The global spray dried food sales are estimated to be worth 62.8 billion USD in 2024 and are projected to reach a valuation of 131.8 billion USD by 2034, expanding at a robust CAGR of 7.7% from 2024 to 2034.
Consumption of spray dried food has shown explosive growth over the past few years mainly driven by the rise in demand for dried powdered ingredients in the end-use industry for better product development.
End-user industries like confectionary, baked goods, dessert products, and baby food manufacturers including the individual consumers that use products for household purposes are actively seeking the more convenient components that are best suitable for their food products.
| Attributes | Description |
|---|---|
| Estimated Global Spray Dried Food Size (2024E) | USD 62.8 billion |
| Projected Global Spray Dried Food Value (2034F) | USD 131.8 billion |
| Value-based CAGR (2024 to 2034) | 7.7% |
| Particular | Value CAGR |
|---|---|
| H1 | 6.7% (2023 to 2033) |
| H2 | 7.3% (2023 to 2033) |
| H1 | 7.9% (2024 to 2034) |
| H2 | 7.5% (2024 to 2034) |
The above table presents the expected CAGR for the target domain over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 6.7%, followed by a slightly higher growth rate of 7.3% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 7.9% in the first half and remain growing moderately at 7.5% in the second half. In the first half (H1) the community witnessed increase of 67 BPS while in the second half (H2), the market witnessed an decrease of 43 BPS.
Several government initiatives in developing countries across the globe are also boosting the ingredient industry to keep growing in economic development and raise the start-up culture in their country. Key manufacturers eagerly capture this trend to expand their presence across the regions.
Growing consumer awareness about their daily food consumption is also likely to propel the growth of the industry. Products sold among consumers to involve key components in their daily diet are also gaining noteworthy traction in the current scenario.
Spray-dried food powders are versatile, stable, and convenient ingredients used across various industries. The process of spray drying converts liquid food into fine powder by rapidly drying it with hot gas, preserving nutrients, flavor, and aroma while extending shelf life. In the food and beverage industry, these powders are used in convenience foods like instant soups, sauces, and ready-to-eat meals, providing ease of reconstitution and consistent quality.
They are also popular in beverages, enhancing flavor and nutritional value. In bakery and confectionery products, they contribute to better-tasting and healthier products. Nutraceuticals and dietary supplements benefit from stable and easily stored vitamins and minerals. The dairy industry relies on milk powders for cheese, yogurt, and ice cream production, ensuring consistency and extended storage.
In infant formula production, these ingredients meet precise nutritional requirements, offering a long shelf life and ensuring safety for infants. In pharmaceuticals, they ensure that active compounds remain stable and effective over time, essential for producing reliable medications.
The benefits of target products to these industries are manifold. They reduce transportation and storage costs due to their lower weight and volume compared to liquid forms. They also ensure consistent product quality and safety, which is vital for maintaining consumer trust and meeting regulatory standards.
Furthermore, it facilitates product innovation by enabling the development of new products with enhanced flavors, nutrients, and functional properties. Lastly, their extended shelf life minimizes spoilage and waste, which is crucial for maintaining profitability and sustainability in competitive markets.
In essence, spray-dried foods offer functional and economic advantages that support the diverse needs of end-use industries, driving innovation and growth.
Enormous shelf life of products helping to decrease global food waste
Spray dried food is typically manufactured by liquid drying technology which involves continuous heating of the liquid to convert it into a powdered solid form. This process not only increases the shelf life of converted fruits and vegetables but also plays a major role in reducing the global waste of fruits and vegetables.
The increased shelf life of powdered food products appealing the global food service industry and small-scale businesses. Health drinks, nutraceutical products, Ayurveda products, and baby food are becoming the key consumer industries for dry powders. Ease of storage, lightweight, and high nutritional value are the key factors anticipated to fuel the demand.
Convenience factors and potential applications: key driver for manufacturers
Increasing attraction to the health benefits of dietary consumption due to high spending power in developed regions is expected to fuel the demand for ingredients sourced from natural products like fruits vegetables and milk.
Growth in appetizers, sweetmeat, and baked food industries is a foremost lashing factor for spray dried food consumption growth, as manufacturers are focused on producing healthier edibles owing to high demand for the product. Convenience in transportation and new fair trade policies across the regions are also making the way for manufacturers to expand their production in developing countries.
Technological advancements in spray drying leveraging the ease of doing business
Spray drying is becoming a preferred choice for innovation of highly soluble quickly dispensable key ingredients derived from natural sources. Techniques like pulse combustion, electrostatic drying, Nano drying, and extrusion purification are becoming more efficient methods for production with a minimum nutrition loss from original natural sources.
These techniques are helping the key manufacturers meet the changing demand of potential buyers of potential ingredients like fruit powders. Companies are actively seeking innovation in developing new shapes like granulates, slices, and more.
Global sales increased at a CAGR of 7.5% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that value will expand at a CAGR of 7.7%.
In recent years, slow and steady sales for powdered milk, fruits, and fisheries can be attributed to the rising fitness and nutrition industry. With consumers' rising consciousness about health and wellness and the expanding nutrition industry, the demand for such components including spray dried food has skyrocketed. The limited protein sources for vegetarians have also propelled sales.
With the evolving methods and the rise of advanced processing techniques, it has become easier for companies to produce high amounts of good quality flavors in a shorter period, catering to diverse consumer demands.
