Food Premix Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Food Premix Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global food premix market is projected to grow at a CAGR of 5.6% during the forecast period (2022 - 2027).

During the COVID pandemic, large-scale food fortification was done to ensure people consumed enough nutrients for growth, development, and proper health. It aims to support the availability of premix through hubs to stabilise supply and keep fortification programmes operational, ensure fortified foods reach the most vulnerable through social safety net programs, and adjust advocacy efforts to match the demands of the new COVID-19 context. The premix market also benefits from the sports nutrition sector, thanks to expanding consumer health awareness and a growing number of South Africans suffering from hypertension and type-2 diabetes. Obesity and micronutrient shortages are rising in the country, aiding the food premix business.

Consumer demand for convenience products and a stable composition that tastes good and with health benefits have influenced the growth of fortified/functional products. Customized micronutrients blend provides cost-effective solutions while considering the premium quality raw ingredients are likely to drive the evolution of food premixes in the food and beverage industry

The rising exports of animal-based products from Asia-Pacific markets and the stringent import regulations of the developed markets have led to an increased focus on premixes' high quality, safety, and tractability. Growing awareness among farmers about the advantages of feed ingredients is likely to drive the growth of the feed premixes market. Feed premixes have been gaining popularity over time, owing to the accelerated demand for animal-based products.

Increasing consumer preference for fortified foods is attributed to adding essential ingredients such as amino acids, minerals, vitamins, and nucleotides. Innovative and developed premix products from food manufacturing are used in various applications such as dietary supplements, clinical nutrition, and infant nutrition products. Research conducted by the International Food Information Council Foundation on Food and Health revealed that 47% of consumers prefer food with additional nutrients. Fortified foods are primarily used for balancing nutrient loss and filling nutritional gaps. Moreover, the manufacturers are coming up with their fortified premixes with additional nutrient features. Fortification of dairy and bakery products is likely to be a driving factor for the evolution of the food premixes market globally.

The robust food fortification initiatives, coupled with rising exports of animal-based food products, have led to the demand for various premixes in Asian countries like India, Australia, China, and others. The exponential growth in compound feed production wherein the premixes acts as a key ingredient is also aiding the growth of the Asian premix industry. The large poultry integrators are increasingly seeking high-quality and stable premixes. In line with such market developments, companies like Cargill have expanded their manufacturing and distribution bases in India. The rising middle-class income, an increasing number of double-income families, and growing urbanization have led to increased meat consumption and consequently higher demands for feed premixes since poultry is the most preferred segment for meat consumption in India. The rising cost of essential raw materials for livestock production and competition from the food and biofuel industry is forcing the farmers to use premix in the feed to increase productivity at cheaper costs.

The global food premix market is competitive, especially with the increase in regional players and the changing consumer preferences for fortified food, beverages, and feed. The prominent players in the global premix market include Cargill Incorporated, Archer Daniel Midlands Company, and DSM. For instance, Cargill Incorporated invested in a new premix facility that offers innovative feed solutions to expand its animal nutrition capabilities in North America. DSM recently acquired a Dutch premix company named Twilmij to strengthen its animal and nutrition business. Some other key players in the global premix market are Associated British Foods, BASF, and Stern Vitamin, among others.

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