Bulk Food Ingredients Market by Primary Processed Type, Secondary Processed Type, Application (Food, Beverage), Distribution Channel (Direct from Manufacturers, Distributors), and Region - Global Forecast to 2028
The global bulk food ingredients market is projected to reach USD 454.6 billion by 2028 from USD 366.7 billion by 2023, at a CAGR of 4.4% during the forecast period in terms of value. The need for packaged ready-to-eat meals like confectionary, biscuits, beverages, and chocolates is one lifestyle element that drives the market for bulk ingredients. The market has been helped by the expansion of food service retail chains and the rise in the number of restaurants and cafés. These businesses buy a substantial amount of food ingredients from wholesalers, including grains, spices, and herbs. The market for bulk food ingredients is expanding due to a variety of factors, including changing lifestyles, the embrace of Western culture, and an expanding labour force. In addition, the preference for tea and coffee over carbonated beverages is anticipated to fuel market expansion. Market participants are releasing several kinds of herbal and ayurvedic teas that are also healthy, raising demand for them in many regions of the world.
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Bulk food Ingredients Market Dynamics
DRIVER : Rise in end-use applications
The demand for products that are rich in nutrients is significantly high in Europe and North America due to the increase in consumer awareness. The consumption of products with an extensive nutritional profile would continue to increase as parents prefer opting for food products—such as grains, oilseeds, and nuts, that are estimated to account for a key share in the bulk ingredients market. These products offer nutrition for healthy child development. End-use applications such as bakery & confectionery, snacks & spreads, ready meals, infant formulas, and dairy products are projected to witness significant growth in the next five years, resulting in increased demand for bulk food ingredients.
Food products are processed for various purposes, including the preparation of safer food products by eliminating harmful microorganisms such as bacteria, enhancing the shelf life of products, and increasing convenience. These bulk food ingredients are available in different end user application industries after being processed. Bulk food ingredients account for a major part of the raw materials required by the food processing industry. Hence, the increase in demand for packaged/processed food products is projected to drive the growth of the bulk food ingredients market.
Restraint: Improper storage management and infrastructure
The challenges faced by the bulk food ingredients processors/wholesalers require them to maximize the available space, manage different storage temperatures, and respond to a high turnover of stock while maintaining hygiene levels and product traceability. The Food and Agricultural Organization (FAO) reported that nearly one-third of all produced foods (1.6 billion tons of edible food) is lost every year across the supply chain, the monetary value of which is nearly USD 936 billion. In developing countries, food products are lost mainly in post-harvest and processing, i.e., by poor practices, technical and technological limitations, labor and financial restrictions, and the lack of proper infrastructure for transportation and storage. The amount of Food Waste in industrialized countries is nearly 222 million tons, which is nearly equal to the total net production in Sub-Saharan African (SSA) countries (230 million tons). In addition, when waste food is thrown into landfills, a substantial portion is converted into greenhouse gas and methane, which has a global warming potential of 25 times higher than carbon dioxide.
A study by the National Academy of Agricultural Sciences (NAAS) highlights that the lack of access to a storage facility is the most important cause of post-harvest losses for all types of food products in India. India loses nearly 10% of its grain and oilseeds annually. Harvest to household losses may actually be more than what a country such as Australia exports. The major reason for these losses is inappropriate storage management. Hence, the loss of food ingredients due to improper storage management and infrastructure can be a major restraining factor for the growth of the bulk food ingredients market.
Opportunity: Rise in demand for natural or clean label products
Healthy, and ‘clean’ food products with fewer additives. Unlike organic, however, the term ‘natural’ remains undefined by legislators. Consumers are opting for cleaner products that contain an absolute minimum of synthetic or chemical additives.
According to the survey conducted by Consumer Reports National Research Center in 2013, two-thirds of the US consumers prefer locally grown products, whereas more than 60% of the population opt for ‘clean’ or ‘natural’ labeled products. As a result of the increase in demand for organic products in the North American and European region, as well as the other parts of the world, there is a significant growth in demand for bulk food ingredients products.
