Food Ingredients Market by Type by Application Global Opportunity Analysis and Industry Forecast, 2022-2031
The global food ingredients market size was valued at $270.2 billion in 2021, and is projected to reach $475.4 billion by 2031, growing at a CAGR of 5.8% from 2022 to 2031.

During the post-COVID era, the popularity of organic and functional food ingredients has increased among the global population. Consumers are aware of the benefit and are looking for functional and organic food to add to their diet to improve their health. The rise in demand for functional food ingredients offers an opportunity for the food ingredients market to grow.

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Food ingredients are additives that are added to food mixtures to obtain the desired result. Food ingredients add taste, color, texture, gloss, viscosity, pH balance, and offer emulsion & stability.

The COVID-19 pandemic affected the food ingredients market as many countries considered food ingredients as non-essential items during the pandemic. The government's action affected customers since they were unable to purchase items during the government-mandated closure, thus affecting customer demand for the products. Furthermore, due to limits on the functioning of restaurants, bars, and geographically specialized sales channels, government-enacted stay-at-home directives have significantly limited the purchase of food ingredients for commercial use.

Food ingredients such as sweeteners, emulsifiers, thickeners, and stabilizers are essential food ingredients that are used across the processed food & beverage sector for manufacturing packed foods. It provides flavor, texture, and viscosity, and acts as a preservative due to the high osmotic pressure generated by sugar solutions. On the other hand, the global population is growing with time, and individuals' work pressure is increasing, leading them to seek out processed and packaged foods to save time and satisfy their hunger. Moreover, the availability of processed food has increased over the years, which has influenced the eating habits of consumers. According to United Nations Children's Fund (UNICEF) in 2019-2020, school-aged teenagers consumed processed foods: 42% consumed carbonated sugary sodas at least once a day, and 46% ate fast food at least once a week. The increased demand for processed packaged foods is driving the need for sweeteners by the food manufacturing companies to carry on the production to cater to the market demand. The rise in demand and surge in sales of processed food fuel the food ingredients market growth.

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Textiles, medicine, paper manufacturing, bioplastics, and many more sectors use starch extensively. The use of starch has been witnessed to increase significantly in food processing, where it functions as both a stabilizer and an emulsifier to improve food quality. Long-term stabilization in food emulsion systems is ascribed to starch-based emulsifiers derived from micro and nanoparticles, hence increasing food structure, and preserving ability. These starch-based emulsifiers were created using a variety of processes, including hydrolysis, cold gelatinization, dissolution-precipitation, sedimentation, encapsulation, and the addition of hydrophobic components. As a result, starch-based emulsifiers that successfully bind emulsion interfaces are produced. These emulsifiers effectively stabilize ”Pickering” emulsions, which are well-known for their high stability.

An upsurge in demand for natural colors from various end-use industries, including food & beverages, bakery & confectionery, dairy products, meat & poultry, and seafood is expected to have a positive impact on the utilization of natural sources such as carotenoids, curcumin, anthocyanin, and carmine. This factor is expected to significantly contribute to the growth of the market during the forecast period. The clean label trend indicates that the food is prepared with natural colors and flavors. Furthermore, consumers are opting for alternatives to synthetic colors, and their increasing preference for natural colors is expected to drive the demand for clean-label food color ingredients, thereby supplementing the global market growth. Natural colors are free of genetically modified organisms (GMO) and allergens, which act as antioxidants & coloring agents and protect the body against cellular damage, chronic diseases, and the effects of aging. For instance, red sandalwood offers wound-healing properties and is used in Ayurvedic treatment. Thus, the rise in awareness about the health benefits associated with natural colorants provides the food ingredients market opportunity for growth. Moreover, the rise in consumer awareness of the usage of natural colors in food products has increased in the last few years. This factor creates further opportunities for manufacturers to focus on R&D activities for the production of advanced natural colors with superior properties, including pH and heat stability.

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According to the food ingredients market analysis, on the basis of type, the sweetener segment gained a major share in the global market in 2021 and is expected to sustain its market share during the food ingredients market forecast period. Sweeteners are an essential food ingredient that is used across the processed food & beverage sector for manufacturing packed foods. It provides a sweet flavor and acts as a preservative due to the high osmotic pressure generated by sugar solutions. On the other hand, the global population is growing with time, and individuals' work pressure is increasing, leading them to seek out processed and packaged foods to save time and satisfy their hunger. Moreover, the availability of processed food has increased over the years, which has influenced the eating habits of consumers. According to United Nations Children's Fund (UNICEF) in 2019-2020, school-aged teenagers consumed processed foods: 42% consumed carbonated sugary sodas at least once a day, and 46% ate fast food at least once a week.

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