Food Ingredients Market Size to Rise to USD 368.70 Bn in 2025

Food Ingredients Market Embraces Innovation and Sustainable Growth

The global food ingredients market size is projected to expand from USD 368.70 billion in 2025 to USD 567.09 billion by 2034, growing at a CAGR of 4.9% during the forecast period from 2025 to 2034. This market growth is fueled by increasing demand for clean-label, functional, and plant-based ingredients across processed foods, beverages, and nutraceutical applications.

Last Updated: 21 July 2025 Category: Food & Beverages Ingredients Insight Code: 5735 Format: PDF / PPT / Excel

Food Ingredients Market Size, Share and Regional Forecast 2034

The global food ingredients market size was reached at USD 351.48 billion in 2024 and is expected to grow steadily from USD 368.70 billion in 2025 to reach nearly USD 567.09 billion by 2034, with a CAGR of 4.9% during the forecast period from 2025 to 2034. The increasing demand for convenience and ready to eat food products drives the growth of the market.

Food Ingredients Market Size 2025 to 2034

Key Highlights

  • By region, Asia Pacific dominated the food ingredients market share of 35% in 2024, driven by the rapid growth of the food industry.
  • By region, North America is expected to grow fastest during the forecast period, driven by rapid urbanization.
  • By type, the flavors & enhancers segment held a major market share of 18% in 2024, driven by the increasing demand for bakery products. 
  • By type, the proteins & amino acids segment is projected to grow at a CAGR between 2025 and 2034, driven by increasing demand for nutritious food. 
  • By source, the natural segment held a major market share of 56% in 2024, driven by increasing demand for clean-label and organic food products. 
  • By source, the bio-based segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing demand from the biopharmaceutical industry. 
  • By application, the bakery & confectionery segment dominated the market share of 22% in 2024 due to the increasing demand for bakery products. 
  • By application, the functional & fortified foods segment is expected to grow fastest during the forecast period due to increasing demand for functional ingredients. 
  • By function, the flavoring segment dominated the market share of 26% in 2024 due to the rising snacking culture.
  • By function, the nutritional enrichment segment is expected to grow rapidly due to the increasing demand for high-protein food products. 
  • By form, the dry/powder segment dominated the market share of 45% in 2024 due to the increasing demand for premixes products.
  • By form, the liquid segment is expected to grow rapidly due to the growing beverage industry.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 4.9%
Market Size in 2025 USD 368.70 Billion
Market Size in 2026 USD 386.77 Billion
Market Size by 2034 USD 567.09 Billion
Largest Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

The Increasing Role of Food Ingredients in Food, and Beverage Industries Enhances Consumer Experience

The food ingredients market comprises a wide array of natural and synthetic substances added to food products to enhance flavor, texture, appearance, preservation, nutrition, and processing convenience. These ingredients include additives, flavoring agents, preservatives, sweeteners, enzymes, emulsifiers, colors, and functional components tailored to food formulations across diverse categories like bakery, dairy, meat, beverages, and convenience food

One of the major factors driving the growth of the food ingredients market is the increasing demand for processed foods. Due to consumers seeking time-saving and convenient food options, modern lifestyles are becoming rapid or fast-paced. It leads to a growth in the consumption of processed, packaged, and ready-to-eat foods. This factor necessitates the use of several food ingredients, including stabilizers, texturizers, flavor enhancers, and preservatives, to enhance shelf life, texture, taste, and overall quality. Food ingredient manufacturers play an important role in enabling manufacturers and providing these necessary ingredients to address consumer demand for high-quality and convenient food products, which is expected to drive the growth of the food ingredients.

  • Increasing disposable incomes: Consumers are rapidly spending on specialty and premium food products, which require high-quality and diverse food ingredients solutions, which contributes to propel market growth. 
  • Increasing demand for clean-label food products: Leading to an increased demand for natural preservatives, colorants, and flavorings, this trend has prompted food manufacturers with clean-label ingredients, which is expected to accelerate the demand for clean-label food products in the global food ingredients market. 
  • Increasing demand for food quality: Food manufacturers are adding substances to maintain food safety and increase the shelf life of food products, which is further expected to drive market growth. 

Market Opportunity 

Rising Innovation in Food Technology 

The rising advancements in food processing technologies, such as enzyme engineering, nanotechnology, and encapsulation, which allow the improvement of novel food ingredients with improved functionalities, further create significant opportunities. These innovations help manufacturers to meet increasing consumer preferences for tastier, convenient, and healthier food products and allow them to create ingredients that enhance shelf life, nutritional content, texture, and taste.

