Specialty Food Ingredients Market Size, Share & Trends Analysis Report By Application (Food & Beverage, Pharmaceutical, Personal Care), By Product (Sensory, Functional), By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the specialty food ingredients market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for specialty food ingredients market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of specialty food ingredients market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Specialty Food Ingredients Market Categorization:

The specialty food ingredients market was categorized into four segments, namely product (Sensory, Functional), application (Food & Beverage, Pharmaceutical, Personal Care), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The specialty food ingredients market was segmented into product, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The specialty food ingredients market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eleven countries, namely, the U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan; Brazil; Saudi Arabia

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Specialty food ingredients market companies & financials:

The specialty food ingredients market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Givaudan The company was established in 1895 and its headquarters located in Vernier, Switzerland. Givaudan manufactures and sells fragrances and flavors. The company offers a range of fragrances for fabric, personal care, hair and skin care, and household care products. Givaudan’s flavors are mainly used in beverages, savory snacks, sweet goods, and dairy industries. The company's business portfolio includes producing and supplying essential oils and natural extracts for perfumes, cosmetics, aromatherapy, nutraceutical, and flavoring applications. It has capitalized various organic farming projects at its production sites located worldwide. The company has also invested in recycling plants to convert extraction waste into compost and organic fertilizers. It has a wide network of suppliers for its production facilities, with 185 locations worldwide and 79 production sites. The company has regional offices in North America, Europe, the Middle East & Africa, Asia Pacific, and Latin America.

• International Flavors & Fragrances Inc. The organization is incorporated in 1889 and headquartered in New York, U.S. The company employs more than 24,600 people. International Flavors & Fragrances Inc. manufactures and distributes flavors and fragrances used in food and beverage, personal care, and household products. The company operates through three business segments like taste, scent, and frutarom. The taste business segment offers flavors for savory, beverages, and dairy products, while scent business offers fragrance compounds, fragrance ingredients, and cosmetic active ingredients. Upon acquisition of Frutarom (business segment) in 2019, the company offers taste solutions, savory solutions, natural product solutions, and specialty fine ingredients. The company has more than 110 manufacturing facilities and 100 R&D facilities across 65 countries.

• Koninklijke DSM N.V The company was established in 1902 and has its headquarters in Heerlen, Netherlands. It caters to its offerings to several industries including food & beverage, dietary supplements, animal feed, personal care, automotive, medical devices, life protection, paints, alternative energy, electrical & electronics, and bio-based materials. It is known for its global footprint in producing essential nutrients such as carotenoids, vitamins, nutritional lipids, and other ingredients to animal feed, pharmaceutical, food & beverage, and personal care industries. DSM dietary products are the major supplier of essential nutrients such as vitamins, carotenoids, nutritional lipids, and other ingredients to personal care, food, feed, and pharmaceutical industries. Its food specialties unit is another significant supplier of food enzymes, yeast extracts, cultures, savory flavors, and other specialty ingredients for the food & beverage industry. The business segment in North America offers product portfolio including nutritional lipids, vitamins, carotenoids, nutraceuticals, digestive enzymes, prebiotics, and probiotics. The vitamin products offered by the company are vitamin A, D, E, K, B1, B2, B3, B5, B6, B9, B12, B7, and C.

• Cargill, Incorporated The company is formed in the year of 1865 and their head office is located in Minnesota, U.S. It employs more than 155,000 employees worldwide. The company agriculture, industrial, financial, and food services & products globally. The company offers various products, including oilseeds, grains, animal nutrition, and additives for poultry, aquaculture, dairy, swine, and beef. It also offers vegetable waxes, industrial and specialty vegetable oils, derivatives & starches, dielectric fluids, polyols & polymers, epoxy additives, epoxy curing agents, coalescing agents, and industrial hydrocolloids. Its food & beverage product offerings further include cocoa & chocolate, malt, flour, food salt, acidulants, custom texturizing systems, sweeteners, alcohol, lecithin, proteins, edible oils, and dry corn ingredients. Cargill, Incorporated caters its products and services to several industries such as agriculture, beauty, animal nutrition, bioindustrial, industrial, food & beverages, food service, poultry and meat, risk management, transportation, and pharmaceutical. The company has a global presence in various countries, especially in Asia and Australia.

