Bio-based Food Ingredients Market Size, Share & Industry Analysis, By Source (Plant-based, Animal-based, Microbial-based), By Type (N-butanol, Ethyl Cellulose, Butyl Acetate, Butyl Levulinate, Others), By Application (Dairy Products, Bakery, Confectionery, Beverages, Other Processed Foods) And Regional Forecast, 2024-2032

Bio-based food ingredients are derived from plants or any other renewable marine, agriculture, and forestry materials defined by the United States Agriculture Department (USDA). Bio-based food ingredients are utilized as it imparts additional product functionalities and efficient use of natural resources. Bio-based food ingredients such as n-butanol, butyl acetate, butyl caprylate, and others are naturally present in yogurt, natural oils, and fruits. These ingredients are extracted from the natural sources and are widely used to impart flavours and fragrances in beverages, dairy products, and others. Furthermore, the ingredients are also incorporated in the processed and packaged food products to increase its flavour, nutritional properties, and consistency, which is expected to fuel its demand.

The increase in working population and fast-paced lifestyle of the consumers has led to their increased reliability on convenience food products. Since, the incorporation of bio-based food ingredients in the processed foods offer authenticity has directly aided in driving the market growth. Coupled with this, the rising health and environmental concerns have led to wide adoption of natural and organic ingredients by the manufacturers to suffice the natural food ingredients demand, thereby contributing in market growth.

The rising awareness among the consumers about the harmful effects of synthetic food ingredients has led them to switch towards bio-based ingredients, which in turn is driving the market growth. This has also nudged the manufacturers to cope with the growing demand and have started incorporating bio-based ingredients to produce clean-label food products. The bio-based ingredients help in providing the food with natural taste along with improving its nutritional qualities, thus fuelling its market growth.

Due to the relatively low awareness about the bio-based food ingredients the emerging and under-developed economies the manufacturers reliability on artificial ingredients is more, which is an impeding factor in market growth. Along with this, the changing rules and norms imposed by the regulatory bodies to ensure proper labelling of the food ingredients which vary from country to country, leads to delay in product launch.

Key Market Driver -

Rising Demand for Natural Food Ingredients

Key Market Restraint -

Low Market Penetration and Changing Regulatory Scenario

Key Players Covered:

The key companies operating in the global biotech flavours market are, DuPont de Nemours, Inc., Green Biologics Inc., Enzyme Bioscience Pvt. Ltd, Noor Enzymes Pvt. Ltd., Corbion N.V., Ashland Global Holdings Inc., Colorcon, Inc., BASF SE, Shandong Head Europe B.V., and Eastman Chemical Company.

The n-butanol segment is anticipated to be the leading segment in the market owing to its utilization as a flavouring agent in the food products. The n-butanol naturally occurs as a by-product of carbohydrate fermentation and is permitted by the USDA to be utilized in butter, cream, cordials, alcoholic beverages, and confectionery items. Along with this, the growing popularity of natural flavouring agents is expected to boost its market growth in the forecasted years.

Due to the wide utilization of flavours and ingredients to impart natural fruity flavours in the candies and gums, the confectionery segment is exhibiting a significant growth potential in the market. The increasing consumers demand for healthy snacking products coupled with its taste and sensory appeal has led to the growing popularity of natural ingredients-based confectionery items. This directly aids in fuelling the market growth.

Regional Analysis:

Europe is anticipated to observe robust growth in the market due to the growing consumers’ inclination towards natural and clean-label food ingredients. The negative health impact associated with consuming synthetic flavouring ingredients such as monosodium glutamate (MSG) and artificial food colours has aided in fuelling the demand for bio-based food ingredients. According to the German Ministry of Agriculture and Nutrition, the consumers in the region are switching to organic and natural food ingredients due to the animal welfare and avoidance of additives and pesticides factors.

Asia Pacific is witnessing significant growth in the market mainly due to the growing consumption of processed foods and beverages. This is owing to the presence of large consumer base coupled with increase in working population. The consumers prefer convenient food that are healthy and natural as well as saves the preparation time are the factors supporting the bio-based food ingredients market growth in the region. Further, countries like India, Japan, and China offer numerous opportunities for the food ingredients manufacturers to establish their production bases for expanding their geographical presence. Thus, fuelling the regional market growth.

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Segmentation

Key Industry Developments

• In July 2020, Ingredion Incorporated launched three new organic native starches in the U.S and Canada for the processed food manufacturers to replace the undesirable ingredients in existing products and develop new products by enhancing its appeal.


• In December 2019, DuPont de Nemours, Inc., launched a new plant-based solutions portfolio at Food Ingredients Europe 2019, to meet the growing consumers demand for healthier, more sustainable foods and beverages that are meat and dairy-free