Food Inclusions Market

Food Inclusions Market Size and Forecast (2023-2028):

The Global Food Inclusions Market size is expected to grow at a CAGR of 7.1% during the forecast period 2023-2028 to reach USD 19.2 billion by 2028 from USD 13.2 billion in 2022.

Market Overview:

Food inclusions are the extra added ingredients or substances in food products. They help to enhance the taste, texture, and visual appearance and also add some nutritional value to food products. They can be naturally extracted like fruits, nuts, and seeds, or artificial like choco chips, sprinkles, etc., and of sweet or savory taste. Food inclusion provides several unique flavors, colorful appearances, crunchiness, and joyful tastes to food products such as ice cream, bakery products, snacks, confectionery products, etc. Adding dry fruits and nuts to create attractive and personalized food products helps to satisfy people's healthy dietary preferences.

Recent Developments in Food Inclusions Industry:

• In February 2022, ADM obtained Comhan, a top South African flavor distributor, expanding the product line with fruit and chocolate flavors for use in the bakery and confectionery sectors. With this acquisition, ADM will advance its nutrition business in significant emerging markets, such as Africa.
• In August 2021, To increase its presence in Asia Pacific and diversify its existing line-up of cocoa products, Cargill (US) Cargill acquired Aalst Chocolate Pte. Ltd., an established chocolate company.

REPORT COVERAGE:

Drivers:

The growing demand for healthy food products is one of the major drivers of the food inclusion market growth. Recently, people are becoming more health conscious and seeking healthier food alternatives. They want healthy food, but at the same time, food products must be tasty. Hence, food products loaded with natural food inclusions like fruits, nuts, seeds, and dry fruits are in great demand among health-conscious consumers because they provide essential nutrients like vitamins, minerals, proteins, and fiber to maintain good health. Also, they can enjoy tasty snacks and sweets along with their dietary practices. This increasing awareness about health is significantly driving the market demand.

The consumer demand for the visual appeal of food products is driving market growth. Visual appearance plays a crucial role when consumers buy some food products. Food inclusions help to attract consumers by adding a nice texture and colorful look. They can be little bits and pieces added to food products, such as colorful sprinkles on cupcakes, fruit pieces on cakes, chocolate chips in ice cream, etc, and makes food look attractive and delicious. Due to this attractive visual appeal, people want to try new flavors and textures. Hence, food product manufacturers, especially bakery, confectionery, and dairy, are focusing more on the visual appeals of the food products to attract more consumer base.

The rising demand for premium food products is driving the food inclusion market demand. The food inclusions not only make food products tasty and look attractive but also create a sense of premium or luxury by adding special and decorative ingredients, like nuts, chocolate, and fruit toppings which give the impression that the food products are of high quality. Hence, the demand for such premium food products is increasing and leading to influence the shares of the market.

Restraints:

The high cost of food inclusions is one of the major restraints on food inclusions market growth. Adding high-quality and special food ingredients to food products increases the total cost of production. Some of the ingredients, like fruits and dry, dry fruits, are already costly due to their limited availability. As the overall cost of food products increases, consumers with low budgets can't afford them, and hence the demand declines among such consumers. This brings challenges for the food manufacturers in terms of cost of production, and also, high-cost challenges can be faced by consumers, affecting the market demand.

The growing health concerns among consumers are restraining the market growth. Food ingredients in food products are good for health, but some of these ingredients contain lots of calories, which can be a major concern for health-conscious people. Adding nuts, seeds, etc., offers beneficial nutrients but also contains calories and fat, also choco chips or any sugary toppings pose challenges to health-conscious people to consume such food products. This restricts the consumption of food products that are added with food inclusions due to health concerns, leading to a decline in market demand.

Opportunities:

The increasing demand for healthy and functional food is offering growth opportunities for the food inclusion market. The health-enhancing food inclusions, called superfoods, are rich in nutrients like vitamins, minerals, fiber, etc., and this is creating the demand for foods with such inclusions. Plant-based proteins are also in heavy demand as they are extracted from sources like beans and soy, which act as healthier alternatives. Hence, food with plant-based proteins, nuts, and functional ingredients not only just provides a delicious taste but it has lots f health benefits, and this offers a significant opportunity to expand the market demand.

