Food Ingredients Market Size By Form (Preservatives, Natural, Synthetic, Sweeteners, Artificial, Flavors & Spices, Nutrients, Emulsifiers, and Others), Application (Food & Beverages, Bakery, Confectionary, Dairy Products, Meat and Fish, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

The Food Ingredients Market size was worth around USD 271.32 billion in 2022 and is predicted to grow around USD 489.36 billion by 2032 with a compound annual growth rate of roughly 6.01% between 2023 and 2032.

The food ingredients market is being driven by multiple factors, including changing consumer preferences, a rise in demand for foods that offer convenience, and an increase in awareness about the health advantages offered by functional ingredients. Also, the growing popularity of clean-label goods has increased the demand for natural and organic ingredients.

Numerous regulatory organizations have set regulations for the use of food ingredients, including the FDA, EU, and FSSAI, which also have an impact on the market for food ingredients. These laws safeguard food products while also maintaining quality and fostering business transparency.

Overall, it is anticipated that the market for food ingredients will keep expanding due to the rising consumer demand for functional and clean-label ingredients, rising consumer awareness of healthy food options, and the expanding food industry.

Key Insights

• Based on form, the sweeteners segment held the largest market share in 2022
• Based on application, the food & beverages segment generated the highest revenue in 2022
• Based on region, North America accounted largest market share in 2022

Increasing Demand for Packed & Processed Food To Garner Growth Prospects

The development of packaging methods to increase the shelf-life of food products is primarily responsible for the industry's expansion. Recently, the significant rise in the working population, coupled with changes in food consumption patterns is fueling market expansion. The expansion of the global packaged food market can be attributed to factors such as advancements in retail infrastructure resulting in increased availability of packaged goods, and the ease of accessing food products due to factors such as home delivery and promotional deals. 

Additionally,  specific consumer preferences for foods with clean labels, organic ingredients, dairy-free goods, vegan foods, and others are anticipated to create new opportunities for packaged food to expand.

The expansion of the food ingredients market can be largely attributed to the growth of the middle classes in developing countries, who are increasingly concerned about food safety and the hygiene conditions under which their food is processed. A similar trend can also be observed in developed countries, where consumers are showing a greater desire for food products processed under safe and hygienic conditions, especially after the pandemic. 

Technological and Product-Based Innovations in the Ingredients Sector

A notable trend in the food ingredients market is the emergence of new technologies. Leading food ingredient firms are devoting their efforts toward devising fresh ingredient solutions that can cater to the needs of the global food industry, including the creation of next-generation alternatives such as proteins and other food components. In August 2022, Kalsec, a US-based food ingredient manufacturer partnered with Infinome Biosciences to advance their development of microbial-based food ingredients utilizing precision fermentation techniques.

For example, a sustainability-focused entrepreneur from Israel was honored with the Most Innovative Plant-Based or Alternative Ingredient award for their microalgae protein called Brevel. Utilizing a proprietary technique, the production cost of microalgae has been reduced by over 90%. This unique ingredient boasts nutrient-dense elements and has traits that can only be formed in the presence of light.

Recent Development

December 2022: Austrian up-cyclers Kern Tec received the award for Most Innovative Beverage & Food Ingredient for their alternative milk products that use their patented processes to turn unwanted fruit pits into valuable ingredients.

Segmentation Analysis

Based on form, the market is categorized into preservatives, natural, synthetic, sweeteners, natural, artificial, flavors and spices, nutrients, emulsifiers, and others. Sweeteners dominated the market for food ingredients. The sweetener market increased its market share significantly in 2022 and is anticipated to maintain it throughout the forecast period. Sweeteners are a crucial food component that is used in the production of packaged meals primarily in the processed food & beverage industry.

As a result of the high osmotic pressure generated by sugar solutions, it can serve a dual purpose: acting as a sweetener and as a preservative. Meanwhile, due to the growth in the global population and the increasing prevalence of work-related stress, there has been a shift towards the consumption of processed and packaged meals for quick satiation. This trend has been further amplified by an increase in the availability of processed food products, leading to a transformation in dietary patterns.

Based on the application, the market is categorized into food & beverages, bakery, confectionery, dairy products, meat & fish, and others. In 2022, the food and beverage segment significantly increased its share of the global market, and it is anticipated to maintain its dominance throughout the forecast period. The increasing consumer demand for food products can be attributed to the ongoing global population growth.

Additionally, consumers' packed schedules, insufficient time for meal preparation, and heightened work-related obligations are driving the need for quick and easily accessible food alternatives. In response to growing demand, fast-food manufacturers are focusing on enhancing the quality and shelf-life of their food products. This trend has resulted in a heightened need for food ingredient supplies in the food and beverage sector, driving an expansion in the global food ingredients market. 

North America is Dominating the Market Share as Consumer Are More Attracted Towards Healthy Food Ingredients

In North America, the demand for food ingredients with multiple benefits, including those related to health, is expected to grow significantly, thereby causing a notable impact on the overall global food ingredients market. For example, prebiotic additives in dietary products have been shown to improve gut health, mineral absorption, bone strength, and immunity. Moreover, the region's food ingredients market is forecasted to benefit from the expansion of the food manufacturing industry.

Furthermore, the appeal of sugar alternatives such as xylitol, erythritol, and mannitol is experiencing a fast-paced rise in North America. This is partly due to increased awareness among consumers, governmental restraints on sugar utilization, and the availability of numerous food products designed to foster health and wellness. Specialty food ingredient market players in this region are being positively impacted by these trends.

Competitive Landscape

• Tate & Lyle
• Cargill, Incorporated
• Community Foods
• Ingredients
• Kerry Group plc.
• Symrise
• Novozymes
• DuPont
• Givaudan
• Associated British Foods plc
• ADM

The global food ingredients market is segmented as follows:

By Form

• Preservatives
• Natural
• Synthetic
• Sweeteners
• Artificial
• Flavors and Spices
• Nutrients
• Emulsifiers
• Others

By Application

• Food & Beverages
• Bakery
• Confectionary
• Dairy Products
• Meat and Fish
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America