The increasing number of health conscious consumers with preference for convenience foods is fuelling the global specialty food ingredients market, which is estimated to reach USD90 billion by 2020, up from USD63.8 billion in 2014 with a compound annual growth rate of 5.9 percent from 2014 to 2020.
Increasing urbanization and growing consumer preference for processed foods is driving the specialty food ingredients market. However, the consumer is aware of the use of food additives which strip the product of its nutrients. This paved the way for consumers demanding a safe, quality product with a long shelf life.
Ingredients used for improving the shelf life of the processed foods are seen by consumers as using artificial ingredients and containing high Trans-fat content, making the product anti-nutrient. Companies, by introducing functional food ingredients, have increased the demand as they keep the nutrient value intact.
Also, organized retail sector which is a small percentage in emerging countries is seeing inroads in the processed food sector, thus increasing its penetration and fuelling the demand for specialty food ingredients. Food Ingredients have been used since many years to flavor, preserve, blend, thicken, color foods and also maintain the nutritional content of foods thus reducing serious nutritional deficiencies in the consumers.
Food emulsifiers market is estimated to be worth USD3173.08 million in 2020.The nutraceutical ingredient market is estimated to grow from USD26billion in 2014 to USD40 Billion in 2020 with a CAGR of 7.5 percent from 2014 to 2020
The specialty food ingredients find major applications in fruits & vegetables, vegetable & animal oils, bakery & confectionary, dairy, meat and marines food, starch products etc. Functional food ingredients constitute maximum market followed by growing demand for enzymes, acidulants, emulsifiers etc. Food emulsifiers market is estimated to be worth USD3173.08 million in 2020.The nutraceutical ingredient market is estimated to grow from USD26billion in 2014 to USD40 Billion in 2020 with a CAGR of 7.5 percent from 2014 to 2020.
This is attributed to the high penetration levels leading to demand for functional foods in developed and emerging countries. North America and Europe are the major end users of the specialty food ingredients and are expected to see slow growth. With high organized retail penetration, US and UK are seen as saturated markets for processed foods. However, with huge percentage of population suffering from obesity and diabetic risks, there is demand for functional foods and hence specialty food ingredients.
Europe with its weak consumer environment and high raw materials costs has led food and beverages manufacturers to look for technological advancements and identify ingredients which result in lower production costs.
Brazil, India, China and Russia with their economic growth are seen as the most potential markets for food ingredients. The key issue emerging economies face is in the supply chain sustainability issues, as these economies lack infrastructure, cold storage facilities affecting the imports and exports of the processed foods.
The major constraint this industry faces is the adherence to stringent regulatory guidelines of various countries. Another practice followed by many major players is technological advancements and innovation to introduce new product lines and meet the demands of health conscious urban consumer.