Bio-Based Food Ingredients Market Overview
Bio-based food ingredients are derived from natural sources which are used to add a higher value of flavor as well as fragrance to the food. These ingredients come from renewable natural resources which might not always ne biodegradable or compostable. Bio-based products usually undergo physical, chemical, or biological treatment before their final use. All bio-based products are initially natural but not all natural food ingredients are bio-based. They are used for the preparation of various food products such as dairy, beverages, confectionary and other products.
The bio-based food ingredients market is anticipated to record a CAGR of around 5.93% over the forecast period, i.e., 2020-2027. The market is projected to attain a significantly high market value of USD 2,986.99 million by the end of 2027.
Growth Highlights based on Region during 2020-2027
Based on region, the bio-based food ingredients market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The market in North America is anticipated to hold the leading share on account of rising awareness among consumers about the benefits of natural ingredients. Further, the increasing number of health conscious consumers in the region is a key growth driver for North America bio-based food ingredients market in the coming years. Similarly, the market in Europe is projected to hold the second largest share in the market on the back of high demand for these products in Germany and UK. On the other hand, the market in Asia Pacific is predicted to grow at the highest rate of about 7.01% over the forecast period. This can be attributed to the growing demand as well as increasing production of these ingredients in the region.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Product
The market is segmented by product into ethyl cellulose, N-butanol, butyl levulinate, butyl acetate, butyl isobutyrate and others. The N-butanol segment is anticipated to hold the largest share in the bio-based food ingredients market on account of highest market value of USD 873.23 million in 2018 which is estimated to increase further. Moreover, the segment for N-butanol is projected to grow at the highest rate with a CAGR of 6.40% over the forecast period as well. N-butanol is a chemical compound produced predominantly through fermentation and used as an ingredient in dairy products and confectioneries. It acts as a safe flavoring substance in food products undergoing fermentation of carbohydrates in alcoholic beverages and can be detected in the core contents of various foods such as cheese, heat-treated milk, muskmelon, and cooked rice.
By Application
On the basis of application, the market is segmented into beverages, dairy, confectionary and others. The segment for beverages is anticipated to hold the leading share in the market in the upcoming years with a market value of USD 743.36 million in 2018. Bio based food ingredients used in beverages increases the nutritional value of the food. They are used to add flavor and to change the consistency of beverages. Increasing awareness among end-users across developing countries about health benefits of bio-based beverages and their ingredients is increasing the demand for bio based food ingredients in the beverage sector.
Bio-Based Food Ingredients Market Drivers and Challenges
Growth Indicators
Increasing health and environmental concerns have pushed a significant number of people across the world towards adopting and consuming organic and natural ingredients which has led to the rise in demand for bio based food ingredients. As bio based food ingredients are a healthier alternative to all the harmful chemical products, their preference has been increasing rapidly among the consumers.
The growing GDP in countries is another factor contributing towards the market growth. Additionally, over the past few years, the sale of organic food additives has witnessed significant growth which is further projected to accelerate the growth of the bio based food ingredients market. Further, the increasing demand for bio-based products in the food and beverages industry has witnessed substantial growth as a result of growing health concerns. The numerous health benefits provided by these products which are associated with plant and animal based ingredients is an additional growth factor. On account of these factors, the preference of a larger section of the population has shifted towards bio-based ingredients, which has encouraged new entrants to invest and operate in the bio-based food flavors and fragrances market.
Barriers
The lack of awareness about bio-based food ingredients and their advantages in developing and under-developed countries is a major growth restricting factor for the market. Additionally, in some countries, there are no strict standards and regulations to evaluate the safety and quality of the food products. The poorly developed standards across various countries is further slowing down the uptake of bio based food ingredients which is another major obstacle faced by the new entrants. However, the recent Covid-19 pandemic has led to the economic downfall in almost every country of the world which is expected to impact the market growth adversely over the upcoming years. Various chemical companies are facing significant challenges and are unable to respond quickly to the disaster.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the global bio-based food ingredients market are Ashland, Dow, Colorcon, Prasol Chemicals Pvt. Ltd., Shandong Head Europe B.V., Shin Etsu, Eastman Chemical Company, Corbion N.V., Alfa Aesar and BASF.
