Specialty Food Ingredients Market in Europe Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Europe Food Ingredients Market Revenue Analysis and is Segmented by Ingredient Type (Functional Food Ingredient, Specialty Starch and Texturants, Sweeteners, Flavors, Acidulants, Preservatives, Emulsifiers, Colors, Enzymes, Cultures, Proteins, Specialty Oils, and Yeasts); by Application (Beverages, Bakery, Dairy, Confectionery, Dried Processed Foods, Frozen/Chilled Processed Foods, Sweet and Savory Snacks, Sauces, Dressings and Condiments, and Other Applications); by Country (Spain, United Kingdom, France, Germany, Russia, Italy, and Rest of Europe). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Europe Specialty Food Ingredients Market Size

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Europe Specialty Food Ingredient Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 27.32 Billion
Market Size (2029) USD 35.05 Billion
CAGR (2024 - 2029) 5.11 %
Market Concentration Low

Major Players

Europe Specialty Food Ingredient Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Specialty Food Ingredients Market Analysis

The Europe Specialty Food Ingredients Market size is estimated at USD 27.32 billion in 2024, and is expected to reach USD 35.05 billion by 2029, growing at a CAGR of 5.11% during the forecast period (2024-2029).

The growing demand for specialty food ingredients, including sweeteners and starches, is largely driven by their multifunctionality. These ingredients play diverse roles in food manufacturing, from structuring food and beverages to enhancing their nutritional profile, texture, and flavor. This versatility boosts their appeal among food companies. Additionally, the rising appetite for convenience, ethnic, and processed foods amplifies the demand for food packaging and processing solutions. To maintain the freshness, safety, taste, appearance, and texture of these processed and convenience foods, specialty ingredients are extensively utilized. Furthermore, the surging popularity of plant-based foods is bolstering the demand for natural and clean-label ingredients, particularly in categories like sweeteners, preservatives, and emulsifiers. Labels touting terms like "GMO-free," "natural preservatives," and "organic" are significantly propelling market growth. A 2023 ATLAS study by Ingredion Inc. highlighted that 44% of consumers scrutinize both ingredient and nutrition labels, emphasizing their quest for nutritious food. Moreover, advancements in food technology are paving the way for intricate and refined ingredients. Techniques such as fermentation, molecular gastronomy, and natural ingredient encapsulation are birthing innovative taste profiles. The market is bustling with both global and regional players, including notable names like DSM, Cargill, and Tate & Lyle. These companies are not only introducing new products but are also keen on expanding their market footprint. For instance, in 2023, BASF Aroma Ingredients enriched its Isobionics portfolio with fresh natural flavors, unveiling two new products: Isobionics Natural alpha-Bisabolene 98 and Isobionics Natural (-)-alpha-Bisabolol 99.

Europe Specialty Food Ingredients Market Trends

Specialty Food Ingredients Are Widely Used In Beverages

As health concerns intensify, consumers are increasingly investing in healthcare and opting for healthier food choices. Data from the Organisation for Economic Co-operation and Development (OECD) reveals that the UK's healthcare expenditure as a percentage of GDP climbed from 10% in 2019 to 11.1% in 2023. In light of these rising health concerns, consumers are scrutinizing food ingredients and showing a preference for natural sweeteners like stevia. This sweetener is making waves across a spectrum of beverages, including teas, coffees, soft drinks, flavored waters, juices, and even alcoholic beverages. In the brewing industry, enzymes such as cellulase, alpha-amylase, and beta-glucanase play pivotal roles, enhancing malt separation, boosting extraction yields, and ensuring effective beer filtration and stabilization. This widespread enzyme application is fueling the growth of the specialty ingredients market. Data from HM Revenue and Customs indicates that the UK's annual beer production increased from 1,399 hectoliters of pure alcohol in 2020 to 1,511 hectoliters in 2023. With this uptick in alcohol production, the utilization of enzymes has correspondingly risen. For instance, glucoamylase enzymes are vital in the alcohol distillation process. Responding to the burgeoning demand for natural food colors in beverages, color ingredient manufacturers are expanding their offerings. Carotenoids, a prominent natural colorant, are widely used in beverages like cider, malt drinks, and flavored waters.

Europe Specialty Food Ingredients Market: Value of organic alcoholic beverages imported into Denmark, 2020-2022 (in million DKK)

Germany Is The Largest Market For Specialty Food Ingredients

Germany boasts the fourth-largest food processing industry in the nation, serving a wide range of specialty food ingredients. In 2022, the production value of Germany's processed food and beverage sector hit USD 238.9 billion (EUR 218.5 billion), reflecting a 17% uptick from the prior year, as reported by the Federation of German Food and Drink Industries (BEV) in 2023. The country's rich regional culinary traditions cultivate a strong acceptance of specialty food ingredients. Moreover, the rising popularity of low-carbohydrate diets is driving up per capita consumption of both regular and frozen baked goods across diverse demographics. This bakery consumption surge is simultaneously escalating the demand for a variety of food additives. Market players are not only innovating products but also ensuring their relevance. For instance, in July 2023, MC Mühlenchemie launched its Omnizym brand, rolling out enzyme-based ingredients. Their flagship ingredient aims to reduce sugar content in yeast-risen baked goods, tackling challenges posed by rising commodity and production costs. Such innovations are set to boost demand in the foreseeable future. 

Europe Specialty Food Ingredients Market: Revenue in the convenience food manufacturing sector, Germany, 2021-2023 (in billion euros)

Europe Specialty Food Ingredients Industry Overview

The European specialty food ingredients market is fragmented, attributed to the multitude of local, domestic, and global players. Key players include Cargill Inc., ADM, International Flavors & Fragrances Inc., Kerry Group, and Givaudan SA. These leading players are employing strategies like product launches, mergers and acquisitions, partnerships, and expansions to strengthen their foothold. Furthermore, they are utilizing assertive advertising and promotional strategies to elevate their brand image.

Europe Specialty Food Ingredients Market Leaders

  1. Cargill

  2. Archer Daniels Midland Company

  3. International Flavors & Fragrances Inc

  4. Kerry Group

  5. Givaudan SA

*Disclaimer: Major Players sorted in no particular order

Europe Specialty Food Ingredients Market Concentration
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Europe Specialty Food Ingredients Market News

  • August 2024: Tate & Lyle launched Optimizer Stevia 8.10, a new stevia formulation designed to provide manufacturers with a budget-friendly sweetener alternative. Optimizer Stevia 8.10 closely mimics the taste of sugar, even at elevated sugar replacement ratios. This stevia variant is economical, delivering enhanced value over other premium stevia sweeteners.
  • June 2024: Tate & Lyle PLC unveiled 'Tate & Lyle Sensation,’ a tool designed to enhance the mouthfeel of food and beverage solutions. This launch is part of a broader campaign by Tate & Lyle, emphasizing their expertise in texture and mouthfeel innovations.
  • February 2024: Cargill introduced Genuine Zero, a sugar-free chocolate designed for the industrial confectionery, bakery, and ice cream sectors. As per the brand claim, this technological innovation is free of lactose, contains 40% cocoa, and is sweetened with EverSweet. 

