Caramel is a confectionery product used as a flavoring, filling and topping in food and beverage variety. It is prepared by heating a different kind of sugar at a defined temperature. Caramel ingredients are available in various forms, types and used in a variety of applications. Considering its usefulness the market players of caramel ingredient are more focused towards expansion, new launch and development of varieties in caramel ingredient. The trend of fancy food eating, decoration on cake & ice-cream as well as fusion in traditional dishes developed the concept of caramel ingredient. Among different forms of caramel ingredient, granular and powdered form are growing widely in confectioneries. As the trend of packaged food is emerging intensely therefore due to longer shelf life, powdered and granular form of caramel ingredient are preferred over others. Furthermore, acceptance of caramel ingredient in daily life for an average living population raised when trend of dining outside has increased, because of which food manufacturer started focusing on making their food products more appealing and tempting to the consumer with the help of caramel ingredient. Also, busy lifestyle has changed cooking and eating habits globally; people prefer frozen bakery product and ready to eat product over traditional slow cook.

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Caramel Ingredient Market: Drivers & Restraints

Caramel ingredients have a variety of applications in food and beverage industry. Among all the applications caramel ingredient is widely used in confectionery. Owing to consumer’s taste preference, the demand for confectionery products and for making confectionery product, use of caramel ingredient; fuel the market growth of caramel ingredient worldwide. Growth in disposable income and adoption of urban lifestyle are some other factors considered for driving caramel ingredient market globally.

Significant growth is noticed in beverage industry which include alcoholic and non-alcoholic products. Caramel ingredients such as liquid and powdered caramel colors and caramelized sugar syrups are used in manufacturing non-alcoholic and alcoholic beverage such as tea, lemonade, fruit drink, powdered drink mixes, beer, etc., This propel market of caramel ingredient as well. As an opportunity, caramel ingredient can capture the huge prospective market by targeting untapped countries or economically developing countries.

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Although the overall caramel ingredient market is growing significantly, restraints such as a rise in the price of raw material which lead to a subsequent increase in the price of caramel ingredient. Another restraint, switch in eating habits among consumer by adopting healthy eating while minimal using confectionery products can hinder caramel ingredients’ market growth.

Caramel Ingredient Market: Segmentation

The caramel ingredient market is segmented as per its form, type, and applications.

On the basis of its form, the caramel ingredient market is segmented into:
Solid
Liquid
Granular
Powder

On the basis of its type, the caramel ingredient market is segmented into:
Color
Topping
Flavor
Fillings
Others

On the basis of application, the caramel ingredient market is segmented into:
Bakery
Dessert
Confectionery
Beverage
1. Alcoholic
2. Non-alcoholic
Ice-cream
Sauces
Malted food
Breakfast cereals
Others

Caramel Ingredient Market: Regional Outlook

Based on the geographies, caramel ingredient market is segmented into seven regions - North America caramel ingredient market, Latin America caramel ingredient market, Eastern Europe caramel ingredient market, Western Europe caramel ingredient market, Asia Pacific Excluding Japan caramel ingredient market, Japan caramel ingredient market and the Middle East & Africa caramel ingredient market. Among the regions mentioned above, North America is leading the market of caramel ingredient in terms of value and volume followed by Eastern & Western Europe. The above-mentioned regions are in this market for a very long run; therefore, their growth rate is gentle whereas Asia Pacific excluding Japan is projected to be the fastest growing region in upcoming years. Most of the known brands in caramel ingredient market are investing in Asia-Pacific countries such as China, India because of cheap labor and raw material cost.

Global Caramel Ingredient Market: Key Players

Few of the market players accounting for global caramel ingredient agents market includes Nestle, Mars Inc., Kerry Group, Bakels Worldwide, Cargill Incorporated, Göteborgsfood Budapest ZRT, Sensient Technologies Corporation, Ferrero, Martin Braun KG, Puratos Group, Haribo, Metarom, Sethness Caramel Color, Nigay, DDW The Color House.