Natural Ingredients in Processed Foods Market Size, Share and Dynamics

Natural Ingredients in Processed Foods Market Size 2025 to 2034

The global natural ingredients in processed foods market size is poised for substantial growth over the next decade, with projections indicating significant revenue increases during the forecast period 2025–2034. This growth is primarily driven by the rising consumer shift toward clean-label products, growing concerns over synthetic additives, and increasing demand for healthier and more transparent food formulations. The high preference for organic food and natural food components in food processing drives the expansive global reach of natural ingredients in food products. 

Key Highlights

• By region, North America dominated the natural ingredients in processed foods market in 2024, due to several nutrition initiatives by the U.S. Food and Drug Administration (FDA) and the expanding economy of America. 
• By region, Asia Pacific is expected to grow at the fastest CAGR due to the biggest food processing export sector of India. 
• By region, Europe is a notably growing area, driven by the favorable opportunities for suppliers of natural food additives in France and the prominent success of other European countries. 
• By ingredient type, the fruits and vegetables segment dominated the market in 2024, due to their exciting impact on health and wellness. 
• By ingredient type, the natural sweeteners segment is expected to grow at the fastest CAGR during the forecast period, driven by the innovative sugar alternatives and their health benefits. 
• By application, the beverages segment dominated the market in 2024, driven by the wide availability of healthy beverages like coffee, black tea, etc. 
• By application, the snacks and confectionery segment is expected to grow at the fastest CAGR during the forecast period, attributed to the high preference for natural healthy confectionery over traditional snacks and the benefits of healthy snacks. 
• By end user, the food and beverage manufacturers segment dominated the market in 2024, driven by the expanding capabilities of the industrial manufacturing sector. 
• By end user, the nutraceutical companies segment is expected to grow at the fastest CAGR during the forecast period, attributed to the rising trend of CMOs and improved supply chain for nutraceutical industries.

Market Overview

What is the Impact of Regulatory Agencies and Certifications on Natural Ingredients in processed foods market? 

According to the U.S. Food and Drug Administration (FDA), the natural ingredients in processed foods enhance the quality, texture, taste, and freshness of those food items by excluding the use of any artificial ingredients or synthetic colorants. Processed foods are gaining high demand among the global population due to their safe packaging and ready-to-prepare nature. The natural components deliver their nutritious properties while keeping the food products in purest forms.

The U.S. Department of Agriculture (USDA) has set its own sourcing and production standards that are strict for certified organic foods. These standards prevent the use of artificial additives, antibiotics, synthetic fertilizers, toxic pesticides, and growth hormones during food production. Organic food products are beneficial because they do not undergo genetic modifications or ionizing radiations. The stringent regulations help to protect animal welfare, biodiversity, and non-renewable resources.

• In January 2024, General Mills announced the launch of its new cereal and snack products, which include Cheerios Veggie Blends, Nature Valley Protein Smoothie Bars, Cocoa Puffs Soft Baked Oat Bars, Trix with Marshmallows, French Vanilla Protein Granola, and REESE’S PUFFS Peanut Butter. (Source: generalmills)

Export of Processed Food in India in 2023-24

(Source: APEDA)

Natural Ingredients in Processed Foods Market Trends

What could be the Great Industrial Contribution to the Planet and People?

• Responsible Compliances: The food and beverage industries are strongly committed towards the highest nutrition standards for an expansive reach of products in the global market. The International Chamber of Commerce designed a framework for promising marketing communications for food and beverages. The policies designed by companies ensure their commitment to all the planned activities. The marketing policies are reviewed and updated regularly by the respective authorities of the companies. The products must meet nutrition standards before they directly reach the market and up to the people. In the U.S., the Better Business Bureau operates the Children’s Food and Beverage Advertising Initiative (CFBAI), which has set its nutrition standards.
• Increased Focus on Farmer’s Success, Forest Preservation, and Soil Health: The companies are making strategic partnerships with the leading market players such as care, PPI GroupeSOS, Earthworm, and Duke Lemur Center to improve the success of farmers in small-scale communities. Earthworm and Duke Lemur Center are accelerating the preservation and rehabilitation of forests in principal regions. An increased focus has been shifted towards supporting the wide adoption of regenerative agriculture principles and best practices. For this purpose of improving soil health, the partners are Soil Health Academy, NFWF, ALUS Canada, and imaflora. They promote the use of cover crops and no-till farming to improve soil health. The growing investments in water stewardship funds and are made through collaborations with sustainable conservation, the nature conservancy, and water foundation. They make efforts to protect and restore at-risk water resources. 

