Bulk Food Ingredients Market

Key Points Covered in Bulk Food Ingredients Market Survey

• Market estimates and forecast 2021-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Bulk Food Ingredients and how to Navigate
• Recommendation on Key Winning Strategies

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Bulk Food Ingredients Market Historic Sales Compared to 2021-2031 Forecast Outlook

As per FMI’s analysis, demand for bulk food ingredients grew at a moderate pace, exhibiting 4.30% CAGR from 2016 to 2020. Growth can be attributed to rising disposable income and increasing consumption of ready to eat meals in emerging economies.

In 2020, consumers and retailers stockpiled instant foods like noodles and pasta, snacks, bakery goods and ready to eat meals, in response to the global lockdown restrictions. This process increased sales of such products, however, severe gaps in demand and supply of bulk food ingredients were observed.

However, fast-tracked vaccination drives have proven a boon for the food and beverage industry. With production, supply and retail slowly gaining ground. As per FMI’s analysis, these factors will continue supplementing growth, projecting the global bulk food ingredients market to expand at a healthy 5.20% CAGR through 2031.

How Will Increasing Demand for Gourmet Food Ingredients Impact Market Growth?

Cultural influence and growing interest in culinary arts among home-bound individuals is spurring demand for gourmet bulk food ingredients. Food enthusiasts across the globe spend extra time on food preparation and obtaining information about the source of origin to achieve that gourmet effect.

Gourmet, as a term, reflects the usage of superior quality ingredients and presentation of dishes in a luxurious manner. These dishes generally incorporate ingredients that require extra care and are hard to acquire.

As gourmet ingredients are internationally sourced and found in certain locations, food manufacturers are increasingly focusing on ways to provide these ingredients in bulk. With advanced packaging techniques, several companies are launching products such as unique blends of herb and spices, along with sauces and condiments that have a distinct flavour profile.

As the demand continues to grow, gourmet food ingredients can be found at speciality stores, stand-alone gourmet stores and direct-to-consumer online channels. For instance, grocery stores have typical cheeses and dairy products in the dairy section, whereas gourmet and higher-quality imported cheese in kept in the gourmet section. While more complex ingredients can be delivered to homes/shops from the source of origin through online channels.

Besides this, restaurateurs, café owners and pop-up restaurant chefs seek gourmet and international food ingredients for the dishes in their menus. As a result, bulk food ingredient manufacturers are investing in acquisitions and partnerships to import ingredients including exotic processed nuts, truffle oil, white vinegar and speciality teas.

Gourmet food ingredients have also paved their ways into snacks, bakery products and frozen food. For busy individuals, similar taste and luxury can be obtained through ready to eat meals and frozen gourmet food, translating into scope for expansion in the bulk food ingredients market.

Plant-based Ingredients Are Creating New Opportunities for Key Stakeholders

In response to rising consumer awareness, manufacturers are seeking ways to leverage lesser known, highly-nutritious plant-derived ingredients. Ingredients in food categories including bakery, ready to eat meals and savoury snacks are swiftly replacing chemical and animal-derived products.

The main reason behind these dietary changes are increasing medical-based claims related to benefits of plant-based products, along with public health authorities encouraging the consumption of the same. Apart from this, perceived negative effects of animal-based food and environmental factors are leading consumers to reduce meat intake, if not eliminating it completely.

Plant-based foods play a crucial role in basic human nutrition and well-being. Renewed interest in the health benefits obtained from plant-based foods can be subjected to the need for alternative strategies for disease control.

Plants accumulate a wide array of complex compounds known as phytochemicals which are essential for preventing certain chronic ailments. Phytochemicals comprise organic and inorganic compounds with nutrients and vitamins including vitamin A, C and E, calcium, iron, potassium, magnesium and zinc, which can potentially improve health and digestion.

Owing to these factors, plant-based ingredients are gaining significance among consumers and food producers alike. Consumers are also looking for legumes, grains, vegetables and fruits in convenient formats for easy incorporation and longer shelf life.

Besides this, prevalence of glutton-free and vegan food culture is a chief factor driving demand for plant-based bulk food ingredients. Diversification in plant-based ingredients is allowing manufacturers to develop meat-like food products, replicating the texture, protein blends and flavours.

