Dive Brief:
- More consumers are seeking better-for-you options. This consumer demand is expected to drive the market for food ingredients from 2024 to 2028, according to a recent report from the Business Research Company.
- Among consumers looking to improve their health, bioactive food ingredients such as omega-3 fatty acids, antioxidants, probiotics, soy protein, and beta-carotene are being incorporated into meals at a higher rate, the report said.
- Major trends in the forecast period include introduction of natural food colors, facility expansions, development of ‘plug and play’ solutions to innovate products, development of sustainable products and focus on partnerships and collaborations, the report said.
Dive Insight:
The food ingredients market is expected to grow to $91 billion in 2028 at a compound annual growth rate of 6.6%, the report said, with health-conscious consumers increasingly calling the shots.
The report also revealed that more food ingredients companies are investing in developing innovative solutions through technology, in order to manufacture “next-generation alternative proteins,” and other ingredients.
Many leading ingredient producers have introduced new alternative proteins and sweeteners in recent months.
MycoTechnology, a company that trailblazed mushroom research and ingredient innovation, last year found a natural sweetener in honey truffles.
Last month, ingredients giant Kerry launched Tastesense Salt, an ingredient that does not add sodium but retains the desired salty taste, for snack formulators to use on products like potato chips.
With snacking gaining popularity among consumers, leading companies in the space are under pressure to reconstruct the ingredients they use to create them.
Recent data from ingredients supplier Ardent Mills revealed that more consumers are increasingly looking to ingredient labels of food products when making purchasing decisions.
Natural food colors will also drive trends in the food ingredients market during the forecast period, the report said.
With a California law — Assembly Bill 418 — prohibiting the use of four food additives including Red Dye 03, set to take effect in 2027, confectionary companies may need to rethink the types of ingredients they are using. Other states such as New York, Illinois, Missouri and Washington are looking to pass similar bills.