The Europe food ingredients market size was valued at $69,201.0 million in 2018 and is projected to reach $137,748.9 million by 2032, registering a CAGR of 5.7% from 2023 to 2032. Food ingredients are additives that are added to food mixtures to obtain the desired result. Food ingredients add taste, color, texture, gloss, viscosity, and pH balance, and offer emulsion & stability.
The COVID-19 pandemic affected the Europe food ingredients market as many countries considered food ingredients as non-essential items and thus the government has implemented a temporary ban on import and export of food ingredients. The government's action affected customers since they were unable to purchase items during the government-mandated closure, thus affecting customer demand for the products. Furthermore, due to limits on the functioning of restaurants, bars, and geographically specialized sales channels, government-enacted stay-at-home directives have significantly limited the purchase of food ingredients for commercial use.
The use of starch has been witnessed to increase significantly in food processing, where it functions as both a stabilizer and an emulsifier to improve food quality. Long-term stabilization in food emulsion systems is ascribed to starch-based emulsifiers derived from micro and nanoparticles, hence increasing food structure, and preserving ability. These starch-based emulsifiers were created using a variety of processes, including hydrolysis, cold gelatinization, dissolution-precipitation, sedimentation, encapsulation, and the addition of hydrophobic components.
As a result, starch-based emulsifiers that successfully bind emulsion interfaces are produced. These emulsifiers effectively stabilize ”Pickering” emulsions, which are well-known for their high stability. An upsurge in demand for natural colors from various end-use industries, including food & beverages, bakery & confectionery, dairy products, meat & poultry, and seafood is expected to have a positive impact on the utilization of natural sources such as carotenoids, curcumin, anthocyanin, and carmine.
Furthermore, it possesses enhanced thickening and gelling properties as compared to its counterparts. In addition, pea starch has higher temperature & acid resistance as well as superior shear stability. Furthermore, starch is now extracted from rice, as rice starch has high freeze-thaw stability. Thus, expansion of the raw material base for manufacturing starch is expected to provide flexibility for the manufacturers and reduce dependency on a limited number of crops, thereby contributing to Europe food ingredients market growth.
This factor is expected to significantly contribute to the growth of the market during the forecast period. The clean label trend indicates that the food is prepared with natural colors and flavors. Furthermore, consumers are opting for alternatives to synthetic colors, and their increasing preference for natural colors is expected to drive the demand for clean-label food color ingredients, thereby supplementing the market growth. Natural colors are free of genetically modified organisms (GMO) and allergens, which act as antioxidants & coloring agents and protect the body against cellular damage, chronic diseases, and the effects of aging. For instance, red sandalwood offers wound-healing properties and is used in Ayurvedic treatment. Thus, the rise in awareness about the health benefits associated with natural colorants drives the growth of the Europe food colors market.
Moreover, the rise in consumer awareness about the usage of natural colors in food products has increased in the last few years. This factor creates further opportunities for manufacturers to focus on R&D activities to produce advanced natural colors with superior properties, including pH and heat stability. The rise in popularity of clean-label color products is attributable to a rise in health concerns among consumers and an increase in awareness concerning the health benefits associated with organic food colors. Consumer perception of organically grown food is that they are healthy and serve as a nutritious alternative to conventionally grown products.
The array of organic color products is now available and the retail channels through which they are sold have evolved in the market for food color products, which significantly contribute toward market expansion. In addition, a rise in awareness of medical advantages associated with organic food colors is anticipated to drive the demand for natural nourishment and drinks. GMO-free content, nutrient richness, zero growth hormones, zero antibiotics, fewer pesticides, improved freshness levels, and better environmental stability are the factors that attract a large consumer base toward these clean-label color products. Corn and wheat were considered the key raw materials for the production of starch; however, recent years have seen rapid expansion in the raw material base used for the manufacturing of food starch. For instance, pea starch has gained wide traction in the last few years, as it serves as a rich source of amylose.
Thus, an increase in the trend of clean-label food products is anticipated to provide remunerative opportunities for the players operating in the food starch industry. The small intestine prevents the digestion of resistant starch; thus, it enters the large intestine where bacteria present in the large intestine ferments it. Resistant starch aids in lowering cholesterol and fats. Furthermore, it decreases the production of new fat cells. In addition, it alleviates irritable bowel syndrome, constipation, diverticulitis, and ulcerative colitis, thus helping in the improvement of digestion. Furthermore, it enhances mineral absorption and prevents the development of abnormal bacterial cells in the colon. Furthermore, resistant starch helps in the improvement of insulin sensitivity via alterations in fatty acid flux between fat cells and muscle. Thus, the advantages offered by resistant starch are anticipated to offer remunerative opportunities for market expansion during the forecast period.
