In 2023, the global specialty food ingredients market was valued at USD 101.9 billion, with projections for growth at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2030. The market's expansion is driven by the rapid growth of key application industries such as food and beverages, pharmaceuticals, and personal care. Additionally, the increasing penetration of both organized retail and e-retail globally is significantly fueling the industry's growth.

Specialty food ingredients play crucial roles in preserving, texturing, emulsifying, coloring, and enhancing the health benefits of processed foods. These ingredients range from micro-ingredients like vitamins, minerals, and enzymes to macro-ingredients, including specific proteins, fats, carbohydrates, and fibers. The rising demand for food products free from artificial additives and ingredients has led to a focus on clean-label ingredients, which emphasize natural and simple formulations.

These ingredients not only enhance the taste, safety, and sustainability of food products but also align with health, wellness, and affordability trends. Specialty foods are increasingly outperforming their non-specialty counterparts, particularly in categories focusing on better-for-you options and freshness.

Gather more insights about the market drivers, restrains and growth of the Global Specialty Food Ingredients Market

Key Market Trends and Drivers

In the United States, functional specialty food ingredients are expected to experience robust growth between 2024 and 2030. The widespread availability of organized retail across the country has bolstered the market's share. Factors such as urbanization, changing lifestyles, and increasing economic activities in emerging economies are additional macroeconomic drivers of the global market.

The rising global population, projected to grow from 7.3 billion in 2015 to 9.7 billion by 2050, will further drive the demand for specialty food ingredients. Post-COVID-19 changes in consumer shopping habits have also benefitted the market. Companies supplying ingredients for center-of-the-store retail categories have reported increased sales due to the rising demand for packaged and processed foods.

Regional Insights

  • Asia Pacific led the market in 2023, contributing 33.9% of global revenue. The region's growing preference for convenience foods has heightened demand for emulsifiers, with China emerging as a dominant player in this category. A large population base, coupled with robust growth in the food and beverage, pharmaceutical, and personal care industries, is driving the market.

  • Europe, the second-largest market in 2023, is known for its innovative culinary trends and large-scale specialty ingredient imports. Major contributors include countries like France, Italy, and Belgium, along with a significant presence of processing and confectionery industries in Germany and the UK. However, the region is expected to grow at a slower pace over the forecast period.

  • North America ranked third in revenue share for 2023 and is projected to grow at a notable CAGR through 2030. In the United States, there is a growing demand for plant-based and natural food products, with younger consumers emphasizing transparency and healthier ingredients.

Browse through Grand View Research's Food Additives & Nutricosmetics Industry Research Reports.

  • Specialty Ingredients Market: The global specialty ingredients market size was valued at USD 142.5 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2030.
  • Food Additives Market: The global food additives market size was estimated at USD 114.35 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030.

Key Companies and Market Strategies

The market is highly fragmented, comprising both large international corporations and small to medium domestic enterprises. Large players are leveraging emerging technologies to enhance innovation and product offerings. For example, Kraft Heinz established a digital hub to develop digital strategies and launch innovative food products targeting a broader market segment. Similarly, technologies like blockchain are gaining traction for improving transparency and traceability in the food supply chain.

To expand their reach and capabilities, companies are adopting strategies such as geographical expansion, increased production capacity, and investment in research and development. For instance, in March 2023, Archer Daniels Midland Company introduced the Knwble Grwn brand, focusing on sustainably sourced, plant-based food ingredients cultivated by small farmers using regenerative agricultural practices. This initiative highlights the industry’s commitment to environmental sustainability and consumer health.

Key Specialty Food Ingredients Companies:

  • Naturex
  • Givaudan
  • Eli Fried Inc.
  • KF Specialty Ingredients
  • Ingredion
  • Associated British Foods Plc
  • Kerry Group
  • Agropur Cooperative
  • Ashland Inc
  • Archer Daniels Midland Company
  • Cargill Inc.
  • Wild Flavors GmbH
  • DSM
  • Diana Group SA
  • Tate & Lyle
  • Hansen

Order a free sample PDF of the Specialty Food Ingredients Market Intelligence Study, published by Grand View Research.