Brazil Food Ingredient Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Brazil Food Ingredient Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Brazil Food Ingredient Market size is expected to grow from USD 22.40 billion in 2023 to USD 23.75 billion by 2028, at a CAGR of 1.18% during the forecast period (2023-2028).

Key Highlights

  • The demand for synthetic food ingredients in Brazil and other South American countries is declining as more consumers are turning to plant-based and natural food ingredients. This shift in consumer preferences towards healthier and more natural food choices is driven by various factors, including the increasing awareness of the health benefits of such foods and the desire to maintain a more active and healthy lifestyle.
  • In response to this trend, food manufacturers are increasingly labeling their products to provide consumers with more information about the ingredients, nutritional value, and potential allergens in their products. This increased transparency allows consumers to make more informed decisions about what they eat and helps them to avoid foods that may contain harmful ingredients or additives.
  • The shift in consumer preferences towards healthier and more natural foods is not unique to Brazil and South America but is a global trend observed in many other parts of the world. As a result, food manufacturers are adapting their product offerings to cater to this changing consumer demand by developing more plant-based and natural food ingredients and reducing the use of synthetic additives and preservatives.
  • Demand for low or no-calorie ingredients like sweeteners and enzymes is increasing as consumers become more health-conscious and seek healthier food options. These ingredients are used to improve the taste and quality of food products without adding excess calories or compromising on flavor. The increasing prevalence of chronic diseases like obesity, diabetes, and cardiovascular diseases has further fueled the demand for low or no-calorie ingredients as consumers look for ways to manage their calorie intake and maintain a healthier lifestyle. As a result, artificial and natural sweeteners have become popular alternatives to traditional sugar.
  • In recent years, natural sweeteners like stevia and monk fruit have gained popularity among consumers and the beverage industry in South America. These natural sweeteners are perceived as healthier alternatives to artificial sweeteners and sugar, and their demand is expected to continue growing in the region.
  • To meet this growing demand, market players in South America are launching new natural ingredients in the market. This is expected to drive innovation and competition in the industry and provide consumers with more options when it comes to choosing healthier and more natural food products.
  • For instance, in July 2022, Sweegen Inc launched Bestevia LQ, a collection of liquid stevia-based sweeteners. These sweeteners can be used in carbonated drinks, confectionary products, and many more. Over the medium term, demand for natural food ingredients is expected to increase owing to their health benefits, changing food preferences, and increasing prevalence of diseases.

Brazil Food Ingredient Market Trends

Growing Demand for Natural Food Colorants

  • With an increasing preference for clean-label products, the demand for natural colors is expected to increase in the country. Natural colorants have varied applications in functional foods. Food colors find application in many processed foods, including candies, snack foods, margarine, cheese, soft drinks, jams/jellies, gelatins, pudding, and pie fillings.
  • Due to changing lifestyles and eating habits, consumer demand for preservative-free, chemical-free, and natural products is increasing. Due to this, demand for natural food colorants is increasing in the country. Consumer demand for free-from food is also increasing due to its nutritional profile and health benefits.
  • Market players have been innovating and launching new natural colorants from various natural sources to meet the growing demand for natural ingredients in food products. The use of natural colorants has become increasingly popular as consumers look for healthier and more natural alternatives to artificial colorants. Over the medium term, the market for food colorants is expected to continue growing due to the increasing demand for attractive food products and natural ingredients.

Health and Wellness Trend to Uplift Ingredients Value Sales

  • In Brazil, rising rates of obesity, diabetes, and heart disease are prompting customers to seek out more natural, healthful, and organic products. According to International Diabetes Federation (IDF) data, in 2021, 1 in 10 adults in Brazil were diabetic.
  • Moreover, the country's shifting demographics, which are aging rapidly with falling birth rates and increasing life expectancy, are pushing consumers to be more proactive toward their health. With the rise in health consciousness, consumers are pivoting their interest from carbs to protein-based diets.
  • The demand for plant-based, clean-labeled, and natural ingredients in Brazil is increasing due to their perceived health benefits. Consumers are becoming more health-conscious and seeking food products free from artificial ingredients, additives, and preservatives.
  • This trend is also being driven by food manufacturers and governing bodies promoting healthier food options and ingredients. Food manufacturers are developing and launching new products that cater to the growing demand for plant-based and natural ingredients while governing bodies are implementing regulations to ensure that food products are labeled accurately and contain safe and healthy ingredients.

Brazil Food Ingredient Industry Overview

The market studied is fragmented and includes regional and global competitors. Players like Cargill Inc., Koninklijke DSM NV, Olam International, Kerry Group, and Tate & Lyle PLC dominate the market. There are various small and medium local players holding a significant share of the market. The leading players have a strong market position and brand recognition, allowing them to maintain a competitive advantage. These companies are actively pursuing mergers and acquisitions further to strengthen their presence and portfolio in the market. By acquiring other companies or merging with competitors, they can expand their product portfolio, access new markets, and gain a competitive advantage in the industry.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Please note: The report will take approximately 2 business days to prepare and deliver.

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Degree of Competition
5.1 Type
5.1.1 Starch and Sweeteners
5.1.2 Flavors and Colorants
5.1.3 Acidulants and Emulsifiers
5.1.4 Preservatives
5.1.5 Enzymes
5.1.6 Edible Oils and Fats
5.1.7 Other Types
5.2 Application
5.2.1 Bakery Products
5.2.2 Beverages
5.2.3 Meat. Poultry, and Seafood
5.2.4 Dairy Products
5.2.5 Confectionery
5.2.6 Sweet and Savory Snacks
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Olam International
6.3.2 Cargill Incorporated
6.3.3 Koninklijke DSM NV
6.3.4 Sensient Technologies
6.3.5 Ingredion Incorporated
6.3.6 Archer Daniels Midland Company
6.3.7 Kerry Inc.
6.3.8 Tate & Lyle PLC
6.3.9 Associated British Foods PLC
6.3.10 Givaudan SA
6.3.11 Bunge Limited
6.3.12 International Flavors & Fragrances Inc.

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