonly used to garnish dishes in various regions across the globe. Consumers all over the world are gradually turning to these herbs for their flavor as well as their medicinal properties. Garlic, for instance, is well-known for its pungent aroma and delicious flavor and its ability to treat the common flu and other infectious diseases. Additionally, it aids in the management of hypertension and cardiovascular disease. The numerous health benefits associated with herbs such as garlic, parsley, oregano, fennel, peppermint, and basil have been credited with the segment's development.

Key players are also launching new products, which is expected to drive market growth. For instance, on September 28, 2022, FMCG company Dabur India announced the expansion of its Hommade Foods portfolio with the launch of Dabur Hommade Tasty Masala. The new product marks Dabur’s entry into the spices market and offers consumers taste and natural ingredients, making their dishes tastier than ever.

Geographical Penetration: Asia Pacific is the dominant region during the forecast period

The Asia-Pacific region is the fastest-growing region in the global market, owing to the growing urbanization coupled with increased spending on convenient and ready-to-eat processed foods and improved standard of living in countries like China, India, Malaysia, Australia, and New Zealand. Global exposure and western lifestyle influence have led to this region's growing popularity of packaged, processed and ready-to-eat foods. Countries like India have recently witnessed a surge in Foreign Direct Investments (FDI) from key players operating in the bulk food ingredients market. Moreover, such countries in the Asia-Pacific region also exhibit low-cost labor and lower ingredient prices, thereby providing a further market fill. Key players are also launching new products, which is expected to drive market growth. For instance, on October 11, 2022, Puratos Food Ingredients India introduced new fillings. Puratos Coloured & flavored compound and compound filling bring the best flavor and color to the finished products without the complexity of ingredient sourcing.

North America is the fastest-growing market and is expected to witness a CAGR of YY% from 2022-2029. Healthy economic growth, changing lifestyle trends, rising living standards, and increasing per capita expenditure on health and nutrition products are expected to prompt demand. Increased consumer health consciousness and interest in healthy and nutritious products positively influence baked goods. Huge demand for baked products such as high-fiber, gluten-free, and Trans fat products is anticipated to boost the bulk food ingredients market.

Competitive Landscape

The major players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen their presence in the market. Some major players operating in the global market for bulk ingredients include Cargill Incorporated, Olam International Limited, DowDuPont Inc., Ingredion Incorporated, Archer-Daniels-Midland Company, Tate & Lyle Plc., DMH Ingredients, Community Foods Limited, EHL Ingredients and Associated British Foods Plc. The companies are also introducing new innovative products to cater to the growing consumer demands for bulk ingredients. For instance, in April 2021, Olam Food Ingredients announced acquiring Olde Thompson for over USD 950 million. The company produces sustainable, natural, and value-added food & beverage ingredients.

On May 26, 2022, Symega Food Ingredients announced their foray into the plant-based protein space and launched a purpose-built manufacturing unit in Kochi. Plant-based proteins are not limited to vegan food items but are fast growing as a logical alternative for healthy food habits and a sustainable lifestyle.

COVID-19 Impact: Positive impact on the global bulk food ingredients market

The outbreak of the COVID-19 pandemic has impacted the growth of the market for bulk ingredients. Due to the lockdown worldwide, there was a significant surge in the prices of such raw materials due to trade barriers, inadequate distribution channels, and interruptions in the supply of raw materials. The increased fees, non-accessibility of bulk ingredients items, and manufacturing costs restrained the growth of the global bulk ingredients market.

However, the COVID-19 pandemic certainly changed the consuming and buying pattern of consumers in the bulk food ingredients market. Wherein sales through the online distribution channel and convenience stores are increased. For instance, according to the Institute of Food Technologists, a US-based scientific society of professionals engaged in food science and food technology, U.S. snack sales were up 5% in the first half of 2021 compared with 2020. Also, in 2021, the sales of frozen novelties were up 26%, and refrigerated lunch product sales grew by 36.4%. Therefore, the growing demand for convenience food products has driven the growth of the bulk food ingredients market.

The global bulk food ingredients market report would provide access to approximately 58 market data tables, 55 figures and 170 pages.