Savory Ingredients Market

The savory Ingredients market size is expected to reach $11,284.0 million in 2027 from $7,204.0 million in 2019, growing at a CAGR of 7.70% from 2020 to 2027. Savory ingredients are flavor enhancers, which alter the flavors of food items during food processing to improve the quality and shelf life of products. These food additive help in enhancing the aroma, flavor, and taste of food products. These ingredients give a natural aromatic flavor and are mostly used in the production of instant food, meat products, nutritional food, and seasonings. Moreover, these ingredients are cost-effective, thus, are widely utilized in the food processing industry to manufacture packaged food products, which is expected to fuel savory ingredients market growth. Rise in popularity of clean label products has essentially been a direct result of increase in health concerns among consumers and rise in awareness with regard to the health benefits of clean ingredient-based food products. Consumers are more likely to see organically grown food as a healthy and nutritious option to conventionally grown products. Shift in consumer preference toward buying organic products due to concerns regarding health and prevention of adverse effects of artificial ingredients significantly contributes toward the growth of the savory ingredients market. 

The array of organic products now available and the retail channels through which they are sold have evolved the market for clean labelled savory ingredients market. In addition, mindfulness about the medical advantages of organic food coupled with the headway in organic cultivating procedures are foreseen to drive the interest for natural nourishment and drinks, thus driving the demand of natural-based savory ingredients such as yeast extract and starch. Increase in disposable income leads to requirement of high standard of living. Furthermore, the demand for nutritional and quality food is increasing due to rapid urbanization, increase in working population, and hectic & busy schedule of people, as they do not have much time to prepare food manually. Products such as instant noodles, frozen meals, packaged snacks, dairy products, soft drinks, energy drinks, and baked food have become an integral part of daily life. This, in turn, is anticipated to boost the demand for savory ingredients in frozen meals and packaged snacks to extend the shelf life of the products. 

In addition, attractive packaging, pasteurization, high-pressure processing, and UV treatment fuel the growth of the food & beverage industry. These techniques increase the shelf life of packaged food products, and thus leads to higher demand for savory ingredients. Many cases of adverse effects of manufactured food products have been reported, especially due to the flavors used in them. Thus, different governments across the globe have set up regulatory guidelines to regulate the global food flavor market. Such regulations, especially in Europe and North America, have led to sluggish growth of the market, particularly synthetic flavors. There are regulations regarding the raw materials, their processing, ingredients used, and labelling of these products. Thus, implementation of stringent government regulation regarding the use of savory ingredients  restrain the growth of the savory ingredients market forecast. 

Emerged economies serve as potential market for savory ingredients, as they are untapped. Non-member nations of the Organization for Economic Co-operation and Development (OECD) comprise more than 80% of the global population; yet consume less than 60% of world’s food. Countries in the Asia-Pacific and LAMEA have witnessed substantial economic growth over the past few years, and as a result, the number of working people has increased. This has affected the number of people who invest time in cooking food, which led to increase in consumption of packaged goods and snacks. Most of these convenience products use different forms of preservatives to enhance the shelf life, and since the consumption of these goods is increasing, the market is expected to exhibit higher growth rate especially in emerging countries of Asia-Pacific and LAMEA

The emerging economies are estimated to constitute a population of more than 60% of today’s global population of the middle class by 2020. Considering the pace of change, in China, around 3 million households had a disposable income of around $10,000 in 2,000, which increased to 60 million in 2012. This number is expected to exceed 230 million by 2020. Thus, increase in  middle-class population is expected to boost the demand for snacks and packaged food products, thereby augmenting the growth of the market.

On the basis of source, the natural segment accounted for the maximum savory Ingredients market share in 2019. This is attributed to rise in awareness regarding the adverse effect of consuming artificial or synthetic ingredients.

On the basis of types, monosodium glutamate segment was the highest contributor to the savory ingredients market in 2019. This is attributed to owing to increase in demand for convenience food and functional food products. The demand for food consisting of different flavors is increasing at an exponential rate across the world. Thus, manufacturers are developing various product formulations to meet customer demand and increase market share. 

On the basis of application, the snacks segment garnered the highest share in 2019. This is attributed to owing to increase in customer inclination toward organic foods, which is compelling savory snack companies to innovate their products for customer retention. In addition, development of healthy snacks by manufacturers is expected to boost the market growth, globally. 

The players operating in the Savory Ingredients industry have adopted new product launch as their key developmental strategy to expand their share in Savory Ingredients market, increase profitability, and remain competitive. The key companies profiled in the report include Archer Daniels Midland, Kerry Group PLC,, Tate & Lyle, Sensient Technologies Corporation, Koninklijke DSM N.V., AngelYeast Co., Ltd, Ajinomoto Co., Inc., Givaudan S.A., Symrise AG, and ABF Ingredients.

Key Benefits For Stakeholders

• The report provides a quantitative analysis of the current savory Ingredients market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
• Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
• In-depth Savory Ingredients market analysis and the market size and segmentation assist to determine the prevailing savory Ingredients market opportunity.
• The major countries across globe are mapped according to their revenue contribution to the market. 
• The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the savory Ingredients market. 

 Savory Ingredients Market Report Highlights