Food Premix Market - Forecast(2023 - 2028)

Food Premix Market Overview

The Food Premix Market is estimated to reach $1,952.8 million by 2027 growing at a CAGR of 6.3% over the forecast period 2022-2027. Premixes are commercial formulas that have been specially created in which each nutritious component like amino Acids, antibiotics, vitamins, minerals, proteins, nucleotides and others has been carefully blended and balanced. Owing to their demonstrated benefits, such as decreased component inventories and quality expenses without introducing elements that could affect the final product's taste or texture, premixes have gained favor in the nutritional supplement and food products industries. Aging populations are spending more on fortified and functional food as a result of an increasing number of cases of appetite loss. Manufacturers now include healthy additives like vitamin premixes owing to the rising demand for nutrient-rich food from consumers who are concerned about their health. Food producers use a variety of substances to improve the look, taste and usefulness of their goods.

Food Premix Market Report Coverage

The report: “Food Premix Market – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Global Food Premix Market.

Key Takeaways

• The rising expense of healthcare, the consistent rise in life expectancy and the desire of older people for a better quality of life in their later years are the key drivers of this demand among health-conscious consumers. Therefore, food and beverage producers are increasingly incorporating food premixes into their products as customer demand for functional and nutrient-rich foods develops, fueling the expansion of this market.
• Owing to factors like the aging population's rising malnutrition rates and consumers' growing need for nutrient-dense foods, the global food premix market size is anticipated to grow over the forecasted period.
• Growing food fortification and newborn feeding products are two other significant factors increasing demand for the food premix market. Furthermore, an increase in the number of new products launched accelerates the Global Food Premix market size.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Global Food Premix Market Report.

Food Premix Market Segment Analysis – by Ingredients:

Food Premix Market based on the ingredients can be further segmented into Amino Acids, Antibiotics, Vitamins, Minerals, Nucleotide Premix and Others. The Vitamin segment accounted for the largest Global Food Premix market share in 2021. This is mainly owing to the growing vitamin deficiencies all around the world. Most health authorities have cited vitamin insufficiency as their top health concern. For instance, the Bio station study in 2020 states that approximately 80% of Americans are vitamin E deficient and 90% of Americans of color are vitamin D deficient. Similar to this, 76% of Indians in 2019 have vitamin D deficiency. The most support is given to items that are fortified with premixes of the required vitamins. However, the Antibiotics segment is poised to grow with the fastest CAGR of 9.3% in the forecast period 2022-2027. Premixed antibiotics have shown wide-spectrum benefits in the management of human disease, which is primarily responsible for the Global Food Premix market size. First off, the medicine falls under the ready-to-use category, removing the possibility of mixing at the pharmacy level as well as the time and potential errors associated with compounding. Additionally, items are produced using FDA cGMP procedures, reducing the potential of mistakes and contamination.

Food Premix Market Segment Analysis – by Form:

Food Premix Market based on the form can be further segmented into Powder and Liquid. The powder segment held a dominant Global Food Premix market share in the year 2021 and is poised to grow with the fastest CAGR of 6.9% in the forecast period 2022-2027, which is majorly owing to its ease of use. In food products like flour, dietary supplements and other widely consumed food items proteins, nucleotide, vitamin and mineral premixes provide consistency. Additionally, the increased demand for these food items especially with ingredients such as nucleotide and amino acids supports the growth of the market for powdered food premixes. Infant formula, clinical nutrition, fortification of nutritional drinks and other goods including sports nutrition and nutritional drinks for athletes all use nucleotide premixes and protein-based premixes. Additionally, dairy products like yogurt, fortified milk, powdered milk and other dairy products employ nucleotides as well as amino acids and minerals in the premix. Owing to its greater advantages over its liquid version, such as affordability, efficient packing, stability and flexibility, food premixes are frequently used in powdered form. 

Food Premix Market Segment Analysis – by Geography:

Food Premix Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America and the Rest of the World. North America Food Premix Market accounted for 36% revenue share in 2021. The well-established food and beverage industry, increased emphasis on food safety, rising incidence of chronic diseases, rising consumer demand for innovative and healthful food items, strong economic growth and the presence of certain big businesses are the main reasons for this region's dominance. However, Asia-Pacific is poised to grow with the fastest CAGR in the forecast period 2022-2027 owing to the region's expanding food and beverage sector, advancing healthy lifestyles and rising demand for fortified food items in developing Asian nations. Additionally, rising per capita disposable income, along with expanding health awareness and rising consumption of nutritious foods and dietary supplements is fueling Global Food Premix market share expansion.

