Savory ingredients are flavor enhancers,such as cheese, sauces, ready to eat meat, and condiments, which are widely used in the food industry for their antiseptic properties. Rising disposable income has increased the consumption of ready-to-eat food items and packaged food items, further driving the market growth. However, growing health concerns and stringent government regulations over-packaged food itemshampers the market growth.Rising demand forspray-dried savory ingredients to improve the flavor and enhance the taste drives the market growth.
Increasing Consumption of Ready to Eat Products Drives the Market Growth
Rising number of the working-class population and hectic and busy scheduleshave increasedthe sales of convenience food products, such as instant diet soup, protein-rich soup, and other ready to eat foodacross the globe. The demand is significantly high in Europe and North Americadue to the presence of large working-class people. As per the Statista, the revenue generated through ready to eat meals in theU.S. was around USD 52 billion.
Savory Ingredients Market: Segmentation
North America and Asia-Pacific: Largest Consumers of Ready to Eat Products
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.
The demand for ready-to-eat food is increasing in Asia-Pacific and North America due to the changing lifestyles. North America is among the largest consumer of packaged and ready to eat food products across the globe. As per the Statista, about 80% ofAmericans consume store-bought food or ready to eat products.
By form, the market is segmented into liquid and powder. In western regions, 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 there savory ingredients in the 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 the liquid form with extended shelf life and meat alternative products with savory flavors.
Europe: Home to the World’s Largest Consumer of Organic Food Products
Based onsource, the market is segmented into organic and conventional. The conventional segment holds the largest market share of about 90%. The organic segment, on the other hand, is projected to gain momentum during the forecast period on account of theincreasing consumer awareness regarding health and fitness. The consumers are inclining 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 largestconsumers of organic food products.
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. The annual revenue generated from the food sector in Europe in the year 2018 was around USD 1,268 billion. 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 large number of vegan population; such factors influenced manufacturers to launch distinct clean label products with savory ingredients. The savory ingredient market in Europe is quite saturated as compare to the other region such as Asia Pacific and North America owing to the presence of strong competitor and awareness among the consumers with regard to savory ingredients.
Rising Number of Quick Service Restaurants Drives Asia-Pacific’s Market Growth
Asia-Pacific is estimated to exhibit the fastest growth in the 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. The region is also backed by the presence of leading market players actively working to gain a competitive edge.
In addition, the increasing adoption of the western trend among consumers of Asia Pacific in all manners including fashion, food, among others is expected to further propel the savory ingredient market growth. The trend is becoming same for all nations owing due to the social media. The competition in 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 high market share. Manufacturers are applying differential strategies to gain high market share by providing clean label, natural and organic food products and ingredients.
Savory Ingredients Market: Segmentation
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