In addition, food technology is catering to the increasing demand for natural and clean-label products and enhancing the utilization and extraction of natural ingredients. To introduce improved and new ingredients to the market, this constant innovation helps manufacturers to invest in research and development activities, which is further expected to revolutionize the growth of the food ingredients market in the coming years.

Market Challenge 

Increasing Awareness Towards Environmental Effects 

One of the major restraints of challenging market growth is the increasing awareness of environmental impact. Consumers are rapidly aware of the natural and sustainability of packaging materials, production processes, and ingredient sourcing. To seek eco-friendly additives, this increased awareness prompts food manufacturers, which may be more challenging or costly to purchase, which may create major challenges in market growth. In addition, increasing strict environmental standards and regulations may require companies to invest in sustainability, which is further expected to further restrain the growth of the food ingredients market. 

Regional Insights 

How Asia Pacific Dominates the Food Ingredients Market Revenue in 2024? 

Asia Pacific dominated the food ingredients market revenue in 2024. The market growth in the region is driven by factors such as the growing middle-class population, increasing demand for sustainable, secure, and premium food ingredients, increasing spending money on food products, increasing demand for flavor enhancers and preservatives and increasing disposable income. China, India, Japan, and South Korea are dominating countries driving the market growth in Asia Pacific.

Food Ingredients Market Share, By Region, 2024 (%)

India dominated the food ingredients market revenue in 2024, driven by the increasing awareness of health consciousness, increasing demand for clean-label and organic food ingredients, and increasing dietary preferences. India is the largest country in the food industry and is known for a wide range of flavors. Indian states have their own distinct ingredients and flavor profiles. South Indian cuisine highly uses tamarind paste to enhance flavors, and North Indian cuisine uses dairy ingredients, such as paneer, cream, malai, and yogurt. The coconut milk, desiccated coconut, toor, masoor, moong, chickpeas, yogurt, flour, rice, ghee and more are the major staple Indian ingredients, which are highly used in Indian dishes to enhance taste and flavor.

North America Food Ingredients Market Trends 

North America is expected to grow fastest during the forecast period. The market growth in the region is attributed to the increasing dietary preferences, increasing disposable incomes, increasing presence of food and beverage manufacturers, increasing demand for organic and natural food ingredients, increasing health awareness, and increasing demand for processed food. The U.S. and Canada are the fastest growing countries driving the market growth.

The U.S. is expected to grow fastest during the forecast period. The Food and Drug Administration (FDA) plays an vital role in the food industry by addressing to outbreaks of foodborne illness, collaborating with companies on food recalls, setting requirements for nutrition labeling, and overseeing the safety food supply. Each year, U.S. consumers purchase more than 400,000 packaged food and beverage items. With nearly 60% of foods were consumed by U.S. consumers, which is expected to increase the demand for food ingredients in the U.S. 

Segmental Insights

Type Insights 

Why Flavors & Enhancers Segment Dominates the Food Ingredients Market Revenue in 2024? 

The flavors and enhancers segment dominated the food ingredients market revenue in 2024. Flavors and enhancers play an important role in the food industry, especially in food ingredients across the globe. Flavors and enhancers are an essential part of the dining experience, from improving the taste of food to enhancing its nutritional value. Flavors and enhancers make meals enjoyable and nutritious and are highly used in food processing. In addition, there are various benefits related to food flavors, such as reducing dependence on salt, saving time in cooking, improving children's food tolerance, supporting special diets support, diversifying the diet, reducing sugar, stimulating appetite, and improving taste.

The Protein and Amino Acids Segment is Expected to Grow Fastest During the Forecast Period. 

Protein plays an important role in a healthy diet. Food proteins are produced from chemical building blocks, which are amino acids. The human body uses amino acids to make enzymes and hormones, and repair and build muscles. Animal products such as dairy, beef or fish, and chicken have large amounts of high-quality protein which may enhance nutritional value. Other plant proteins such as whole grains, nuts and beans also contain large amount of amino acids, which are expected to accelerate the demand for protein and amino acids in the global market. 

Source Insights 

What Factors Help Natural Segment Grow in 2024? 

The natural segment dominated the food ingredients market revenue in 2024. The segment growth in the global market is driven by various benefits, such as supporting weight loss, help to manage diabetes and blood sugar, care for a healthy heart, reduces the risk of cancer, makes teeth and bones strong, makes skin look younger, boosts energy, improves sleeping patterns, beneficial for mental health and helps in children’s development. In addition, demand for high-quality and natural food ingredients is increasing rapidly in India. The demand for natural food products may rise by 6.7% by 2029 in India.

The Bio-Based Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the food ingredients market is propelled by factors such as increasing consumer acceptance, increasing demand for healthy food and feed ingredients, reduction of use of feed and food ingredients from unsustainable sources, increasing sustainability and safety of food value chains, increasing demand for high nutritional values, and increasing availability of affordable bio-based food ingredients. 