Food Premix Market – Drivers

The increasing popularity of fortified foods has paved the way for advanced nutrient premixes:

Consumers are very willing to pay a price premium for meals that are protein-fortified, according to the most recent poll done by taste and nutrition expert Kerry in November 2021. Around 75% of customers worldwide said they would be willing to pay more for foods and drinks with added protein. More than 50% of consumers worldwide are willing to pay a 10% premium, while an additional 15% are prepared to pay a 25% premium. This poll included more than 6,300 consumers from North American, European, Latin American and Asian-Pacific nations. The market expansion of food premixes is being driven by the increase in demand for fortified meals. The World Health Organization (WHO) has also included the reduction of anemia prevalence in women of reproductive age by 50% as one of the global targets for improving maternal, infant and young child nutrition, to be achieved by 2025 by implementing large-scale fortification along with other interventions that are crucial to achieving this global nutrition target. Thus the market for food premixes is being facilitated by the increasing emphasis on food fortification.

Growing Awareness of the Immunity-Boosting Benefits of a Healthy Diet is Driving the Market Growth:

One of the main drivers propelling the market's expansion is the growing customer interest in the product as well as a better understanding of the immunity-boosting benefits of a healthy diet and eating habits. Consumers are including bioactive food components like omega-3 fatty acids, antioxidants, probiotics, amino acids and others into their meals to maintain optimum health. Urbanization and higher income levels are also linked to a way of life that requires less daily exercise and gives more access to meals with higher caloric content. According to the International Food Information Council's 2020 Food and Health Survey, COVID-19 has led to changes in eating or food preparation habits for 8 out of 10 American consumers. Furthermore, 25–30% of all grocery shoppers in the US and Europe are health-conscious, according to a Moneydasher report from 2021 which is boosting the Global Food Premix industry growth.

Food Premix Market – Challenge

The High Cost of Food Premixes is Hindering the Market Growth in Emerging Economies:

The expense of premix was listed by 75% of respondents as one of the top three challenges to guarantee fortification quality and compliance in the Global Alliance for Improved Nutrition (GAIN) study from 2020. (the highest percentage of all barriers reported). In situations where fortified foods have not yet become commonplace, there is a limited capacity to effectively estimate product demand and premix demands, particularly for small and medium-sized producers. In order to balance the risk of a stock-out with the risk of premix expiration, some producers struggle to finance an upfront premix purchase. In order to meet increased expenses for raw materials, energy and logistics, DSM Nutritional Products is doubling its efforts and raising the pricing of its food- and pharmaceutical-grade vitamins, premixes and citric acid. Additionally, businesses like BASF have raised the cost of their vitamins by 10 to 15 percent. This, when taken together, is hindering the Global Food Premix industry's growth.

Food Premix Industry Outlook:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Global Food Premix Market. The top 10 companies in the Global Food Premix Market are:

1. Barentz International
2. Daniels Midland Company
3. Glanbia PLC.
4. Koninklijke DSM N.V.
5. Prinova Group LLC.
6. BASF SE.
7. Fenchem Biotek Ltd. 
8. Hexagon Nutrition Pvt Ltd.
9. SternVitamin GmbH & Co. KG.
10. Farbest-Tallman Foods Corporation

Recent Developments

• In June 2021, DSM is enhancing the production of its special care premix solutions with the opening of Buk, an extended manufacturing facility in Buk, Poland. The facility will help meet the growing demand for a reliable and even faster supply of premixes, including for the medical, infant and senior nutrition spaces. 

• In April 2021, SternVitamin has launched micronutrient premixes for immunity. These micronutrients perform many functions that help the immune system, including antioxidative and antimicrobial functions and they help to neutralize viruses and bacteria. The company is aiming to address the growing demand for products that support immune health.

• In December 2020, Prinova Group LLC has launched a range of premixes for dairy replacement products. The company offers premixes optimized for vegan milk alternatives and for vegan oat-based yogurt. The premixes are made using the company’s Pea Protein 85%, which is high in branched-chain amino acids and allergen-free.

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