Clean-label products are organic, natural, non-GMO, and minimally processed consumer-friendly products. According to the Clean Label Alliance, it is witnessed that nearly 75% of consumers are willing to pay high prices for clean-label products. The increase in health awareness among consumers is projected to drive the demand for natural and clean-label products, which, in turn, would drive the demand for bulk food ingredients. Consumers are becoming inclined toward clean-label products, as they are becoming more aware of the non-synthetic ingredients and their negative effects. This is projected to encourage the adoption of products and diets with clean-label ingredients.
Clean label is one of the most important features of packaged foods. Consumer awareness is strengthening the clean label trend, which, in turn, encourages them to adopt plant-based and natural diets that support the growth of the bulk ingredients market. Retailers are also catering to the growing demands for clean-label products among consumers by offering their private label brands. The recent outbreak of COVID-19 has led consumers to buy more clean label products due to their safe consumption and health benefits. This is projected to drive the growth of the bulk food ingredients market.
The below figure indicates consumer preference for clean label products in the US and suggests that the demand for clean label products in the US is increasing.
Challenge: Unstable agricultural supply results in price volatility
Price fluctuations are a common feature of well-functioning agricultural product markets. Measures such as import duties, export taxes, non-tariff barriers, or domestic policies, such as price support, influence the price changes in domestic markets. According to FAO, the global markets have witnessed a series of dramatic fluctuations in commodity prices. Since 2000, prices have deviated from their long-term negative growth trend and have become increasingly volatile. In addition, prices have witnessed an increase between late 2006 and mid-2008 to their highest level in thirty years and have decreased sharply through 2009. In late 2010 and early 2011, the prices regained their peak. Currently, food prices are projected to remain high and volatile in the market.
Price is one of the major restraining factors in the bulk food ingredients market. There are various fluctuations in raw material prices, such as the prices of starch and sugar for sweetener ingredients. According to a report published by the FAO, in 2018, the starch price was quoted at nearly USD 507/ton, which is 44% higher than in October 2017. In addition, the quotations have exhibited considerable volatility throughout 2018. The price of sugar across the world keeps on fluctuating. According to FAO, the sugar price index has increased by 5.5% from December 2019 to January 2020, making the fourth consecutive monthly increase. The latest increase was encouraged by a 17% drop in India’s sugar output and a 66% production fall in Brazil, which is one of the largest sugar-producing countries, and a 25% contraction in Mexico’s harvest. Export nut prices witnessed a decrease of 20.5% from December 2019 to June 2020. This decline has resulted from a loss in demand from Asia due to the restaurant closures and a decrease in purchases of some nuts (perceived luxury foods). In addition, a low export record of the almond crop in California supported the drop in prices.
Bulk Food Ingredients Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of bulk food ingredients. These companies have been operating in the market for several years and possess a diversified service portfolio, state-of-the-art laboratory & technologies, and strong global sales and marketing networks. Prominent companies in this market include Archer Daniels Midland Company (US), International Flavours & Fragrances Inc. (US), Olam Group (Singapore), Cargill, Incorporated (US), Ingredion (US), Associated British Foods plc (UK), Tate & Lyle PLC (UK), EHL Ingredients (UK), Batory Foods (US), Graincorp (Australia), Community Foods (UK), McCormick & Company, Inc. (US), The Source Bulk Foods (Australia), Essex Food Ingredients (US), and Subnutra (India).
By primary processed type, herbs & spices segment is projected to have the fastest growing rate during the forecast period.
There is an increasing global demand for natural and organic ingredients, driven by the growing consumer preference for clean label products. Herbs and spices are natural flavor enhancers that provide unique tastes, aromas, and health benefits. They are widely used in various cuisines and food applications, including processed and packaged foods, beverages, sauces, and seasonings. Herbs and spices offer a wide range of flavors and can provide differentiation to food products, allowing manufacturers to create unique and appealing taste profiles. With consumers seeking diverse and exciting flavor experiences, the demand for a variety of herbs and spices is on the rise.
