Low Melt Inclusions Market

Low Melt Inclusions Market Overview

The global low melt inclusions market is estimated to expand at a CAGR of around 6% to 7% during the forecast period 2022-2032. Rapidly expanding food & beverage industry and rising customer inclination towards adopting convenient and packaged food products worldwide is expected to augment the demand for low melt inclusions in the global market.

Food inclusions are ingredients added in food items to enhance the aesthetic, sensory, and organoleptic properties of products. Low melt inclusions, also known as low soften inclusions, are fat-based food constituents that have a lower melting and dissolving point. These ingredients, unlike conventional fat-based inclusions, do not require high temperature and start melting at temperature around the 80o F.

Due to the lower melting point of these food constituents, they melt in the mouth and offer the desired texture and taste. These low soften inclusions contain sugar, a flavor, and a fat source as the main ingredients. They are available in flakes and nugget forms in flavors such as chocolate, caramel, vanilla, tropical fruits, and cinnamon among others.

Addition of these low soften incorporations into food items enhances the richness, mouthfeel, and visual allure. Attributed to these benefits, low melt inclusions are gaining huge popularity across diverse food sectors such as food industrial processing, frozen desserts, dairy products, confectioneries, and others.

They are extensively being used in the preparation of frozen pastries, frozen yogurt, jellies, ice creams, candies, and others. Hence, increasing consumption of aforementioned products is estimated to create lucrative opportunities for the growth in the global low melt inclusions market in the forthcoming years.

Which are Some Prominent Drivers Spearheading Low Melt Inclusions Market Growth?

In recent years, demand for specialty foods and ready-to-eat food products is increasing at a rapid pace, owing to the rising working population and growing customer inclination towards adopting convenient food products. This is resulting in a rapid expansion of the processed food product industry across the world, which is in turn, creating growth prospects for food constituents such as low melt inclusions in the global market.

Also, with surging trend of eating frozen desserts such as cakes, pastries, ice creams, and others, post dinners or during movies, especially across the countries such as the U.S., Germany, China, India, and others, a swift rise in demand for these products is being witnessed. Hence, key industry players in the market are aiming at increasing their production capacity to cater to this growing demand.

For instance, in 2022, The Ice Cream Factory, a U.S.-based manufacturer of frozen desserts announced investing nearly US$ 9 Mn for constructing a new manufacturing plant in Lebanon, Missouri to expand their ice cream production capacity. As low melt inclusions are extensively used in production of ice creams to enhance the richness and mouthfeel of the product, such developments are estimated to bolster the demand in the global market.

What are the Challenges Faced by the Low Melt Inclusions Market?

The most common fat source of low melt inclusions is vegetable which is generally hydrogenated to get the required consistency. The partial hydrogenation of these oils leads to the generation of the trans-fat which has adverse effects, such as increased bad cholesterol and decreases good cholesterol, on health when consumed at higher levels.

Thus, implementation of stringent guidelines and restrictions on the ingredients containing trans-fat more than 0.5% by regulatory organizations such as the Food and Drug Administration is posing a challenge for the market growth.

In addition to this, decline in consumption of products with high calories such as frozen desserts and confectionaries, due to growing burden of obesity & diabetes and rising health-conscious population is hindering the sales of low melt inclusions in the market.

Why is North America Emerging as an Opportunistic Low Melt Inclusions Market?

As per FMI, North America is anticipated to account for the dominant share in the global low melt inclusions market between 2022 and 2032.

With growing consumer spending on leisure activities and growing trend of foodies across North America, a significant rise expansion of the hotel, cafés, bakeries, and others sectors is being witnessed. Hence, numerous industry players are aiming at launching novel outlets to capitalize on the existing opportunity.

For instance, in 2021, Angelina Bakery, a U.S.-based bakeshop announced opening a new flagship bakeshop in the heart of Manhattan to expand its footprint in New York. This rise in bakery shops is estimated to augment the demand for frozen pastry-making ingredients such as low melt inclusions in the North America market.

Nandini Roy Choudhury

Principal Consultant

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How is Europe Contributing to the Growth of the Low Melt Inclusions Market?

As per Future Market Insights, Europe is estimated to project rapid growth in the global low melt inclusions market during the forecast period 2022-2032.

Growing consumption of frozen desserts, ice creams, frozen pastries, jellies, and others in Europe have resulted in creating immense demand for aforementioned products across countries such as the U.K., Germany, France, and others.  

Hence, key industry players are aiming at launching novel products to cater to this surging demand. For instance, in 2021, HARIBO, a German confectionery company announced introducing a new Summer Edition Goldbears, featuring classic gummy bear shapes in six fruity flavors and colors. As low melt inclusions play a vital role in maintaining the softness and melting attributes of these confectionery products, such developments are estimated to accelerate the demand in the Europe market.

Market Competition

Some of the leading players in the low melt inclusions market are Denali Ingredients, Pecan Deluxe Candy [Europe] Ltd., Balchem Corporation, Inclusion Technologies, Gertrude Hawk Chocolates, Barry Callebaut, and others

Key participant are aiming at launching new products and expanding their production capacity to gain edge in the highly competitive market.

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Report Scope

Key Segments Profiled in the Low Melt Inclusions Market Survey

By Form:

• Flakes
• Nuggets

By Density:

• High Density
• Low Density

By Flavor:

• Chocolate
• Vanilla
• Tropical Fruits
• Caramel
• Cinnamon
• Others

By End Use:

• Industrial Processing
• HoReCa (Hotels, Restaurants, Cafes)
• Dairy Products
• Confectionery
• Frozen Desserts
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa