Market Trends of North America Specialty Food Ingredient Industry
This section covers the major market trends shaping the North America Specialty Food Ingredient Market according to our research experts:
Innovative Product Offerings Necessitate The Use Of Specialty Food Ingredients
The preference for certain types of food products has become core to some consumer's identities. There is a strong correlation between the specialty food ingredient market and the processed food market, with the former conferring functional benefits and customized value addition as per the end-user applications. Today's consumers in North America are more aware of label claims and ingredient lists and their nutrition profiles. On the other hand, consumers are taking proactive participation, to enhance health and fitness in everyday life. This trend has been driving the demand for specialty food ingredients in the Canada and United States.
For instance in 2017 in the United States, the sales value for probiotic products, such as yogurt and baby formula and children nutrient drink, saw a maximum share of 27%, thereby validating the claim that people are increasingly consuming specialty ingredients infused food products.
Companies are targeting consumers by coming up with new and innovative value-added product lines, including sugar-free products, reduced fat, reduced sodium, and other functional benefits. For instance, the use of stevia extracts for added sugar content in processed food is an attractive value addition. Furthermore, consumers have shown greater preferences for value-added foods; the robust growth in such specialty and free-from foods segments have prompted manufacturers to expand their specialty ingredients portfolio.
Mexico and Canada, the Growing Avenues of Speciality Food Ingredients
In Canada, the shift in the needs and wants of the consumers is challenging the food sector's ability to measure the market conditions, innovation, and development of new products. However, consumers of the country highly trust Canadian specialty ingredients. In May 2019, According to the Canadian Food Inspection Agency, consumers use labels on food products seeking to buy foods sourced from Canada, including the Canadian ingredients in a product and if it was manufactured in Canada. The manufacturers, such as Calico Food Ingredients Ltd and DuPont in Canada, follow a trend of marketing to specific demographics, such as young adults and the aging population.
Manufacturers in Mexico are increasingly adopting strategies, such as product launches, mergers, and acquisitions, to enhance their positions in the specialty sweeteners market. For instance: Stevia First Corp. collaborated with BioViva Sciences in 2015, for the large-scale production of stevia, the all-natural zero-calorie sweetener, in order to transform the sugary beverage consumption in Mexico.
Compared to other North American countries, Mexico has not had the significant growth in functional food ingredients, but growth and expansion and repositioning via mergers and acquisitions among the major players are expected to continue boosting the overall market growth in the country.
