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Food and Beverages Ingredients

Food and Beverages Ingredients Market Research Reports

"Evolution of Food and Beverage Ingredients: Insights, Statistics, and Future Prospects (2024 Market Size: USD 279.6 billion)"!

Food and Beverages Ingredients Industry Overview

In 2023 and 2024, the food and beverage ingredients market has undergone substantial development and transformation as a result of technological advancements, evolving consumer preferences, and regulatory changes. The  global food and beverage ingredients market size is USD 279.6 billion in 2024 and will be USD 452.4 billion in 2031, with a compound annual growth rate (CAGR) of 6.2%. The plant-based ingredients segment has experienced exceptional growth, with sales increasing by 15% in 2023 and increase by an additional 12% in 2024. The increasing demand for plant-based meat, dairy alternatives, and functional foods is the primary factor driving this surge. It is worth noting that pea protein and oat-based ingredients have expanded in prominence, with the pea protein market size USD 1.1 billion in 2024. 

In 2023, 60% of consumers expressed a preference for products with straightforward, recognizable ingredients, demonstrating the continued dominance of the clean-label trend. Manufacturers decrease their utilization of artificial additives and preservatives in 2024, as this trend is continue to expand. Sustainability continues to be a critical concern, as 70% of food and beverage companies have pledged to implement sustainable procurement practices in 2024. This encompasses initiatives to promote equitable trade practices, reduce carbon footprints, and employ eco-friendly packaging. as per our reseaerch analyst, the demand for functional constituents, including probiotics, prebiotics, and adaptogens, will increase by 10% annually. 

The probiotics market size was USD 58 billion in 2023 and will be USD 64 billion in 2024. In 2023, the utilization of natural sweeteners such as monk fruit and stevia has increased by 18% in response to the growing awareness of health. The reduced sugar movement generate a 15% growth in 2024, which will continue this trend. Advancements are significantly influencing ingredient innovation and product development in culinary technology, such as AI and machine learning. Investments in food technology startups exceeded USD 5 billion in 2023, with an emphasis on enhancing sustainability, ingredient procurement, and formulation. The movement toward health and wellness has fueled the demand for ingredients that offer health benefits. The utilization of ingredients such as turmeric, ginger, and collagen is on the rise, with turmeric-based products experienced a 20% increase in 2023 and an 18% increase in 2024.

Top Countries Contributing in Food and Beverages Ingredients Market

United States (2024 Market Size: USD 19.2 billion)

The food and beverage ingredients market in the United States was valued at USD 18 billion in 2023 and will be USD 19.2 billion in 2024. The United States food and beverage ingredients market holds 20% of the global market. The processed foods industry, dairy products, baked goods, and beverages (both alcoholic and non-alcoholic) are the primary sectors in the United States that utilize food and beverage constituents. Processed foods comprise 35% of the market's utilization, with beverages accounting for 25%, dairy for 20%, and baked products for 15%. The demand for functional and health-focused ingredients, including probiotics, prebiotics, and natural sweeteners like stevia, has increased. The natural sweeteners market is growing by 10% in 2024 and by 12% in 2023. The clean label movement has also gained momentum, with 65% of consumers favoring products with basic and recognizable ingredients. Furthermore, the sustainability trend is robust, with 75% of organizations committing to environmentally favorable practices in 2024. Innovation and compliance are being stimulated by technological advancements and regulatory changes, which are guaranteeing food safety and transparency.

China (2024 Market Size: USD 16.5 billion)

According to cognitive market research, The China food and beverage ingredients market share is 18% of the total revenue generated and its market size was USD 15 billion in 2023 and will be USD 16.5 billion in 2024. The Processed foods, beverages, dairy, and traditional Chinese cuisines are the primary sectors that drive this market. The greatest segments are processed foods and beverages, which collectively account for 30% of the market share. Dairy follows at 20%, and traditional foods at 15%. The demand for natural and functional ingredients is on the rise, with the functional ingredients market grown by 14% in 2023 and by 12% in 2024. In addition, the importance of clean labels and sustainability trends is increasing, as 60% of consumers prefer products that contain fewer additives and more natural ingredients. The market is being significantly influenced by technological innovations and government regulations that are designed to enhance food safety and quality standards.

Germany (2024 Market Size: USD 10.8 billion)

Germany's food and beverage ingredients market size was valued at USD 10 billion in 2023 and will be USD 10.8 billion in 2024. Germany holds a 11% of the global market. The processed food industry, dairy, beverages, and baked products are the primary sectors that employ these ingredients. Beverages and baked goods comprise 20% and 15% of the market, respectively, with processed foods and dairy products each comprising 30%. The demand for high-quality ingredients is driven by Germany's stringent food safety regulations and high standards. In Germany, the clean label trend is particularly robust, with 70% of consumers favoring products that contain minimal and natural ingredients. Additionally, the market for plant-based proteins was expand by 16% in 2023 and an additional 14% in 2024 as the demand for functional and plant-based ingredients continues to rise. Sustainability is a critical concern, with 80% of organizations committing to sustainable procurement practices.

France (2024 Market Size: USD 8.6 billion)

According to cognitive market research, the France food and beverage ingredients market share is 9% of total revenue generated and its market size was USD 8 billion and will be USD 8.6 billion in 2024. Processed foods, dairy, baked products, and beverages comprise the primary sectors. Dairy accounts for 25% of the market, processed foods for 35%, beverages for 20%, and baked products for 15%. The demand for high-quality and natural ingredients is fueled by the country's strong tradition of culinary excellence. The clean label trend is widespread, with 68% of consumers favoring products that contain fewer artificial additives. The market for functional ingredients, which encompasses prebiotics and probiotics, expanded by 13% in 2023 and will expand by 11% in 2024. By 2024, 70% of organizations will implement sustainable practices, underscoring the growing significance of ethical sourcing and sustainability.

United Kingdom (2024 Market Size: 7.5 billion)

The food and beverage ingredients market in the United Kingdom was valued at USD 7 billion in 2023 and will be USD 7.5 billion in 2024. United Kindom holds 8% of the global market. Processed foods, beverages, dairy, and baked products comprise critical sectors. Processed foods comprise 33% of the market, beverages 25%, dairy 22%, and baked products 15%. Natural and functional ingredients are in high demand in the United Kingdom, with a 15% increase in the market in 2023 and 13% increase in 2024. With 66% of consumers pursuing products with simple, natural ingredients, the clean-label trend is prevalent. Sustainability and ethical procurement are also significant, with 72% of companies committing to sustainable practices. Technological advancements and regulatory changes in the market are stimulating innovation and compliance.

Japan (2024 Market Size: USD 6.4 billion)

According to cognitive market research, Japan's food and beverage ingredients market size was valued at USD 6 billion in 2023 and will be USD 6.4 billion in 2024. Japan holds a 7% of the global market. Processed foods, beverages, dairy, and traditional Japanese cuisines comprise the primary sectors. In terms of market share, processed foods and beverages each account for 30%, while dairy products account for 20% and traditional foods for 15%. The demand for functional ingredients, including prebiotics and probiotics, is robust, with a 14% increase in 2023 and an 12% increase in 2024. The clean label trend is gathering momentum, with 60% of consumers favoring products that contain natural ingredients. Sustainability is also a significant priority, with 65% of organizations committing to environmentally favorable practices in 2024. Government regulations and technological advancements are propelling the market toward enhanced standards of food safety and quality.

Brazil (2024 Market Size: USD 5.4 billion)

Brazil food and beverage ingredients market share is 6% of the global market, and its market size was USD 5 billion in 2023 and will be USD 5.4 billion in 2024. Processed foods, beverages, dairy, and baked products comprise the primary sectors. Processed foods comprise 35% of the market, beverages 25%, dairy 20%, and baked products 15%. The market for natural and functional ingredients was expand by 13% in 2023 and by 11% in 2024 as the demand for these ingredients continues to increase. The clean label trend is substantial, as 62% of consumers favor products that contain basic and natural ingredients. The significance of sustainability and ethical procurement is increasing, as 70% of organizations have implemented sustainable practices. In the market, innovation and compliance are being stimulated by regulatory changes and technological advancements.

Italy (2024 Market Size: USD 4.3 billion)

As per our research analyst, Italy's food and beverage ingredients market was valued at USD 4 billion in 2023 and will be USD 4.3 billion in 2024, with holding 5% of the global market share. Major sectors consist of baked products, dairy, processed foods, and beverages. Dairy accounts for 25% of the market, processed foods for 30%, beverages for 20%, and baked products for 20%. Italy's robust culinary tradition fuels the demand for high-quality and natural ingredients. The clean label trend is widespread, with 67% of consumers favoring products that contain fewer artificial additives. In 2023, the market for functional ingredients, including prebiotics and probiotics, experienced a 12% increase, and it will continue to expand by 10% in 2024. The significance of sustainability and ethical procurement is on the rise, as 68% of organizations have implemented sustainable practices by 2024. the market is being influenced by regulatory changes and technological advancements to achieve higher standards of food safety and quality.

