How Much Revenue Bulk Food Ingredients Market Will Generate Globally Till 2028? |Grand View Research, Inc.
Posted by Mrudula Anil Karmarkar on August 8th, 2022
The global bulk food ingredients market size is expected to reach USD 409.56 billion by 2028, registering a CAGR of 4.4% during the forecast period, according to a new report by Grand View Research, Inc. Surging demand for convenience foods and technological advancement in the food & beverage industry propels the market growth.
Bulk food ingredients are commodities used in processed foods, packaged, and ready-to-eat foods like confectionery items, chocolates, biscuits, beverages, etc. The shift in consumer lifestyles toward western cultures has led to increased demand for processed and ready-to-eat food and drinks.
Increasing benefits of packaged and convenience food, which require less preparation time and easy handling, are the prominent factors that offer an advantage to the consumers in their busy life cycle. These factors drive the consumption of bulk food ingredients in emerging economies such as India, Brazil, Mexico, Thailand, the Philippines, and Indonesia.
Increasing consumer awareness of eating healthy food and rising preference for natural and organic ingredients among consumers are anticipated to boost the market demand. In 2020, according to International Coffee Organization, the global coffee production reached 169.63 million 60-kilogram bags. In 2018, global tea production amounted to over 5.8 million metric tons of tea. These factors boost the consumption of bulk food ingredients in the tea, coffee, and cocoa segment. The shift from commodity/bulk ingredients to value-added ingredients and the lack of adequate infrastructure for the storage of bulk commodities are the major factors hampering market growth.
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The shift in consumer preference from artificial and pre-packaged foods to organic, natural, and simple ingredients, particularly in developed countries, is anticipated to influence market demand positively. Commodity/bulk ingredients are majorly final products such as flours and oils, wherein it is traded in high volumes with low-value addition to the final product. These products are procured in huge or bulk quantities from the wholesale supplier and brought into the convenience and retail stores.
Bulk Food Ingredients Market Report Highlights
The European bulk food ingredients market is anticipated to grow significantly in upcoming years owing to the increased penetration of packaged & processed food products and the inclination of consumers to try new preservatives, sweeteners, flavor enhancers, natural flavors, and spices. Robust growth in low-carbohydrate and low-fat foods & beverages is further estimated to propel market growth.
Growing consumer consciousness of eating healthy food has boosted natural, organic, and functional food demand. Increasing health complications such as cardiovascular problems, obesity, and diabetes, predominantly among the youth, have driven a shift in dietary trends towards a nutritional and healthy diet and away from alcohol, junk food, and meat consumption. The factors mentioned above are driving the demand in the bulk food ingredients market.
The COVID-19 pandemic certainly changed the consuming and buying pattern of consumers in the bulk food ingredients market. Wherein sale through the online distribution channel and convenience store is increasing.
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The market is characterized by the presence of various well-established players and several small & medium scale players. However, the industry is dominated by top international players such as Cargill, Incorporated, Archer-Daniels-Midland Company, Bunge Limited, Associated British Foods plc, Tate & Lyle, and Olam International.
In April 2021, Olam Food Ingredients announced acquiring Olde Thompson for over USD 950 million. The company is engaged in producing sustainable, natural, and value-added food & beverage ingredients. In January 2020, Archer-Daniels-Midland Company announced to expand its product offering of plant-based ingredients and extract by acquiring Brazil-based Company Yerbalatina Phytoactives. Yerbalatina produces organic food colors, organic powdered fruits, and functional health and nutrition ingredients. Some of the key players operating in the global bulk food ingredients market include:
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
Articles Posted: 848
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