Furthermore, the manufacturers in the sweetener industry are continuously investing in R&D to expand their product portfolios and market presence. The need for cost-effective procedures for manufacturing sweeteners is expected to aid in minimizing the ultimate cost of the product and fuel the market's expansion. For instance, in April 2020, ERYSTA, the first polyol sweetener produced by Ingredion EMEA, enabled producers to decrease or replace sugar to fulfill nutrition-related claims including no added sugar or calorie-reduced in a variety of applications. Furthermore, Cargill, Incorporated, debuted its newest label-friendly sweetener TruSweet 01795 in 2020, which allows for a 30% sugar and calorie reduction in drinks and other food applications through reduced consumption levels. The entire food ingredients industry is expected to grow at an increasing pace in the upcoming years owing to the expansion of the range of sugar and sweetener producers.
Synthetic emulsifiers endanger consumer health by reducing the variety of gut microbiota, thus increasing the risk of obesity and chronic disorders such as inflammatory bowel diseases. Natural emulsifiers, on the other hand, have no negative effects on health; however, the emulsion process takes longer than conventional emulsifiers. Natural emulsifiers are difficult to extract, which makes the extraction procedure expensive, and hence the finished product is more expensive than other forms of emulsifiers. As a result, the use of semi-synthetic emulsifiers assists to shorten overall emulsion time and minimize emulsifier costs. The availability of semi-synthetic emulsifiers is projected to improve product sales, which is expected to offer remunerative opportunities for the expansion of the Europe food ingredients market during the forecast period.
The market is segmented into type, application, and county. Depending on the type, the market is classified into preservatives, emulsifiers, flavors, functional ingredients, sweeteners, thickeners, color additives, fat replacer, stabilizers & binders, pH control agents, food enzymes, and anti-caking agents. Depending on the application, it is segregated into beverages, dairy products, ready to eat meal, bakery & confectionery, sauces, dressing, & condiments, nutraceutical, animal feed, seafood, processed vegetables, frozen fruits, and syrups & gelatin. Country-wise, it is analyzed across Italy, the UK, Germany, France, and rest of Europe.
By Application
Seafood segment would exhibit the highest CAGR of 8.6% during 2023-2032, owing to the increased demand for food ingredients by the seafood food manufacturing companies .
According to the Europe food ingredients market analysis, on the basis of type, the sweetener segment gained a major share in the Europe market in 2018 and is expected to sustain its market share during the food ingredients market forecast period. Sweeteners are an essential food ingredient that is used across the processed food & beverage sector for manufacturing packed foods. It provides a sweet flavor and acts as a preservative due to the high osmotic pressure generated by sugar solutions. On the other hand, the European population is growing with time, and individuals' work pressure is increasing, leading them to seek out processed and packaged foods to save time and satisfy their hunger.
Moreover, the availability of processed food has increased over the years, which has influenced the eating habits of consumers. According to United Nations Children's Fund (UNICEF) in 2019-2020, school-aged teenagers consumed processed foods: 42% consumed carbonated sugary sodas at least once a day, and 46% ate fast food at least once a week.
According to Europe food ingredients market trends, on the basis of application, the nutraceuticals segment gained a major share in the Europe food ingredients market in 2018 and is expected to sustain its market share during the forecast period. Consumers across Europe are looking for customizable food, beverages, and dietary solutions that will help them more aggressively meet their unique nutrition and personal health goals. Active and health-conscious consumers have shifted their preference toward natural alternatives to sugar-based drinks that are rich in carbohydrates and unhealthy chemicals. Functional beverages consist of specific nutrients and supplements called nutrients, which enhance athletic performance and metabolism. Appropriate nutrition is an essential prerequisite for the effective improvement of athletic performance, conditioning, recovery from fatigue after exercise, and rapid recovery from an injury.
By Application
Seafood segment would exhibit the highest CAGR of 8.6% during 2023-2032, owing to the increased demand for food ingredients by the seafood food manufacturing companies .
According to Europe food ingredients market demand, on the basis of region, Rest of Europe dominated the Europe food ingredients industry in 2018 and is expected to remain dominant during the forecast period. The dominance of the countries of Rest of Europe in Europe is largely due to the deep product knowledge among the food & nutraceutical companies and the increase in usage of several types of food ingredients in functional foods to entice the interest of the consumers.
