(Entertainment-NewsWire.com, January 05, 2024 ) The global specialty food ingredients market is witnessing remarkable growth, estimated at USD 179.8 billion in 2023 and projected to surge to USD 240.9 billion by 2028, marking a robust CAGR of 6.0% during the forecast period from 2023 to 2028. This substantial growth is propelled by the escalating consumer awareness and demand for healthier and functional food choices. Manufacturers, leveraging technological advancements and innovative formulations, are adept at tailoring products to meet evolving consumer preferences, driving the market's upward trajectory.
The functional food ingredients segment is anticipated to experience the highest CAGR during the forecast period. As consumers increasingly prioritize health-conscious choices, there is a growing demand for food products that offer functional benefits beyond basic nutrition. Components such as probiotics, prebiotics, antioxidants, and omega-3 fatty acids are gaining popularity for their potential to enhance cognitive performance, support cardiovascular health, improve digestion, and boost immunity. This surge in demand is fueled by a rising awareness of these advantages and a growing preference for preventive healthcare.
Food Flavors Drive Market Innovation:
In 2023, food flavors emerge as a driving force in the specialty food ingredients market. In the highly competitive food industry, manufacturers seek ways to distinguish their products, and food flavors prove to be a valuable tool for innovation and product differentiation. By combining distinctive and trendy flavors, producers can create fresh and appealing food and beverage products that capture consumer interest. The ability to craft unique taste profiles provides companies with a competitive edge, making food flavors a key player in enhancing product appeal and distinction.
The United States is expected to account for the largest market share in 2023, driven by a significant and affluent consumer base with substantial purchasing power. Known for their openness to trying new products and experimenting with emerging culinary trends, American consumers contribute to the demand for specialty food ingredients. The diverse culinary preferences and multicultural populations further fuel the need for a wide variety of specialty ingredients, including flavors, functional components, and natural additives. According to the USDA Food Processing report of April 2023, food processing ingredients hold a significant share of 60 percent in the U.S. market, with specialty food ingredients playing a pivotal role in shaping the diverse and innovative landscape of the food industry. As consumer preferences shift towards innovative products, the demand for specialty food ingredients continues to rise, driving the dynamic growth and development of this sector.
Key Players in the Market:
Major players operating in the specialty food ingredients market include ADM (US), DSM (Netherlands), International Flavors & Fragrances Inc. IFF (US), Kerry Group plc. (Ireland), Givaudan (Switzerland), Cargill, Incorporated (US), Sensient Technologies Corporation (US), Ingredion. (US), Chr. Hansen Holding A/S (Denmark), and Tate & Lyle (UK).
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