Food Processing Ingredients Market Analysis | 2024-2030

Market Insights

“The food processing ingredients market was estimated at USD 52.9 billion in 2023 and is likely to grow at a CAGR of 6.4% during 2024-2030 to reach USD 81.96 billion in 2030.”

Want to know more about the market scope? Register Here

Market Dynamics

Introduction

The food processing ingredients are materials that are incorporated into the food to improve the taste, flavor, texture, and appearance of the food. They include preservatives, flavoring agents, stabilizers, and colorants which are important in meeting the food standard set out by the authorities. They are conducted to meet the set legal requirements as well as the expected standards by the consumers.

Recent Market JVs and Acquisitions:

A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In March 2024, ADM declared that it has commissioned a Green Bison soy processing plant, in addition to expanding its Marshall, Minnesota concern to Starch. These are some of the transformation initiatives that are part of ADM’s plans for improving its processing assets and satisfying the growing need for soybeans and starch in many industries. The Green Bison plant will strengthen ADM’s position in North American oilseed and the Marshall extension will satisfy growing requirements in the food and industrial segment.
• In January 2023, Cargill completed the purchase of Owensboro Grain Company which is a leading soybean processing plant in Kentucky. Primarily, through this acquisition, Cargill exercises increased control over North American oilseed production in order to satisfy the increasing soybean demands in the food, feed, and biofuel industries.
• In May 2022, founded as a merger of equals of two great big international players capable of implementing sustainable growth solutions and the drive to influence the lives of individuals and the world, the corporations known as Firmenich and Royal DSM became DSM-Firmenich.

Want to have a closer look at this market report? Click Here

Recent Product Development:

• In February 2024, Cargill continued the company relationship with ENOUGH, a sustainable protein producer to develop and publicize a new product from ENOUGH’s portfolio called ABUNDA mycoprotein. The two related structures are to participate in ENOUGH’s Series C round of fundraising and to use and resell ABUNDA protein. It incorporates the net effect Cargill portfolio, for instance, plant-based protein, texturizers, and fats, additionally, it is the know-how and access to market/feedstock.
• In May 2023, DuPont launched a new functional ingredients range in the food industry dealing with factors including nutritional value and taste of food. It consists of first-rate probiotics, enzymes, and plant protein including with the new generation consumers’ healthy consciousness and food habits incorporating plant-based diets. The pursuit of such a goal supports DuPont's strategic management because it applies cutting-edge science to adapt to increasingly challenging requirements of the F&B industry.
• In May 2023, ADM partnered with Believer Meats to seek opportunities to grow the business within the region of the cultivated meat sector. Such synergy holds on ADM’s diversified portfolio in ingredients and nutrition matrix competence to enrich Believer’s new cell-reared meat concept. The rationale behind such a non-exclusive license deal is to offer ADM chances to cash in new products resulting from the joint plan; attributing to the growing need for proteins that are relatively new to the market.

Segments Analysis

By Type

“Yeast is expected to show the highest growth of the market during the forecast period.”

• The food processing ingredients market is segmented into modified starch & starch derivatives, proteins, food stabilizers, yeast, emulsifiers, enzymes (carbohydrase), acidity regulators, antioxidants, and release agents.
• yeast Ingredients is expected to show the highest growth of the market during the forecast period.
• The rise of the popularity of baked products like bread, pizza, pastries, etc will remain the key source of the market boost. At present, convenience has been a key factor in what foods consumers prefer and this trend is not going to fade anytime soon. For that reason, there is a continuous demand for yeast, as it is the key ingredient that brings about the needed leavening to accompany the rise and texture of the above products.
• Furthermore, yeast provides other benefits, which are in tune with market odds because yeast: As the world continues to pay attention to raising awareness of healthy living, there is a rising need for products enhanced by yeast. Loaded with proteins, B vitamins, and minerals, yeast takes the position of the attractive ingredient for the manufacturers who are looking forward to capturing health conscience market. Moreover, the combination of growth in the world brewing activities, especially in alcoholic products, escalates the need for yeast. Such factors cannot be underestimated in the context of yeast future trends in the food processing ingredients domain; therefore, it would only be natural to expect a significant improvement in its market conditions in the near future.

By Form Type

“Dry Ingredients segment is said to be dominating by the form of the market during the forecast period.”

