The global bulk food ingredients market size is estimated to be valued at USD 808.9 billion in 2021. It is projected to reach USD 1,008.1 billion by 2026, recording a CAGR of 4.5% during the forecast period. The change in perception of people pertaining to processed foods and the technological innovations in bulk food ingredient processing techniques have led to an increase in demand for processed products, and subsequently to the growth of the bulk food ingredients market.
Key players in this market include Tate & Lyle Plc. (UK), Cargill, Incorporated (US), Archer Daniels Midland Company (US), Olam International (Singapore), DuPont (US), and Ingredion Incorporated (US).
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The herbs & spices is the fastest-growing segment product type during the forecast period. Key factors such as the increase in consumer preference for healthy food products, production of bulk food ingredients, import of bulk food ingredients and ease of availability, demand for natural/clean label products, and preference for convenience food products due to busy lifestyles is projected to drive the demand for bulk food ingredients.
The convenience food sector is driven by the changing lifestyle and preferences of consumers. The increase in urbanization, disposable income, and improved lifestyles encouraged the growth of the packaged food market globally. Packaged food products are no longer preserved in developed regions. The increase in hectic lifestyles among consumers leads to less cooking time from scratch. Packaged food products that can be consumed on the go are a major trend that companies are capitalizing on by identifying the needs and tastes of consumers in different regions. Key players in the global packaged food market are now gaining nearly as much revenue from developing economies as they are from developed ones. Recently, according to the survey conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), due to the steep rise in the prices of vegetables, people are turning to ‘quick-fix solutions’ by purchasing packaged food products.
The demand for the usage of food ingredients is projected to grow at a moderate rate in established countries, such as Japan and Germany, due to the increase in aging population, while the exponential growth is projected to be witnessed in new and emerging markets of other Asia Pacific countries, due to the rise in population and demand for food products. In addition, Asia provides cost advantages in terms of production and processing. The demand for food ingredients is projected to remain high in developed markets, such as North America and Europe. Developing countries, such as China and India, are projected to witness a surge in demand for food ingredients in the coming years.
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The bulk food ingredients market, in terms of distribution channel method, was dominated by direct manufactuerers. Investments in R&D activities for the development of new products and solutions in the bulk food ingredients market are projected to drive the market growth. The number of research projects on processed & convenience foods is increasing globally. The production of bulk food ingredients is projected to be influenced by the increase in R&D activities for processed & convenience foods.
The demand for bulk food ingredients is projected to increase in the Asia Pacific region due to key factors, such as the rise in disposable income and urbanization in countries such as China, India, and Japan. Furthermore, the rise in consumer awareness about the benefits of clean/natural label products in Asian countries is projected to offer growth opportunities to food & beverage manufacturers. However, high price volatility and unstable agricultural supply are the key factors that are projected to inhibit the market growth. In addition, improper infrastructural facilities, such as warehousing, act as a challenge for market players.