Specialty Food Ingredient Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Specialty Food Ingredient Market is segmented By Type (Functional Food Ingredients, Specialty Starch and Texturants, Sweeteners, Flavors, Acidulants, Preservatives, Others), By Application (Beverages, Sauces, Dressing, Condiments, Bakery, Dairy, Confectionery, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Specialty Food Ingredient Market Size

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 2031. The market is growing at a CAGR of 5.2% during the forecast period 2024-2031.

The specialty food ingredients market is projected to experience significant growth, during the forecast period. Factors such as changing dietary preferences, a growing population, and increasing consumer awareness of the health benefits of specialty food ingredients are expected to drive market growth.

The market is characterized by continuous product innovation and research and development (R&D) activities. The emphasis on health and wellness is expected to continue driving the demand for specialty food ingredients market. Specialty ingredients targeting specific health concerns like cardiovascular health, digestive health, and weight management are expected to gain traction.

Specialty Food Ingredient Market Summary

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Specialty Food Ingredient Market Dynamics

Growing Consumer Demand for Healthier and Natural Food Products Drives the Market Growth

The growing consumer demand for healthier and natural food products is a key driver propelling the market for specialty food ingredients. Consumers prioritize their health and wellness, so they increasingly seek food products with clean labels and natural ingredients. This shift in consumer preferences is creating opportunities for specialty food ingredient manufacturers to develop and offer innovative solutions that enhance the nutritional value and functionality of food products.

For instance, on February 25, 2020, ABITEC Corporation expanded its diverse range of powdered lipid ingredients in response to the market's and its customers' growing demands and requirements. As the demand for cleaner and more label-friendly ingredients increased, ABITEC remained committed to prioritizing the health and safety of consumers in all of its product development endeavors.

Expansion of the Food Service Industry and Demand for High-Quality Ingredients Drive Market Growth

As the food service sector experiences robust growth worldwide, there is a rising need for specialty food ingredients that can meet stringent quality standards and elevate the culinary experience. The food service industry demands ingredients that enhance flavors, textures, and visual appeal, while also meeting the diverse needs of consumers.

This creates lucrative opportunities for specialty food ingredient manufacturers to cater to the specific requirements of the food service market, driving the overall growth of the specialty food ingredients market. For instance, on December 1, 2022, ingredients maker ICL Food Specialties partnered with artificial intelligence-driven food tech company Protera Biosciences to collaborate on developing innovative protein ingredients for food manufacturers.

By combining their expertise and resources, ICL Food Specialties and Protera Biosciences aimed to drive forward the creation of novel protein ingredients that cater to the evolving needs and preferences of consumers and food manufacturers alike.

Fluctuating Prices of Raw Materials and Ingredients Hamper the Market Growth

Volatility in commodity prices can significantly impact the cost of production for specialty food ingredient manufacturers, affecting their profit margins and pricing strategies. These price fluctuations can also create challenges in maintaining stable and competitive pricing for specialty food ingredients. As a result, the market for specialty food ingredients may face uncertainties and constraints due to the unpredictable nature of raw material prices in the market.

Specialty Food Ingredient Market Segment Analysis

The global specialty food ingredients market is segmented based on type, application, and region.

Increased Consumer Awareness About the Importance of Nutrition and Wellness is Expected to Drive the Functional Food Ingredients Segment Growth

The functional food ingredients segment has emerged as the dominant force in the global specialty food ingredients market. With increasing consumer awareness about the importance of nutrition and wellness, there has been a surge in demand for functional ingredients.

These ingredients offer specific health benefits and are incorporated into various food and beverage products. As a result, manufacturers are innovating and expanding their portfolios to cater to this growing market segment. For instance, on May 6, 2022, Above Food Corp, a pioneering vertically integrated plant-based food company, inaugurated its state-of-the-art gluten-free ingredient development, processing, and packaging facility in Saskatchewan, Canada. The Above Food Ingredient Centre facility is poised to become the central hub for the company's future product advancements and gluten-free ingredient processing, solidifying its commitment to innovation and high-quality plant-based offerings.

 
Source: DataM Intelligence Analysis (2024)

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Specialty Food Ingredient Market Geographical Share

Increasing Preference for Convenience Food in Asia Pacific

In 2022, the Asia Pacific region emerged as the dominant market, capturing a significant revenue share. The increasing preference for convenience food has propelled the demand for emulsifiers in the food industry, positioning China as the largest market for emulsifiers in the region. China's substantial population provides a favorable environment for the growth of the food and beverage, pharmaceutical, and personal care industries, which are expected to serve as crucial drivers for the emulsifier market in the country.

Market players recognize the vast opportunities in the Asia Pacific market and actively invest in product development and expansion strategies to cater to the growing demand. For instance, on May 3, 2022, Symega Food Ingredients Limited unveiled 'CUISINARY,' an extensive range of high-quality food solutions designed specifically for professional kitchens. The Cuisinary range encompasses a wide array of culinary essentials, including seasonings, sauces, coatings, and flavor enhancers, catering to the diverse needs of chefs and food service establishments.

Source: DataM Intelligence Analysis (2024)

Specialty Food Ingredient Market Companies

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

COVID-19 Impact Analysis

The specialty food ingredients market experienced disruptions in the supply chain due to lockdown measures, travel restrictions, and the closure of manufacturing facilities. This led to challenges in sourcing raw materials and ingredients and delays in production and distribution, impacting the market's operations.

However, the pandemic influenced consumer behavior, changing purchasing patterns and consumption habits. With restrictions on dining out and increased focus on home cooking, there was a surge in demand for specialty food ingredients as consumers sought to recreate restaurant-style experiences at home. This shift in consumer behavior presented opportunities for the market.

Artificial Intelligence Impact Analysis

Artificial intelligence (AI) technologies, such as machine learning and robotics, have the potential to streamline and optimize manufacturing processes in the specialty food ingredients market. Automated systems can improve accuracy, reduce human error, and enhance overall production efficiency, leading to increased productivity and cost savings for manufacturers. AI-powered analytics and predictive modeling can assist in product development and innovation within the specialty food ingredients market.

Key Developments

• On March 9, 2023, Univar Solutions Inc., a prominent global provider of specialty ingredients and chemicals, announced that Leprino Foods Company had chosen the company as an authorized distributor for nutritional ingredients and dairy products across the United States and Canada.

Under this agreement, Univar Solutions became the selected distributor for a range of products including lactose, sweet whey, whey protein concentrate and isolate micellar casein, and milkfat globule membrane (MFGM).

• In September 2022, Royal DSM, a global science-based company, entered into an agreement to acquire First Choice Ingredients, a prominent supplier of dairy-based savory flavorings. The acquisition is valued at USD 453 million. First Choice Ingredients specializes in clean-label, fermented dairy, and dairy-based savory flavorings, offering a range of taste and functional solutions for diverse applications.
• In June 2021, Cargill and HELM partnered to establish a joint venture called Qore, with the aim of assisting top brands in replacing fossil-based chemistries with bio-based intermediates. This collaboration empowers these brands to reduce their greenhouse gas emissions by adopting sustainable alternatives in their supply chains.

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 2024

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