Home Food & Beverages Specialty Food Ingredients Market Size, Share And Growth Report, 2031

Specialty Food Ingredients Market Size, Share & Trends Analysis Report By Product (Sensory, Functional), By Applications (Food and Beverage, Pharmaceutical, Personal Care) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRFB55357DR
Last Updated : 15,Nov 2023
Author : Straits Research
Starting From
USD 1850
Buy Now

Market Overview

The global specialty food ingredients market size was valued at USD 95.21 billion in 2022. It is estimated to reach USD 148.97 billion by 2031, growing at a CAGR of 5.12% during the forecast period (2023–2031). The global specialty food ingredients market is boosted by the surging population across the globe, which demands food products to fulfill the nutritional requirements of individuals worldwide. Moreover, the key players in the market are consistently engaged in introducing new products and involved in mergers and acquisitions, in turn creating opportunities for market growth.

Specialty food is defined as a "unique, high-value food product made in small quantities with premium ingredients." Specialty food components commonly perform several functions in manufactured foods, including texture preservation, emulsification, color enhancement, facilitation of processing, and incorporation of health benefits. These factors are essential for ensuring the wide variety of processed foods available to consumers today.

Specialty foods range from micro-ingredients such as vitamins, minerals, and enzymes to macro-ingredients such as proteins, fats, carbohydrates, and fibers. The cuisine possesses various technological, nutritional, and health-related attributes that contribute to its pleasant taste, palatability, safety, sustainability, nutritional value, and affordability. Some grocery stores specialize in or primarily sell purvey specialty foods. Several organizations promote specialty foods and their manufacturers.


Market Dynamics

Global Specialty Food Ingredients Market Drivers

Rising Global Population

The rising global population is fueling the exponential growth of the market for specialty food ingredients. Since the 1950s, the world's population has increased significantly, primarily as a result of medical advancements and increases in agricultural productivity. According to U.N. estimates, the world population in 2023 is 8,045,311,447 (at mid-year), an increase of 0.88% over 2022, when the population was 7,975,105,156. According to the most recent population projections, the globe's population will reach 10 billion in 2057.

Additionally, the need for food products that address diverse dietary demands, tastes, and health concerns is rising with the world population. Specialty food ingredients are essential to meeting these changing demands because they provide creative and value-added solutions. As a result of the rising demand, there are now opportunities for specialty food ingredients that offer unique flavors, textures, and nutritional profiles to accommodate a range of consumer preferences. Thus, the expanding global population drives the growth of the specialty food ingredients market.

Advantages of Specialty Food Ingredients

Specialty food ingredients play a crucial role in the composition of numerous food products in modern society. The societal norms and practices that govern our daily existence have undergone significant transformations during the past few decades. Engagement in extraneous activities has resulted in a decline in the duration individuals allocate to the kitchen. The utilization of specialized food ingredients, in conjunction with advancements in food technology, has facilitated the efficient production of nutritious food on a significant scale while maintaining cost-effectiveness.

Various sorts of specialized food components are incorporated into a food product to ensure its safety. Specialty food ingredients can reduce the development of unwanted components like acrylamide during cooking procedures. Similarly, specialty food ingredients enable food and beverage manufacturers to create products that meet specific dietary needs. For instance, alternative specialty food ingredients provide consumers with food allergies and intolerances with a wider selection of products. Such advantages are expected to drive the market growth.

Global Specialty Food Ingredients Market Restraint

Volatility in Raw Material Prices

Compared to non-specialty foods, specialty foods are typically priced higher. Due to more expensive ingredients and labor, specialty foods may be more expensive than staple foods. The ingredients' price and total production cost are influenced by variables such as the availability and supply of the raw materials utilized to manufacture them. Moreover, certain fruits and plants from which the ingredients are extracted are only grown in specific regions; for instance, acai berries are abundantly grown in Brazil. The transportation costs associated with procuring and transporting these berries are substantial, contributing to the price increase of the final ingredients. These aspects are anticipated to have a negative impact on the market during the forecast period.

Global Specialty Food Ingredients Market Opportunities

Strategic Initiatives by Key Players

The increasing participation of key players in product development, along with involvement in mergers and acquisitions, is anticipated to generate opportunities for market growth. For instance, in 2020, Cargill Inc. introduced CTruSweet 01795, a label-friendly, specialized sweetener for the European market that reduces calories and sugar by 30% in beverages and other food applications.

Additionally, in November 2021, Batory Foods acquired specialty ingredients company DMH Ingredients and NatureStock Foods, a subsidiary of DMH Ingredients. DMH, headquartered in Libertyville, Illinois, provides a variety of specialty ingredients, such as high-intensity and alternative sweeteners, soluble tea and coffee, dehydrated fruits and vegetables, and glycerin. It also offers a variety of specialty lines, such as SinoSweet, Techno Sucralose, and Silva dehydrated fruits and vegetables. It is the exclusive North American distributor of Rooibos tea, a South African red tea.

Study Period 2019-2031 CAGR 5.12%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 95.21 Billion
Forecast Year 2031 Forecast Year Market Size USD 148.97 Billion
Largest Market Asia Pacific Fastest Growing Market North America
Talk to us
If you have a specific query, feel free to ask our experts.