Canada (2024 Market Size: USD 3.8 billion)

In 2023, the Canada's food and beverage ingredients market share is 4% of the total revenue generated and its market size was USD 3.5 billion, and it will be USD 3.8 billion in 2024. Processed foods, beverages, dairy, and baked products comprise critical sectors. Processed foods comprise 33% of the market, beverages 25%, dairy 22%, and baked products 15%. Natural and functional ingredients are in high demand, with a 14% increase in the market in 2023 and an 12% increase in 2024. The clean label trend is widely recognized, with 65% of consumers preferring products that contain basic, natural ingredients. Sustainability and ethical procurement are also significant, with 70% of companies committing to sustainable practices. Technological advancements and regulatory changes in the sector are stimulating innovation and compliance.

India (2024 Market Size: USD 

According to cognitive market research, India's food and beverage ingredients market was worth USD 3 billion in 2023 and will be USD 3.5 billion in 2024. India holds 3.5% of the global market. Processed foods, beverages, dairy, and traditional Indian cuisines comprise the primary sectors. In terms of market share, processed foods and beverages each account for 30%, while dairy products account for 20% and traditional foods for 15%. The demand for natural and functional ingredients is on the rise, with a 15% increase in the market in 2023 and a 13% increase in 2024. The clean label trend is gathering momentum, with 60% of consumers favoring products that contain natural ingredients. Additionally, the significance of sustainability and ethical procurement is increasing, as 65% of organizations have pledged to implement sustainable practices by 2024. The market is being propelled toward more stringent standards of food safety and quality by technological advancements and regulatory modifications.

PESTEL Analysis of Food and Beverages Ingredients Market

Political

The political landscape significantly influences the food and beverage ingredients market. This industry is directly impacted by the policies and regulations of governments worldwide, which emphasize sustainability, food safety, and labeling. For instance, numerous regions have instituted more stringent regulations regarding food safety and transparency, which guarantees that consumers are adequately informed regarding the ingredients contained in their food. The General Food Law Regulation of the European Union is a prime example, as it prioritizes consumer protection and traceability. The market is also substantially affected by trade policies and tariffs. The passage of ingredients across borders is either facilitated or impeded by international trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the United States-Mexico-Canada Agreement (USMCA). The cost and availability of raw materials can be influenced by tariffs on agricultural products, which can have an impact on prices and supply chains. Another critical factor is political stability. Food and beverage manufacturing and constituent production are more likely to be invested in countries with stable political environments. In contrast, political unrest can disrupt supply chains and influence the sourcing of ingredients. For example, supply chain disruptions and price volatility may result from geopolitical tensions between major agricultural exporters and importers.

Economical

The food and beverage ingredients market is significantly influenced by economic factors, which affect production costs, pricing strategies, and consumer demand. The global economic environment directly influences the affordability and availability of basic materials. For example, constituent costs can be substantially influenced by fluctuations in commodity prices, including sugar, wheat, and cocoa. The global market for food and beverage ingredients was worth USD 85 billion in 2023, and its size and growth rate will continue to be influenced by economic conditions. Currency exchange fluctuations and inflation rates also play significant roles. The cost of production can be elevated by high inflation, which can result in higher prices for end consumers. In contrast, the competitive landscape can be influenced by the reduced prices of imported ingredients, which are a result of strong currencies. For instance, American manufacturers may secure a pricing advantage in the global market by reducing the cost of imported ingredients due to a robust US dollar. Another critical economic variable is consumer purchasing power. The demand for premium ingredients is influenced by the tendency of consumers to gravitate toward more affordable products during economic downturns. On the other hand, during periods of economic expansion, there is generally a greater demand for premium and value-added constituents, as consumers are more inclined to spend more on health and wellness products. The market has been significantly influenced by the increase in disposable incomes in emerging markets such as China and India, which has resulted in a greater demand for a variety of high-quality ingredients.

Social

The food and beverage ingredients market is substantially influenced by social factors, which are driven by changing consumer preferences, demographic shifts, and cultural influences. The increasing demand for more sustainable and healthier dietary options is one of the most notable trends. Consumers' growing preference for vegetarian and vegan diets was reflected in the 15% growth of the global market for plant-based ingredients in 2023. Health concerns, environmental awareness, and ethical considerations are the primary factors driving this transition. Another critical social trend is the clean label movement. Consumers are increasingly interested in products that contain basic, identifiable ingredients that are devoid of artificial additives and preservatives. The trend of consumers favoring clean-label products will increase in 2024, as 60% of consumers expressed this preference in 2023. This has resulted in manufacturers reformulating products and emphasizing transparency in labeling to appeal to health-conscious and informed consumers. Demographic changes also impact the market. In numerous developed countries, the demand for functional foods that provide health benefits, including antioxidants, omega-3 fatty acids, and probiotics, has increased due to the aging population. For instance, the market for probiotics was worth USD 58 billion in 2023 and will increase to USD 64 billion in 2024. Sustainability and ethical sourcing are prioritized by younger generations, such as millennials and Gen Z, which encourages companies to implement more environmentally responsible practices.

