Global Specialty Food Ingredients Market - 2023-2030

Global Specialty Food Ingredients Market - 2023-2030

The Global Specialty Food Ingredients Market reached US$ 112.4 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 168.6 million by 2030. The market is growing at a CAGR of 5.2% during the forecast period 2023-2030.

The Global Specialty Food Ingredients Market is poised for substantial growth in the forecasting period, driven by increasing consumer demand for healthier and more natural food products. The market is expected to expand robustly, fueled by factors such as rising disposable incomes, changing dietary preferences, and advancements in food processing technologies.

Continuous product innovation and research and development efforts are likely to play a pivotal role in shaping the market's future. The emphasis on clean-label ingredients and the growing focus on health and wellness trends are expected to fuel the demand for specialty food ingredients.

Market Dynamics

Increasing Disposable Income and Changing Dietary Preferences Drive Market Growth

As disposable incomes rise, consumers have more purchasing power and are willing to invest in high-quality and specialty food products. Changing dietary preferences, such as adopting healthier eating habits, vegetarianism, and veganism, are driving the demand for specialty food ingredients that cater to these specific dietary needs. This shift in consumer behavior presents a significant market opportunity for specialty food ingredient manufacturers to develop and offer products that align with evolving dietary preferences.

For instance, in September 2021, Divi's Nutraceuticals, an Indian company introduced ""CaroNat,"" a naturally-sourced food ingredient designed to provide dark yellow to orange coloration to a wide range of food and beverage products. This innovative ingredient is particularly suitable for applications in the dairy industry, offering a natural and vibrant color option for various dairy products.

Increasing Awareness About the Health Benefits of Specialty Food Ingredients Drives the Market Growth

As consumers become more health conscious, they are actively seeking food products that offer specific nutritional benefits and functional properties. Specialty food ingredients, such as probiotics, antioxidants, and omega-3 fatty acids, are gaining traction due to their potential health-promoting effects. This rising awareness and demand for healthier options drive manufacturers to incorporate specialty food ingredients into their product formulations, propelling the market's growth.

For instance, on February 24, 2023, Sensus America, a specialty ingredient supplier, expanded its ingredient portfolio by introducing a new plant-based protein option. The Tendra Fava Protein Isolate, developed by Sensus' sister company Cosun Protein, offers a high protein content derived from fava beans. This protein isolate boasts excellent solubility and emulsification properties, making it suitable for various applications.

COVID-19 Impact Analysis

The COVID-19 pandemic significantly impacted the global specialty food ingredients market. The market experienced disruptions due to the widespread lockdown measures and restrictions on movement, leading to supply chain challenges and manufacturing disruptions. The closure of restaurants, cafes, and other food service establishments also affected the demand for specialty food ingredients.

However, the pandemic also resulted in shifts in consumer behavior, with an increased focus on home cooking and a heightened awareness of health and wellness. This led to a surge in demand for specialty food ingredients that offered functional benefits, natural and clean label options, and immunity-boosting properties.

Segment Analysis

The Global Specialty Food Ingredients Market is segmented based on type, application, and region.

Increasing Demand for Various Food Products is Driving the Specialty Starch and Texturant Segment Growth

The specialty starch and texturants segment establishing its dominance in the global specialty food ingredients market. With the increasing demand for food products with improved texture, stability, and sensory appeal, specialty starches and texturants are playing a crucial role in meeting consumer preferences. The market for specialty starches and texturants is witnessing robust growth, are driving by the growing food processing industry and the need for innovative texture solutions. Manufacturers in this segment continuously develop and collaborate for new formulations and expand their product portfolios to capitalize on the expanding market opportunities.

For instance, on July 10, 2020, Griffith Foods and Xenon Arc collaborated forces to establish Griffith Foods Connect, a dedicated commercial channel that catered exclusively to the specific needs of select customers of Griffith Foods in North America. The formation of Griffith Foods Connect marked an important milestone in providing enhanced support and tailored solutions to customers utilizing Griffith Foods' innovative food ingredients.

Geographical Analysis

Increasing Expansion of the Food Processing Industry in Asia Pacific

The Asia Pacific region has emerged as the dominant market in the global specialty food ingredients market in 2022. With a growing population, increasing disposable incomes, and shifting consumer preferences, the region witnessing a surge in demand for specialty food ingredients.

The factors contributing to the region's dominance, include the popularity of traditional cuisines, rising urbanization, and the expansion of the food processing industry. Market players recognize the vast opportunities in the Asia Pacific market and actively invest in product development and growth strategies to cater to the growing demand. For instance, on October 21, 2021, Olam Food Ingredients (OFI), a global leader in natural and sustainable food ingredients and solutions, unveiled its new brand in the past.

The brand identity was carefully crafted to capture OFI's ability to drive innovation across all aspects of its business, enabling it to deliver enhanced growth and impact for its customers. The new brand was brought to life through various channels, including an advertising campaign and a dedicated website.

Competitive Landscape

The major global specialty food ingredients market players include Cargill, ADM, DuPont, Ingredion, Kerry Group Plc, DSM, Chr. Hansen, Sensient, Tate & Lyle, and Givaudan.

Why Purchase the Report?
• To visualize the Global Specialty Food Ingredients Market segmentation based on type, application, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous specialty food ingredients market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Specialty Food Ingredients Market Report Would Provide Approximately 53 Tables, 56 Figures And 109 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies