The global bulk food ingredients market was valued at USD 300.88 billion in 2021. It is projected to reach USD 476.05 billion by 2030, growing at a CAGR of 5.23% during the forecast period (2022–2030). Elements used in processed, packaged, and ready-to-eat foods such as confectionery items, beverages, chocolates, and others are referred to as bulk food ingredients. The majority of the items that make up the bulk food ingredients are sugar, nuts and seeds, dried fruits, spices and herbs, wheat, and rice, amongst other things.
The market is gaining incredible traction due to the rising consumption of packaged and processed foods. Consumer lifestyles in emerging economies are changing, which has led to an increase in demand for processed and ready-to-eat food products. It is expected that, particularly in developed countries, a shift in consumer preference away from manufactured and pre-packaged foods and toward foods with organic, natural, and straightforward ingredients will positively influence market demand.
Get more information on this report Download Sample Report
Increasing Demand for Convenience Foods
Consumers are showing an increasing trend toward a rising demand for prepared and convenience foods like baked goods, snacks, yogurt, ice cream, beverages, and other ready meals. This is because convenience foods have advantages over traditional foods, such as quicker preparation which benefit consumers with hectic schedules. The primary manufacturing firms buy food ingredients in bulk, contributing significantly and making up a sizable portion of the final product. Products like sauces, processed meat products, low-fat mayonnaise, fat-free dressing, and others need a wide range of functional ingredients to be optimized for things like stability, creaminess, shelf life, viscosity, and water absorption, among other things.
Rising Demand for Gourmet Food Ingredients
The demand for gourmet food ingredients is driven by the cultural influence and growing interest in culinary arts among homebound individuals. Gourmet cuisine is characterized by using high-quality ingredients and the luxurious presentation of dishes. Typically, these dishes contain ingredients that require special attention and are difficult to obtain. As gourmet ingredients are sourced internationally and can be found in specific locations, food manufacturers are increasingly focusing on bulk delivery methods. Several companies are launching unique blends of herbs and spices, sauces and condiments, and innovative packaging techniques to boost the demand.
Improper Storage Management and Infrastructure
Processors and wholesalers of bulk food ingredients must optimize available space, manage various storage temperatures, and respond to a high stock turnover rate while maintaining product hygiene and traceability. According to the Food and Agricultural Organization (FAO), nearly one-third of all produced foods (1.6 billion tonnes of edible food) are lost annually along the supply chain, costing nearly USD 936 billion.
In developing countries, food products are lost primarily during post-harvest and processing due to poor practices, technical and technological limitations, labor and financial constraints, and a lack of adequate transportation and storage infrastructure. The amount of food waste in industrialized nations approaches 222 million tonnes, compared to the total net production in Sub-Saharan African (SSA) nations which is 230 million tons. These factors are hindering the growth of the global bulk food ingredients market.
Untapped Markets in Emerging Economies
The demand for food ingredients is anticipated to increase significantly due to an aging population. In contrast, the demand for food products is expected to increase exponentially in emerging markets of other Asia-Pacific nations due to a rise in population and demand for food products. In developed economies such as Europe and North America, the demand for food ingredients is expected to remain high. In the coming years, developing nations such as China and India will experience an increased demand for food ingredients.
The global bulk food ingredients market is segmented by category and application.
Based on category, the market is divided into primary processed and secondary processed.
Secondary processed food ingredients dominate the global market in terms of revenue. Secondary processing is the transformation of raw materials into consumable products. This method entails combining foods in a specific way to alter their properties. Secondary processed ingredients are utilized in processed and packaged foods such as confections, chocolate, beverages, cookies, artificial sweeteners, flavors, and extracts. The primary processed ingredient is anticipated to grow at the highest CAGR during the forecast period. Primary processing involves the transformation of raw materials into food ingredients in bulk. Most primary processed products consist of grains, pulses, cereals, tea, coffee, cocoa, herbs, and spices.
Based on application, the market is categorized into bakery and confectionery, snacks and spreads, ready meals, beverages, and others.
The highest global market revenue is generated by bakery and confectionery applications. Bakery and confectionery manufacturers are incorporating functional ingredients such as probiotics, legumes, oats, fortified margarine, and cereals into their products in response to rising consumer awareness of health and nutrition-related products. The Asia-Pacific bakery and confectionery market are primarily driven by the rising demand for processed bakery products.
The global bulk ingredients market is segmented into five regions, namely North America, Europe, Asia Pacific, Central and South America, and the Middle East and Africa.
Regional Growth Insights Request Sample Pages
Asia-Pacific is the largest shareholder in the global food bulk ingredients market and is anticipated to grow with the highest CAGR during the forecast period. In Asia-Pacific, particularly in China, Indonesia, India, Australia, Vietnam, Malaysia, and Japan, the demand for the food and beverage industry has been rising. Due to its growing population and greater exposure to western lifestyles, this region is the primary market for processed and packaged food consumption. It is anticipated that North America will dominate the global market. Demand is anticipated to be stimulated by healthy economic growth, shifting lifestyle trends, rising living standards, and rising per capita expenditure on health and nutrition products.