Specialty Ingredients Market will Reach US$320.6 bn by 2021 ,Expanding at a 6.60% CAGR between 2015 & 2021
The global market for specialty ingredients is characterized by strict regulatory requirements for approvals, a vast rise in R&D expenditures, and excellent growth prospects. With a wide range of application areas across industries such as food and beverages, health and nutrition, personal care, and pharmaceuticals, the market is attracting attention from a large number of players.
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Innovation in product varieties and technological developments are emerging as key differentiators of profit margins. Companies are increasingly looking at ways to reduce costs to remain competitive as raw material prices continue to rise and vendors in emerging markets continue to introduce cheaper products. Transparency Market Research reports in one of its recent studies that the global specialty ingredients market will witness a surge in the number of players and a significant rise in product varieties in the next few years.
The market will expand at a healthy 6.6% CAGR over the period between 2015 and 2021. Expanding at this pace, the market, which held an opportunity worth US$205.2 bn in 2014, is expected to rise to US$320.6 bn by 2021.
Here’s a look at some of the factors central to the overall development of the market:
Which are the factors chiefly impacting the growth of the global specialty ingredients market?
The considerable rise in health awareness among consumers, changing lifestyles, and an increased demand for cleaner labels that guarantee chemical-free products are significantly supporting the demand for a variety of specialty ingredients globally. The growing need to limit the use of synthetic ingredients, the increasing usage of botanicals, and the declining use of artificial emulsifiers and sweeteners have also resulted in the increased demand for a variety of specialty ingredients in the food and beverages industry.
The growing portfolio of specialty ingredients suitable for use in personal care products and pharmaceuticals has also boosted the growth prospects of the global specialty ingredients market in the past few years. The market’s growth is, however, is somewhat restrained owing to the lengthy and complex approval procedures from governing bodies. The highly diverse approval processes across different countries and regions is also a major factor undermining the growth of the global specialty ingredients market.
Which is the dominant region in the global specialty ingredients market?
North America is presently the dominant regional market for specialty ingredients, contributing the most to the global market’s overall revenue in 2014. The high concentration of some of the largest producers of specialty ingredients and leading companies in key end-use industries such as food and beverages, pharmaceutical, and personal care products has granted North America a highly influential position in the global specialty ingredients market. The rising consumer preference for natural ingredients in the food, chemicals, and health and wellness sectors has also influenced the demand for specialty ingredients in the region in the past few years. The region is expected to remain at the forefront of the global specialty ingredients market over the coming years.
However, it is likely to lose its attractiveness to the market in Asia Pacific, which is expected to expand at the fastest CAGR from 2015 through 2021.
What is the nature of the competitive landscape of the global specialty ingredients market?
The market features a large number of specialty ingredient manufacturers across the globe, essentially indicating a highly fragmented competitive landscape. With innovation and strong global presence being the key determinants of long-term success, the large number of small-sized vendors with innovative technologies and technical expertise are seeking consolidation. Large companies wanting to expand their product portfolio, strengthen their technical know-how, and expand on a global front view small vendors as attractive acquisition targets.
Many recent acquisitions in the global market justify this fact, including the acquisition of salmon nutrition leader EWOS and NatureWax, a natural vegetable-based wax business, by Cargill Inc.