In addition, collaborating with wholesalers and retailers helps the brands to better position their products in the business landscape and make them available on shelves of convenience stores. This ensures the availability for not only retail purposes but also food service and industrial applications.
Tier 1 companies comprise leaders with revenue of above USD 50 million capturing a significant share of 50% to 60% in the global market. High production capacity and a wide product portfolio characterize these leaders. These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include Nestle SA, Kerry Group, Unilever, Döhler GmbH, Givaudan, and others.
Tier 2 companies include mid-size players with revenue of USD 10 to 50 million having a presence in specific regions and highly influencing local consumption. These are characterized by a strong presence overseas and strong product knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Ajinomoto, AZO GmbH & Co. KG, Delecto Foods, Mercer Foods, and others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche spheres having revenue below USD 10 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach.
Tier 3, in this context, is recognized as an unorganized business, denoting a sector characterized by a lack of extensive structure and formalization compared to organized competitors.
The following table shows the estimated growth rates of the top three countries. China and Germany are set to exhibit high spray dried food consumption, recording CAGRs of 12.3% and 10.7%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.7% |
| Germany | 6.2% |
| China | 8.3% |
| India | 7.2% |
Spray dried food manufacturing and processing industry in the United States is projected to exhibit a CAGR of 5.7% during the assessment period. By 2034, the revenue from the industry in the country is expected to reach 21.8 billion.
The fruit processing industry in the country has expanded significantly over the last few years, leveraging the different product formulations derived from the fruits including spray dried fruit powders. Potential applications of these produced powders are finding their way to rise as key ingredients in end-user industries to enhance the flavor, taste, and texture of products.
Moreover, the demand for plant-based dishes in the food service industry is also making way for the expansion of fruit powders due to culinary applications. Widespread markets, technological advancements, and a focus on sustainable packaging are the key factors helping manufacturers boost their revenue and reduce the cost of production.
India holds a significant share in the consumption of dried food due to its large population and growing demand for convenience foods. The country's dairy industry is the world's largest milk producer, and drying is a widely used technology to convert milk into various forms, such as milk powder, milk protein concentrates, and whey powder.
Additionally, the increasing awareness of health benefits from dietary consumption and the growing demand for nutrient-rich foods are driving the growth of the target industry in India. The rise in spray-dried food consumption in India is driven by its convenience, long shelf life, and preservation of nutrients.
Busy lifestyles increase demand for easy-to-prepare foods. Additionally, spray drying enhances flavors and maintains nutritional value, appealing to health-conscious consumers. Improved distribution and affordability also contribute to its growing popularity.
| Segment | Milk Powders (Dairy Products) (Product Type) |
|---|---|
| Value Share (2024) | 33.4% |
As a heat sensitive, milk is considered a nutritious liquid with a low shelf life. Spray drying technology is becoming a boon for this global crisis. Due to the convenience of consumption along with a healthy diet, milk powder is gaining more and more popularity among consumers.
Easy preparation of instant tea and coffee with milk powder is also a key reason that the technology is expanding in milk processing. As tea and coffee are, the most common consumer beverages different aspects of the food service industry like restaurants, cafes, and the travel industry are also fuelling the dominance of milk powder in spray dried food market.
| Segment | Confectionary (Application) |
|---|---|
| Value Share (2024) | 26.8% |
Spray drying allows for the efficient removal of moisture from confectionery ingredients, resulting in powdered forms that are easy to incorporate into various products. This process helps extend the shelf life of confectionery items by preventing microbial growth and maintaining the desired texture and flavor.
Spray dried ingredients like milk powders, fruit powders, and cocoa powders are widely used in chocolates, candies, and other confections to provide consistent taste and quality.
The ability to control particle size and density through advanced technology also enables the development of novel confectionery textures and mouthfeels. As consumers demand more convenient and shelf-stable confections, the use of essential components will continue to grow in the industry.
The global spray-dried food market encompasses diversified product portfolios of several key manufacturers across the regions. Leading players in the industry are consistently focusing on increasing their market share. From raw material sourcing to converting them as a key ingredient for the end-user industry companies are striving to maintain their supply chain to keep themselves competitive.
Key players are also focusing on creating their own raw material sources like large fertile lands for fruits and vegetables, exclusive dairy farms to reduce raw material expenses, and reduce the dependency on other resources, such strategies leveraging them to maintain their cash flow and increase the overall growth and revenue.
For instance
As per product type industry has been categorized into Fruits and Vegetables, Beverages, Dairy Products, Fish, and others
This segment is further categorized into Desserts, Confectionary, Baked Goods, Flavoured Beverages, Baby food, and others.
Different distribution channels include B2B, Food Service, B2C(Supermarkets and Hypermarkets, Independent Retailers, Specialist Retailers, Online Stores)
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
Throughout the forecast period, the revenue stream is expected to grow at a CAGR of 7.7%.
By 2034, the sales are expected to be worth USD 131.7 billion.
Demand for healthy food ingredients is expected to boost sales of spray dried food in sectors such as nutraceuticals and food and beverage.
Asia-Pacific is expected to dominate the global consumption.
Some of the key players in the target product manufacturing include Nestle, Unilever, Ajinomoto, Delecto Foods, and Mercer Foods.
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Spray Dried Food Market
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