Food Inclusions Market

Food inclusions are a popular ingredient used in the food industry to enhance the taste, texture, and appearance of various food products. They are added to food items to add flavor, visual appeal, and to provide an added crunch or chewy texture. Food inclusions are available in various forms, such as nuts, seeds, fruits, and chocolate, and can be used in a variety of food products, including baked goods, confectionery, ice cream, and breakfast cereals.

One of the benefits of food inclusions is that they can help to improve the nutritional content of food products. For example, nuts and seeds are a great source of protein, fiber, and healthy fats. Dried fruits are a good source of vitamins and minerals, and dark chocolate contains antioxidants that can help to protect against cell damage.

Another advantage of food inclusions is that they can help to create a unique flavor profile for a food product. For instance, adding nuts to a cookie recipe can add a nutty flavor and a crunchy texture, while adding dried fruit can add a sweet and tangy flavor. Additionally, food inclusions can help to add visual appeal to food products, making them more attractive to consumers.

However, when using food inclusions, it is important to be mindful of the potential allergen risks. Many food inclusions, such as nuts and seeds, can cause severe allergic reactions in some people. It is important to clearly label food products that contain food inclusions and to ensure that the ingredients list is accurate and up-to-date.

Market Dynamics of Food Inclusions Market

Drivers in Food Inclusions Market

Market dynamics refer to the ever-changing conditions and factors that influence the growth and performance of a particular market. In the food industry, the market dynamics are constantly changing due to evolving consumer preferences and the need for manufacturers to offer innovative products. One such trend that is gaining global significance is the use of food inclusions, which are novel ingredients added to food and beverage products to enhance their functional properties and product appeal.

Food inclusions have enabled manufacturers to overcome some of the challenges associated with products and their formulations such as flavor enhancement, appearance, visual appeal, flavor masking, thickening, and textural issues. The addition of food inclusions has added new aspects to food and beverage products that align well with consumer tastes and preferences, resulting in their growing popularity. As a result, manufacturers of food and beverage products are focusing on developing products that enable innovative usage of food inclusions with other ingredients and additives to make their products more appealing to consumers.

Consumer shift towards food products that provide total transparency with more product labels and no artificial ingredients is driving the market growth. The inclusion of nutrition-rich food along with a crave-worthy snack experience creates a lucrative opportunity for manufacturers to develop innovative products that have a balance of healthy and tasty food, which is expected to drive market growth.

The COVID-19 pandemic had a negative impact on the growth of the food inclusion market, with manufacturing facilities being closed due to lockdowns and supply chain disruptions. However, as activities resumed, healthy diets gained popularity, and manufacturers developed natural and organic products that meet the needs of consumers. Manufacturers experiment with sweet and savory combinations to deliver a mouthfeel experience. Furthermore, food inclusions adapt to any temperature and enhance the flavor and texture of the food, which is likely to complement market growth over the forecast period.

Restraints in Food Inclusions Market

The growth of the inclusion market is being hindered by its high cost. Inclusions tend to be expensive, which directly affects the final price of the products they are used in. Additionally, including inclusions in food and beverage products involves various factors, such as identifying in-demand flavors, developing flavors, using science and technology in the formulation, and testing product properties with inclusion content. All these factors contribute to the cost of the final product.

These factors limit the use of inclusions in mass-produced products, making them suitable only for products with significant functional properties and higher prices than other variants. Consequently, the market growth of inclusions in the industry is being restricted, particularly in price-sensitive regions like Asia, South America, and Africa.

Opportunities in Food Inclusions Market

One growth opportunity for food inclusion manufacturers is product premiumization, which has become increasingly popular among consumers worldwide. The term "premium" is often associated with high quality, indulgence, and safety, which means that consumers are willing to pay extra for these products. This trend presents an opportunity for manufacturers to create a range of premium products that include food inclusions. Within the premium products category, functional food segments offer significant growth opportunities for the consumption of food inclusions.

Challenges in Food Inclusions Market

However, a major challenge for manufacturers when it comes to using inclusions is preventing textural deterioration over the shelf-life period due to moisture content. Inclusions with high moisture content can lead to textural deterioration over time, unless they have high fat or protein content and low moisture content to prevent the water from freezing and creating icy textures.

