Food Processing Ingredients Market: Overview
The market size for food processing ingredients was USD 45.4 billion in 2021, and it is projected to grow at a CAGR of 4.7 percent during the forecast period. The global food processing ingredients market revenue growth is anticipated to be majorly driven by factors together with a growing range of gymnasts and sportspersons and a moving preference for healthy merchandise. Business analysis is indicative that growing preference for the superior quality of food products and raising awareness concerning the advantages of processed foods are alternative key factors anticipated to boost the market growth. Food process ingredients change flavor improvement of foods and beverages while maintaining the nutritionary of food and beverages. There has been a growing demand for processed food things globally.
The processed food product business is ever-changing quickly around the world, growing with ever-changing demographics, rising demand for branded and food products, and increasing client focus towards organic food and clean-label food products. Organic food production is gaining traction among customers, owing to the environment-friendly cultivation of organic food while not the usage of pesticides. Despite being a rich trade good, customers are ready to pay a lot for organic food products to adopt healthy consumption habits and are involved in the setting. Increasing intention to get an organic product has additionally been witnessed in developing countries owing to the wealth of food safety and quality trend among the customers.
Food process ingredients add parts to meals to elongate the period or enhance the food's nutritional quality by adding vitamins and minerals. It keeps the texture, style, thickness, and color of foods safe. The marketplace for food process ingredients is being driven by the speedy growth in demand for processed foods between customers everywhere on the planet. Food process ingredients additionally provide extra health advantages that are anticipated to own a considerable impact on food process ingredients. The growing beverage consumption in developed countries is predicted to impact the food processing ingredient market hugely.
Innovation is a very important part of the processed food business as processors want to cut back prices in the face of growing raw materials costs and cheaper competition from Asian suppliers, furthermore owing to the undeniable fact that customers are hard to please healthier, convenient, and premium foods processed with food process ingredients. The food ingredient makers are seeking upgradation from the growing client demand for healthier food and beverages and growing mergers and acquisitions to cater to the wants of the business concerning food process ingredients. The unsteady value of pure raw materials and easy availability of substitutes by key players might hinder market growth. Moreover, growing health-consciousness among customers and attainable ill-effects of over-consumption of processed foods might somewhat hamper the market growth.
Food Processing Ingredients Market: COVID-19 Impact
The emergence of the pandemic has benefited the food processing ingredients market due to rising health consciousness, especially among those following COVID-19. People's preferences are moving away from conventional foods and toward organic, plant-based, and clean label goods and beverages, raising sales and demand for food processing ingredients. The COVID-19 outbreak has had a profound effect on people's lives all around the globe. With the growing number of cases, stringent government regulations such as lockdowns, shutting down industries and business sectors, and so on are being implemented in almost every country. It is crucial to fuel immunity to fight this pandemic.
Food Processing Ingredients Market: Drivers
Various Strategies by Key Payersto Drive Market Growth
The key companies working in the industry are highly inclined towards adopting different growth strategies, including capacity expansion, partnerships, mergers and acquisitions, geographical expansion, new product introduction, and product upgradation to remain competitive in the marketplace. This is anticipated to impact significant market growth positively. Hence due to the development and manufacturing of innovative solutions, the food processing ingredients market is augmenting its growth over the forecast period. For instance, in July 2022, String Bio, a start-up based in India purchasing the utilization of biotechnology to create novel food ingredients, announced that it had raised US$ 20 million in a Series B funding round. Moreover, in February 2022, CSM Ingredients acquired Hi-Food, a specialist in the development and production of natural origin ingredients, under the investment companies of Investindustrial. The acquisition constructs Investindustrial's strategy to build sustainable companies in the food sector. The transaction stipulates that the shareholders of Hi-Food, based in Parma, Italy, will reintroduce their proceeds into CSM Ingredients and take on crucial roles in R&D and commercial management. Moreover, in May 2021, Amyris, a biotechnology company, signed a partnership with Ingredion Inc., a leading ingredient provider, to produce fermentation-based and sugar-reduction ingredients.
Economic Development in Developing Regions to Drive Market Growth
Economic development is crucial to growing the number of distributors of specialty food ingredients in developing regions. The key parameters that govern the growth in processed food consumption in developing economies are disposable income and population purchasing power parity. GDP growth in emerging markets is anticipated to drive demand for value-added products and, thus, distribution. Consumer preferences for functional and processed foods are substituting in these emerging markets, which are also available in modern retail formats, including supermarkets and hypermarkets.
