Market Research Future (MRFR) has published on the “Global Food Inclusion Market”.
Food inclusions are substances that are added to food to enhance its organoleptic properties, such as texture. Food additions also serve to enhance the foods' sensory properties. Food inclusions are food additives that are included as a bonus in food products. Variegates known as inclusions are added to baking recipes and dishes to give them distinctive colors, flavors, textures, or other desirable qualities. They can be found in the form of slices, flakes, pellets, nuggets, or various shapes. Flavor or color nuggets and flakes, unusual grains, and seeds, pieces of dried fruit, crunchy nuts, and chocolate and confectionery chunks are a few of the most popular food inclusions. They are included in baked goods for a variety of reasons. They can improve the texture (in the case of dried fruits, sweets, and nuts), sensory qualities, and appearance (by adding glitter flakes and shine, spices).
Based on type, the chocolate segment accounted for a market share of 21.5% in 2021 and is expected to exhibit a CAGR of 6.0% during the forecast period. This is mainly owing to the growing popularity of chocolate inclusion in various applications such as baked products, confectionery, and others. For instance, according to CBI, in 2020, the European chocolate market was estimated to be worth USD 48.27 billion. Between 2021 and 2026, it is anticipated to expand at an average annual rate of about 2.2%. Although the cocoa value chain and global sales volumes have been affected by the COVID-19 pandemic as of the beginning of 2020, a gradual recovery from COVID-19 is anticipated. For instance, following a dramatic decrease since the pandemic began in early 2020, sales volumes at the largest cocoa and chocolate firm in the world, Barry Callebaut, saw a rebound of 3.4% between September 2020 and May 2021.
Based on form, the solid & semi-solid segment accounted for a market share of 58.6% in 2021 owing to the wide usage of various solid & semi-solid food inclusion such as wafers, dry fruits, jellies, flakes, and nuts which further add sensory retreats such as mouthfeel, flavor, and visual appearance to products such as baked goods, snacks, confectionery, and ice-cream to enhance the nutritional and functional properties of snacks. Overall, Increasing demand for value-added food products coupled with wider application scope to enhance the food products is set to boost its market growth. Apart from this, growing preferences for healthy and tasty food products may serve as an opportunity for market growth. However, the high cost associated with raw materials may restrain its market growth.
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As per the MRFR exploration, the global food inclusion market was valued at USD 12627.9 million in 2021 and is projected to reach USD 24,081.22 million by 2032 at a CAGR of 6.3%.
The growing vegan population coupled with the growing popularity for whole-food inclusion owing to the various benefits associated with the consumption of whole grains, legumes, fresh fruits, and vegetables such as lower risk of heart disease, reduce risk of obesity, diabetes, supports digestion is likely to create huge opportunities for its market growth. According to a report by Ipsos Retail Performance, the number of vegans in the United States increased by 30 times between 2004 and 2019 from 290,000 in 2004 to approximately 10 million in 2019. Besides this, the presence of key players operating in various regions providing food inclusion for various applications is another factor boosting its market growth. For instance, Barry Callebaut provides crunchy sugar chips and toffee, caramel, and salty toffee flavors.
COVID-19 Impact on Food Inclusion Market
The production of food inclusions starts with the procurement of raw materials, which includes cocoa beans for chocolates, types of fruits, sugar, and food additives. With barriers to cross-border transportation of commodities due to the pandemic, food inclusion manufacturers have become dependent on local raw material suppliers, resulting in increasing the bargaining power of suppliers. The outbreak of the pandemic has created anxiety and started a panic buying situation among consumers. The unavailability of raw materials has impacted the production of food inclusions globally. Resulting in the uplifted market demand for food products and their supply. Additionaly, The increased raw material cost of the ingredients and production cost has surged the overall pricing of the food inclusions. During the pandemic, the disturbed supply chain increased raw material prices. These inflated prices caused the final pricing of the end product. However, the pandemic resulted in the panic buying of these necessary food products, which has helped in adverse demand while covid-19 pandemic. For instance, according to government statistics, the inflation rate regarding the wholesale price index in India will be around 10.7. These further states the hiked prices of the food products
The market for food inclusion on a global scale is fragmented and made up of numerous well-known business companies. The major players featured in the analysis of global food inclusion are focused on business expansion strategies. Due to their well-known brands, distinctive products, financial stability, and robust distribution networks, companies like Cargill, Incorporated (US), Archer Daniels Midland Company (ADM) (US), Kerry Group (Ireland), Tate and Lyle (UK), and Puratos Group (Belgium) dominate their respective markets. To enhance their market positions and attract a sizable consumer base, the businesses are concentrating on reducing their environmental impact and investing in research and development in addition to strategic expansion activities like product launches and acquisitions.
By Product Type
- Chocolates: Chocolate inclusions are chocolate-flavored confectionery that has a lower melting point than real chocolate. These are widely used as food inclusions in bakery, confectionery, dairy, and frozen dessert products to add indulgence to the final product. Chocolate comes in forms like chocolate chips, chocolate crumble, chocolate chunks, chocolate fudge ribbon, chocolate fudge sauce, etc.