Application Insights 

How Bakery & Confectionery Segment Dominates the Food Ingredients Market Revenue in 2024? 

The bakery and confectionery segment dominated the food ingredients market revenue in 2024. The bakery and confectionery segment deals with baked products, pastries, cakes, and other dairy products. The segment growth in the food ingredients market is driven by the increasing modern and busy lifestyles, increasing consumer trend towards small occasions, parties, and birthdays, growing e-commerce platforms, and increasing consumer preference towards dairy food products. In addition, bakery products, such as cakes and pastries, are valued at Rs. 3,295 crores in India.

Furthermore, the size of the bakery ingredients is about Rs 3,000 crore and rising at 12-15% in India. Surya Food and Agros, ITC, Britannia, and Parle are major players in the cookies and biscuits together account for 61% of the growth in India, which further accelerating the demand for the bakery and confectionery segment in the market.

The Functional and Fortified Food Segment is Expected to Grow Fastest During the Forecast Period. 

The functional and fortified foods are rich in compounds and nutrients that may reduce the risk of chronic diseases and boost the immune system, heart health, and brain function. In addition, functional food such as dairy products and fortified cereals can help to meet mineral and vitamin needs. Functional foods can help provide healthy growth solutions. Fortified food products help in bone development. The functional foods are rich in minerals and vitamins, which can help to heal injuries and fight off illness, and reduce the risk of chronic diseases, such as type 2 diabetes, heart disease, and some cancers. These factors are expected to drive segment growth in the global market.

Function Insights 

Why did the Flavoring Segment Held the Largest Food Ingredients Market Revenue in 2024? 

The flavoring segment dominated the food ingredients market in 2024. Flavoring plays an important role in the food industry to enhance the taste and flavor of the food. It is the integration of the sense of smell and flavor. Flavorings have sensory properties and are capable of intensifying or providing the flavor and aroma of food. They can be divided into natural and synthetic flavorings. The molecules in the natural flavors are obtained from vegetable or animal origin, through enzymatic, microbiological, and physical processes, whereas synthetic flavors are manufactured by a chemical synthesis reaction, which is expected to drive the growth of the flavoring segment in the market. 

  • In October 2023, Symrise launched SET flavors that smartly used enrichment technologies for authentic and valuable taste solutions. (Source: symrise)

The Nutritional Enrichment Segment is Expected to Grow Fastest During the Forecast Period. 

Nutritional enrichment is focused on enhancing the nutritional profile of food ingredients. The segment growth in the food ingredients market is attributed to the increasing demand for fortified and functional foods, increasing cases of micronutrient deficiencies across the globe, increasing consumer awareness towards health and wellbeing, growing geriatric population, and increasing demand for organic and clean-label nutrition.

Form Insights 

What Factors Help Dry/Powder Segment Grow in 2024? 

The dry/powder segment dominated the food ingredients market revenue in 2024. The dry or powder segment plays an important role in food ingredients. It helps in achieving volume and lightness in food products. In addition, there are various health benefits related to the powder or dry segment, such as industrial preference, versatility in applications, cost-effectiveness, longer shelf life and ease of use, which is further expected to fuel segment growth in the global market. 

The Liquid Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global food ingredients market is fueld by the increasing urbanization, increasing demand for food services, increasing consumer preferences towards ready-to-cook food premix, and increasing demand for clean-label and natural products. In addition, the liquid segment includes several food ingredients such as ready-to-cook premixes, batter, waffle and pancake batters, chilled or frozen dough, and packaged food products. Various egg whites and natural creams can make foam via mechanical action, which creates various types of food products.

Recent Developments in the Food Ingredients Market

Layn Natural Ingredients

  • Launch: In July 2025, the plant-based sweetener SteviUp M2 was introduced by the Layn Natural Ingredients, which can be highly used in a wide range of food and beverage applications, improving solubility. (Source: Nutritional Outlook)

Friesland Campina Ingredients

  • Launch: In March 2025, a global leader in proteins and prebiotics, FrieslandCampina Ingredients, announced the launch of a heat-stable whey protein, Nutri Whey™ ProHeat. The aim behind this launch was to help brands in the active nutrition and performance market. (Source: Ingredients Network)

Ingredion Incorporated

  • Launch: In February 2024, a leading global provider of specialty ingredient solutions, Ingredion Incorporated announced NOVATION® Indulge 2940 starch with first non-GMO functional native corn starch. This provides an innovative texture for co-texturizing and gelling for popular alternative and dairy desserts and products. (Source: Ingredion)