To address this challenge, manufacturers must prevent moisture migration and retain textural properties through the use of texturants such as gums and starches. Additionally, maintaining acidic pH values of inclusions is crucial as storage in low pH environments can affect their color over a prolonged period. Overall, the addition of food inclusions to food products can pose significant challenges to manufacturers during processing, which in turn affects its users.

The fruit and nut segment has emerged as a leading revenue generator in the food and beverage industry in 2021, driven by a consumer shift towards healthier food options. Organic fruits have become a new trend that has shifted consumer preference from packaged fruits due to their higher nutritional value. Additionally, many fruits are used in making smoothies, yoghurt, and dried fruits have become an integral part of breakfast. As a result, this segment is expected to grow at a good pace.

The nut segment is also gaining popularity as it has become a part of the daily diet of consumers, used in breakfast cereals, snack bars, and for daily consumption. Nuts are known to have antioxidants that combat heart and bone-related disorders, and keep the skin healthy, which is likely to contribute to the growth of this segment over the forecast period.

Furthermore, chocolate is expected to grow over the forecast period due to its high demand in younger age groups for products such as chocolate powder, chocolate syrup, and Choco butter. Major applications of chocolate are in culinary uses such as cookies, muffins, cakes, and confectioneries.

By form, nuts are anticipated to witness the highest growth rate over the forecast period due to their versatile use in snacks, bakeries, seasonings, dairy, ready meals, marinades and coatings, sauces, pastries, cereals, and confectionery. Nuts are high in protein and fiber, and their great taste and texture make them a great addition to plant-based blends that create successful meat alternatives, dairy alternatives, nutrient-dense snacking, nutrient-dense beverages, and beyond.

The demand for dairy and frozen desserts is expected to experience significant growth in the foreseeable future due to the incorporation of various ingredients in the production process. Dairy inclusion flavors such as blue cheese, cream cheese, and cheesecake are among the many options available. Flavored raisins, marshmallows, fruits, and nuts are also added to make ice cream, ice lollies, and flavored yogurts, driving the market growth.

The solid and semi-solid segment is projected to hold the largest market share in 2030, owing to the growing preference for food products with consistent texture and flavor. This form of food allows for customization and offers various shapes such as chunks, nuggets, balls without altering the taste, color, or flavor. Additionally, semi-solid foods are consumed after major bypass surgeries, creating a lucrative opportunity for manufacturers to develop food products that can influence revenue growth in the coming years.

North America is currently the largest market for food inclusions and is expected to experience even faster growth over the forecast period. This growth can be attributed to the rising health concerns among consumers, as well as a shift towards plant-based diets. In addition, an increase in disposable income, changing diets, and the presence of major key players with innovative products are also driving demand for the food inclusion market in this region.

Europe is expected to be the second-largest market for food inclusions, following closely behind North America. This growth is due to changing consumer preferences and tastes, as well as a growing demand for organic, gluten-free, and vegan products in countries such as France and Russia. Manufacturers in this region are also focusing on developing vegan and gluten-free products that incorporate food inclusions, which is expected to further fuel market growth.

The food inclusions market has witnessed significant growth in recent years due to changing consumer preferences and the increasing demand for innovative food products. Food inclusions, such as nuts, fruits, and candies, are added to food products to enhance their taste, texture, and appearance. In response to this trend, manufacturers are increasingly investing in developing new and customized food inclusions that can cater to the evolving needs and preferences of consumers.

One of the recent developments in the food inclusions market is the increasing demand for natural and organic ingredients. Consumers are becoming more health-conscious and are looking for food products that are made using natural and organic ingredients. To meet this demand, manufacturers are focusing on developing natural and organic food inclusions that can be used in a variety of food products.

Another development in the food inclusions market is the growing popularity of savory food inclusions. Traditionally, food inclusions were used in sweet products such as cakes and desserts, but in recent years, there has been an increasing demand for savory food inclusions such as herbs, spices, and cheese. This trend has been driven by changing consumer preferences and the growing demand for healthier snack options.

