Food Inclusions are ingredients or constituents added to the food to enhance the colors, flavors, textures, nutrients, and other desirable properties of the food product. These inclusions are available in solid & semi-solid, and liquid forms mixed into the main product during its preparation or production process for their final consumption. Food inclusions include chocolate, fruit & nut, cereal, flavored sugar & caramel, confectioneries, and other materials which are applied for making different processed food, such as bakery products, dairy & frozen desserts, snacks & bars, etc.
Market Insights & Analysis: Global Food Inclusions Market (2023-28)
The Global Food Inclusions Market size was valued at around USD 13 billion in 2022 & is projected to grow at a CAGR of about 25% during the forecast period, i.e., 2023-28. The market has been dominated by restaurants, bakeries, and the food industry, owing to the large adoption of food inclusions to prepare authentic food items. The preparation of the food items generally contains food inclusions such as nuts, fruit flavor, chocolate, caramel, etc., which serves as an essential component for enriching the taste, nutrient values, and other properties of the food. Nuts such as peanuts, almonds, walnut, cashews, etc., are some prominent nuts used majorly for cooking purposes.
Additionally, the growing use of vanilla essence & lemon, among other liquid- & powder-based natural flavors, including cocoa, in bakeries & beverage production units to enhance the flavor of food items has further augmented the Global Food Inclusions Market size. The surging popularity of cakes & other confectionery items at large & small celebrations such as weddings, birthdays, and anniversaries has also played a key role in enhancing the market outlook of food inclusions across the globe.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, Qatar, Egypt, South Africa, Rest of Middle East & Africa|
|Key Companies Profiled||Sensient Colors LLC, Taura Natural Ingredients Ltd., Georgia Nut Company, Nimbus Foods Ltd., Cargill Incorporated, Barry Callebaut, Kerry Group plc, Tate & Lyle Plc, AGRANA Beteiligungs AG, FoodFlo International Ltd., Others|
|Market Value (2022)||USD 13 Billion|
Besides, the increasing number of food manufacturing units in the regions such as the Middle East, South America, and Asia-Pacific have been necessitating the demand for food inclusions to manufacture processed food. The food security concerns & the reduction of the import dependency on food & beverage items have led to the development of various food & beverage production plants in the countries such as Saudi Arabia, the UAE, Indonesia, India, Kuwait, etc. With this implementation, the Food Inclusions Market has been gradually increasing & is projected to spur in the forecast years as well.
Furthermore, the growing consciousness among consumers towards health & hygiene, and fitness have been one of the prominent factors that would positively impact the market outlook of the Global Food Inclusions market in the forecast period. The outbreak of the COVID-19 pandemic has also increased the trend of the food products such as yogurt, fortified breakfast cereals, etc., which contain high nutritional value & immune-boosting ingredients. Hence, seeing the consumer behavior towards health & hygiene, various companies like Nestle, Amul, Pepsico, Unilever, etc., have been producing food items with improved nutritional value & taste, further leading to the expansion of the market in the ensuing years.
Global Food Inclusions Market Driver:
Surge in the Production of Bakery Products to Enhance the Market Growth - The rising consumption of bakery products by all age groups, owing to the growing disposable income of the residents & the surging influence of ready-to-eat products at a reasonable cost, has led to a notable rise in the demand for food inclusion, like cereal, fruit & nut cocoa, etc., for enhanced texture & taste.
Considering the mounting popularity of bread & its use in other food products, the bread manufacturers such as Mondel?z International, Kellogg Company, and Associated British Foods Plc, etc., are progressively launching these packed bread in different flavors, such as apricot brioche bread, olive bread, pesto focaccia sandwich bread, etc. Thus, the spike in production activities of bread has positively contributed to enhancing the Global Food Inclusions Market size.
Additionally, cakes also hold a prominent share of bakery products, and in recent years the sales of packed cakes have increased considerably. This is due to the rising consumption of cakes on almost all occasions, including birthdays, festivals, anniversaries, etc. The same demand pattern is expected to sustain in the forecast years as well due to the growing trend of individuals towards such food products, further propelling the Food Inclusions Market size.
Global Food Inclusions Market Possible Restraint:
Quality & Safety Assurance Has Emerged to be a Challenging Area for Market Growth – Ensuring quality & safety assurance has been one of the leading causes that have been restraining the expansion of the Global Food Inclusions market size. Maintaining consistent product quality & adhering to strict food safety regulations are critical factors for the success & reputation of food inclusion manufacturers. The industry has to tackle issues related to ingredient sourcing, processing, and handling to avoid contamination & ensure that the inclusions are safe for consumption. Additionally, as consumer awareness about food quality & safety grows, companies face increasing pressure to be transparent about their ingredients & manufacturing processes. Overcoming these challenges has been crucial in meeting consumer demands as well as maintaining a competitive edge in the market.