• Ingredion Incorporated The company is engaged in the manufacturing and marketing of sweeteners and starches for various end-use industries. Its major business segments include food, beverages, animal nutrition, brewing, corrugating products, paper, textile, and health & wellness, which operates across major regions including North America, Central & South America, Asia Pacific, Middle East & Africa, and Europe. The company’s products are extensively used in high-fructose corn syrups, dextrose, maltodextrins, biomaterials, industrial starches, glucose syrups, high-maltose syrups, caramel, and colors. It also offers edible corn oil, refined corn oil, salad dressings, and other food items. The company was established in 1906.

• Associated British Foods Plc The UK-based company was established in 1935. It has over 1,32,000 employee base. The company operates through five business segments, including grocery, agriculture, ingredients, sugar, and retail. Various brands associated with the company's grocery business unit are Don, Dorset Cereals, Durkee, Jacksons of Piccadilly, Jordans, Karo, Kingsmill, Ovaltine, Sunblest, Tip Top, Truvia, and Twinings. AB Sugar, the company's sugar segment, operates as a leading sugar business and produces a range of co-products across its operations such as bioethanol, animal feed, and electricity. The company's agriculture business segment is operated by AB Agri, which offers technology-based products to farmers, feed and food manufacturers, processors, and retailers. Its ingredient business unit is further divided into yeast & bakery and is operated by AB Mauri, and specialty ingredients business unit is operated by ABF Ingredients. AB Mauri has 52 plants manufacturing various yeast & bakery ingredients in 32 countries and has sales offices in over 90 countries. ABF Ingredients markets and manufactures enzymes, yeast extracts, lipids, and cereal specialties globally with manufacturing facilities in numerous countries including the U.S., Italy, Spain, the UK, Netherlands, Chile, Brazil, and Argentina.

• Kerry Group The company went public in 1986 and is a manufacturer & distributor of nutrition solutions. The company operates through two business segments including taste & nutrition and consumer foods. It offers cell nutrition supplements for numerous industries, including biotech, fermentation, and diagnostics. Some of the products the company offers include protein hydrolysates, yeast extracts, recombinant proteins, application-specific solutions, and chemically defined medium. Under the taste & nutrition segment, the company provides its yeast extracts through its Savoury Flavours and Extracts sub-segment. Its Authentic Savoury brand offers numerous products, including yeast extracts, stocks, flavors, and infused oils.

• Ashland Inc The company is headquartered in the United States, a manufacturer of specialized chemicals. It operates via three business segments that include Ashland specialty ingredients, Ashland performance materials, and its automotive solutions segment Valvoline. The company is listed on the New York Stock Exchange and caters to various applications in food & beverage, agriculture, automotive, electronic devices, and chemical processing industries. Specialty ingredients produced by the company, such as vinyl pyrrolidine, cellulose ethers, and biofunctionals, find use in thickeners, adhesives, hair creams, and hair gels, and surfactants in several industries, such as food beverage, pharmaceuticals, personal care, and other industries. Ashland performance materials segment manufactures specialty polymers, adhesives, and resins.

• Archer Daniels Midland Company The company was established in 1902 and headquartered in Illinois, U.S., employing more than 42,000 people. The company operates as an agriculture product processor and food ingredient provider in the U.S. It is a public company and trades under the symbol ADM on the New York Stock Exchange (NYSE). The company operates through its three reportable segments, namely Ag services & oilseeds, carbohydrate solutions, and nutrition. Through its Ag services & oilseeds, the company procures, stores, processes, and transports agricultural commodities including corn, oilseeds, milo, wheat, rice, barley, and oats. The company then resells these commodities mainly as food and feed ingredients and raw materials to the agricultural processing industry. It processes oilseeds such as soybeans and soft seeds into protein meals and vegetable oils through its oilseed segment. These products are further sold as ingredients for food, feed, energy, and other companies.

• BASF SE BASF SE was started in the year of 1865 in Ludwigshafen, Germany. They employs over 1,12,000 individuals across the globe. BASF SE is a German chemical production company. It operates through its subsidiaries and joint ventures in over 80 countries and has more than 340 production sites across the globe. It has five business segments, namely Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas.Moreover, the company has 13 operating divisions and around 84 SBUs that operate in various business segments. The Performance Products segment of the company consists of a division called Nutrition & Health, which is responsible for producing additives for the food and animal feed industries. This division offers products such as vitamins, carotenoids, sterols, enzymes, emulsifiers, and omega3 fatty acids, along with flavors and fragrances such as geraniol, citronellal, L-menthol and linalool, and ibuprofen for the pharmaceutical industry.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Specialty Food Ingredients Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2023, historic information from 2018 - 2022, and forecast from 2024 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Specialty Food Ingredients Market Report Assumptions:

• The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.