Dominating Companies in Food Inclusions Market

• CARGILL
• ADM
• BARRY CALLEBAUT
• KERRY GROUP PLC.
• TATE & LYLE
• AGRANA
• SENSIENT TECHNOLOGIES CORPORATION
• PURATOS
• BALCHEM INC.
• TAURA NATURAL INGREDIENTS LTD.
• GEORGIA NUT COMPANY, INC
• NIMBUS FOODS LTD.
• IBKTROPIC
• TRUFOODMFG
• FOODFLO INTERNATIONAL
• CHAUCER FOODS LTD
• DAWN FOOD PRODUCTS, INC.
• ORKLA
• ORCHARD VALLEY FOODS LIMITED
• SUNOPTA INC

Recent Developments in Food Inclusions Market

Barry Callebaut Acquires D'Orsogna Dolciaria

In September 2021, Barry Callebaut, the world's leading manufacturer of high-quality chocolate and cocoa products, acquired D'Orsogna Dolciaria, an Italian producer of high-quality decorations and inclusions for the food industry. This acquisition will enable Barry Callebaut to strengthen its position in the inclusions market, expand its product portfolio and enter new market segments.

Kerry Acquires Niacet Corporation

In June 2021, Kerry, a global taste and nutrition company, completed the acquisition of Niacet Corporation, a leading producer of food preservation and safety solutions. With this acquisition, Kerry aims to expand its portfolio of clean label preservation solutions and strengthen its position in the food safety and preservation market.

Ingredion Acquires PureCircle

In April 2020, Ingredion, a leading global ingredients solutions provider, completed the acquisition of PureCircle, a producer of high-purity stevia ingredients. This acquisition will enable Ingredion to expand its portfolio of natural sweeteners and position itself as a leader in the global stevia market.

ADM Acquires Rodelle

In October 2019, Archer Daniels Midland (ADM), a global food processing and commodities trading corporation, acquired Rodelle, a premium vanilla extracts and flavors producer. This acquisition will enable ADM to expand its portfolio of high-value ingredients and strengthen its position in the global flavorings market.

Olam International Forms Joint Venture with Mitsubishi Corporation

In August 2019, Olam International, a leading agribusiness company, formed a joint venture with Mitsubishi Corporation to manufacture and distribute cocoa products in Asia. The joint venture will leverage Olam's expertise in cocoa sourcing, processing and marketing, and Mitsubishi's distribution and marketing network in Japan and other Asian countries.

Cargill Acquires Leman Decoration Group

In July 2019, Cargill, a global leader in food and agriculture, acquired Leman Decoration Group, a leading supplier of cake decorations and specialty ingredients. This acquisition will help Cargill expand its portfolio of texturizers, sweeteners and decorations for the bakery and pastry industry.

Tate & Lyle Forms Partnership with Sweet Green Fields

In February 2019, Tate & Lyle, a leading global provider of food and beverage ingredients, formed a partnership with Sweet Green Fields, a producer of natural stevia sweeteners. The partnership aims to bring new stevia-based sweetening solutions to the food and beverage industry, leveraging Tate & Lyle's global reach and Sweet Green Fields' expertise in stevia cultivation and extraction.

Frutarom Acquires Mighty Co.

In January 2019, Frutarom, a global leader in flavors and specialty ingredients, acquired Mighty Co., a Thai producer of natural colors and ingredients. This acquisition will enable Frutarom to expand its product portfolio and strengthen its position in the natural colors and ingredients market in the Asia-Pacific region.

Kerry Acquires Ariake USA and Southeastern Mills North American Food Ingredients

In November 2018, Kerry completed the acquisition of Ariake USA, a producer of natural savory ingredients, and Southeastern Mills North American Food Ingredients, a manufacturer of coatings, seasonings and functional ingredients. These acquisitions will enable Kerry to expand its portfolio of natural and clean label ingredients for the meat, poultry, seafood and snack industries.

Puratos Acquires BFP Wholesale

In October 2018, Puratos, a global provider of bakery, patisserie and chocolate ingredients, acquired BFP Wholesale, a UK-based supplier of bakery ingredients and equipment. This acquisition will enable Puratos to strengthen its position in the UK market and expand its product portfolio for the bakery and patisserie industry.

In conclusion, food inclusions are a versatile and useful ingredient that can add flavor, texture, and nutritional value to a wide range of food products. When used correctly, they can help to create unique and appealing food items that are sure to be a hit with consumers. However, it is important to be aware of potential allergen risks and to take steps to ensure that food products are labeled accurately and clearly.