By Country
Italy would exhibit the highest CAGR of 6.8% during 2023-2032, owing to the increased demand for natural & organic food ingredients by the food manufacturing companies in Italy.
Players operating in the Europe food ingredients market have adopted various developmental strategies to expand their Europe food ingredients market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Ajinomoto, Inc., Archer Daniels Midland Company, Associated British Foods plc, Cargill, Incorporated, Celanese Corporation, DuPont de Nemours, Inc. (Danisco), Ingredion Incorporated (TIC Gums, Inc), Kerry Group, Roquette Freres, Südzucker Group (BENEO), Tate and Lyle PLC, Akzonobel N.V., BASF SE, Clariant AG, Evonik Industries AG, Koninklijke DSM N.V., Solvay SA, Kemin Industries, Inc., Chemelco International B.V., Givaudan International S.A. (Naturex S.A.), Palsgaard A/S, Univar, Inc., Corbion NV, Kao Corporation, Nexira SAS, Jungbunzlauer Holding AG, Ashland Global Holdings Inc., Fuerst Day Lawson Limited, ATP Group, Novozymes, Aromata Group S.r.L (Fiorio Colori S.p.A), Kalsec, Inc., Glanbia PLC (Ireland), and Mead Johnson & Company, LLC.
Key benefits for stakeholders
- This report provides an extensive analysis of the current trends and emerging estimations & dynamics of the Europe food ingredients market from 2018 to 2032, in terms of value.
- Detailed analysis of the market by type helps to understand the different types of food ingredients products that are currently in use, and the variants that are expected to gain prominence in the future.
- The Porter’s five forces analysis highlights the potency of buyers and suppliers to offer a competitive advantage to stakeholders to make profit-oriented business decisions and help strengthen their supplier & buyer network.
- Extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- Market share for all segments with respect to each country is detailed in the report, which helps understand the trends in the Europe food ingredients industry.
Europe Food Ingredients Market Report Highlights
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Analyst Review
According to CXOs, "One sweetener’s loss is another sweetener’s gain." The occurrence of obesity and weight-related concerns in individuals is rapidly growing, prompting people to change toward healthier eating options. Obesity raises an individual's risk of diabetes, cardiovascular mortality, and hypertension. Sugary products are not ideal for long-term consumption; therefore, the popularity of plant-based and artificially synthesized sweeteners is expected to increase in the upcoming years.
Hectic lifestyles of the urban population as well as a surge in the working population have reduced the time available for the consumption of cooked meals. This has encouraged the population to shift toward the consumption of processed food to fulfill hunger. As a result, to meet their calorie requirements, the population is migrating toward the consumption of sugary food.
The CXOs further added that manufacturers are focusing on displaying the transparency of the ingredients, which are added to the product, as the majority of the consumers choose products by reading the labels. In addition, consumers prefer products with organic and plant-based ingredients. Moreover, the increasing application of functional food in sports nutrition and clinical nutrition further boosts the growth of the functional food ingredients market.
Furthermore, the rise in the rate of internet penetration around the major parts of the world makes way for manufacturers to initiate several key online marketing programs. These online platforms are one of the easiest ways to create awareness about the benefits of food fortified with functional ingredients concerning various diseases including cardiovascular diseases, cancer, and obesity-linked diseases. Hence, tapping into such markets is expected to create potential opportunities for the expansion of the Europe food ingredients market.
The Europe food ingredients market size was valued at $69,201.0 million in 2018 and is projected to reach $137,748.9 million by 2032, registering a CAGR of 5.7% from 2023 to 2032.
The Europe food ingredient market registered a CAGR of 5.7% from 2023 to 2032.
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The forecast period in the Europe food ingredient market report is from 2023 to 2032.
The top companies that hold the market share in the Europe food ingredient market include Ajinomoto, Inc., Archer Daniels Midland Company, Associated British Foods plc, Cargill, Incorporated, and Others.
The Europe food ingredient market report has 2 segments. The segments are type and application.
: By type, preservatives segment in the Europe food ingredient market has the highest growth rate at a CAGR of 9.2% from 2023 to 2032.
Post-COVID-19, the Europe food ingredient market is witnessing new heights of growth and is expected to recover its losses in the next 1-2 years. The change in consumer consumption patterns has increased the popularity of low-calorie products that use natural food ingredients in the market.
By country, Rest of Europe will dominate the Europe food ingredient market by the end of 2032.
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