By application, beverage segment is projected to have fastest growing rate during the forecast period.
There is a growing global demand for a wide variety of beverages, including carbonated drinks, juices, sports drinks, ready-to-drink teas and coffees, functional beverages, and alcoholic beverages. As consumers seek convenience and new taste experiences, the beverage industry is constantly innovating to meet these demands. Consumers are increasingly conscious of their health and wellness, driving the demand for healthier beverage options. This includes beverages with natural ingredients, reduced sugar content, functional additives, and botanical extracts. Bulk food ingredients such as natural sweeteners, fruit extracts, natural flavors, and plant-based ingredients are essential in developing healthier and more appealing beverage products.
Asia Pacific is expected to have the fastest growing rate during the forecast period.
The Asia Pacific region has a large and rapidly growing population. The rising population leads to increased food consumption and drives the demand for bulk food ingredients to meet the growing production needs. As more people enter the middle class and experience higher disposable incomes, there is an increased demand for processed and convenience foods, further boosting the need for bulk ingredients. There is a shift in dietary patterns in the region. Urbanization, changing lifestyles, and Western influences have led to a higher consumption of processed and packaged foods. This trend increases the demand for bulk food ingredients as manufacturers require large quantities of ingredients to meet the growing demand for these convenience products. The region is witnessing rising consumer awareness of health and wellness, leading to a growing demand for natural and organic food products. Bulk food ingredients such as herbs, spices, natural sweeteners, and functional additives align with this consumer preference for clean label and healthier options.
Key Players in Bulk food Ingredients Industry
The key players in this include Archer Daniels Midland Company (US), International Flavours & Fragrances Inc. (US), Olam Group (Singapore), Cargill, Incorporated (US), Ingredion (US), Associated British Foods plc (UK), Tate & Lyle PLC (UK), EHL Ingredients (UK), Batory Foods (US), Graincorp (Australia), Community Foods (UK), McCormick & Company, Inc. (US), The Source Bulk Foods (Australia), Essex Food Ingredients (US), and Subnutra (India). These companies have been focusing on expanding their market presence, enhancing their solutions, and partnering with many channel partners and technology companies to cater to consumers across the globe. The deep roots of these players in the market and their robust offerings are among the major factors that have helped them achieve major sales and revenues in the global bulk food ingredients market.
Bulk food Ingredients Market Report Scope
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Report Metric |
Details |
|
Market size value in 2023 |
US $366.7 billion |
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Revenue forecast in 2028 |
US $454.6 billion |
|
Progress Rate |
CAGR of 4.4% |
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Base year |
2022 |
|
Forecast period |
2023–2028 |
|
Units considered |
Value (USD) |
|
Segments covered |
By Primary Processed Type, By Secondary Processed Type, By Distribution Channel, By Application, and By Region |
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Regions covered |
North America, Europe, Asia Pacific, and RoW |
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Companies studied |
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Bulk food Ingredients Market Highlights
Market By Primary Processed Type
- Nuts
- Oilseeds
- Grains, pulses, and cereals
- Herbs & spices
- Sugar
- Tea, coffee, and cocoa
- Salt
- Other types (dried vegetables and citric acid)
Market By Secondary Processed Type
- Dry fruits & processed nuts
- Vegetable oil
- Processed herbs & spices
- Processed grains, pulses, and cereals
- Sugar & sweeteners
- Tea, coffee, and cocoa
- Flours
- Sea salt
- Other types (dried vegetables and citric acid)
Market By Distribution Channel
- Direct from manufacturers
- Distributors
Market By Application
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Food products
- Bakery products
- Confectionery products
- Snacks & spreads
- Ready meals
- Other food applications
- (infant formula and dairy products)
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Beverages
- Alcoholic beverages
- Non-alcoholic beverages
- Hot beverages
- Cold beverages
Market By Region
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World
Recent Developments
- In January 2023, Cargill, Incorporated announced the completion of its acquisition of Owensboro Grain Company, a soybean processing facility and refinery located in Owensboro, Ky. Cargill's acquisition of Owensboro Grain Company will strengthen its efforts to build capacity across its North American oilseeds network to meet the rising demand for oilseeds in the food, feed, and renewable fuel industries.
- In October 2022, International Flavors & Fragrances Inc. opened its innovation center worth USD 30 million in Singapore, to innovate and launch products and technologies in all its businesses. This will help the company come up with innovative products in various categories such as sweeteners.
- In July 2022, Olam Group acquired Club Coffee L.P., which is one of Canada’s largest coffee roasters and packaging solutions providers. This will help the company grow its coffee business in Canada, strengthen its coffee business, and meet the growing demand for coffee.
- In June 2022, ADM (US) partnered with Bayer AG (Germany) to build and implement a sustainable crop protection model for soybean farmers in Maharashtra, India. During this partnership, Bayer will provide regular training to ADM cluster agronomist team in Soybean markets and Bayer will also develop a crop protection package for all crops of soybean and pulses.
Frequently Asked Questions (FAQ):
Which are the major companies in the Bulk food ingredients market? What are their major strategies to strengthen their market presence?
The key players in this include Archer Daniels Midland Company (US), International Flavours & Fragrances Inc. (US), Olam Group (Singapore), Cargill, Incorporated (US), Ingredion (US), Associated British Foods plc (UK), Tate & Lyle PLC (UK), EHL Ingredients (UK), Batory Foods (US), Graincorp (Australia), Community Foods (UK), McCormick & Company, Inc. (US), The Source Bulk Foods (Australia), Essex Food Ingredients (US), and Subnutra (India). These companies have been focusing on expanding their market presence, enhancing their solutions, and partnering with many channel partners and technology companies to cater to consumers across the globe. The deep roots of these players in the market and their robust offerings are among the major factors that have helped them achieve major sales and revenues in the global bulk food ingredients market.
What are the drivers and opportunities for the Bulk food ingredients market?
The rapid growth in the packaged food & beverage industry, rise in end-use applications, and environmental and economic benefits are the major drivers. Additionally, the rise in demand for natural or clean products creates opportunities for bulk food ingredients to meet the strict quality and safety standards of international markets.
Which region is expected to hold the highest market share?
The market in Asia Pacific will dominate the market share in 2023, showcasing strong demand from bulk food ingredients services in the region. Asia Pacific is the fastest-growing region in the bulk food ingredients market due to several factors. These include the region's large and rapidly growing population, changing consumer preferences, increasing urbanization, expanding food processing industry, rising disposable incomes, and the demand for convenience foods. Additionally, the region's rich culinary heritage and diverse cuisines drive the need for a wide variety of bulk food ingredients to meet the growing demand for processed and packaged food products.
Which are the key technology trends prevailing in the Bulk food ingredients market?
The bulk food ingredients industry is experiencing technological innovations as major players are offering faster and more accurate technologies such as Bulk food ingredients are an amalgamation of various technologies, such as sensors, blockchain, and AI. These technologies are revolutionizing the way bulk food ingredients are manufactured. AI is the trending technology that helps improve smart manufacturing and quality control. In 2020, the company worked with Cargill, Incorporated to form Grainbridge LLC, a joint venture that helped develop digital solutions for farmers to boost their efficiency and production in farming. As a result, both companies will be able to expand overall production of bulk food ingredients.
What is the total CAGR expected to be recorded for the bulk food ingredients market during 2023-2028?
The CAGR is expected to record a CAGR of 4.4% from 2023-2028.