- Fruits & Nuts: Fresh fruits, dried fruits, freeze-dried fruits, freeze-dried fruit powders, fruit pastes, drops, etc., are the forms in which fruit-based inclusions are marketed in the food inclusions market. The commonly used nut inclusions include walnuts, pecans, almonds, etc., in coated or non-coated form. Each type of fruit & nut provides various benefits to the product, for instance, the freeze-dried fruit pieces help in adding flavor and crunchiness to the product
- Cereals: Cereal inclusions comprise rice, corn, lentil, barley, wheat, millet, oats, cereal malt, etc. The cereals are majorly infused with chocolates, biscuits, baby foods, and snacks. The cereal-based inclusions are available in powders, flakes, crunchies, and crisp forms. The cereals are nutritious and add indulgence to food products.
- Flavored & Sugar Caramel: Flavored sugars are the added sugar that is infused with flavors like vanilla, rosemary, cardamom, lemon, ginger, nutmeg, cinnamon, hazelnut, caramel, etc., Flavored sugar finds applications in baked products, beverages, pastries, desserts, puddings, chocolates, and toasts. Cinnamon, cardamom, and ginger-flavored sugars are used in dessert preparation
- Confectionery: Confectionery includes gums, jellies, sprinkles, popping candies, etc., Poppy candy inclusions are added as toppings to various baked goods, ice cream, and desserts. It is available in 2-4.5 mm pieces. The sprinkles are crunchy sugar-based products that are available in cylindrical form in various colors including pink, white, green, blue, orange, yellow, etc
- Confectionery: The other segment includes seeds, herbs, spices, and vegetables. Celery seed which poses a strong flavor is used as an inclusion in bread and rolls and sunflower seeds are used in snack products. Herbs owing to their nutritious property and flavor are used in functional foods as inclusions
- Solid & Semi-Solid: Solid & Semi-Solid inclusions include those inclusions like chocolate bars, fruits, nuts, cereals, flavored sugar, jellies, gums, herbs, spices, and vegetables which are available in pieces, crunches, chips, and flakes.
- Liquid: Liquid inclusions include caramel and chocolate sauces. The chocolate sauce inclusion is used in beverages like milkshake preparations to enhance the appeal and the caramel is generally infused with confectionery products like chocolates, crispy whispers, cubes, etc
- Baked Products: Food inclusions are added to the baked products either in combination with dough or toppings, while fresh bakeries can add all varieties of food inclusions as they are intended for immediate consumption. However, commercially baked has limited options. While using inclusions in baked products, the manufacturers need to take care of the properties of it like heat stability, texture, etc., as they tend to alter the quality of the final product
- Cereals Products & Snacks Bar: The cereal products, snacks, and bars that are produced with fruit and nuts inclusions are gaining prominence as a healthy alternative to traditional meals for the fast-paced lifestyle of consumers in metro cities. Also, for consumers looking for nut-allergen-free products the food inclusions help in imparting the nut flavors to the food
- Dairy & Frozen Desserts: Diary & Frozen Desserts segment covers products like yogurt, ice cream, gelatos, frozen treats, etc., The increasing preference towards reduced sugar consumption is boosting the use of fruit-based inclusions in dairy & frozen dessert products
- Confectionery: The confectionery segment includes those products which are sugar-based like candies, chocolates, and chewing gum. Some of the significant inclusions used in confectionery products include chocolate, fruits & nuts. The usage of fruits and nuts in confectionery is driven by the demand for premiumization of food and healthy food choice to balance the effects of the sweetness of the confectionery products
- Others: The other segment includes beverages like hot drinks, cold drinks, mocktails, and functional foods like nutraceuticals and supplements. The beverages use infusions like herbs, chocolates, popping candies, sugar sprinkles, etc., to impart flavor and enhance the textural appeal.
- North America: The North American region includes major markets such as the US, Canada, and Mexico. The standard of living in North America is high and is considered a major contributor to creating demand for food inclusion products. The new product developments and the expansions that have been done by major players in the region are expected to drive the demand for food inclusion in the upcoming years.
- Europe: Europe continues to hold a significant share in the global food inclusion market, owing to the presence of major players in the region coupled with the various strategies acquired by these players to strengthen its foothold in the market. For instance, in October 2021, Tate & Lyle expanded its distribution partnership with Azelis. Tate & Lyle is a supplier of food & beverage ingredients and solutions, categories include beverages, dairy, bakery, soups, sauces, and many more. Through this partnership, the company will cover three new countries Greece, Bulgaria, and the Republic of North Macedonia.
- Asia-Pacific: Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including China, India, and Japan are growing rapidly because of the food & beverage consumption in the market. The various expansion policies that have been adopted by major players in the region are expected to drive the demand for food inclusion in the upcoming years.
- Rest of the World: The rest of the World including the region of South America, the Middle East, and Africa, will witness moderate growth in the food inclusion market in the coming years. Furthermore, major operating players in South Africa are focused on various acquisitions which are resulting in growth in the food inclusion market.