• The market is segmented into dry ingredients and liquid ingredients.
• The dry Ingredients segment is said to be dominating by form of the market during the forecast period.
• Dry ingredients are preferred when it comes to storage and transportation. This coupled with their extended shelf life as compared to liquid or paste-stabilized products reduces the need for refrigeration or special packaging. This leads to a reduction in costs and therefore will benefit the direct manufacturer and in turn, the consumer. Also, dry ingredients are often lighter in weight and occupy less volume; thus, their bulk transportation costs less money. This efficiency is very important in the case of using large tracts of land for food production.
• Dry ingredients sometimes provide more opportunities for maneuvering and control during the stage of food processing. For example, the bakers can make very fine adjustments to the integration of dry materials like flour and sugar without fail. In addition, with dry ingredients it is possible to pre-mix them as well as store them for some time before using them, thus minimizing proportional wastes that may be incurred during the production process. This convenience is very useful and appreciated most of all in the constantly evolving environment of food manufacturing.

By Source Type

“Natural Source is said to be holding the largest share of the market during the forecast period.”

• The market is segmented into modified starch & starch derivatives (natural source), proteins, food stabilizers (natural source, synthetic source), emulsifiers (animal source, plant source), yeast, enzymes (microbial source, plant source, animal source), acidity regulators, antioxidants (natural source, synthetic source), and release agents.
• Natural Source is said to be holding the largest share of the market during the forecast period.
• The consumers’ awareness about their health has made them shift towards natural and organic food products, which is the reason why there is an incline in demand. This has boosted the market opportunity of products that come as ingredients from natural sources such as fruits, vegetables, plants, and even some mineral substances. As a result, food processors are currently very occupied with reformulating their products for natural spices instead of synthetic reinforcements and stabilizers.
• This is a trend of affairs in this consumer’s life. Other than the aspects of the ‘naturalness’ of the products, these functional attributes pertain to the natural ingredients. They are knowledge of how to build and alter the tastes, textures, and feelings that one gets in the mouth; all of which play a part in meeting consumer needs. Besides, natural products are preferred over chemical foods based on the present Ethical Consumerism. The given reasons show the advantage of the Natural Source segment in the current competitive market of food processing ingredients.

By Application Type

“Beverages is said to be holding the largest share of the market during the forecast period.”

• The market is segmented into beverages, bakery & confectionery products, dairy & frozen desserts, convenience foods, and other applications.
• The beverages segment is said to be holding the largest share of the market during the forecast period.
• A staggering number of possibilities in the world of alcoholic and nonalcoholic beverages requires the use of an equally broad set of items that will help to create the drinks with the required taste, texture, and functionality. From carbonated soft drinks and juices to alcoholic beverages and functional drinks each segment requires different kinds of ingredients, thus giving a continuous boost to the market of food processing ingredients.
• Thus, high consumption volumes are caused by the high popularity of beverages all over the world. Coffee breaks and tea, soft drinks, and water are habitual beverages regardless of nationality, thus there will always be a market for products used in preparing these beverages. The elevated consumption rate combined with the constant upgrading of products in the beverage market ensures the segment’s positioning itself firmly in the food processing ingredients market.

Regional Insights

“Europe is the largest, Whereas Asia-Pacific is the fastest growing market for food processing ingredients during the forecast period.”

• In terms of regions, Europe is the largest, Whereas Asia-Pacific is the fastest-growing market for food processing ingredients during the forecast period.
• Europe occurs to be the largest global market of food processing ingredients as it has long-term and established food processing sectors that include confectionery and dairy. Consumers in the region have a high disposable income and are also relatively older hence the wide coverage of processed foods.
• However, there is the Asia-Pacific region that is gradually becoming a powerful rival in knowledge-based industries and is expected to show exponential growth in the near future. This is due to the strong economies and growing middle incomes especially in developing countries such as China and India thus the need for convenience foods.

Know the high-growth countries in this report. Register Here

Key Players

The market is Mildly Fragmented across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the food processing ingredients market:

Here is the list of the Top Players (Based on Dominance)

• Cargill
• Archer Daniels Midland Company
• DuPont
• Ingredion Incorporated
• Tate & Lyle PLC
• Kerry Group
• Koninklijke DSM NV
• CHR. Hansen Holding A/S
• Ashland Global Holdings Inc. 

Note: The above list does not necessarily include all the top players of the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s food processing ingredients market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com