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This research involves the extensive use of secondary sources; directories; and databases (Bloomberg and Factiva) to identify and collect information useful for a technical, market-oriented, and commercial study of the bulk food ingredients market. In-depth interviews were conducted with various primary respondents, such as key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various sources, such as the US Federal Food, Drug and Cosmetic Act (FD&C Act), Food and Drug Administration (FDA), Nutritional Labelling and Education Act (NLEA) Requirements, European Union (EU), FSS Packaging and Labelling Regulation, Food Safety and Standards Authority of India (FSSAI), World Trade Organization (WTO), Sanitary and Phytosanitary (SPS) Agreement and to Codex Alimentarius (CODEX) were referred to identify and collect information for this study. The secondary sources also include journals, press releases, investor presentations of companies, whitepapers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Primary Research
The bulk food ingredients market comprises several stakeholders, including food ingredients service providers and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary interviewees from the supply side include research institutions involved in R&D to introduce technology, bulk food ingredients providers, and technology providers. Primary sources from the demand-side include key opinion leaders, executives, vice presidents, and CEOs of food manufacturers and growers through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the bulk food ingredients market. These approaches have also been used extensively to determine the size of the various sub-segments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and market have been identified through extensive secondary research.
- The bulk food ingredients value chain and market size in terms of value have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All macroeconomic and microeconomic factors affecting the growth of the market were considered while estimating the market size.
- All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
The following sections (bottom-up & top-down) depict the overall market size estimation process employed for this study.
Market size estimation: Bottom-up Approach
- In the bottom-up approach, bulk food ingredients for application, type, distribution channel, and region were added up to arrive at the global and regional market size and CAGR.
- The bottom-up procedure has been employed to arrive at the overall size of the bulk food ingredients market from the revenues of key players (companies) and their product share in the market.
Market size estimation methodology: Top-Down Approach
For the calculation of each type of specific market segment, the most appropriate, immediate parent and peer market sizes were used for implementing the top-down procedure.
Secondary reports from various sources like company revenues, associations, and regulatory bodies were considered. Further, appropriate weightage was assigned to the data derived from each parameter to arrive at the final shares for each region. The regional demand-supply trends, presence of labs, and regulatory scenario were also analyzed to further validate the shares arrived at. These shares were then confirmed with primary respondents from across regions.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to estimate the overall bulk food ingredients market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
Bulk food ingredients refer to raw materials or substances that are purchased and used in large quantities by food manufacturers, processors, or retailers to produce various food products. These ingredients are typically purchased in bulk quantities, such as kilograms or metric tons, and are essential components in the formulation of food items. Examples of bulk food ingredients include grains, flour, sugars, oils, spices, nuts, seeds, and additives. The market for bulk food ingredients caters to the needs of the food industry, providing a wide range of high-quality and cost-effective ingredients to meet the demands of large-scale food production and supply chains.
Key Stakeholders
- Manufacturers/suppliers
- Food manufacturers & processors
- Research & development laboratories
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Regulatory bodies
- Research organizations and associations, such as the Food and Agriculture Organization (FAO), Food and Drug Administration (FDA), United States Department of Agriculture (USDA), European Food Safety Agency (EFSA), EUROPA, Codex Alimetarius, Food Safety and Standards Authority of India (FSSAI), and Food Safety Australia and New Zealand (FSANZ)
- Government agencies and NGOs
- Intermediary suppliers
- Food safety agencies
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End users
- Food & beverage manufacturers/suppliers
Report Objectives
Market Intelligence
- Determining and projecting the size of the global bulk food ingredients market, with respect to based on sample, application, technology and regional markets, over a five-year period, ranging from 2023 to 2028
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across regions
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- Providing the regulatory framework for major countries related to the market.
- Analyzing the micro markets, with respect to individual growth trends, prospects, and their contribution to the total market
Competitive Intelligence
- Identifying and profiling the key players in the global bulk food ingredients market
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Providing a comparative analysis of market leaders on the basis of the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key regions
- Analyzing the value chain and products across the key regions and their impact on the prominent market players
- Providing insights on key product innovations and investments in the global market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to the company-specific scientific needs.
- Further breakdown of the Rest of European bulk food ingredients market, by key country
Company Information
- Detailed analyses and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Bulk Food Ingredients Market
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