Specialty Food Ingredients Market (2024-2031)
The Specialty Food Ingredients Market was valued at $170.66 billion in 2023. This market is expected to reach $266.2 billion by 2031, from an estimated $179.24 billion in 2024, at a CAGR of 5.8% during the forecast period 2024-2031. Specialty Food Ingredients Market Size & Forecast In terms of volume,
- Published
- Jan 2024
- Pages
- 368
- Format
- PDF + Excel
- Report ID
- MRFB - 104640
- Base year
- 2023
- 2023 · BASELINE
- $170.7B
- 2031
- $266.2B
- CAGR 2024–2031
- 5.8%
2023 baseline · 2024–2031 forecast at 5.8% CAGR · hover a bar for the value
Key highlights
By Type: In 2024, the Proteins & Amino Acids Segment to Dominate the Specialty Food Ingredients Market
By Source: In 2024, the Natural Specialty Food Ingredients Segment to Dominate the Specialty Food Ingredients Market
By Application: In 2024, the Food Segment to Dominate the Specialty Food Ingredients Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 368 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 5.8% |
| Market Size (Value) | USD 266.20 Billion by 2031 |
| Market Size (Volume) | 83,936.1 KT by 2031 |
| Segments Covered | By Type · Proteins and Amino Acids · Flavors · Vitamins · Hydrocolloids · Specialty Starches · Preservatives · Minerals · Acidulants · Colorants · Sweeteners · Emulsifiers · Essential Oils · Prebiotics · Enzymes · Probiotics · Omega-3 Fatty Acids · Starter Cultures · Carotenoids · Other Specialty Food Ingredients · By Source · Natural Specialty Food Ingredients · Artificial Specialty Food Ingredients · By Application · Food · Bakery and Confectionery · Dairy Products · Sauces, Dressings, and Condiments · Snacks · Breakfast Cereals · Meat, Poultry, and Seafood · Infant Food · Other Food Applications · Beverages · Non-alcoholic Beverages · Carbonated Soft Drinks · Dairy-based Beverages · Sports and Energy Drinks · Iced Tea · Other Non-alcoholic Beverages · Alcoholic Beverages |
| Countries Covered | North America (U.S., Canada), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Europe (Germany, France, U.K., Italy, Spain, and Rest of Europe), Latin America (Brazil, Mexico, Argentina, and Rest of Latin America), and the Middle East & Africa |
| Key Companies | Archer-Daniels-Midland Company (U.S.), Ashland Inc. (U.S.), Associated British Foods plc (U.K.), BASF SE (Germany), Cargill, Incorporated (U.S.), Chr. Hansen Holding A/S (Denmark), Givaudan SA (Switzerland), Ingredion Incorporated (U.S.), Kerry Group plc (Ireland), Koninklijke DSM N.V. (Netherlands), and Tate & Lyle PLC (U.K.). |
Report overview
Segments covered: type, source, application. Regions: North America, Asia-Pacific, Europe, Latin America.
In terms of volume, the specialty food ingredients market is projected to reach 83,936.1 KT by 2031, at a CAGR of 4.6% during the forecast period of 2024–2031. The growth of this market can be attributed to several factors, including the consumers’ changing preferences driving the demand for specialty ingredients in the food & beverage sector, growing health consciousness among consumers, the growing adoption of convenience foods, and increasing partnerships and distribution agreements among specialty food ingredients manufacturers. New product launches and technological innovations in the specialty food ingredients space are expected to provide market growth opportunities for the stakeholders operating in this market. Moreover, the growing demand for natural, organic, and clean-label ingredients is a prominent trend in the specialty food ingredients market.
However, the specialty food ingredients’ short shelf life and low stability hamper the growth of this market to some extent.
Report infographic
Market dynamics
5 factors across 3 forcesConsumers’ Changing Preferences Drive the Demand for Specialty Ingredients in the Food & Beverage Sector
Specialty food ingredients are used to impart color and texture to food & beverage products. They are also used to mix and preserve food products. These ingredients improve the nutritional properties of processed foods. Specialty ingredients are an important component in food & beverage processing and manufacturing. Specialty food ingredients manufacturers are focused on providing all-natural specialty ingredients that increase the shelf life of food products and enable food product manufacturers to label their products as ‘100% natural’ to address the demand for clean-label food products.
