The Asia Pacific specialty food ingredients market is projected to grow at a CAGR of 3.9% during the forecast period (2020 - 2025).
- Specialty food ingredients are the major pillars of growth for a variety of processed foods, as from the textural enhancements to shelf life improvements, specialty ingredients have played a significant role in the strengthening of food trade. In addition, the industry for specialty food ingredients essentially thrives on the wider technological and functional benefits that these ingredients confer, in terms of high quality, safety, affordability, nutrition, and deliciousness of the processed food products.
- Furthermore, the demand for convenient foods has recorded robust growth, owing to changing lifestyles and dietary preferences, which is, therefore, fueling the specialty ingredients market.
- However, the regulatory constraints regarding the authorization and approvals are restraining the market growth.
Key Market Trends
Acquisitive Demand of Specialty Food Ingredients in Beverage Industry
The popularity of on-the-go beverages and the demand for functional beverages as a preferred class of meal-replacement solutions has led to the introduction of highly convenient packaging formats. Companies are producing a large variety of non-alcoholic ferments as specialty food ingredients for applications in beverages, like soft drinks and malt-based juices. The malt-based juices serve as refreshing thirst-quenchers and alternatives to the traditional soft drinks. Furthermore, consumers in China and Japan are health conscious and prefer natural ingredients in their energy drinks, leading to the introduction of new products and innovations in ingredients, thus, augmenting the market growth. Additionally, major brands, like Monster, Red Bull, PepsiCo, and Coca-Cola, are inclined toward launching new flavors, such as Lucozade Sports Mango and Passionfruit, and Relentless Mango Ultra. Moreover, the global market giants, like Cargill, are incorporating label-friendliness, calorie reduction, cost optimization, specialized nutrition, and plant-based alternatives in their ingredient systems for beverages.
China to Dominate The Regional Market
The specialty food ingredients market in China was reported to dominate the regional market in 2019. Food consumption patterns in China have changed significantly with improved living standards, and thus more consumers are exposed to a greater diversity of consumer products, especially the functional ingredient products. The popularity of convenience food has boosted the demand for emulsifiers in the food industry, making China the largest market for emulsifiers in Asia-Pacific. In addition, Chinese consumers are more concerned about their health and the quality of food products, boosting the demand for more sophisticated food and nutrition products. Furthermore, frequent launches of enhanced functional products have further fueled market growth. For instance, DuPont Nutrition & Health recently launched probiotics-based new ingredient products in the Chinese markets, such as YO-MIX® PRO probiotic dairy culture and fermented vegetables and fruits powder, providing all-in-one DuPont Danisco functional ingredients solutions, by combining other existing ingredients, along with brilliantly innovative concepts and great-tasting sample applications.
The Asia-Pacific market for specialty food ingredients is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include Cargill, Incorporated, Kerry Inc., Tate & Lyle PLC, DuPont, and ADM among others.
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