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.