Ingredients such as pulses, legumes and beans can provide clean label alternatives for egg protein. Similarly, almond-derived milk alternatives and soy milk are gaining popularity among consumers suffering from lactose-intolerance.

In addition, cleaner label concept that focuses in minimal processing and shorter ingredient list has propelled the adoption of plant-based food ingredients. This factors is creating avenues for innovation and new product launches for application of bulk food ingredients in ready to eat meals, sauces & dressings and frozen food products.

Will Packaged Food Industry Continue Driving the Bulk Food Ingredients Market?

Increasing prevalence of urbanization and western influence in emerging economies is boosting sales of packaged food products, resulting in high demand for bulk food ingredients in the food and beverage industry.

Due hectic lifestyles and tight work schedules, individuals are finding it hard to dedicate the required amount of time for meal prepping and cooking. To tackle this problem, consumers are relying on packaged food and ready to eat meals to reduce the time involved in cooking and prepping.

In addition to reduced cooking time, packaged food products can be consumed on the go, making them great options for working individuals and travel enthusiasts. This factor has largely impacted the bulk food ingredients market, with increasing demand from the packaged food industry.

In tandem with fluctuating consumer preferences, food brands are launching interesting flavour profiles and ingredients in packaged food products. Apart from this, sales of products targeting health concerns such as sugar-free bakery products, diet sauces and condiments and glutton free snacks and biscuits are gaining traction, thereby propelling sales of bulk food ingredients.

Country-wise Insights

How Will Bulk Food Ingredients Sales Fare Across the U.S.?

As per ESOMAR-certified consulting firm FMI, the U.S. is anticipated to witness high demand for bulk food ingredients, with the North American market exhibiting a steady 4.60% CAGR through 2031.

The U.S. is home to technological advancements and innovations in the food and beverage industry. Emergence of diets such as vegan, glutton-free and keto is encouraging product developments in the food and beverage industry, thereby bolstering sales of bulk food ingredients.

Increasing awareness regarding plant-based ingredients in packaged and ready to eat meals is a key factor propelling expansions in the market. Rising per capita expenditure in the country, coupled with prevalence of leading players such as Dupont, Archer Daniels Midland Company and Cargill Foods Inc. are expected to significantly drive sales of bulk food ingredients during the assessment period.

What is the Growth Scenario of the Bulk Food Ingredients Market in the U.K.?

Growing demand for convenience food products such as bakes goods, snacks, yoghurt and dairy beverage among consumers in the U.K. is expected to augment bulk food ingredients market growth.

With a favourable demand outlook in the U.K., FMI projects the European market to grow at a steady 5.10% CAGR through 2031.

Benefits of convenience foods such as longer shelf life, minimal preparation time and easy availability through online and offline retail channels are key factors fostering sales in the U.K.

In addition, high preference for speciality and gourmet products comprising low-fat dressings, processed meat products, premium quality nuts and pulses in the restaurant industry is ushering innovations in the bulk food ingredients market.

Will China Emerge as a Lucrative Bulk Food Ingredients Market?

Amid rapid urbanization and improving consumers lifestyle, growth of bulk food ingredients market in China is on card. Fast track schedules and growing need for more convenient and easy to store food products in the country are attracting sales.

In a fast-growing economy like China, sales of ready to eat meals is increasingly gaining momentum. Furthermore, incorporation of western ingredients and demand for global foods in the country is fostering sales of bulk food ingredients.

However, skepticism regarding the shelf life and ingredients used in processed foods may hamper sales in the market. To counter this issue, food producers are retailing products with cleaner ingredient lists, which is creating opportunities for innovation in the bulk food ingredients market.

Bulk Food Ingredients Sales to Remain High in India

Booming agriculture industry in India is placing the country as an attractive bulk food ingredients market. As the Indian population embraces western food culture, demand for bulk food ingredients will continue rising, opines FMI.

Demand for global foods such as instant noodles, pasta, salad dressings, bakery products and breakfast cereals is encouraging global bulk food ingredient producers to expand their operations in India.

Additionally, high-quality agricultural output in India in terms of grains, pulses, tea, coffee and sugar is attracting attention in western markets, providing tailwinds to bulk food ingredients sales.