Global Food Inclusions Market Growth Opportunity:
Leaning Preference of Consumers Towards Beverages to Expand the Market Size of Food Inclusions - There has been a change in demographic patterns in the world, as the working-age population between 15-64 years increased from nearly 4.97 billion in 2018 to around 5.1 billion in 2021, states the World Bank. The growing working-age population has led to a general rise in the income levels of individuals, thereby leading to a speedy production of functional beverages, specifically alcohol, beer, etc., that use a large number of food inclusions to enhance their taste & properties.
Further, with the rising adoption of energy drinks among working adults, as these energy drinks are often marketed as energy boosters & stress relievers, the production of these drinks among the manufacturers, such as Budweiser, Red Bull, etc., has notably increased. This is creating lucrative revenue growth opportunities for the Food Inclusion Market in the forecast years, as a considerable quantity of raspberry, blueberry, sugar, and other citrus flavors are added to the drink to enhance the taste.
Global Food Inclusions Market Key Trend:
Rising Consumption of Food Products with Natural Flavors Among the Residents – In recent years, rapid urbanization has led to a wide-scale prevalence of sedentary lifestyles, resulting in an increased prevalence of the disease among individuals, such as obesity, diabetes, high/low blood pressure, cardiovascular disease, etc. According to the WHO, nearly 17.9 million patients died in 2019, as a result of cardiovascular diseases, accounting for approximately 32% of all global deaths.
The high prevalence of diseases has shifted the consumer’s preference, as they now are switching to natural food & beverage products instead of consuming products filled with chemicals. As per the Plant-Based Food Association, in the US, the natural & organic product industry grew from approximately 5% in 2019 to nearly 12.5% in 2020 to reach USD260 billion and is expected to grow manifold in the upcoming years due to the rising preference of consumers towards 100% naturally manufactured food products.
Thus, the growing health awareness & the rising consumption of food & beverages with functional benefits is expected to boost the demand for natural flavoring agents, as they are used as a key ingredient in the food & beverage industry. Thereby, positively impacting the Global Food Inclusions Market outlook during the forecast years.
Global Food Inclusions Market (2023-28): Segmentation Analysis
The Global Food Inclusions Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the level. Based on the analysis, the market has been further classified as:
Based on Type:
The Chocolate segment captures a promising share & is witnessing a surge in the Global Food Inclusions Market due to the growing uses of chocolate chips or chunks for producing baked goods like cookies, muffins, cakes, and others. The demand for chocolate as a food inclusion has also surged owing to its growing addition in the manufacturing of drinks & beverages such as hot chocolate, mochas, chocolate milk, etc. Moreover, the soaring inclination & preferences of consumers towards flavored-based ice creams, breakfast cereals, and granola bars would further aid in influencing the Global Food Inclusions market growth during the forecast period.
Based on Application:
The Bakery Products segment occupied a prominent share of the Global Food Inclusions Market in the historical period & is expected to expand at a rapid pace in the coming years as well. Bakery products such as bread have remained an essential part of diets across the world due to the ease of cooking & growing demand for ready-to-eat food products such as bread, muffins, and others.
The continued demand for bakery products such as cakes & bread, as it is considered a staple diet in the Middle East, Central Asia, North Africa, and Europe, has widely supported the growth of the Food Inclusions Market globally due to the dominant use of ingredients such as chocolate chips or chunks, nuts & seeds, dried fruits, sprinkles, etc., in the manufacturing of bakery products.
Global Food Inclusions Market Regional Projection:
Geographically, the Global Food Inclusions Market expands across:
Asia-Pacific region is projected to account for the dominant share of the Food Inclusions Market during the forecast period owing to several factors, such as rising health concerns among individuals as well as the expansion of the food & beverages industry in the region. The pandemic has significantly increased health awareness, and customers have altered their lifestyles by becoming more diet conscious. This trend has resulted in a rise in the number of food & beverage companies focusing on providing consumers with nutrient-rich food & beverage products.
Various products, such as enhanced water, milk-based drinks, yogurt, confectionery, baked food items, juices, and others, have been introduced in the region containing high nutrient value to attract health-conscious consumers. Thus, enhancing the market outlook for food inclusions in the future years.
Global Food Inclusions Industry Recent Development
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Frequently Asked Questions
A. The Food Inclusions Market is expected to grow at a CAGR of around 7% during 2023-28.
A. The surge in the production of bakery products is expected to drive the Food Inclusions Market during 2023-2028.
A. Sensient Colors LLC, Taura Natural Ingredients Ltd., Georgia Nut Company, Nimbus Foods Ltd., Cargill Incorporated, Barry Callebaut, Kerry Group Plc, Tate & Lyle Plc, AGRANA Beteiligungs AG, FoodFlo International Ltd., and Others are the top players in Food Inclusions Market.
A. Chocolate is the leading type in the Food Inclusions Market.
A. The rising consumption of food products with natural flavors among the residents are the key trend shaping the growth of the Food Inclusions Market.
A. The leaning preference of consumers towards beverages to be a potential opportunity in the Food Inclusions market through 2028.
A. The quality & safety assurance for the food inclusions is affecting the growth of the Food Inclusions Market, hence becoming a restraint to the market expansion.
Global Food Inclusions Market Research Report (2023-2028) - Table of Contents