Technological

The food and beverage ingredients market is propelled by technological advancements, which facilitate innovation, enhance efficiency, and enhance sustainability. The utilization of artificial intelligence (AI) and machine learning (ML) in the development and production of ingredients is one of the most noteworthy technological trends. AI and ML algorithms facilitate the optimization of formulations, the prediction of consumer preferences, and the simplification of production processes, resulting in more cost-effective and efficient manufacturing. Another critical area of technological innovation is biotechnology. Fermentation, genetic modification, and synthetic biology are employed to develop novel constituents and enhance existing ones. For example, the development of plant-based proteins and alternative dairy products has been significantly influenced by fermentation technology. Investments in food technology firms, including those that concentrate on biotechnology, exceeded USD 5 billion in 2023, underscoring the industry's dedication to innovation. Production and supply chain operations are being revolutionized by automation and robotics. Automated systems improve the precision and consistency of constituent processing, thereby reducing human error and increasing productivity. The overall market growth is facilitated by the improvement of efficiency and cost reductions in packaging and logistics through the use of robotics. The utilization of blockchain technology for traceability is also gathering momentum, as it guarantees transparency and improves food safety by establishing a secure and immutable record of the ingredient supply chain.

Environmental

The food and beverage ingredients market is being increasingly influenced by environmental factors, which are being driven by the necessity for responsible resource management and sustainability. The availability and purity of raw materials are significantly impacted by climate change, which is a significant concern. Agricultural production is disrupted by extreme weather events, including droughts, floods, and cyclones, which result in price volatility and supply chain challenges. For example, the global market for plant-based ingredients, which is heavily dependent on agricultural outputs, experienced a 15% increase in 2023. However, this growth is susceptible to the effects of climate change. Companies are increasingly prioritizing sustainable procurement practices as a means of reducing their environmental impact. Companies are increasingly implementing sustainable agriculture practices, including integrated pest management, organic farming, and crop rotation, in order to mitigate their ecological impact. In 2023, 70% of companies in the market pledged to implement sustainable procurement practices with the objective of reducing water consumption, soil degradation, and deforestation. Another critical environmental issue is water scarcity. The food and beverage ingredients market is highly water-intensive, with substantial water consumption in the production of crops and the refining of ingredients. In order to mitigate water consumption, organizations are investing in water-efficient technologies and procedures. For instance, advanced irrigation techniques and closed-loop water systems are being implemented to conserve water resources.

Legal

The food and beverage ingredients market is significantly influenced by legal factors, which include regulations regarding intellectual property, trade, labeling, and food safety. In order to operate legally and preserve consumer confidence, companies must adhere to these regulations. Food safety regulations are of the utmost importance. In order to guarantee the safety and purity of food ingredients, governments worldwide implement rigorous regulations. For instance, the Food Safety Modernization Act (FSMA) in the United States imposes stringent requirements on food producers and processors to guarantee traceability and prevent contamination. In the same vein, the General Food Law Regulation of the European Union requires comprehensive traceability from farm to fork. Failure to adhere to these regulations may lead to severe penalties, recalls, and harm to the brand's reputation. Regulations regarding labeling are additionally pivotal. In order to provide consumers with information regarding the nutritional content and constituents of food products, it is necessary to implement precise and transparent labeling. Specific information on food labels, such as allergens, nutritional content, and ingredient inventories, is required by regulations such as the EU's Food Information to Consumers (FIC) Regulation and the US Nutrition Labeling and Education Act (NLEA). The clean label trend has further exacerbated the demand for clear and honest labeling, as consumers are increasingly pursuing products with recognizable and simple ingredients.

Key Players of Food and Beverages Ingredients Market

Cargill, Inc.

In 2023, Cargill, Inc. reported revenues of USD 165 billion, with the food and beverage ingredients segment contributing USD 35 billion. The company anticipates a 5% increase in this segment in 2024, resulting in a total of USD 36.75 billion. Agriculture, food ingredients, animal nutrition, and industrial products comprise Cargill's key business segments. The food and beverage ingredients market constitutes a substantial portion of their portfolio. The production and supply of sweeteners, carbohydrates, texturizers, oils, and cocoa products are the primary focus of this segment. In order to enhance and innovate its food ingredient offerings, Cargill allocated USD 500 million to research and development in 2023. The company prioritized health-focused ingredients and sustainability. One of the industry's dominant companies, Cargill has a 12% market share in the food and beverage ingredients market on a global scale. 