Regional Analysis

Based on region, the global specialty food ingredients market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global market shareholder and is expected to expand substantially during the forecast period. The prominent increase in disposable income of consumers and the rise in population in countries such as India and China will facilitate the growth of the global market in the Asia-Pacific region over the forecast period. For instance, currently, India is the most populous country in the world, followed by China. India has one-sixth of the world's population. As per the United Nations' World Population Dashboard, India's population has recently surpassed China's population of 1.425 billion, as the news agency Bloomberg reported. According to projections, the region's population is anticipated to reach 1.7 billion by the year 2050.

Furthermore, other emerging nations in the region, like Indonesia, Pakistan, and Bangladesh, are also among the leading nations in population. The rising demand for pharmaceuticals, foods, and cosmetics in the region is fueling the expansion of the region's specialized food ingredients market.

North America is expected to grow at a significant pace. The region's young population is concerned with the transparency of food ingredients and demands healthier and natural food products. In light of this, the key players are taking initiatives to provide consumers in the region with specialty food ingredients. For instance, in June 2022, DouxMatok, a food technology company at the forefront of sugar reduction with its sugar-based sugar reduction solution, Incredo® Sugar, and Batory Foods (United States), a provider of national sales and supply chain management solutions for commodity and specialty food ingredients, signed a commercial distribution agreement. Incredo® Sugar will be added to Batory Foods' full portfolio of premium food ingredients, opening the door to a network of North American customers seeking to reduce sugar in baked goods and confectionery products like cakes, snacks, cookies, chocolate, candy, spreads, and protein bars. In addition to DouxMatok's direct sales channels, the partnership between the companies will expand distribution opportunities. Such developments are expected to expedite the market growth.

Europe is anticipated to exhibit sluggish growth. Europe has always been renowned for its world-famous cuisines, and in response to a shift in consumer demand, there are periodic innovations of new recipes. France, Italy, and Belgium are among the region's most significant importers of specialty ingredients. Germany and the United Kingdom have many processing and confectionary industries, which increases the demand for and supply of specialist food ingredients.

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Segmental Analysis

The global market is segmented by product and application.

Based on product, the global specialty food ingredients market share is divided into sensory and functional ingredients. 

Functional foods are made up of ingredients that have health advantages over and above their nutritional value. Functional foods help prevent disease, protect against nutrient deficiencies, and support healthy growth and development. Fruits, vegetables, nuts, seeds, and grains are nutrient-dense ingredients frequently regarded as functional foods. Foods enriched with vitamins, minerals, probiotics, or fiber are a few examples of functional foods. For instance, beta-glucan, a fiber found in oats, has been shown to enhance heart health, boost the immune system, and reduce inflammation.

Based on application, the global specialty food ingredients market share is segmented into food and beverage, pharmaceutical, and personal care.

Food-grade specialty ingredients are utilized in pharmaceuticals and nutraceutical products. Manufacturers use specialty and commodity food ingredients to formulate their products, frequently modifying formulas and recipes to improve results and respond to shifting supply chain challenges and regulations. Specialty food ingredients are engineered or formulated from natural or synthetic sources to serve a specific purpose in the final food product. In general, the word "value-added" denotes that the chemical process yields an element that possesses a higher utility or worth than the combined individual components.

Market Size By Product

Market Size By Product
  • Sensory
  • Functional

  • List of key players in Specialty Food Ingredients Market

    1. Naturex
    2. Givaudan
    3. Koninklijke DSM N.V.
    4. KF Specialty Ingredients
    5. Archer Daniels Midland Company
    6. Ingredion
    7. Associated British Foods Plc
    8. Kerry Group
    9. DuPont de Nemours Inc.
    10. Ashland Inc.
    11. Cargill Inc.
    12. Wild Flavors GmbH
    13. DSM
    14. Tate & Lyle
    15. CHR. Hansen

    Specialty Food Ingredients Market Share of Key Players

    Specialty Food Ingredients Market Share of Key Players

    Recent Developments

    • May 2023- Univar Solutions Inc., a leading global solutions provider for users of specialty ingredients and chemicals, was selected as the North American distributor of ICL's Rovitaris textured plant proteins. The companies have a distribution agreement for additional ICL specialty food solutions, such as phosphate and food ingredients.
    • February 2023- IFF announced that they are selling its Flavor Specialty Ingredients (FSI) business to Exponent, a leading UK private equity firm, for USD 220 million in cash.

    Specialty Food Ingredients Market Segmentations

    By Product (2019-2031)

    • Sensory
    • Functional

    By Applications (2019-2031)

    • Food and Beverage
    • Pharmaceutical
    • Personal Care

    Frequently Asked Questions (FAQs)

    What is the size of specialty food ingredients market?
    The global specialty food ingredients market size was valued at USD 95.21 billion in 2022.
    The global market growing at a CAGR of 5.2% from (2023–2031).
    The global market size is projected to reach USD 148.97 billion by 2031.
    The global market is segmented based on product, application and region.
    The prominent players in the global market are Naturex, Givaudan, Koninklijke DSM N.V., KF Specialty Ingredients, Archer Daniels Midland Company, Ingredion, Associated British Foods Plc, Kerry Group, DuPont de Nemours Inc., Ashland Inc., Cargill Inc., Wild Flavors GmbH, DSM, Tate & Lyle, CHR. Hansen, and others.


    We are featured on :