The several functional advantages of specialty ingredients are influencing the market’s growth. Owing to changing lifestyles and increasing purchasing power of consumers, the demand for convenience food is soaring. These factors have boosted the growth of the global specialty food ingredients market.
Increasing urbanization and growing consumer preference for processed foods are driving the specialty food ingredients market. However, consumers are aware of the use of food additives that strip the products of their nutrients. This has paved the way for consumers demanding safe, quality products having a long shelf life. Ingredients used for improving the shelf life of the processed foods are seen by consumers as using artificial ingredients and containing high trans-fat content making the product anti-nutrient. Companies, by introducing functional food ingredients, have increased the demand and kept the nutrient value intact. Also, organized retail sector, which is a small percentage in the emerging countries, is seeing inroads in the processed food sector, thus increasing its penetration and fuelling the demand for specialty food ingredients.
Increasing Demand for Processed and Packaged Food
The global processed food market was valued at USD 4,601 trillion in 2016, and is anticipated to undergo significant transformations during the forecast period, owing to the direct impact of some mega trends, such as emergence of new business models and socio-economic developments. Processed food products include various categories, such as ready meals, baked foods, breakfast cereals, confectionery, and non-alcoholic beverages. Specialty food ingredients are a vital part of a wide range of processed foods, thereby contributing to the competitiveness in the food & beverage industry.
Nowadays, consumers are attracted toward easy-to-go beverages and skip sit-down meals for the convenience that drinks offer. The beverage segment in the global specialty food ingredients market was valued at USD 11958 million in 2016, and is expected to witness a CAGR of 6.7% during the forecast period. Companies are coming up with a large variety of non-alcoholic ferments as specialty food ingredient in beverages, like soft drinks, and malt-based juices. The distinct malt juices serve as refreshing thirst quenchers and an alternative to traditional soft drinks.
North America Dominates the Market Share
The market for specialty food ingredients in North America is driven by rising rate of diabetes and obesity, which is warning consumers to focus on healthier lifestyles, and thus, fueling the demand for specialty food ingredients. Though mainstream retailers account for the largest share of specialty food sales, they are growing almost at the same rate as specialty food and natural food stores.
Major players: Cargill (U.S.), Chr. Hansen (Denmark), DuPont (the U.S.), Royal DSM (the Netherlands), and Tate & Lyle (the U.K.), among others.
These companies are adopting expansions through mergers and by investing in R&D of new products. The major constraint that this industry faces is the adherence to stringent regulatory guidelines of various countries. Other practices followed by many major players are technological advancements and innovation to introduce new product lines and meet the demands of health-conscious urban consumer. One such approach is encapsulation, which delivers ingredients at the right time at the right place, and helps in retaining flavor, mask bad taste, and smell, and is used for fermentation and metabolite production as well.
Reasons to Purchase the Report
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics, which essentially consider the factors that are impelling the present market scenario, along with growth opportunities of the market in the years to come
Market segmentation analysis, including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Regional- and country-level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in excel)
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1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
2. Research Approach & Methodology
3. Market Overview
4. Market Dynamics
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. Market Segmentation
5.1 By Product Type
5.1.1 Functional Food Ingredient
22.214.171.124 Vitamins & Minerals
126.96.36.199 Proteins & Amino Acids
188.8.131.52 Omega 3 PUFA
184.108.40.206 Prebiotics & Probiotics
5.1.2 Specialty Starch
5.1.12 Specialty Oil
5.2 By Application
5.2.2 Sauces, Dressings and Condiments
5.2.6 Dried Processed Food
5.2.7 Frozen/Chilled Processed Food
5.2.8 Sweet and Savory Snacks
5.3 By Geography
5.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
5.3.4 South America
22.214.171.124 South Africa
6. Competitive Landscape
6.1 Most Adopted Strategies
6.2 Most Active Companies
6.3 Market Share Analysis
7. Company Profiles
7.1 Ingredion Incorporated
7.2 Cargill Inc.
7.4 Tate & Lyle
7.5 Kerry Group
7.6 Royal DSM
7.7 Sensient Technologies
7.9 Archer Daniels Midland Company
7.10 BASF Group
7.11 CHR Hansen
7.13 GSI Specialty Ingredients
7.14 Associated British Food Plc