Specialty food ingredients are also used in non-alcoholic beverages. Consumers’ growing interest in products such as flavored water and infused water has led to the development of more natural and less sweetened beverages containing natural ingredients. Also, specialty food ingredients add sensory value to plant-based meat and dairy alternatives and provide transparency in their labeling.
Factors such as the growing demand for authentic-tasting drink options beyond soft drinks, increasing health awareness among consumers, and the growing application of specialty food ingredients in sports drinks are further expected to drive the growth of this market. Moreover, the development of specialty food ingredients for use in low-alcohol and no-alcohol beverages is further expected to support the growth of this market. In June 2020, Koninklijke DSM N.V. (Netherlands) launched the Delvo Plant range of enzymes for optimizing the taste, texture, and sweetness of plant-based drinks.
Furthermore, the rising health consciousness among consumers leads to a higher demand for food products that offer specific health benefits. Hence, food manufacturers are incorporating functional ingredients such as probiotics, prebiotics, omega-3 fatty acids, vitamins, and minerals into their products to meet this growing demand. Additionally, the rise in disposable income and the growing trend of convenience food are also contributing to the increased demand for specialty food ingredients. Consumers are willing to pay a premium price for food products that offer convenience, taste, and health benefits. Therefore, the shift in consumer preference towards healthier and more functional food options is expected to support the growth of the specialty food ingredients market.
Growing Health Consciousness Among Consumers Supporting Market Growth
Well-being is becoming a global movement as consumers seek to ensure healthy lives for as long as possible, particularly as the average human lifespan continues to rise. Industrialization, urbanization, economic development, and globalization have led to rapid changes in diets and lifestyles during the last decade. These factors significantly impact people’s health and nutritional status, particularly in developing countries.
The global population is growing rapidly. According to the Population Reference Bureau (PRB), the world population is expected to reach 9.8 billion by 2050, an increase of 22% from around 8.0 billion in 2022. Furthermore, consumers are becoming more health-conscious and recognizing that proper nutrition and hydration are vital for the human body. Consuming healthier foods is also a preventive measure to avoid future healthcare costs.
Specialty food ingredients play a significant role in meeting this growing demand for healthy and functional foods. Specialty food ingredients enhance the texture, flavor, and nutrition of food products to suit consumer preferences.
Therefore, growing health consciousness among consumers is driving the utilization of specialty food ingredients in the manufacture of healthy and functional foods, supporting the growth of this market.
Table of contents
11 chapters · 121 sections · 368 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Type | Proteins & Amino Acids | Probiotics |
| By Source | Natural Specialty Food Ingredients | — |
| By Application | Food | — |
By Type
- The proteins & amino acids segment is expected to account for the largest share of 19.3% of the global specialty food ingredients market.
- The large market share of this segment is attributed to the growing demand for a protein-rich diet, growing health and wellness, and the rising demand for plant-based protein from the growing vegan population.
- Further, proteins and amino acids are crucial for the proper functioning and structure of the body.
- A varied and balanced diet with adequate protein sources can help ensure the body receives the amino acids necessary to support its physiological processes.
- However, the probiotics segment is slated to register the highest CAGR of 8.7% during the forecast period of 2024–2031.
- The growth of this segment is driven by the growing consumer awareness about the health benefits of probiotics, the increasing use of probiotics as an alternative to antibiotics, and the growing research on probiotics.
By Source
- The natural specialty food ingredients segment is expected to account for the larger share of 71.2% of the specialty food ingredients market.
- The large market share of this segment is attributed to the increasing demand for organic food products, the growing popularity of clean-label products, and rising awareness about the health hazards associated with synthetic food ingredients.
- Moreover, this segment is further projected to register a higher CAGR during the forecast period of 2024–2031 due to the increasing awareness about sustainable sourcing and advancements in food technology.
By Application
- The Food Segment to Dominate the Specialty Food Ingredients Market
- The food segment is expected to account for a larger share of 73.3% of the global specialty food ingredients market.
- The large market share of this segment is attributed to changing consumer lifestyles and the rising preference for convenience food.
- Additionally, the increasing health awareness among consumers is steadily causing a shift towards safer and healthier foods, which is further expected to boost the demand for specialty food ingredients.
- The nutrition & health benefits, sustainability, taste, and convenience of the ingredient benefits are expected to cater to the rising health-conscious and environmentally aware consumers.
- This segment is sub-segmented into bakery and confectionery; dairy products; breakfast cereals; snacks; meat, poultry, and seafood; infant food; sauces, dressings, and condiments; and other foods.
