The size of the europe specialty food ingredients market is expected to be worth USD 27.08 billion in 2024 and grow at a CAGR of 5.38% from 2024 to 2029 to achieve USD 35.20 billion by 2029.
Specialty food ingredients give cooked or processed foods a unique color, texture, nutrients, function, and taste. Ingredients are added to enhance the taste and flavor of processed foods. Specialty food ingredients can meet the needs of customers due to their unique characteristics including processing aids, coloring, preservation, emulsification, and nutrition enhancement. The food and beverage industry uses special food ingredients to enhance the taste and flavor of processed foods. It also helps improve the shelf life, stability and texture of foods. They are used in the production of high-quality and expensive food products. The benefits of this food are better taste, shelf life, production value, texture and good health. Specialty food ingredients are additives or ingredients that are used and designed for specific purposes and tasks and are different from ingredients used in traditional recipes. Specialty food ingredients are mainly sold to food processing industries such as large food manufacturers and medium-sized companies. They are an essential part of the food supply because they provide tasty, safe and affordable food options along with technical, nutritional and health-related features. Specialty food ingredients are expensive food ingredients that help in the preservation and emulsification of food products and give processed foods greater properties by giving them texture, flavor, color and nutrition. Changes in lifestyle and eating habits are increasing the demand for comfort foods that contain special ingredients as an important component of the preparation process.
Europe specialty food ingredients market growth is expected to improve within the forecast period as preference for convenience foods increases along with the growing workforce in developing countries. Growing urban populations, coupled with rising levels of disposable income, are increasing the penetration of packaged and convenient food products, increasing the demand for specialty food ingredients in Europe. Specific health and functional benefits associated with the rapid expansion of specialty food ingredients and end-use industries are driving the growth of the Europe specialty food ingredients market. Additionally, rising rates of diabetes and obesity in local countries are prompting consumers to focus more on a healthier lifestyle and increasing demand for healthy and wellness food ingredients from food manufacturers and drinks. It also drives the Europe market for specialty food ingredients to some extent. New trends in food processing technology and the rapidly evolving processed food manufacturing industry are attracting new players to invest in new product development. The increasing popularity of ready-to-eat frozen and canned foods, breakfast cereals, confectionery products, etc., has greatly expanded the European market for specialty food ingredients. The increasing demand for processed and packaged foods and the need to improve the shelf life of food products, especially in developed and developing countries, are some of the key factors driving the growth of the Europe specialty food ingredients market. Similarly, the consumption of processed foods is increasing, and lifestyles change in developing countries. As urbanization increases and consumer preferences for processed foods increase, the market for Europe specialty food ingredients grows. The specialty food ingredients market will see significant growth as health and wellness awareness increases around the area.
The trend of incorporating antioxidants and vitamins into cooking oils and other food supplements to increase the nutritional value of foods is expected to accelerate the growth of the Europe specialty food ingredients market. Also, as end-use industries such as confectionery, functional foods and beverages are expanding rapidly, the growth of the Europe specialty food ingredients market is strengthening. Consumers are looking for products that can address nutritional deficiencies, that are tasty, flavorful, and quick to process and consume. The European market for specialty food ingredients is expected to expand significantly in the coming years as consumers' purchasing power increases and demand for prepared foods increases. The industry is expected to grow significantly over the forecast period as the application of these products in the modern processing sector increases to meet the wide demand for different product qualities. Changes in consumption trends of health and wellness food consumers show an increase in individual purchasing power. This provides ample growth opportunities for food manufacturing companies to expand the Europe specialty food ingredients market.
Lack of awareness in developing countries could hamper the growth of the Europe specialty food ingredients market. Market growth is expected to be hampered by factors such as tighter regulations and legislation on food safety and shelf life. The main factor impeding the growth of the industry is the high cost of functional foods due to the inclusion of healthier or naturally derived ingredients and the complexity associated with incorporating functional foods.
Flavors and colors are the most popular and widely used ingredients to enhance the appearance, color, and flavor of a variety of foods, including candy, cakes, chocolate, and ice cream. Enzymes are the second most important specialized food ingredient and are expected to show significant growth during the forecast period. The preservatives segment is expected to grow at the fastest CAGR in the near future. This growth is mainly due to the increased consumption of preservatives in food preparation by local food vendors and bakery retailers.
The bakery and confectionery segment were the most promising segment with the largest market share in 2019. Increased consumption of chocolate, sweets and cakes, as well as the growing demand for home-baked and locally baked bakery products, is expected to strengthen the market for specialty ingredients rather than anticipated.
The demand for natural ingredients is anticipated to expand with a significant CAGR in the coming years.
Europe was the second largest market in 2019 for specialty ingredients. Europe has always become famous for its world-famous cuisine, and changes in consumer demand often lead to various innovations in new recipes. Countries in regions such as Italy, France and Belgium are the largest importers of specialty components. With a decent number of processing and confectionery companies in Germany and the UK, production and demand for specialty food ingredients is increasing.
Major Key Players in the Europe Specialty Food Ingredients Market are Tate & Lyle PLC, Archer Daniels Midland Company, Roquette Frères SA, Prinova Group, LLC, Cargill Inc, Ingredion Incorporated, EI Dupont De Nemours and Company, Specialty Commodities Inc, AmTech Ingredients LLC, Sensient Technologies Corporation, KF Specialty Ingredients, Koninklijke DSM NV, Kerry Group Plc, Woodland Foods Inc, and Vidhi Specialty Food Ingredients Limite
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