Bulk Food Ingredients Market - Forecast(2023 - 2028)

Bulk Food Ingredients Market Overview

Bulk Food Ingredients Market size is estimated at $798 million in 2020, projected to grow at a CAGR of 4.9% during the forecast period 2021-2026. Bulk food ingredients are ingredients found in packaged, processed, and ready-to-eat foods. Herbs and spices, sweeteners, which are also known as whole food ingredients, are frequently available in organic form. The industry is expanding due to the rising demand for convenience foods. The Global Bulk Food Ingredients Industry has been driven by the strong growth of foodservice retail chains, as well as an increase in the number of eateries and cafes that buy a large quantity of food products from the wholesaler. In addition, factors such as rising disposable incomes and growing urbanization have boosted demand for processed goods, resulting in Global Bulk Food Ingredients Industry expansion.

Bulk Food Ingredients Market Report Coverage

The report: “Bulk Food Ingredients Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Bulk Food Ingredients Market.

By Type: Nuts, Herbs and Spices, Oilseeds, Sweeteners, Grains, Pulses & Cereals, Tea, Coffee & Cocoa and Others.
By Application: Food - Bakery Products, Snacks & Spreads, Ready Meals, Confectionery Products and Others and Beverages - Alcoholic Beverages, Non-Alcoholic Beverages, Hot Beverages and Cold Beverages.
By Distribution Channel: Supermarkets and Hypermarkets, Convenience Stores, Specialty Stores, E-Commerce and Others.
By Geography: North America (U.S, Canada and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America) and Row (Middle East and Africa).

Key Takeaways

• Global Bulk Food Ingredients market growth is being driven owing to rising alcoholic beverage consumption, craft beer popularity, and social acceptance in both developed and developing countries.
• Geographically, Asia-Pacific Global Bulk Food Ingredients Market held the largest revenue share of 40% in 2020 owing to consumer demand for convenience and processed food in the region's food sector, offering significant expansion opportunities and diversification in the region. The scope of the Global Bulk Food Ingredients Market for various regions will be provided in the final report.
• The Global Bulk Food Ingredients industry is expanding as the consumers are turning to healthy beverages and functional drinks as health awareness grows and the incidence of health problems such as diabetes, obesity, and high blood pressure rises.
• The market expansion is expected to be constrained by factors such as a lack of infrastructure and volatile bulk food ingredient price swings.

Bulk Food Ingredients Market: Market Share (%) by Region, 2020

Bulk Food Ingredients Market Segment Analysis – By Type:

Based on Type, Herbs and Spices Segment accounted for the largest revenue market share in 2020 owing to rising consumption and increased demand for high-quality product, which is expected to drive market expansion. The use of spices & herbs as food ingredients in a variety of culinary preparations contributes significantly to the overall flavor of the food. Herbs and Spices like coriander, capsicum, pepper, cloves, cardamom, mint, parsley, basil, chives, and thyme are commonly used to garnish dishes in various regions across the globe. Consumers all over the world are gradually turning to these herbs for their flavor as well as their medicinal properties. Garlic, for instance, is well-known for its pungent aroma and delicious flavor, as well as its ability to treat the common flu and other infectious diseases. Additionally, it aids in the management of hypertension and cardiovascular disease. The numerous health benefits associated with herbs such as garlic, parsley, oregano, fennel, peppermint, and basil have been credited with the segment's development. Sweeteners segment is anticipated to grow with the fastest CAGR of 5.4% in the forecast period 2021-2026 owing towards its vast application usage resulting in segment growth.

Bulk Food Ingredients Market Segment Analysis – By Distribution Channel:

Based on Distribution Channel, Convenience Stores accounted for the largest revenue market share in 2020. These convenience items are gaining significant favour among working professionals with busy schedules and hectic lifestyles, owing to rising disposable income levels and evolving dietary habits of the public. Consumers are flocking to a surprising new breakfast, lunch, and dinner destination as they seek work-life balance and pre-packaged meals that need little or no cooking preparation. Several businesses are increasingly substituting natural preservatives for synthetic preservatives and sourcing meat from organic-certified farms in an effort to maintain the authenticity of food ingredients, which is driving segment growth. Supermarkets and hypermarkets are expected to increase at the fastest rate of 5.2% from 2021 to 2026, owing to novel food ingredients such as herbs and spices and sweeteners, which will boost market expansion.

Bulk Food Ingredients Market Segment Analysis – By Geography:

Based on Geography, Asia-Pacific Global Bulk Food Ingredients Market accounted for the 40% revenue share in 2020 owing to the presence of large consumer base. Investments in developed countries to improve the beverage sector with high nutritional content are increasing dramatically. The major players in various regions are employing various tactics, such as introducing new products in order to satisfy consumer demand, which is leading to the accelerated product demand. China's economic performance, which is bolstered by large-scale investments in technology and research, is favorable to regional development. China's food and beverage business is likely to undergo significant changes in order to address issues such as economic inequity and urbanization, among others. North America is predicted to be the fastest growing region during the forecast period 2021- 2026 owing to growing ingredients consumption.

Bulk Food Ingredients Market - Drivers

The Growing Convenience Food Demand Globally:

The demand for convenience food has been steadily increasing as customers' spending power has increased, and their living habits have become busier. Bakery food goods, fast food goods, and desserts have all seen a surge in demand as a result of this increased convenience food need. The rise in demand for convenience meals can be seen more prominently in developing countries, as per capita food expenditure rises in tandem with per capita income. The Global Bulk Food Ingredients Industry is driven by bulk food ingredients such as herbs and spices, and sweeteners that go into supplying the food with key organoleptic qualities as well as offering the food product with a longer than normal shelf life to appeal to customers.

Bulk Food Ingredients Market - Challenges

High Initial Investment:

Bulk food ingredients processors confront a variety of issues, including maximizing available space, managing various storage temperatures, and responding to fast stock turnover while preserving hygiene and product traceability. A major aspect that could hinder the Global Bulk Food Ingredients is the high initial expenditure necessary to enter the market.

Bulk Food Ingredients Market Landscape:

Product releases, mergers and acquisitions, joint ventures, and international expansion are among the key strategies employed by the Global Bulk Food Ingredients Market. Tate & Lyle PLC, Olam International, Cargill Incorporated, Ingredion Incorporated, Associated British Foods plc, EHL Ingredients, DMH Ingredients, Archer Daniels Midland Company and Community Foods Limited are among the top ten companies in the Global Bulk Food Ingredients market.

Acquisitions/Product Launches:

In January, 2020, Archer Daniels Midland Company acquired Brazil-based natural ingredients manufacturer Yerbalatina Phytoactives. This acquisition will expand company growth at global level.

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