Kansas Ag Connection - Outlook on Worldwide Bulk Food Ingredients Industry

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Outlook on Worldwide Bulk Food Ingredients Industry
Kansas Ag Connection - 07/16/2020

The "Bulk Food Ingredients Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering. The bulk food ingredients market is recording a CAGR of 4.9% during the forecast period (2020-025).

The market is majorly driven by the evolving lifestyle factors, such as demand for packaged convenience and ready-to-eat foods like confectionery items, biscuits, beverages, chocolates, etc. The robust growth in foodservice retail chains with an increase in the number of eateries and cafes, which purchases a huge quantity of food ingredients from the wholesale supplier has further boosted the market growth. Furthermore, factors such as increasing disposable incomes and rapid urbanization have also increased the demand for processed foods, thus gearing market growth.

However, factors such as lack of infrastructure facilities and easy bacterial contamination of bulk food ingredients, along with the volatile price fluctuations of bulk food ingredients are expected to restrain the global market growth.

Companies included in the report include:

- Cargill Incorporated

- ADM

- Associated British Foods PLC

- Tate & Lyle PLC

- DuPont de Nemours Inc.

- Ingredion Incorporated

- Olam International

- Koninklijke DSM NV

- Key Market Trends

Rising demand for prepared and convenience food products, such as baked goods, snacks, yogurt, ice-cream, beverages, and other ready meals among the consumers have been witnessed with an increasing trend. This is due to the benefits of convenience food, such as lesser preparation time and easy handling that offers an advantage to the consumers in their busy life schedule. Food ingredients purchased in bulk by the primary manufacturing companies make up a very large part of the final product and have a significant impact on the final packaged product. For instance, products, ranging from fat-free dressing, low-fat mayonnaise, sauces, processed meat products, etc., require a broad variety of functional ingredients to provide optimization in terms of stability, creaminess, shelf-life, viscosity, and water absorption, among others.

The Asia-Pacific region is witnessed to show the fastest-growing region in the global market, owing to the growing urbanization coupled with increased spending on convenient and ready-to-eat processed foods and improved standard of living in countries like China, India, Malaysia, Australia, and New-Zealand. The increase in global exposure and western lifestyle influence have led to the growing popularity of packaged, processed and ready-to-eat foods in this region. Countries like India have recently witnessed a surge in Foreign Direct Investments (FDI) from key players operating in the bulk food ingredients market. Moreover, such countries in the Asia-Pacific region also exhibits low-cost labor and lower ingredient prices, thereby providing a further fillip to the market.

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