Food Inclusions Market

Increasing Demand For Value-Added Food Products

The ever-increasing consumer preferences for wholesome and nutritious food products have resulted in the popularity of value-added food products. The addition of these raw or pre-processed food ingredients makes the final products more salient in nature. Value addition in food has seen a growth of around 6-7% after the emergence of the pandemic. Owing to the health awareness factors globally, consumers are more likely to choose food products with additional health benefits. Moreover, the major key players are prominently developing nutritious premium food products because of rising consumer inclination towards superior quality and healthy ingredients.

Major manufacturers are investing in new product development and launching various product variants for their consumers around the globe. Furthermore, the addition of fruit-based inclusion in the products makes the final products more fruitful and delicious. The fruits, cereals, and other nutritious raw materials utilized in food inclusion are being popularly accepted by the global consumer because of their increased benefits. Additionally, The food inclusion products market growth is accelerated with its enlarged applications in the food and beverages industry.

The proper utilization of these inclusions in dairy products, bakeries, frozen desserts, and baked products is making the application products popular amongst consumers. Moreover, increasing consumer preference for fat-free and healthy food products has encouraged manufacturers to include healthy ingredients in food inclusions in addition to cereals, chocolates, and fruits as the main ingredient

The Global Food Inclusion Industry is poised for substantial growth, with projections indicating a market value of 14.9 USD Billion in 2024 and an anticipated increase to 28.9 USD Billion by 2035. This growth trajectory suggests a robust demand for food products that incorporate beneficial ingredients. The compound annual growth rate of 6.22% from 2025 to 2035 reflects the industry's potential as it adapts to changing consumer preferences and technological advancements. The market's expansion is likely to be driven by various factors, including health consciousness, dietary diversity, and regulatory support, positioning it as a dynamic sector within the global food industry.

The Global Food Inclusion Industry is significantly influenced by the diversification of dietary preferences. With an increasing number of consumers adopting vegetarian, vegan, and gluten-free diets, food manufacturers are compelled to innovate and include alternative ingredients. This shift is not merely a trend but a reflection of broader societal changes towards sustainability and ethical consumption. As a result, the market is expanding to accommodate these preferences, with projections indicating a growth to 28.9 USD Billion by 2035. Companies are investing in research and development to create products that cater to these diverse dietary needs, thereby enhancing their market presence.

The increasing awareness of health and wellness among consumers is a primary driver of the Global Food Inclusion Industry. As individuals become more informed about the nutritional value of their food, there is a growing demand for products that include functional ingredients. This trend is evident in the rising sales of fortified foods and beverages, which are projected to reach 14.9 USD Billion in 2024. Consumers are actively seeking options that enhance their health, leading to a shift in food production and marketing strategies. Consequently, manufacturers are focusing on incorporating vitamins, minerals, and other beneficial components into their offerings.

The growing consumer demand for transparency in food labeling is reshaping the Global Food Inclusion Industry. Modern consumers are increasingly scrutinizing ingredient lists and seeking clarity regarding the sourcing and processing of their food. This trend has prompted manufacturers to adopt more transparent practices, including clear labeling of food inclusions and sourcing information. As a result, companies that prioritize transparency are likely to gain a competitive edge in the market. This shift towards informed consumption is expected to drive growth, as consumers gravitate towards brands that align with their values and provide clear information about their products.

Government regulations aimed at improving nutritional standards are a significant driver of the Global Food Inclusion Industry. Many countries are implementing policies that encourage the fortification of staple foods with essential nutrients. This regulatory support not only promotes public health but also drives market growth by creating a favorable environment for food manufacturers. As governments recognize the importance of addressing nutritional deficiencies, the demand for fortified products is expected to rise. This trend is likely to contribute to the market's expansion, as companies align their strategies with regulatory frameworks to enhance their product offerings.

Technological innovations in food processing play a crucial role in shaping the Global Food Inclusion Industry. Advances such as improved extraction methods and enhanced preservation techniques enable manufacturers to incorporate a wider range of ingredients without compromising quality. These technologies facilitate the development of products that are not only nutritious but also appealing to consumers. As the industry embraces these advancements, it is likely to witness a compound annual growth rate of 6.22% from 2025 to 2035. This growth is indicative of the market's potential as companies leverage technology to meet the evolving demands of health-conscious consumers.

By Region, the study segments the market into North America, South America, Europe, Asia-Pacific, and Middle East & Africa. Europe's food inclusion market accounted for the largest market share at 33.95% in 2021 and is expected to exhibit a 6.0 % CAGR during the study period.

Europe accounted for a market share of 33.9% in 2021 and is expected to register a CAGR of 6.0% during the forecast period. Europe includes the UK, Germany, France, Italy, Spain, and Rest of the Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the Food Inclusion Market, owing to the presence of major players in the region coupled with the various strategies adopted by them 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. In 2021, the North American region held a market share of 29.3% and is anticipated to grow at a CAGR of 6.2% over the following five years. Major markets including the US, Canada, and Mexico are included in the North American food inclusion market. The greatest per capita incomes are in the US and Canada.

The high standard of living in North America is regarded as a key factor in driving demand for products that include food. The market for food inclusion is anticipated to increase over the future years as a result of recent product advancements and expansions made by significant regional players.

Figure 4: FOOD INCLUSION MARKET SHARE BY REGION 2020 & 2032 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Whereas, 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. For instance, in August 2021, Cargill agreed to acquire Aalst Chocolate Pte. Ltd. a Singapore-based chocolate manufacturer.

The Aalst customer base reaches more than 50 countries, that have been exported to retail, food service, and industrial clients in key markets that include India, China, Japan, Korea, Oceania, and Southeast Asia.

Important industry players are investing a lot of money in R&D to expand their product lines, which will spur further growth in the market for food inclusion. Additionally, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, and collaborating with other organizations in order to broaden their global reach. One of the primary business strategies adopted by manufacturers in the global food inclusion industry to benefit clients and expand the Food inclusion market sector is to manufacture locally to reduce operating costs.