Food Ingredients Market Leading Companies

Food Ingredients Market Companies

  • Archer Daniels Midland (ADM)
  • Cargill, Incorporated
  • Tate & Lyle PLC
  • Kerry Group
  • Ingredion Incorporated
  • Givaudan
  • DSM-Firmenich
  • International Flavors & Fragrances (IFF)
  • Corbion N.V.
  • BASF SE
  • DuPont (IFF Nutrition & Biosciences)
  • Chr. Hansen Holding A/S
  • Lonza Group
  • Ajinomoto Co., Inc.
  • Roquette Frères
  • Sensient Technologies Corporation
  • Tate & Lyle
  • Novozymes A/S
  • Symrise AG
  • Bunge Limited

Segments Covered in the Report

By Type

  • Preservatives
    • Natural
    • Synthetic
  • Sweeteners
    • Natural Sweeteners (e.g., Stevia, Honey)
    • Artificial Sweeteners (e.g., Aspartame, Sucralose)
    • Sugar Alcohols (e.g., Xylitol, Sorbitol)
  • Emulsifiers
    • Mono & Diglycerides
    • Lecithin
    • Polysorbates
  • Flavors & Enhancers
    • Natural Flavors
    • Artificial Flavors
    • Flavor Enhancers (e.g., MSG)
  • Colorants
    • Natural Colorants (e.g., Carotenoids, Anthocyanins)
    • Synthetic Colorants
  • Stabilizers & Thickeners
    • Gums (e.g., Guar, Xanthan)
    • Starches
    • Pectins
  • Enzymes
    • Carbohydrases
    • Proteases
    • Lipases
  • Acidulants
    • Citric Acid
    • Lactic Acid
    • Acetic Acid
  • Antioxidants
    • Natural (e.g., Tocopherols)
    • Synthetic (e.g., BHA, BHT)
  • Proteins & Amino Acids
    • Plant-based Proteins
    • Animal-based Proteins
  • Prebiotics & Probiotics
  • Fats & Oils
    • Vegetable Oils
    • Animal Fats
  • Functional Ingredients
    • Omega-3
    • Fibers
    • Plant Extracts
    • Nutraceuticals

By Source

  • Natural
  • Synthetic
  • Bio-based (Fermentation-derived)

By Application

  • Bakery & Confectionery
  • Dairy & Frozen Desserts
  • Meat, Poultry & Seafood
  • Beverages
    • Alcoholic
    • Non-Alcoholic
  • Sauces, Dressings & Condiments
  • Snacks & Convenience Foods
  • Infant Nutrition
  • Functional & Fortified Foods
  • Fats & Oils
  • Soups, Ready Meals & Side Dishes

By Function

  • Flavoring
  • Coloring
  • Preserving
  • Texture Enhancing
  • Emulsification
  • Nutritional Enrichment
  • Fermentation Aid
  • Shelf-life Extension

By Form

  • Dry/Powder
  • Liquid
  • Paste/Concentrate
  • Granules

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global food ingredients market was valued at USD 368.70 billion in 2025 and is projected to grow at a CAGR of 4.9%, reaching USD 567.09 billion by 2034. Growth is driven by rising demand for convenience foods, clean-label products, and functional ingredients globally.

Trends include the clean-label movement, rising demand for natural and bio-based ingredients, innovations in plant-based proteins, and functional foods catering to health-conscious consumers. Food tech like nanotechnology and enzyme engineering is enabling new product formulations.

Key drivers include urbanization, increasing disposable incomes, consumer demand for ready-to-eat and fortified foods, and regulatory support for natural, safe, and sustainable ingredients. Rapid expansion in Asia Pacific is also fueling global demand.

Challenges include sustainability concerns, strict environmental regulations, volatile raw material prices, and competition from alternative ingredients like plant-based synthetic substitutes. Manufacturers must invest in eco-friendly sourcing and clean processing technologies to stay competitive.

Flavors & enhancers lead the market (18% share in 2024) due to their critical role in improving taste and sensory experience, especially in bakery, snacks, and beverages. Meanwhile, proteins & amino acids are the fastest-growing segment, driven by functional food and sports nutrition demand.

The natural segment held a 56% share in 2024 as consumers increasingly prefer clean-label, organic, and minimally processed products. Rising health awareness and distrust of synthetic additives are accelerating this trend globally.

Asia Pacific dominated with 35% share in 2024, driven by a booming food industry and rising middle-class incomes. North America is the fastest-growing region due to urban lifestyles, premium food preferences, and innovation in clean-label solutions.

Bakery & confectionery remains dominant (22% share in 2024), supported by the rise of artisanal and packaged baked goods. Functional & fortified foods are growing fastest as consumers seek products that support immunity, digestive health, and chronic disease prevention.