Category-wise Insights

Sales of Processed Herbs & Spices to Reign Supreme

As per FMI’ market analysis, processed herbs & spices are anticipated to capture maximum sales in the bulk food ingredients market. Herbs and spices enhance the taste and aroma of home cooked as well as processes and packaged food products, making them the most preferred bulk food ingredient in the market.

Incorporation of spices and herbs such as black pepper, oregano, parsley, sage, cardamom, ginger, cloves, nutmeg and bay leaf in various categories including processed meat, beverages, ready to eat meals and savoury snacks is anticipated to emerge as a key growth accelerator.

Applications in Ready Meals to Continue Rising

As consumers juggle between work and personal life, ready meals are emerging as a handy option for a quick lunch or dinner. Owing to this factor, a large number of consumers are resorting to ready meals, seeking high-quality ingredients and diverse flavour profiles in the products.

In response to increasing demand for ready meals, food manufacturers are launching international variants ranging from soups, full course meals to premade sauces and condiments. As a result, sales of bulk food ingredients are forecast to gain momentum in the upcoming years.

Competitive Landscape

According to FMI’s market survey, leading players in the market are investing in acquisitions, collaborations and partnerships to source locally grown premium ingredients to improve sales.

Top players in the bulk food ingredients market include DuPont, Cargill Foods Inc., Archer Daniels Midland Company, Associated British Foods plc, Koninklijke DSM N.V., holding 20-25% of the total market share.

Besides this, new product launches and production facility expansions will remain key growth strategies among stakeholders in the bulk food ingredients market. For instance:

• In July 2021, Tate & Lyle PLC launches a new sustainability program to promote stevia production in China, attempting to minimize environmental impact and gain better economic value from the production of the plant-derived sweetener. Through this program, farmers in Dongtai, East China, will be trained to modernize farming practices and achieve sustainable growth of stevia.
• In June 2020, Associated British Ports (ABP) unveiled its polans to invest US$ 11 Mn to build new port facilities for Frontier Agriculture in the Post of Hull. Under the 12-year deal, ABP plans to commission a new 6,455 square meter capacity warehouse in Frontier to store agricultural products, particularly grains, for production of bulk food ingredients.

Scope of Report

Key Questions Answered in the Report

• What is the current bulk food ingredients market value?

  The bulk food ingredients market reached a valuation of US$ 771.6 Bn in 2021.

• At what rate did the bulk food ingredients market grow between 2016 and 2020?

  The bulk food ingredients market experienced modest growth, exhibiting a 4.30% CAGR between 2016 and 2020.

• What are the key trends driving bulk food ingredients sales?

  Growing demand for instant food products and ready meals, coupled with longer shelf life and convenience offered by processed food is driving the bulk food ingredients market.

• Who are the leading players in the Bulk food ingredients market?

  Leading players operating in the bulk food ingredients market include DuPont, Cargill Foods Inc., Archer Daniels Midland Company, Associated British Foods plc and Koninklijke DSM N.V.

• What will be the demand outlook for North America Bulk food ingredients  market?

  North America bulk food ingredients market is anticipated to witness high growth during the forecast period, exhibiting a 4.60% CAGR.

• What is the market share of leading players in bulk food ingredients market?

  Top players in the bulk food ingredients market are estimated to account for approximately 20-25% of the total market share.

• What will be the bulk food ingredients market share in Europe?

  The bulk food ingredients market in Europe is expected to grow at a healthy pace, expanding at a 5.10% CAGR through 2031.  

• What is the current market share of Japan and South Korea in the global bulk food ingredients market?

  Japan and South Korea will collectively account for 6.2% and 4.8% of the total market share respectively.

Bulk Food Ingredients Market by Category

By Product Type: 

• Vegetable Oil
• Sea Salt
• Sugar & Sweeteners
• Tea, Coffee & Cocoa
• Flours
• Processed Grains, Pulses & Cereals
• Dried Fruits & Processed Nuts
• Processed Herbs & Spices

By Application Type:

• Bakery & Confectionery
• Beverages
• Meat & Poultry
• Sea Food
• Ready Meals
• Dairy Products
• Snacks & Savory
• Sauces & Dressings and Condiments
• Frozen Foods

By Region:

• North America
• Latin America
• Europe
• East Asia
• Oceania
• Middle East & Africa (MEA)