Specialty Food Ingredients Market: The Impact Of Health And Wellness Trends

Specialty Food Ingredients Industry Overview

The global specialty food ingredients market size was estimated at USD 101.9 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2030. Rapid expansion of key application industries including food and beverages, pharmaceuticals, and personal care, and growing penetration of organized as well as e-retail across the world are primarily fueling growth in the industry. Specialty food ingredients typically preserve, texture, emulsify, color, and help to process and add an extra health dimension to produced food. They are all key to guaranteeing a wide range of processed foods offered today to consumers. They range from micro-ingredients such as vitamins, minerals, and enzymes to macro-ingredients such as specific proteins, fats, carbohydrates, fibers, and other substances. Moreover, the market is driven by the demand for products that are free from artificial ingredients and additives. This has led to the development of clean-label ingredients that use natural and simple ingredients.

With their technological, nutritional, and health-related functions, they make the food tasty, pleasant to eat, safe, sustainable, healthy, and affordable. Specialty foods are outpacing their non-specialty counterparts in almost all categories due to a rise in awareness regarding the overall food quality. Specific categories aligned with better-for-you options, health and wellness, and freshness are growing at the fastest rate.

In the U.S. market, functional specialty food ingredients under the product segment are expected to witness robust growth from 2024 to 2030. The high penetration of organized retail across the country has also significantly contributed to a large share of specialty food ingredients in the country. The changing lifestyles, growing urban population, rising economic activities in emerging countries, and increasing penetration of e-retail worldwide are a few macro factors driving the global market.

The demand for food is poised to grow as the world population is expected to increase from 7.3 billion in 2015 to 9.7 billion in 2050, which, in turn, is anticipated to fuel demand for specialty food ingredients. Furthermore, as consumer shopping habits have drastically changed due to the COVID-19 outbreak, specialty ingredients companies that service center-of-the-store retail categories have observed an increase in sales over the past few weeks as consumers have drastically increased their purchases of center-of-store products.

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Key Companies profiled:

• Naturex

• Givaudan

• Eli Fried Inc.

• KF Specialty Ingredients

• Ingredion

• Associated British Foods Plc

• Kerry Group

• Agropur Cooperative

• Ashland Inc

• Archer Daniels Midland Company

• Cargill Inc.

• Wild Flavors GmbH

• DSM

• Diana Group SA

• Tate & Lyle

• CHR. Hansen