Archer Daniels Midland Company (ADM)

In 2023, Archer Daniels Midland Company (ADM) reported revenues of USD 101 billion, with the food and beverage ingredients segment contributing USD 22 billion. This segment is expand by 4% in 2024, reaching an USD 22.88 billion. Agricultural services, oilseeds processing, carbohydrate solutions, and nutrition comprise ADM's principal business segments. The nutrition segment, which includes the food and beverage ingredients market, is responsible for the production of health-focused ingredients, natural flavors, colors, sweeteners, and proteins. In 2023, ADM allocated USD 350 million to research and development, with a particular focus on the creation of innovative and sustainable ingredients. ADM holds 10% market share in the global food and beverage ingredients market. With their robust supply chain capabilities and emphasis on plant-based proteins and functional constituents, they are positioned as a significant player in the industry.

Koninklijke DSM N.V.

In 2023, Koninklijke DSM N.V. (DSM) reported revenues of USD 11 billion, with the food and beverage ingredients segment contributing USD 5 billion. The company anticipates a 6% increase in this segment for 2024, resulting in a total of USD 5.3 billion. Nutrition, health, and sustainable living comprise DSM's principal business segments. The nutrition segment, which encompasses the food and beverage ingredients market, concentrates on specialty food ingredients, enzymes, probiotics, nutritional lipids, and vitamins. DSM's research and development expenditure in 2023 was USD 400 million, with a substantial portion of this budget allocated to the development of sustainable solutions and novel constituents. In the global food and beverage ingredients market, DSM holds 6% market share. Their prominent market position is further solidified by their dedication to sustainability and health-driven products, as well as their advanced research capabilities.

Kerry Group

In 2023, the Kerry Group generated revenues of USD 9 billion, with the food and beverage ingredients segment accounting for USD 6 billion. This segment is expand by 5% in 2024, reaching a value of USD 6.3 billion. Kerry's commercial segments consist of consumer foods and taste & nutrition. The taste & nutrition segment, which includes the food and beverage ingredients market, concerns itself with integrated solutions, functional ingredients, and flavors for the food and beverage industry. In 2023, Kerry allocated USD 300 million to research and development, with an emphasis on the creation of innovative and clean-label ingredients. Kerry's market share in the global food and beverage ingredients market is 5%. Their extensive product portfolio, combined with their strong emphasis on flavor and nutrition, establishes them as a significant market player.

Tate & Lyle PLC

In 2023, Tate & Lyle PLC reported revenues of USD 4.5 billion, with the food and beverage ingredients segment contributing USD 3 billion. The company anticipates a 4% increase in this segment for 2024, resulting in a total of USD 3.12 billion. Food and beverage solutions and primary products comprise Tate & Lyle's leading business segments. The food and beverage solutions segment concentrates on health-promoting ingredients, fibers, sweeteners, and texturants. In 2023, Tate & Lyle allocated USD 200 million to research and development, with an emphasis on the creation of more sustainable and nutritious ingredient solutions. Tate & Lyle holds 4% market share in the global food and beverage ingredients market. Their commitment to the provision of health-conscious, innovative ingredients establishes them as a significant contributor to the industry.

Recent developments in Food and Beverages Ingredients Market

Conclusion

In 2023 and 2024, the food and beverage ingredients market demonstrated dynamic changes and robust growth. The global market was valued at USD 279.6 billion in 2024 and will be USD 452.4 billion in 2031, with a compound annual growth rate (CAGR) of 6.2%. This development has been substantially influenced by the growing demand for plant-based ingredients, which is a result of consumer preferences for healthier and more sustainable alternatives. In 2023, the sales of plant-based ingredients experienced a 15% increase and increase by an additional 12% in 2024. The trend is primarily driven by oat-based ingredients and pea protein.

In 2023, 60% of consumers expressed a preference for products with straightforward and recognizable ingredients, which are the focus of the clean label movement. This trend will continue to expand in 2024, which will compel manufacturers to reduce the use of artificial additives and preservatives. The sustainability focus is also apparent, as 70% of companies have committed to sustainable procurement practices by 2024, which include the incorporation of eco-friendly packaging, the reduction of carbon footprints, and the support of fair trade practices. Probiotics, prebiotics, and adaptogens are among the functional ingredients that have experienced a surge in prominence. In 2023, the market for probiotics was valued at USD 58 billion, and will be USD 64 billion in 2024. The natural sweeteners market also experienced significant growth, with an 18% increase in 2023 and a 15% growth in 2024, primarily due to the reduced sugar movement.