Market Opportunity

What is the Role of Elevated Export Potential and Demand for Ethnic Food in Creating the Future of Processed Foods?

According to the India Brand Equity Foundation (IBEF) and the Ministry of Commerce and Industry, Government of India, the food exports of India are expected to reach US$ 61 billion by 2024 with the increased demand for ethnic foods like spices and snacks. There is an increasing demand for Indian cuisine on a global level. The expanded exports of food products have been seen over the last 5 years. According to the Department of Food Processing Industries, government initiatives encourage the exports of food processing to expand by 2025 and encourage the growth of natural ingredients in processed foods market. 

Market Challenges

What are the Research Challenges associated with Food Formulation, Food Processing, and Dietary Assessment?

The classification of un-processed food products made from several ingredients and processed food products made from only natural ingredients needs a comprehensive framework. It is essential to identify the combinations of ingredients and additives that must be added and prepared based on the prescribed methods. It is challenging to produce a desired product with desired properties for processing or ready-to-eat forms by considering the growth of the natural ingredients in processed foods market. Researchers perform tedious tasks to identify the production of food products through industrial manufacturing or culinary preparation.

Regional Insights

How North America dominated the natural ingredients in processed foods market in 2024?

North America dominated the natural ingredients in processed foods market in 2024. According to the U.S. Department of Agriculture (USDA), America has set up its Healthy Food Financing Initiative (HFFI), which is a public-private partnership. The HFFI provides financial and technical assistance to the retailers of healthy food and businesses in the food retail supply chain that are eligible. This initiative helps them to overcome the higher costs and hurdles in underserved areas. The HFFI was awarded $25 million in funding to 162 projects in the food retail and the food retail supply chain. These projects are situated in 48 states, including Washington DC and Puerto Rico. Furthermore, over $40 million was awarded to 16 public-private partnerships.

The nutrition initiatives of the U.S. food and drug administration (FDA):

The U.S. FDA, in collaboration with the National Institutes of Health (NIH), has set its aim on making America healthy through a research initiative named the Nutrition Regulatory Science Program. The U.S. FDA aims to help American consumers with healthy eating patterns by promoting industrial production of healthy food items. It also aims to empower consumers to make healthy choices by obtaining essential information. The remarkable efforts of the FDA towards reducing diet-related disease and promoting health equity drive the importance of healthy eating and nutrition. The FDA focuses on promoting a healthier food supply, communication, education, and customer engagement.

2024 Progress of General Mills, the Major Market Player in the Food and Beverage Industry:

• More than 735,000 contacts by consumers were assisted by the company’s consumer care team.
• More than 1,800 products were involved in the listing of smartlabel.org.
• About 450 products were enrolled in the Non-GMO project in the U.S.
• Over 100% of the company’s retail packaging was updated with date labeling to reduce food wastage.

Asia Pacific is expected to grow at the fastest CAGR in the natural ingredients in processed foods market during the predicted timeframe. The Asian Development Bank (ADB) announced the expansion of its support for food and nutrition from $14 billion initially to $40 billion over the period 2022-2030. The ADB supported with $26 billion for 2025-2030 in which it has provided $18.5 billion to governments and $7.5 billion in private sector investments. This funding assistance will help Asia and the Pacific to transform food systems, create employment opportunities, reduce environmental impact, and promote successive agricultural supply chains. 

