Savory Ingredients Market Size, Share & Trends Analysis Report By Type (Monosodium Glutamate, Yeast Extracts, Proteins, Hydrolyzed Vegetable Protein (HVP), Hydrolyzed Animal Protein (HAP), Nucleotides), By Form (Powder, Liquid), By Source (Natural, Conventional), By Application (Food (Soup, Snacks, Meat), Feedstuff) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global savory ingredients market size was valued at USD 9.04 billion in 2022. It is projected to reach USD 14.8 billion by 2031, growing with a CAGR of 5.7% during the forecast period (2023–2031).

Savory ingredients are flavor modifiers that alter the flavors of processed foods to increase their quality and shelf life. These food additives contribute to the improvement of the aroma, flavor, and taste of food products. They are widely used in the food industry. These substances impart a natural aromatic flavor and are utilized mostly in creating fast foods, meat products, nutritional foods, and spices. Furthermore, these ingredients are cost-effective; hence, they are frequently used in the food processing industry to produce packaged food products, which is anticipated to fuel the expansion of the savory ingredients market.Rising disposable income has increased the consumption of ready-to-eat food items and packaged food items, further driving market growth. The demand for ready-to-eat food is increasing in Asia-Pacific and North America due to demanding lifestyles.Rising demand for spray-dried savory ingredients to improve the flavor and enhance the taste drives market growth.However, growing health concerns and stringent government regulations against over-packaged food items hamper the market growth.

Market Dynamics

What are the factors driving the market growth?

Increasing Consumption of Ready-to-Eat Products

The rising number of the working-class population and hectic and busy schedules have increased the sales of convenience food products, such as instant diet soup, protein-rich soup, and other ready-to-eat food across the globe. The demand is significantly high in Europe and North America due to the presence of large numbers of working-class people. As per Statista, the revenue generated through ready-to-eat meals in theU.S. was around USD 52 billion.

What are the factors restraining the market growth?

Negative Health Effects

In developed nations, where customers choose natural ingredients such as yeast extract, increased knowledge of the negative effects of synthetic flavoring compounds such as MSG is one of the primary issues restricting the market growth. Health-related issues and severe government regulations impede the expansion of North American Savory Ingredients. It is anticipated that detrimental side effects linked with the use of Savory Ingredients, a growing consumer trend for clean labeling, and increased awareness of the consumption of natural and fresh foods will restrict the expansion of the industry.

Regional Analysis

Geographically, the global market is divided into North America, Europe, Asia-pacific, and LAMEA.

Europe is estimated as the dominating market for savory ingredients owing to the presence of huge food and beverage industry. There were around 294,000 food manufacturers present in Europe as of 2018. In addition, the increasing trend of exploring exotic food and new taste with innovative flavors among consumers in the European region is the key factor responsible for the market growth in the European region. Moreover, the health-conscious population presence is also very large in the region, including a large number of vegan populations; such factors influenced manufacturers to launch distinct clean-label products with savory ingredients. The savory ingredient market in Europe is quite saturated as compared to the other region, such as Asia Pacific and North America, owing to the presence of strong competitors.

North America is among the largest consumer of packaged and ready-to-eat food products across the globe. As per Statista, about 80% of Americans consume store-bought food or ready-to-eat products.The rise in disposable income has led to an increase in the consumption of time-saving foods, which is anticipated to fuel market growth over the next several years. By reducing the amount of time and effort required to prepare meals, convenience foods offer answers for balancing work and stress. The United States and Canada are predicted to have the biggest demand for processed foods and culinary items. Technological advancements in advanced economies and improved distribution networks have created prospects for a large increase in the production of products. As the number of quick-service restaurants (QSRs) has surged and the food culture is rapidly evolving, the savory ingredients market is expanding. In recent years, spray-dried salty additives have gained popularity since they enhance the flavor of cooked foods.

Asia-Pacific is estimated to exhibit the fastest growth in savory ingredients on account of the rising number of quick-service restaurants (QSRs) and surging adoption of dine-out culture in developing countries, such as China and India. Culinary professionals and food manufacturers in the region are extensively using ingredients that provide a savory and different taste to the food products, further driving the regional market growth. In addition, the increasing adoption of the western trend among consumers of Asia Pacific in all manners, including fashion, and food, among others, is expected to further propel the savory ingredient market growth. The competition in the savory ingredient market is quite low in the Asia Pacific region compared to the western region; thus, new and existing manufacturers are trying to focus on the Asia Pacific's developing nations, such as China and India, to gain a high market share.

Countries in the LAMEA have had strong economic growth in recent years, resulting in an increase in the number of employed individuals. This has resulted in a decline in the number of individuals who devote time to cooking, leading to a rise in the consumption of packaged foods and snacks. The majority of these convenience products utilize various forms of preservatives to increase their shelf life, and as the demand for these products is rising, the market is anticipated to demonstrate a greater development rate, particularly in the developing nations of LAMEA. It is anticipated that emerging economies will be home to more than sixty percent of the world's middle-class population. Consequently, an increase in the middle-class population is anticipated to enhance the demand for snacks and packaged food goods, thereby fostering market expansion.

Segmental Analysis

The global savory ingredients market is segmented based on product type, form, source, and application.

Based on product type, the market is segmented into yeast extract, nucleotides, hydrolyzed vegetable proteins, hydrolyzed animal proteins, and monosodium glutamate.

Hydrolyzed vegetable proteins and hydrolyzed animal proteins are extensively used in ready-to-eat soups and broths. Yeast extract and other product types, such as (soy sauce powder and savory spice)are gaining traction in the savory ingredients market.

By form, the market is segmented into liquid and powder.

The demand for liquid savory ingredients is relatively higher than the dry and paste ingredients as they are easy to blend with other food ingredients. Moreover, various food ingredients and flavors manufacturers are offering their savory ingredients in liquid form with extended shelf life by encapsulating the particles. For instance, leading flavor manufacturers such as MANE and Givaudan are offering their savory flavor ingredients in liquid form with extended shelf life and alternative meat products with savory flavors.

Based on source, the market is segmented into organic and conventional.

The conventional segment holds the largest market share at about 90%. The organic segment, on the other hand, is projected to gain momentum during the forecast period on account of the increasing consumer awareness regarding health and fitness. Consumers are inclined towards organic food products, mainly in developed regions, such as Europe and North America. The trend is also emerging in developing regions, such as Asia-Pacific,due to the widespread use of social media. Europe is the biggest market for food products and home to the largest consumers of organic food products.

Based on application, the market is segmented into food and feedstuff.

Due to the rising utilization of savory ingredients in processed food products, the food category maintains the biggest market share in the entire industry. Incorporation of savory components into food products, which include a variety of items like nuts, crisps, extruded snacks, sweets, salty snacks, and others. Under the food segment, snacks, soups, meat products, and other subsegments are included, with meat items predicted to generate the most revenue in the savory ingredients market. In order to enhance the flavor of curated meat products, various types of savory seasonings are used.

Impact of covid-19

The COVID-19 outbreak has had a devastating effect on all industry verticals globally. Additionally, according to industry experts, Financial Action Task Force (FATF) has identified the risk of criminal exploiting the unprecedented situation through cybercrime, fundraising for fake charities, and medical scams amid the COVID-19 pandemic. This has surged the adoption of anti-money laundering solutions to mitigate the risk of money laundering. For instance, as per the United Nations 2020, approximately 12% increase in cybercrime reported amid the pandemic COVID-19, further paving the way for the adoption of anti-money laundering solutions among the enterprises.

Recent Developments

• December 2021- Solina, the leading European provider of solutions for savory ingredients to the food industry, has announced the acquisition of Asenzya, formerly Foran Spice Company. Since 1953, Asenzya's emphasis on innovation and culinary development has enabled the company to pursue unique seasoning mixes and solutions. This acquisition allows Asenzya to provide customers with several plant location options and significantly enhances its capabilities.
• May 2021- Carbery's Synergy Flavors announced the acquisition of Griffith Foods Worldwide's Innova Flavors, a US-based provider of savory flavorings and ingredients. Innova Flavors is an Illinois-based company that creates customized meat and savory flavors for various purposes. Synergy Flavours will expand its savory capabilities to allow the creation of additional meat alternatives, sauces, side dishes, and snacks as a result of this transaction.