The propensity of the urban population towards the processed and ready-to-eat food products is projected to bode well for the growth of the integrated food ingredients market size. In the wake of rapid industrialization and eventual urbanization, the majority of the people across the world are highly engrossed in busy life schedules having no time for preparing regular meals. This, in turn, instigated the people to prefer convenience and processed food products and that’s one of the reasons for the booming of yeast extracts. For instance, owing to the increasing consumption of processed food in India, the country’s food processing industry, which ranks fifth in the world in terms of production, consumption, and exports, is growing at 8%, annually, for the last five years from 2014-18. These food processing industries use an ample amount of integrated food ingredients for the production of processed food products. Integrated food ingredients are used as food additives for applications such as food coloring, taste enhancement, texturing, and self-life improvement. Therefore, the perpetually growing food processing industry across the world is anticipated to propel the growth of the integrated food ingredients market size.
The Integrated Food Ingredients Market share in the global food market was valued at $61 billion in 2018. Furthermore, the growing demand for processed food products is estimated to fuel the growth of the market at a CAGR of 5.1% during the forecast period 2019-2025.
Demand for Natural Flavors and Fragrances Creating Integrated Food Ingredients Market Demand—
Rising disposable income and increasing purchasing power significantly influence and change the diets, increasing the consumption of natural food products. The rise in disposable income can be fathomed from the growth in the per capita income. The world per capita income experienced a growth rate of 5% during 2017-18 and attained a value of $11,297 in 2018. The rising purchasing power instigated the people to invest in organic and natural health food products, which in turn increased the demand for natural flavors and fragrances. In order to meet the aforementioned demands of the consumers, the food and beverage companies increased the usage of integrated food ingredients as food additives as they naturally enhance the taste, flavor, and fragrance of the food product. Therefore, the rise in demand for natural flavors and fragrances is considered to be the prominent factor fuelling the growth of the integrated food ingredients market.
Asia-Pacific Region: A Sustainable Integrated Food Ingredients Marketplace—
Geographically, Asia-Pacific region is projected to capture the largest integrated food ingredients market share during the forecast period and was responsible for 30% of the total revenues generated in 2018. The growth influx for the market in this region is most attributable to the booming processed food industry in the emerging economies such as India, China, and Japan. The paradigm shift of the consumers towards processed food is due to the increased exposure to western lifestyle patterns and hectic professional environments. The Chinese food processing industry continued to grow in 2017 and attained $1.47 trillion, an increase of 6.3% compared with the previous year. Whereas, in India, the processed food market is expected to propel at a CAGR of 14.6% to reach $543 billion in 2020 from $322 billion in 2016. Therefore, the presence of flourishing food processing industries is the primary reason for the dominance of the regional integrated food ingredients market. Moreover, with the rapid urbanization across the region, there is a rise in disposable income of the people, consequently increasing the purchasing power. Wherein, the growth in disposable income can be fathomed from the growth in GDP per capita. The GDP per capita in India increased from $1730 in 2016 to $2015 in 2018, in China it increased from $8078 in 2016 to $9770 in 2018. The rise in purchasing power enabled regional consumers to splurge on fortified nutritional food products. Consequently, integrated food ingredients, which are nutrient rich and organic, gained significant attention. Moreover, the incessantly increasing population in this region, especially India and China, created a major gap in the food supply and demand. The total population in India and China reached 1.35 billion and 1.39 billion respectively in 2018. As a result, the food industry is on a quest to enhance its product portfolio by using integrated food ingredients, to cater to the demand. Thus, the propitious growth in food and beverage market, being the parent market, benefited the growth of the integrated food ingredients market in this region.
Taste Enhancers Segment of the Integrated Food Ingredients Market is projected to Grow at a Highest CAGR—
On the basis of function, the integrated food ingredients market is bifurcated into taste enhancers, form, texture, preservation, and coloring. Among these taste enhancers is anticipated to propel at a highest growth rate. This is due to the increasing usage of taste enhancers by the manufacturers in the food and beverage industries cater the growing appetite for variety of tastes among the consumers. Taste enhancers such as monosodium glutamate, monopotassium glutamate, and calcium di-glutamate are used in various food products including dairy, beverages, confectioneries, bakery items, savories, and meat products to enhance their taste. Thus, the Key applications is poised to propel at a CAGR of 6.4% through to 2025.
Integrated Food Ingredients Market Companies’ Strategies—
Some of the major companies that are continuously striving to gain majority of the global integrated food ingredients market share are Cargill, Incorporated, Archer Daniels Midland (ADM), Associated British Foods plc, Tate & Lyle PLC, General Mills Inc., Nestlé S.A., Kerry Group plc, Arla Foods, BASF SE, Dohler, and International Flavors & Fragrances, Inc. These companies are focusing on business strategies such as acquisitions, collaborations, new product innovations, partnerships, and mergers to stay ahead of their competitors and reach the global customers.