The personalization and customization options provided by the manufacturers of the food products are further providing an opportunity for the food inclusion market growth. Many food manufacturers, such as dairy, bakeries, confectionery, etc., are nowadays offering options to choose their favorite food inclusions to add to their desserts, meals, and snacks. This helps consumers to stick to their tastes and dietary requirements. Someone wants fewer food inclusions; on the other hand, some people want more as they are seeking more nutrients, so it can be possible to satisfy all the consumers' demand by using customizable food inclusions. This is offering great demand for the food inclusion market and influencing the shares of the market.

COVID-19 Impact on Food Inclusions Market:

COVID-19 significantly impacted the market value. During the pandemic, the lockdown and several restrictions affected the food service industry; this led to a decline in the demand for food inclusions used in hotels and cafes. Also, the supply chain disruptions, transportation restrictions, etc. affected the sourcing and manufacturing, and that caused price fluctuations and limited availability of some food inclusions; ultimately, the shares of the market declined. However, the health-conscious trend increased during the pandemic, and this led to a boost in demand for functional and healthy food products, ultimately increasing the demand for food inclusions that are highly nutritious, such as fruits, dry fruits, nuts, etc. which boosted the market demand.

Food Inclusions Market Segmentation Analysis:

By Type:

• Chocolate
• Fruit and Nut
• Cereal
• Flavored Sugar and Caramel
• Confectionery
• Others

The fruit and nuts food inclusions segment is anticipated to dominate the food inclusions market during the projected period. Because fruit and nuts are extracted from dried fruits, nuts, and seeds and also provide natural sweetness and add nutrition to various food products such as cupcakes, breakfast cereals, yogurt, cookies, etc. Due to this wide application, this segment is in high demand. However, the chocolate inclusions segment is expected to grow at the fastest rate in the coming years. This includes chocolate chips, chocolate chunks, and chocolate-coated nuts or fruits. These inclusions add a rich and sweet flavor to various products like cookies, cakes, ice creams, and other dairy products and confectioneries. This is influencing the shares of the market.

By Form:

• Solid and Semi-Solid
• Liquid

The solid and semi-solid food inclusions segment is ruling the market during the projected period. Because these inclusions add texture, flavor, and a good visual appearance to various food products, whether it is bakery products, confectioneries, or dairy products. The solid and semi-solid forms of food inclusions mainly include chocolate chips, fruit pieces, nuts, seeds, etc., as these inclusions are highly used in making numerous food products, and hence this segment is boosting the market demand. At the same time, the liquid food inclusions segment is expected to grow significantly in the upcoming years. Flavored syrups, fruit fillings, sauces, etc., are included in this segment and are widely used in desserts, pastries, etc. This attribute contributes to an increase in the market size.

By Application:

• Cereal Products, Snacks, and Bars
• Bakery Products
• Dairy and Frozen Desserts
• Chocolate
• Confectionery Products
• Others

The cereal products, snacks, and bars segment is expected to dominate the global food inclusion market share during the forecasted period. It includes dried fruits, nuts, seeds, and chocolate chips and is mainly used in breakfast cereals, granola bars, energy bars, and in various snacks to enhance the taste, texture, and nutrition of the food products. As demand for healthy food products is growing, it is inducing the market demand for this segment. However, the dairy and frozen desserts segment is deemed to grow at the fastest CAGR during the forecasted period. Food inclusions, including fruit pieces, candy bits, cookie dough, etc. used in dairy products like yogurt, ice cream, and frozen desserts to create an attractive appearance and provide a delightful eating experience. These factors are boosting market growth.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

North America is dominating the food inclusion market shares during the projected period. Owing to the growing bakery, dairy, and confectioneries with increased consumer demand for new and diverse food products in this region. This is inducing more demand for various food inclusions in the food industries, and this is influencing the shares of the market. However, the Europe region is expected to grow at the fastest CAGR during the forecast period. Because this region has a well-established food industry and a large consumer base that appreciates high-quality and healthy food products. Food inclusions are widely used in cakes, pastries, and desserts in this region, leading to expanding the market size.

Key Players in the Market:

Major Key Players in the Global Food Inclusions Market are

• Cargill
• ADM
• Barry Callebaut
• Tate and Lyle
• Agrana
• Taura Natural Ingredients Ltd.
• Sensient Colors LLC
• PURATOS
• Sensory Effects, Inc