India’s biggest product portfolio in the food processing sector:

The food processing sector in India accounts for one of the largest sectors in India, driving production, growth, consumption, and export. In India, this sector covers a wide range of products, including fruits, vegetables, milk, milk products, spices, meat and poultry, grain processing, etc. Furthermore, there are high exports of products like chocolates, cocoa products, soya-based products, high-protein food, mineral water, etc. The Indian government approves proposals for various projects, joint ventures, industrial licenses, and foreign collaborations.

2024 Highlights of General Mills, the Strong Pillar of Food, People and the Planet: 

Food: 

• Over 100% of the company’s food production facilities are certified with the Global Food Safety Initiative (GFSI). 
• About 44% of meals are allowed to be provided through donations of General Mills Food across the world in the year 2024. 
• General Mills is recognized as the largest provider of natural and organic packaged food in the U.S. 

Planet:

• More than 600,000 acres of land was enrolled in the advanced regenerative agriculture programs. 
• About 99% of electricity was sourced for the company’s global operations.
• About 93% of the company’s packaging was considered recyclable or reusable. 

People:

• About $128.9 million was spent on charity through food donations and funding.
• Significant investments were made in 46 operating communities of General Mills.
• About 88% of its employees said that the company is a safe place to work.

Europe is seen to grow at a notable rate in the natural ingredients in processed foods market in 2024.

There is an increasing demand for natural additives, healthier and more sustainable food ingredients rather than synthetic ingredients in Europe. This high demand is intended for various applications and is driven by strict legislation of the European Union. The European market is the central attraction of the leading export companies in the production of natural sweeteners, natural colors, emulsifiers, and many other products. European countries like Germany, France, the United Kingdom, the Netherlands, Italy, and Spain create favorable opportunities for exporters of natural additives.

Major Categories and Applications of Natural Food Additives in Europe

(Source: CBI)

How does the French market present favorable opportunities for suppliers of natural food additives? 

Food and Drink Europe stated the largest turnover in France in the food and drink market for the last few years. France is a rapidly growing market for organic and plant-based foods. The French market is well-renowned as the leading importer and distributor of several natural ingredients that are used as food additives. According to Food and Drink Europe, the most prominent sectors contributing to the growth of the French market were dairy, beverages, meat, and confectionery. France leads the second-largest position in food and drinks companies while comprising a large food-processing sector. 

Segment Insights

Ingredient Type Insights

How fruits and vegetables segment dominated the natural ingredients in processed foods market in 2024?

The fruits and vegetables segment dominated the natural ingredients in processed foods market in 2024. The higher intake of fruits and vegetables reduces the risk of developing cardiovascular diseases. The intake of green leafy vegetables such as spinach, lettuce, mustard greens, etc. strongly reduces the risk of cardiovascular diseases. Regular consumption of fruits and vegetables protects people from cancer and helps in the regulation of blood pressure. 

The natural sweeteners (e.g., honey, stevia, monk fruit, agave) segment is expected to grow at the fastest CAGR among the market during the predicted timeframe.

These are the natural alternatives to refined sugar, which include stevia, agave, coconut sugar, date sugar, monk fruit, fruit purée, honey, maple syrup, etc. The presence of vitamins, minerals, antioxidants, and other bioactive molecules in the natural sweeteners makes them healthier than conventional sugar. A moderate consumption of natural sweeteners is ideal for experiencing a healthy impact. 

Application Insights 

What made beverages the dominant segment in the natural ingredients in processed foods market in 2024?

The beverages segment dominated the natural ingredients in processed foods market in 2024. There are some healthy beverages like coffee, tea, etc. which have a reduced risk of developing cancer and cardiovascular diseases. Black tea is one of the most popular beverages, followed by green tea, oolong, and white tea. Research suggests that moderate tea consumption reduces the risk of stroke, heart disease, premature death, and type 2 diabetes. 

