Albany, NY -- (SBWIRE) -- 01/22/2015 -- Overall food ingredient industry is broadly classified into two segments namely; specialty food ingredient and bulk ingredient. Specialty food ingredients are sold in smaller volumes as additives which are often key determinants of an F&B product's desired taste, appearance, nutritional properties and functionality. On the other hand, bulk ingredients are processed commodities which are sold in large volumes.

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Food ingredients are primarily segmented into following types: preservatives, sweeteners, color additives, flavors and spices, flavor enhancers, fat replacers, nutrients, emulsifiers, acidulants and leavening agents. Traditionally, salt was the main ingredient to be used for the preservation of meats and fish, followed by different herbs and spices to improve the flavor of foods whilst fruits were preserved with sugar, and cucumbers were pickled with the help of vinegar. Unlike the ancient times, the contemporary consumers can opt from a wide variety of food products that are available in different flavors, colors, with high nutritional values. Food ingredients are primarily sold to the producers of prepared food, beverage, dairy, bakery, meat and fish and confectionery that include large food manufacturing companies as well as medium-sized companies.

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The key factors driving growth of the global food ingredient industry include escalating global population, changing demographics, increasing healthcare expenditures, and growing demand for packaged demand for packaged food and beverages. Some of the noteworthy trends and developments of this industry include ongoing merger & acquisition activities, launch of innovative and novel products, increasing acceptance of natural ingredients and rising demand from emerging economies. However, the growth of the industry is being hindered by rising intense research requirements and stringent regulations along with various health hazards associated with food additives.

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The report analyzes the global food ingredient industry along with an extensive coverage of its major product segments. The food ingredient market witnesses intense competition with numerous top notch players; such as Tate & Lyle, Royal DSM N.V, and DuPont; operating in the marketplace along with small budding players. The fierce competition prevailing in the food ingredient industry has been studied on a number of parameters such as emerging market exposure, R&D expenditures, company financials, and presence in various market segments. The company profiles of leading players in the market are also presented in the report.

By combining SPSS Inc.'s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

Related Report

Global Flavor and Fragrance Market Report: 2014 Edition

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The flavors and fragrances (F&F) market is part of a larger market which supplies a variety of ingredients and components that consumer product manufacturers utilize in their products. The broader market includes large multinational companies and smaller regional and local participants which supply products such as seasonings, texturizers, spices, enzymes, fortified products and cosmetic ingredients. The companies in F&F market are targeting their activities towards highly populated and rapidly expanding regions of the world like Asia Pacific, Latin America, Middle East and Africa. North America constituted the largest market for flavors and fragrances followed by Asia-Pacific, Western Europe and South America. It is projected that Asia-Pacific will gradually overtake North America due to the much faster growth anticipated for this region.

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The global flavors and fragrances market is growing on the back of incessantly increasing demand from emerging markets, rising preference of packaged foods and beverages and escalating cosmetics industry. Ameliorating global economic development and emerging middle class population are other major factors which are bolstering the respective market. Ongoing mergers and acquisitions, changing consumer drinking habits and demand for convenience and differentiation are the significant trends observed in the F&F market. However, there are many factors which hinder the growth of respective industry, some of which are high research and development cost, regulatory risks, significant barriers to entry and fluctuating raw material prices.

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