Food Processing Ingredient Market Size, Share, Trends, Growth 2032

Industry Prospective:

The global food processing ingredient market was worth around USD 48.12 billion in 2021 and is estimated to grow to about USD 76.23 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.9 percent over the forecast period. The report analyzes the food processing ingredient market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the food processing ingredient market.

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Food Processing Ingredient Market: Overview

The processed food products sector is fast evolving around the globe, with shifting demographics, rising demand for convenience & branded foods, and an increasing customer emphasis on clean label & organic food products. Food processing ingredients add minerals and vitamins to meals to extend their shelf life or improve the nutritional content of the food. It's used to preserve food's color, thickness, texture, and flavor. Thus, it has a wide range of applications in the food and beverage industry.

COVID-19 Impact:

Covid-19 has compelled producers to seek high-quality materials and consumer goods. People have become more aware of what they consume and where it comes from following COVID-19. As a result, high-end items are in great demand. Quality is the primary goal of consumer psychology, with a rising number of individuals prepared to pay more for the highest quality goods. The market for food processing ingredients will benefit as a result of this. Manufacturers of food processing ingredients have an opportunity to profit from the growing demand for food processing ingredients, but they must assure a steady supply. The market will benefit from increased health awareness as a result of COVID-19 and is estimated to drive the market post-Covid-19 era in the predicted years.

Food Processing Ingredient Market: Growth Drivers

Rising consumption of processed food products is anticipated to fuel the market growth

The global food processing ingredient market is been propelled by a change in buyer behavior regarding the safety of food. Consumers are being more flexible in terms of where their food comes from and how it is produced. Thus, firms are developing certified food processing ingredients to fulfill the safety standards and high quality demanded by consumers. Manufacturers are attempting to cut costs in the face of growing raw material prices and lower competition from Asian suppliers, and also customers' demands for healthier, more convenient, and premium meals prepared with food processing ingredients. This has led to a rise in the consumption of processed food products thereby boosting the demand for food processing ingredients. In addition to this, an increase in demand for organic or natural food ingredients and a growing preference for healthy food & beverages are also some of the key aspects that are fostering the market growth. Moreover, food processing ingredients give food certain qualities including moisture, flavor, flow, and texture resulting in the growth of consumption of processed food products thereby driving the market growth.

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Food Processing Ingredient Market: Restraints

The volatile cost of raw materials may impede the growth of the market

The global food processing ingredient market's growth might be hampered by the volatile cost of raw materials and the availability & affordability of ingredients made by local firms. Furthermore, rising health consciousness among consumers, as well as the possible health risks of excessive intake of foods containing these ingredients, may limit market development to some extent. In addition to this, increased laws on the production and use of food processing ingredients, as well as the varied fraud related to the food act, are also some of the key factors that are estimated to restrain the market's growth.

Food Processing Ingredient Market: Opportunities

The rise in the introduction of significant manufacturing capabilities is expected to generate key opportunities for market growth

Food ingredient companies are attempting to capitalize on rising customer demand for healthier foods and drinks by expanding mergers and acquisitions in order to meet the industry's needs for food processing ingredients. Key players are also investing heavily in the establishment of innovative and substantial manufacturing facilities to meet the growing demand of the consumer. Additionally, manufacturers are focusing majorly on continuous innovation, worldwide presence, and bargaining strength for long-term success in the food ingredients business. Technological improvements like the spinning cone column and reverse osmosis present a variety of chances for wine market innovation, which is projected to boost demand for yeast as an ingredient. All such factors are projected to create ample opportunities for the growth of the market.

Report Scope:

Food Processing Ingredient Market: Challenges.

Low penetration of the market in low-income countries is likely to act as a challenge to market growth

To some extent, low penetration of the market is been observed in countries with low and middle income. This is majorly attributed to low disposable income, less spending & purchasing power, and low preference of the consumer toward processed food products.

Food Processing Ingredient Market: Segmentation

The global food processing ingredient market is segregated based on ingredient, nature, end-use, application, and region. Based on the ingredient, the global market is categorized into antioxidants, proteins, vitamins, minerals, sweeteners, coloring agents, and enzymes. The nature segment is classified into natural/organic and synthetic. The end-use of the food processing ingredient market are emulsifiers, stabilizers, thickeners, leavening agents, and texturizers. The application segment is divided into meat & seafood products, dairy products, bakery & confectionery, beverages, cereal products, and others.

Recent Developments

• In March 2022, Corbion, a Dutch ingredients company, collaborated with Nestlé to create microalgae-based ingredients that will improve the flavor, sustainability, and nutrition of Nestlé’s booming plant-based portfolio. With vegan drinks, plant-based fish, and meat alternatives gaining momentum with customers, Nestlé has emerged as a pioneer in the plant-based industry. This microalgae alliance will improve the nutritional value of all of these food products.
• In January 2022, Kerry Group invested $90.3 million in a 21,500-square-foot plant in Saudi Arabia's Jeddah to encourage the production of sustainable food ingredients.

Food Processing Ingredient Market: Regional Landscape

Europe is estimated to lead the global food processing ingredient market

Geographically, Europe is anticipated to dominate the market for food processing ingredients. This is majorly due to the well-developed food industry, high consumption of confectionery & bakery items, and high consumption of alcoholic drinks among consumers in nations. Thus, the European market is likely to account for the biggest revenue share during the forecast period as well. Furthermore, in comparison to other areas, consumption of various other processed food items is significantly greater in this region, which is predicted to increase ingredient adoption and enhance Europe’s market growth. During the projected period, the Asia Pacific market is likely to grow at a rapid pace. This is attributable to rising consumer disposable income, a shift in inclination toward western cuisines & processed meals, lengthy & exhausting working hours, and a need for healthful foods.

Food Processing Ingredient Market: Competitive Landscape

Some of the prominent players that are operating in the global food processing ingredient market include Kerry Group, Cargill, Inc., E. I. Du Pont De Nemours and Company, Arla Foods amba, Corbion N.V., Koninklijke DSM N.V., Dairy Crest Group PLC, Ingredion, Archer Daniels Midland Company, and Tate & Lyle Public Limited Company.

The global food processing ingredient market is segmented as follows:

By Ingredient

• Minerals
• Vitamins
• Proteins
• Antioxidants
• Enzymes
• Coloring Agents
• Sweeteners

By Nature

• Synthetic
• Natural/Organic

By End-Use

• Thickeners
• Stabilizers
• Emulsifiers
• Texturizers
• Leavening Agents

By Application

• Bakery and Confectionary
• Dairy Products
• Meat and Sea Food Products
• Cereal Products
• Beverages
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa