Specialty Ingredients Market - Forecast(2023 - 2028)
Specialty Ingredients Market Overview
Specialty
Ingredients market size is forecast to reach US$199.6
billion by 2027, after growing at a CAGR of 5.8%
during 2022-2027. Specialty ingredients are food additives that are used to enhance the taste of food items and preserve
them for a long time. They also improve the freshness & safety, nutritional
value, and appearance of food products. Synthetic
pigments, also known as food colorants or color additives, make food more
attractive. The change in consumer preferences along with the growing demand
for packaged and processed food is one of the major factors driving the market
growth for specialty ingredients during the forecast period. The rising
health-conscious, growing population and increase in supplementary income among
consumers are also driving the market growth for specialty ingredients. According
to the Food and Agriculture Organization of the United Nations, the global
population is expected to grow to almost 10 billion by 2050, which will drive
the demand for food and food ingredients. However, high costs and limited
availability of raw materials due to seasonal changes are restraining the
market growth during the forecast period.
COVID-19 Impact
The COVID-19
pandemic impacted different industries; one of the few industries that were primarily
hit to some extent was the manufacturing industry. The delay in manufacturing
activities and shut down different end-use industries such as personal care, food
& beverages in both developed and developing nations impacted the market
growth for specialty ingredients during covid-19. However, the specialty
ingredients industry faced problems related to the supply chain, lack of
workforce, and lack of raw materials supply among others. The governments in
various countries have given some special permission to food and pharmaceutical
companies during the covid-19 pandemic. So the demand for specialty ingredients
has been impacted on a small scale compared to other markets.
Report Coverage
The report: “Specialty Ingredients Market – Forecast
(2022-2027)” by IndustryARC, covers an in-depth analysis of the following
segments of the Specialty Ingredients industry.
By Product Type: Preservatives,
Emulsifiers, Functional food ingredients, Specialty starch, Sweeteners,
Enzymes, Colorants, Specialty oil, Culture, Flavors, Yeast, Protein, and Others.
By Application: Food &
Beverages (Bakery & Confectionery, Dairy Products, Meat Products, Savoury
& Salty Snacks, Beverages, and Others), Pharmaceutical (Generic Drugs, Oral
drugs, Parenteral Formulations, Topical Medicines, and Others), Personal Care
(Skincare, Hair care, Body care, and Others), Animal Feed (Feed additives,
Functional feed ingredient, Premixes, and Others mixtures), and Others.
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and
Rest of Europe), Asia-Pacific (China, Japan, South Korea, India,
Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC),
South America (Brazil, Argentina, Colombia, Chile, and Rest of South America),
and Rest of the World (Middle East and Africa).
Key Takeaways
- The Asia Pacific is expected to register the highest CAGR of 6.6% during the forecast period (2021-2026). Rapid urbanization, emerging economies, and the growing population are the major factors driving the market growth.
- The food & beverages segment is expected to hold a major market share during the forecast period 2022-2027.
- The increasing market for personal care and the growing importance of specialty ingredients among end -users are the key factors driving the Specialty Ingredients market.
Figure: Asia Pacific Specialty Ingredients Market Revenue, 2021-2027 (US$ Billion)
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Specialty Ingredients Market Segment Analysis - By Type
The functional
food ingredients segments accounted for approximately 8%
of the market share in 2021 and are estimated to grow at a significant CAGR
during the forecast period. Functional food ingredients are bioactive compounds
used in the manufacture of functional food products. Functional food offers
various health benefits that extend beyond its nutritional value. Functional
food includes dairy products, beverages such as tea, coffee, fruits,
vegetables, and others. The growing consumption of these products by numerous end-users
such as sports nutrition, clinical nutrition, and weight management is supporting
the market growth for the functional food ingredients segment. Functional food improves mental energy,
immune system strengthening, improved bone health, cholesterol management,
improve heart health, and other benefits. These are some of the major driving
factors driving the market growth for the specialty ingredients market.
According to the data published by USDA, U.S. milk production totaled 223.2
billion pounds in 2020 and an increase of 4.8 billion pounds over 2019.
Specialty Ingredients Market Segment Analysis - By Application
The food &
beverage segment accounted for more than 33% of
the market share in 2021 and is estimated to grow significantly during the
forecast period. The increasing number of food processing companies along with
the growing consumption of processed food is supporting the market growth for
food & beverage segment. According to the facts published by USDA, there
are approximately 36,486 food processing plants in the United States. These
plants include different types of food processing including, meat processing,
dairy processing, bakery processing, oil processing, and others. The United
States Department of Agriculture reported that food industry generated
approximately US$1.7 trillion in 2019 in the United States. Hence the growth in
the food industry will drive the market for specialty ingredients market. The
personal care segment is also expected to register significant growth during
the forecast period. According to Cosmetics Europe, the European cosmetics
products market is valued at USD67.2 billion at a retail sales price in 2020.
Hence the growth in usage of personal care products is also driving the market
for the specialty ingredients market.
Specialty Ingredients Market Segment Analysis - By Geography
Asia Pacific region held a significant share in the Specialty Ingredients market in 2021, up to 38%, owing to the rapid growth in food & beverage, personal care, and pharmaceutical industries in the region. The presence of developing nations such as India and China is driving the market growth in the region. Abundant raw material sources and the availability of a workforce also support the regional demand. The presence of leading food & beverage and personal care manufacturing companies such as Nestle, PepsiCo, the Coco-cola company, LOreal SA., The Procter & Gamble., Beiersdorf AG., Unilever PLC., and others are supporting the regional growth during the forecast period. The growing FDI in the Asia Pacific region is driving market growth. According to the 2021 World Investment Report published by UNCTAD, FDI inflows into China increased by 6% in 2020, to USD 149 billion, up from USD 141 billion in 2019. According to the facts published by China Chain Store & Franchise Association, China’s food and beverage (F&B) sector reached approximately US$595 billion in 2019. These are some of the major driving factors supporting the regional growth during the forecast period.
Specialty Ingredients Market Drivers
Growth demand for nutritional and fortified food
The demand for fortified food from consumers is expanding at a rapid pace. Fortified foods are foods with nutrients added to them and they help to boost the nutritional value and benefit the health of consumers. Food ingredients such as vitamins, prebiotics, minerals, amino acids, and antioxidants, are the key ingredients of fortified food. The health-conscious population is rapidly expanding in both emerging markets and developed markets are driving the demand for the fortification of food. Various factors such as increasing instances of chronic diseases and micronutrient deficiencies, growth of the middle class in emerging economies, new government fortification programs, are also supporting the market growth. According to Invest India data, the domestic food processing industry employs approximately 1.93 million people in around 39,748 processing units with fixed capital of US$32.75 billion. The country also produced approximately 198.4 mn tonnes of milk during 2019-20 and export of meat, dairy and poultry products increased from US$483.5 mn in April-June 2020 to US$1022.5 mn in April-June 2021.
Specialty Ingredients Market Challenges
High cost and limited availability of raw materials
Price is one of the major restraining factors in the specialty
ingredients market. Functional foods and premium products are comparatively high
prices, due to the ingredients used in them. Specialty ingredients are
relatively expensive, owing to their superior quality and properties. High
investments are required for the R&D of specialty ingredients because they
are majorly used in the food, and pharmaceutical industries. Also, highly
sterilized and technical equipment is required for the manufacturing and
extraction of various specialty ingredients.
Specialty Ingredients Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Specialty Ingredients top companies include:
- Cargill
- ADM
- DuPont
- Ingredion
- Kerry
- DSM
- Chr. Hansen
- Sensient
- Tate & Lyle
- Givaudan
- Biocatalysts
- Omega Protein
- Other Companies
Recent Developments
In
May 2021, Cargill launched a new named EpiCor, which is a dried yeast
fermentate clinically and used use in certain foods and beverages. The product will modulate the gut microbiota
and provide immune system support.
July 2020, Cargill launched a new sweetener called “C TruSweet 01795”, to meet the growing demand for label-friendly and reduced sugar alternatives in Europe. This will also strengthen the company’s sweetener portfolio.
Relevant Reports
Personal Care Specialty Ingredients Market
- Forecast(2022 - 2027)
Report Code: CMR 36806
Aroma Ingredients Market - Forecast(2022 -
2027)
Report Code: CMR 99249
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LIST OF TABLES
1.Global Specialty Ingredient Application Outlook Market 2019-2024 ($M)1.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Global Industry Research
1.2 Food Beverage Market 2019-2024 ($M) - Global Industry Research
1.3 Pharmaceutical Market 2019-2024 ($M) - Global Industry Research
1.4 Personal Care Market 2019-2024 ($M) - Global Industry Research
1.5 Animal Feed Market 2019-2024 ($M) - Global Industry Research
2.Global Competitive Landscape Market 2019-2024 ($M)
2.1 Naturex Market 2019-2024 ($M) - Global Industry Research
2.2 Frutarom Market 2019-2024 ($M) - Global Industry Research
2.3 Eli Fried Inc Market 2019-2024 ($M) - Global Industry Research
2.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Global Industry Research
2.5 Ingredion Market 2019-2024 ($M) - Global Industry Research
2.6 Associated British Food Market 2019-2024 ($M) - Global Industry Research
2.7 Kerry Group Market 2019-2024 ($M) - Global Industry Research
2.8 Agropur Market 2019-2024 ($M) - Global Industry Research
2.9 Ashland Inc Market 2019-2024 ($M) - Global Industry Research
2.10 Archer Daniel Midland Market 2019-2024 ($M) - Global Industry Research
2.11 Dupont Market 2019-2024 ($M) - Global Industry Research
2.12 Inolex Market 2019-2024 ($M) - Global Industry Research
2.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Global Industry Research
2.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Global Industry Research
2.15 Royal Dsm Market 2019-2024 ($M) - Global Industry Research
2.16 Diana Group Sa Market 2019-2024 ($M) - Global Industry Research
3.Global Specialty Ingredient Application Outlook Market 2019-2024 (Volume/Units)
3.1 Specialty Ingredient Share By Application Market 2019-2024 (Volume/Units) - Global Industry Research
3.2 Food Beverage Market 2019-2024 (Volume/Units) - Global Industry Research
3.3 Pharmaceutical Market 2019-2024 (Volume/Units) - Global Industry Research
3.4 Personal Care Market 2019-2024 (Volume/Units) - Global Industry Research
3.5 Animal Feed Market 2019-2024 (Volume/Units) - Global Industry Research
4.Global Competitive Landscape Market 2019-2024 (Volume/Units)
4.1 Naturex Market 2019-2024 (Volume/Units) - Global Industry Research
4.2 Frutarom Market 2019-2024 (Volume/Units) - Global Industry Research
4.3 Eli Fried Inc Market 2019-2024 (Volume/Units) - Global Industry Research
4.4 Kf Specialty Ingredient Market 2019-2024 (Volume/Units) - Global Industry Research
4.5 Ingredion Market 2019-2024 (Volume/Units) - Global Industry Research
4.6 Associated British Food Market 2019-2024 (Volume/Units) - Global Industry Research
4.7 Kerry Group Market 2019-2024 (Volume/Units) - Global Industry Research
4.8 Agropur Market 2019-2024 (Volume/Units) - Global Industry Research
4.9 Ashland Inc Market 2019-2024 (Volume/Units) - Global Industry Research
4.10 Archer Daniel Midland Market 2019-2024 (Volume/Units) - Global Industry Research
4.11 Dupont Market 2019-2024 (Volume/Units) - Global Industry Research
4.12 Inolex Market 2019-2024 (Volume/Units) - Global Industry Research
4.13 Wild Flavor Gmbh Market 2019-2024 (Volume/Units) - Global Industry Research
4.14 Vantage Specialty Ingredient Market 2019-2024 (Volume/Units) - Global Industry Research
4.15 Royal Dsm Market 2019-2024 (Volume/Units) - Global Industry Research
4.16 Diana Group Sa Market 2019-2024 (Volume/Units) - Global Industry Research
5.North America Specialty Ingredient Application Outlook Market 2019-2024 ($M)
5.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Regional Industry Research
5.2 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
5.3 Pharmaceutical Market 2019-2024 ($M) - Regional Industry Research
5.4 Personal Care Market 2019-2024 ($M) - Regional Industry Research
5.5 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
6.North America Competitive Landscape Market 2019-2024 ($M)
6.1 Naturex Market 2019-2024 ($M) - Regional Industry Research
6.2 Frutarom Market 2019-2024 ($M) - Regional Industry Research
6.3 Eli Fried Inc Market 2019-2024 ($M) - Regional Industry Research
6.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
6.5 Ingredion Market 2019-2024 ($M) - Regional Industry Research
6.6 Associated British Food Market 2019-2024 ($M) - Regional Industry Research
6.7 Kerry Group Market 2019-2024 ($M) - Regional Industry Research
6.8 Agropur Market 2019-2024 ($M) - Regional Industry Research
6.9 Ashland Inc Market 2019-2024 ($M) - Regional Industry Research
6.10 Archer Daniel Midland Market 2019-2024 ($M) - Regional Industry Research
6.11 Dupont Market 2019-2024 ($M) - Regional Industry Research
6.12 Inolex Market 2019-2024 ($M) - Regional Industry Research
6.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Regional Industry Research
6.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
6.15 Royal Dsm Market 2019-2024 ($M) - Regional Industry Research
6.16 Diana Group Sa Market 2019-2024 ($M) - Regional Industry Research
7.South America Specialty Ingredient Application Outlook Market 2019-2024 ($M)
7.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Regional Industry Research
7.2 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
7.3 Pharmaceutical Market 2019-2024 ($M) - Regional Industry Research
7.4 Personal Care Market 2019-2024 ($M) - Regional Industry Research
7.5 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
8.South America Competitive Landscape Market 2019-2024 ($M)
8.1 Naturex Market 2019-2024 ($M) - Regional Industry Research
8.2 Frutarom Market 2019-2024 ($M) - Regional Industry Research
8.3 Eli Fried Inc Market 2019-2024 ($M) - Regional Industry Research
8.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
8.5 Ingredion Market 2019-2024 ($M) - Regional Industry Research
8.6 Associated British Food Market 2019-2024 ($M) - Regional Industry Research
8.7 Kerry Group Market 2019-2024 ($M) - Regional Industry Research
8.8 Agropur Market 2019-2024 ($M) - Regional Industry Research
8.9 Ashland Inc Market 2019-2024 ($M) - Regional Industry Research
8.10 Archer Daniel Midland Market 2019-2024 ($M) - Regional Industry Research
8.11 Dupont Market 2019-2024 ($M) - Regional Industry Research
8.12 Inolex Market 2019-2024 ($M) - Regional Industry Research
8.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Regional Industry Research
8.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
8.15 Royal Dsm Market 2019-2024 ($M) - Regional Industry Research
8.16 Diana Group Sa Market 2019-2024 ($M) - Regional Industry Research
9.Europe Specialty Ingredient Application Outlook Market 2019-2024 ($M)
9.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Regional Industry Research
9.2 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
9.3 Pharmaceutical Market 2019-2024 ($M) - Regional Industry Research
9.4 Personal Care Market 2019-2024 ($M) - Regional Industry Research
9.5 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
10.Europe Competitive Landscape Market 2019-2024 ($M)
10.1 Naturex Market 2019-2024 ($M) - Regional Industry Research
10.2 Frutarom Market 2019-2024 ($M) - Regional Industry Research
10.3 Eli Fried Inc Market 2019-2024 ($M) - Regional Industry Research
10.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
10.5 Ingredion Market 2019-2024 ($M) - Regional Industry Research
10.6 Associated British Food Market 2019-2024 ($M) - Regional Industry Research
10.7 Kerry Group Market 2019-2024 ($M) - Regional Industry Research
10.8 Agropur Market 2019-2024 ($M) - Regional Industry Research
10.9 Ashland Inc Market 2019-2024 ($M) - Regional Industry Research
10.10 Archer Daniel Midland Market 2019-2024 ($M) - Regional Industry Research
10.11 Dupont Market 2019-2024 ($M) - Regional Industry Research
10.12 Inolex Market 2019-2024 ($M) - Regional Industry Research
10.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Regional Industry Research
10.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
10.15 Royal Dsm Market 2019-2024 ($M) - Regional Industry Research
10.16 Diana Group Sa Market 2019-2024 ($M) - Regional Industry Research
11.APAC Specialty Ingredient Application Outlook Market 2019-2024 ($M)
11.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Regional Industry Research
11.2 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
11.3 Pharmaceutical Market 2019-2024 ($M) - Regional Industry Research
11.4 Personal Care Market 2019-2024 ($M) - Regional Industry Research
11.5 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
12.APAC Competitive Landscape Market 2019-2024 ($M)
12.1 Naturex Market 2019-2024 ($M) - Regional Industry Research
12.2 Frutarom Market 2019-2024 ($M) - Regional Industry Research
12.3 Eli Fried Inc Market 2019-2024 ($M) - Regional Industry Research
12.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
12.5 Ingredion Market 2019-2024 ($M) - Regional Industry Research
12.6 Associated British Food Market 2019-2024 ($M) - Regional Industry Research
12.7 Kerry Group Market 2019-2024 ($M) - Regional Industry Research
12.8 Agropur Market 2019-2024 ($M) - Regional Industry Research
12.9 Ashland Inc Market 2019-2024 ($M) - Regional Industry Research
12.10 Archer Daniel Midland Market 2019-2024 ($M) - Regional Industry Research
12.11 Dupont Market 2019-2024 ($M) - Regional Industry Research
12.12 Inolex Market 2019-2024 ($M) - Regional Industry Research
12.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Regional Industry Research
12.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
12.15 Royal Dsm Market 2019-2024 ($M) - Regional Industry Research
12.16 Diana Group Sa Market 2019-2024 ($M) - Regional Industry Research
13.MENA Specialty Ingredient Application Outlook Market 2019-2024 ($M)
13.1 Specialty Ingredient Share By Application Market 2019-2024 ($M) - Regional Industry Research
13.2 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
13.3 Pharmaceutical Market 2019-2024 ($M) - Regional Industry Research
13.4 Personal Care Market 2019-2024 ($M) - Regional Industry Research
13.5 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
14.MENA Competitive Landscape Market 2019-2024 ($M)
14.1 Naturex Market 2019-2024 ($M) - Regional Industry Research
14.2 Frutarom Market 2019-2024 ($M) - Regional Industry Research
14.3 Eli Fried Inc Market 2019-2024 ($M) - Regional Industry Research
14.4 Kf Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
14.5 Ingredion Market 2019-2024 ($M) - Regional Industry Research
14.6 Associated British Food Market 2019-2024 ($M) - Regional Industry Research
14.7 Kerry Group Market 2019-2024 ($M) - Regional Industry Research
14.8 Agropur Market 2019-2024 ($M) - Regional Industry Research
14.9 Ashland Inc Market 2019-2024 ($M) - Regional Industry Research
14.10 Archer Daniel Midland Market 2019-2024 ($M) - Regional Industry Research
14.11 Dupont Market 2019-2024 ($M) - Regional Industry Research
14.12 Inolex Market 2019-2024 ($M) - Regional Industry Research
14.13 Wild Flavor Gmbh Market 2019-2024 ($M) - Regional Industry Research
14.14 Vantage Specialty Ingredient Market 2019-2024 ($M) - Regional Industry Research
14.15 Royal Dsm Market 2019-2024 ($M) - Regional Industry Research
14.16 Diana Group Sa Market 2019-2024 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Specialty Ingredients Market Revenue, 2019-2024 ($M)2.Canada Specialty Ingredients Market Revenue, 2019-2024 ($M)
3.Mexico Specialty Ingredients Market Revenue, 2019-2024 ($M)
4.Brazil Specialty Ingredients Market Revenue, 2019-2024 ($M)
5.Argentina Specialty Ingredients Market Revenue, 2019-2024 ($M)
6.Peru Specialty Ingredients Market Revenue, 2019-2024 ($M)
7.Colombia Specialty Ingredients Market Revenue, 2019-2024 ($M)
8.Chile Specialty Ingredients Market Revenue, 2019-2024 ($M)
9.Rest of South America Specialty Ingredients Market Revenue, 2019-2024 ($M)
10.UK Specialty Ingredients Market Revenue, 2019-2024 ($M)
11.Germany Specialty Ingredients Market Revenue, 2019-2024 ($M)
12.France Specialty Ingredients Market Revenue, 2019-2024 ($M)
13.Italy Specialty Ingredients Market Revenue, 2019-2024 ($M)
14.Spain Specialty Ingredients Market Revenue, 2019-2024 ($M)
15.Rest of Europe Specialty Ingredients Market Revenue, 2019-2024 ($M)
16.China Specialty Ingredients Market Revenue, 2019-2024 ($M)
17.India Specialty Ingredients Market Revenue, 2019-2024 ($M)
18.Japan Specialty Ingredients Market Revenue, 2019-2024 ($M)
19.South Korea Specialty Ingredients Market Revenue, 2019-2024 ($M)
20.South Africa Specialty Ingredients Market Revenue, 2019-2024 ($M)
21.North America Specialty Ingredients By Application
22.South America Specialty Ingredients By Application
23.Europe Specialty Ingredients By Application
24.APAC Specialty Ingredients By Application
25.MENA Specialty Ingredients By Application