Food Processing Ingredients Market: Restraints
Climatic and Environmental Factors to Hamper Market Growth
The industry is vulnerable owing to climatic and environmental factors, resource scarcity, and periodic governing regulatory changes. Other significant challenges include infrastructure, seasonal variation in raw material availability, and a lack of knowledge emerging in technological barriers in developing regions. It is a major hindrance to the market's growth for food processing ingredients. Furthermore, an inadequate supply chain in developing economies hinders the market's growth during the forecast period.
Food Processing Ingredients Market: Segment Overview
Bakery and Confectionery to Dominate Market due to Growing Demand for High-Quality Food
Among application categories, the bakery and confectionery category anticipated the greatest revenue share in the global food processing ingredient market. To address the increasing demand for high-quality food, major corporations are financing the development of creative products that utilizes high-quality ingredients. The behaviors, interests, and preferences of consumers are always moving. This has resulted in confectionary innovation, which is enhancing market expansion. To fulfill evolving customer preferences, manufacturers are enhancing their product variety by launching organic herbal fillings, tropical fruit, and nut-based flavors in product formulations. Furthermore, in recent years, the practice of giving baked goods, including chocolates, cookies, sweet treats, and others, has aided market growth.
With Increased Demand for Processed Food, Food and Beverage Category Dominated Market
Dry food processing ingredients dominate the global food processing ingredients market. Dry food processing components are becoming more popular on the market due to their improved stability and convenience in food processing procedures. Dry handling components harmed only a little heat degradation.
Food Processing Ingredients Market: Regional Landscape
Europeto Dominate Market due to Well-Developed Food Industry
The Europe market is attributed to being the largest revenue share in the global food processing ingredients market during the forecast period, owing to the well-developed food industry, huge consumption of confectionary and bakery products as well as high utilization of alcoholic beverages among individuals in the Europe market accounted for the biggest revenue share globally in the food processing ingredient market. Furthermore, the demand for various major processed food items is significantly greater in this area than in other countries, which is likely to grow ingredient acceptance and expand the market growth in Europe during the forecast period.
The Asia Pacific market is anticipated to develop much faster than the rest of the world. This is due to the growing individual disposable income, a transfer in inclination toward western cuisines and packaged meals, a demanding work life, longer working periods, and a requirement for healthy alternatives. Furthermore, the requirement for food processing ingredients is being fueled by the fast expansion of retail food chains and the growing popularity of eating out, expanding the demand for the market.
Global Food Processing Ingredients Market: Competitive Landscape
In February 2022, Kerry Group plc stated that it had agreed to acquire c-LEcta GmbH for 92 percent of its issued share capital. Precision fermentation optimized bio-processing and biotransformation to manufacture high-value tailored enzymes and ingredients are all specialties of the c-LEcta, a leading biotechnology innovation business. This strategically appealing combination will accelerate Kerry’s innovative strengths in enzyme engineering, fermentation, and bioprocess development. Furthermore, in May 2021, Amyris and Ingredion formed a partnership to develop and market sugar reduction and fermentation-based food ingredients. Amyris’ leading synthetic biology technology platform for evolving, scaling and developing fermentation-based products, incorporated with Ingredion’s global market and customer reach, formulation capabilities, and commercial teams, will hasten the accessibility and adoption of zero-calorie, nature-based sweeteners and other clean label fermentation-based food ingredients around the globe's leading food and beverage companies. Moreover, in February 2020, DSM, a leading company, decided to invest in a high-tech, fully automated packing line for food processing ingredients production, providing customers with improved traceability, reliability, and quality.
Few of the players in the food processing ingredients market include E. I. Du Pont De Nemours and Company, Arla Foods amba, Kerry Group, Corbion N.V., Archer Daniels Midland Company, BASF SE, Dairy Crest Group PLC, Tate & Lyle Public Limited Company, Cargill, Inc., Excellent Health Products Co., Ltd (EHP), Global Specialty Ingredients (M) Sdn. Bhd., Excellent Health Products Co., Ltd (EHP), Koninklijke DSM N.V., among others.
Global Food Processing Ingredients Market is Segmented as Below:
Key Elements Included In The Study: Global Food Processing Ingredients Market
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