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Massive Demand for Processed Foods Driving Food Processing Ingredients Market Growth – Reports and Data

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Massive Demand for Processed Foods Driving Food Processing Ingredients Market Growth – Reports and Data

August 24
23:06 2021
Massive Demand for Processed Foods Driving Food Processing Ingredients Market Growth - Reports and Data
Food Processing Ingredients Market
The growing demand for processed foods, massive developments in the confectionery product segment, and greater focus on natural food sources are key factors contributing to high CAGR of Food Processing Ingredients during the forecast period.

Food processing entails the transfer of one form into another. Food processing is divided into three categories: primary, secondary, and tertiary. Food is processed to make it edible in primary food processing. Secondary food processing entails transforming ingredients into familiar items like bread, whereas tertiary food processing entails creating products with high sugar or low fibre content. The need for processed foods is being met with the help of various food processing ingredients.

In today’s environment, there is an increasing need for processed foods. The use of alcoholic drinks and ready-to-eat foods is fueling the expansion of the food processing ingredient industry. External factors such as changing lifestyles and an increase in the number of working women are also encouraging more frequent use of ready-to-eat food products, boosting the industry. However, a spike in food-related scams and fluctuating raw material costs are limiting the expansion of the food processing ingredients industry.

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According to the current analysis of Reports and Data, the global Food Processing Ingredients market was valued at USD 47.93 Billion in 2020 and is expected to reach USD 75.56 Billion by 2028, at a CAGR of 5.8%. Food processing ingredients have always been a core part of the industry because of their widespread application in various foods. However, the growing health dimension in the use of processed items is boosting industry growth. Food processing is done for a variety of purposes, such as to ensure safety, maintain quality and also to extend the shelf life of products. The mechanism undertaken at various stages. Primary food processing helps in the conversion of agricultural raw materials into consumables. However, more complex processing mechanisms used for more advanced purposes, and they make use of high-quality ingredients for the same. A shift in consumer behaviour towards safety has been driving the industry. Consumers are becoming responsive regarding the sourcing and production process taken up by them.

The sector is well developed in Europe, while Asia Pacific is expected to record the highest CAGR during the forecast period. Emerging economies have substantial growth potential as the consumer spending on consumptions is gradually increasing and diets are becoming more West influenced in their nature. Moreover, industry penetration and establishment of advanced facilities by top industry players in such countries is taking the market forward.

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Companies considered and profiled in the market report

Tate & Lyle PLC, Kerry Group, Cargill, Ingredion Incorporated, Archer Daniels Midland Company, Dupont, Associated British Foods PLC, Arla Foods, Ashland Global Holdings Inc., and Nexira.

Further key findings from the report suggest-

  • By form, the dry form segment hold a larger share in the industry. The growth of the segment, however, is slowing down due to improvements in the liquid ingredients.
  • By source, natural sources account for the dominant share in the market because of increasingly strict mechanisms in various countries and increasing consumer preference for natural sources.
  • By ingredient type, the protein segment holds a significant share globally because protein enrichment has always been an integral part of the industry. Rising consumer health awareness will growth future.
  • Yeast is expected to become the fastest-growing food processing ingredient during the forecast period on account of full application in the confectionery and beverage segments, both of which are observing a high pace of growth.
  • The food processing ingredients industry has often been under the scanner for the manufacture of harmful ingredients such as Sodium Nitrates, MSG, Artificial Sweeteners, etc. that are known to harm the body.
  • By region, Europe is the largest market for the industry. The surging demand for processed foods along with increasing focus on nutrition is leading to many innovations in the industry.
  • According to Minister of Commerce India, Consumers have gained a level of health consciousness, a development that has led them to select their packaged foods products more wisely. Given that the industry is underpenetrated, the improved competition will bolster volume growth and create more awareness and better availability through stronger distribution.
  • The growth of industry in developing economies such as India is also promising job creation and income generation in the economy. Infrastructural and food supply chain challenges have to be overcome in order to help the economy realize the complete potential of the industry.
  • Acquisitions form part of the growth strategy of many industry players as they help in strengthening a company’s footprint in the market. In May 2019, top market player ADM Company completed the acquisition of Zieglar Group, thereby increasing its nutrition portfolio.


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For the purpose of this study, Reports and Data have segmented the Food Processing Ingredients market on the basis of type, form, source, application, and region:

Type (Revenue, USD Million; 2018–2028)

  • Modified Starch & Starch Derivatives
  • Proteins
  • Food Stabilizers
  • Yeast
  • Emulsifiers
  • Enzymes
  • Acidity Regulators
  • Antioxidants
  • Release Agents

Form (Revenue, USD Million; 2018–2028)

  • Dry Ingredients
  • Liquid Ingredients

Source (Revenue, USD Million; 2018–2028)

  • Natural
  • Synthetic

Application (Revenue, USD Million; 2018–2028)

  • Bakery and Confectionery Products
  • Convenience Foods
  • Dairy and Frozen Desserts
  • Beverages
  • Other Applications

Regional Outlook (Revenue in USD Million; 2018–2028)

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America


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About Reports and Data

Reports and Data is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target and analyze consumer behavior shifts across demographics, across industries and help client’s make a smarter business decision. We offer market intelligence studies ensuring relevant and fact-based research across a multiple industries including Healthcare, Technology, Chemicals, Power and Energy. We consistently update our research offerings to ensure our clients are aware about the latest trends existent in the market. Reports and Data has a strong base of experienced analysts from varied areas of expertise.

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