Europe Specialty Food Ingredients Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
    • 4.1.1 Evolving Dietary Preferences
    • 4.1.2 Demand For Clean Labels And Organic Claimed Food Products
  • 4.2 Market Restraints
    • 4.2.1 Regulatory Challenges And Price Fluctuations
    • 4.2.2 Health Risks Of Food Additives
  • 4.3 Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 By Ingredient Type
    • 5.1.1 Functional Food Ingredient
    • 5.1.2 Specialty Starch and Texturants
    • 5.1.3 Sweeteners
    • 5.1.4 Flavors
    • 5.1.5 Acidulants
    • 5.1.6 Preservatives
    • 5.1.7 Emulsifiers
    • 5.1.8 Colors
    • 5.1.9 Enzymes
    • 5.1.10 Cultures
    • 5.1.11 Proteins
    • 5.1.12 Specialty Oils
    • 5.1.13 Yeasts
  • 5.2 By Application
    • 5.2.1 Beverages
    • 5.2.2 Sauces, Dressings, and Condiments
    • 5.2.3 Bakery
    • 5.2.4 Dairy
    • 5.2.5 Confectionery
    • 5.2.6 Dried Processed Foods
    • 5.2.7 Frozen/Chilled Processed Foods
    • 5.2.8 Sweet and Savory Snacks
    • 5.2.9 Other Applications
  • 5.3 By Country
    • 5.3.1 Spain
    • 5.3.2 United Kingdom
    • 5.3.3 France
    • 5.3.4 Germany
    • 5.3.5 Russia
    • 5.3.6 Italy
    • 5.3.7 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Strategies Adopted by Leading Players
  • 6.2 Market Share Analysis
  • 6.3 Company Profiles
    • 6.3.1 Cargill Inc.
    • 6.3.2 Tate & Lyle PLC
    • 6.3.3 Kerry Group
    • 6.3.4 Archer Daniels Midland
    • 6.3.5 Koninklijke DSM NV
    • 6.3.6 Ingredion Incorporated
    • 6.3.7 Sensient Technologies
    • 6.3.8 Advanced Enzyme Technologies Limited
    • 6.3.9 International Flavors & Fragrances Inc.
    • 6.3.10 Givaudan SA
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Europe Specialty Food Ingredients Industry Segmentation

Specialty food ingredients offer technological and functional benefits, playing a crucial role in delivering a diverse array of tasty, safe, healthy, and sustainably produced food products. These ingredients are pivotal in the European food industry, widely utilized in various consumer foods, and have consequently become part of consumers' daily lives.

The Europe specialty food ingredient market is segmented by ingredients into functional food ingredient, specialty starch and texturants, sweeteners, flavors, acidulants, preservatives, emulsifiers, colors, enzymes, cultures, proteins, specialty oils, and yeasts. By application, the market is segmented into beverages, sauces, dressings, and condiments, bakery, dairy, confectionery, dried processed foods, frozen/chilled processed foods, sweet and savory snacks, and other applications. The geographical analysis of the market includes Spain, the United Kingdom, France, Germany, Russia, Italy, And the Rest Of Europe. The market sizing has been done in value terms in USD for all the abovementioned segments.

By Ingredient Type Functional Food Ingredient
Specialty Starch and Texturants
Sweeteners
Flavors
Acidulants
Preservatives
Emulsifiers
Colors
Enzymes
Cultures
Proteins
Specialty Oils
Yeasts
By Application Beverages
Sauces, Dressings, and Condiments
Bakery
Dairy
Confectionery
Dried Processed Foods
Frozen/Chilled Processed Foods
Sweet and Savory Snacks
Other Applications
By Country Spain
United Kingdom
France
Germany
Russia
Italy
Rest of Europe
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Europe Specialty Food Ingredients Market Research FAQs

The Europe Specialty Food Ingredients Market size is expected to reach USD 27.32 billion in 2024 and grow at a CAGR of 5.11% to reach USD 35.05 billion by 2029.

In 2024, the Europe Specialty Food Ingredients Market size is expected to reach USD 27.32 billion.

Cargill, Archer Daniels Midland Company, International Flavors & Fragrances Inc, Kerry Group and Givaudan SA are the major companies operating in the Europe Specialty Food Ingredients Market.

In 2023, the Europe Specialty Food Ingredients Market size was estimated at USD 25.92 billion. The report covers the Europe Specialty Food Ingredients Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Specialty Food Ingredients Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

EU Specialty Food Ingredients Industry Report

Statistics for the 2024 EU Specialty Food Ingredients market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. EU Specialty Food Ingredients analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Specialty Food Ingredients Market in Europe Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)