- The bakery and confectionery segment is expected to account for the largest share of the global specialty food ingredients market.
- The growth of this segment is driven by factors such as rising health consciousness, increasing innovations in confectionery applications, and the rising demand for convenience foods due to busy schedules and high disposable incomes.
- However, the beverages segment is expected to register a higher CAGR of 6.6% during the forecast period of 2024–2031.
- The growth of this segment is mainly attributed to the growing demand for authentic-tasting drink options beyond soft drinks, the increasing health awareness among consumers, causing a shift towards more healthy beverages, and the growing application of specialty food ingredients in sports drinks.
Geographic analysis
North America
Largest shareIn 2024, North America is expected to account for the largest share of 30.0% of the specialty food ingredients market, followed by Asia-Pacific, Europe, Latin America, and the Middle East & Africa. North America specialty food ingredients market is estimated to be worth USD 53.8 billion in 2024. The large share of this market is primarily attributed to growing health concerns, the well-established food and beverage industry, growing consumer demand for natural and clean-label foods, increasing demand for functional food ingredients, and increasing consumption of convenience foods. North America: The Dominating Regional Market for Specialty Food Ingredients
Asia-Pacific
Fastest growthHowever, the market in Asia-Pacific is slated to register the highest CAGR of 6.5% during the forecast period of 2024–2031. The growth of this regional market is driven by the rising demand for packaged food, rapid urbanization, the emerging trend of healthy food, rising awareness about the health benefits of products containing natural ingredients, and a growing diabetic and obese population in the region.
Competitive landscape
- July 2023
Tate & Lyle PLC (U.K.) launched the TASTEVA SOL Stevia Sweetener for food & beverage applications to meet the growing consumer demand for healthier and tastier low sugar/calorie products.
- June 2023
Kerry Group plc (Ireland) launched Biobake EgR egg reduction enzyme for baking applications.
- March 2023
Archer-Daniels-Midland Company (U.S.) signed a joint venture agreement with Marel hf. (Iceland), a provider of advanced food processing solutions, to start an alternative protein innovation center in the Netherlands.
- March 2023
U.S.-based Ingredion Incorporated launched clean-label texturizers, FIBERTEX CF 502 and FIBERTEX CF 102, in the U.S. market to help food manufacturers meet their clean-label development needs.
- February 2023
Ashland Inc. (U.S.) launched its Benecel MX 100 methylcellulose for plant-based protein food applications.
- March 2020
Tate & Lyle plc (U.K.) launched CLARIA EVERLAST, a clean-label starch with freeze-thaw stability.
- Archer-Daniels-Midland Company (U.S.)
- Ashland Inc. (U.S.)
- Associated British Foods plc (U.K.)
- BASF SE · Germany
- Cargill, Incorporated (U.S.)
- Chr. Hansen Holding A/S · Denmark
- Givaudan SA · Switzerland
- Ingredion Incorporated (U.S.)
- Kerry Group plc · Ireland
- Koninklijke DSM N.V. · Netherlands
- Tate & Lyle PLC (U.K.)
Frequently asked questions
No formal regulatory definition exists for specialty food ingredients globally. There are mainly two types of food ingredients: major/mainstream food ingredients and specialty food ingredients. Major food ingredients are usually core components or primary ingredients that form the base of a food product, while specialty food ingredients are selected and added to enhance specific qualities or characteristics of the product. These specialty food ingredients are used in smaller quantities compared to major ingredients and are selected for their specialized functions.
These specialty food ingredients are usually used to enhance the taste, texture, appearance, shelf life, and nutritional value of food products. These ingredients are primarily obtained from various natural and synthetic sources to provide specific flavors, colors, textures, and health benefits to foods that are not commonly found in major food ingredients. Moreover, these specialty food ingredients offer functional benefits essential in providing today’s consumers with a wide range of tasty, safe, healthy, qualitative, and sustainably produced food.
The specialty food ingredients market study provides valuable insights into the market size and forecast in terms of both value and volume by ingredient type and country/region. However, the specialty food ingredients market study provides valuable insights and market size and forecast only in terms of value for segmentation based on source and application.
Cite this report
Meticulous Research. (2024). Specialty Food Ingredients Market - Global Opportunity Analysis And Industry Forecast (2024-2031) (Report No. MRFB - 104640). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/specialty-food-ingredients-market-5326