The snacks and confectionery segment is expected to grow at the fastest CAGR in the market during the forecast period.

Natural health confectionery can help in the regulation of blood sugar levels. The intake of natural healthy confectionery is considered as a high-fibre food which improves digestion and reduces the risk of chronic diseases. Natural healthy confectioneries are lower in calories and sugar than conventional snacks, which makes them healthier options. 

End User Insights

Why did the food and beverage manufacturers segment dominate the natural ingredients in processed foods market in 2024?

The food and beverage manufacturers segment dominated the natural ingredients in processed foods market in 2024. The growth of food and beverage manufacturers is driven by the increased demand for functional foods and natural and sustainable ingredients by consumers. One of the major market players like Dassault Systèmes, provides a trusted production software solution for the food and beverage industry. Dassault Systèmes has multiple partners from global food and beverage companies like Danone, Herbalife, DOT, Swire Coca-Cola, Smithfield, Cabio, etc.

The nutraceutical companies segment is expected to grow at the fastest CAGR in the market during the forecast period.

The remarkable growth of nutraceuticals companies is driven by the rising trend of contract manufacturing in nutraceutical industries. Moreover, the great importance of nutraceuticals in modern healthcare boosts the expansion of nutraceutical manufacturing across the world. A wide range of nutraceutical ingredients such as dietary supplements, functional foods, and medicinal products are beneficial for the overall health and wellness of consumers.

Recent Developments in the Natural Ingredients in Processed Foods Market

• In November 2024, Kerry Health and Nutrition Institute (KHNI) of Kerry Group Plc announced its major trends related to health and nutrition for 2025. Some of these top 10 trends are accessible nutrition, weight management and satiety, healthy aging, targeted nutrition, women’s health, etc.(Source: nutraceutical Business Review)
• In March 2024, the University of California San Diego and Novonesis announced the launch of a prominent research association aiming at establishing a new standard for collaboration and encouraging innovations in Human Milk Oligosaccharides (HMOs) science.(Source: Novozymes)

Natural Ingredients in Processed Foods Market Leading Companies

• ADM
• Ingredion
• Cargill
• DSM
• Amoy Food
• General Mills
• Kerry Group PLC
• Novozymes A/S
• Sensient Technologies
• Tate & Lyle PLC
• Nestle
• Unilever
• Kraft Foods Inc.
• Tyson Foods
• Frito-Lay

Segments Covered in the Report

By Ingredient Type

• Fruits & Vegetables
• Herbs & Spices
• Natural Sweeteners (e.g., honey, stevia, monk fruit, agave)
• Natural Preservatives (e.g., rosemary extract, tocopherols)
• Natural Flavors
• Natural Colors (e.g., beet juice, turmeric, spirulina)
• Seaweed & Algae-Based Ingredients
• Proteins (e.g., plant-based, whey, collagen)
• Fibers (e.g., inulin, psyllium, oat fiber)
• Fats & Oils (e.g., coconut oil, olive oil, avocado oil)

By Application

• Beverages 
  
  • Juices & Smoothies
  • Functional & Fortified Drinks
  • Tea & Coffee
• Bakery Products 
  
  • Breads
  • Cakes & Pastries
  • Cookies & Biscuits
• Dairy & Dairy Alternatives 
  
  • Yogurt
  • Cheese
  • Plant-Based Milk
• Snacks & Confectionery 
  
  • Granola Bars
  • Fruit Snacks
  • Chocolates & Candies
• Ready-to-Eat Meals
• Meat & Meat Alternatives
• Sauces, Dressings & Condiments
• Breakfast Cereals
• Infant & Toddler Foods
• Soups & Broths

By End User

• Food & Beverage Manufacturers
• Nutraceutical Companies
• Foodservice Providers (Restaurants, Cafes)
• Retailers / Private Labels
• Institutional Buyers (Schools, Hospitals)

By Region

• North America
• Asia Pacific 
• Europe
• Middle East and Africa
• Latin America