Global Bulk Food Ingredients Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product Type (Vegetable Oil, Sea Salt, Sugar And Sweeteners, Flour, Processed Grains, Pulses And Cereals, Dried Fruit And Processed Nuts, Processed Herbs And Spices, Others), By Application (Bakery And Confectionary, Beverages, Meat And Poultry, Sea Food, Ready Meals, Dairy Products, Snacks And Savoury, Sauces And Dressings, Frozen Foods, Others), And By Geography - Forecasts From 2023 To 2028

When food items are purchased in bulk lots and quantities, they are considered bulk food ingredients. They are mostly purchased by manufacturers involved in the production of packaged food and beverage products or wholesalers. Food ingredients in this market include – nuts, beans, grains, herbs, flour, tea, sugar, coffee etc.

Since packaged and processed food companies and manufacturers are the primary end-user consumers of these bulk ingredients, therefore, growing demand for convenience food will act as the primary factor driving the growth of the market. Expanding nuclear families, increased female labour force involvement, improving living standards, and a quick expansion in the number of large retail chains are all helping to boost demand for packed and processed food and beverage products which will positively impact the market prospects. Several restaurants, hotels, cafes and bakeries buy a sizable quantity of food ingredients from wholesaler suppliers. Therefore growing HoReCa or hotels, restaurant and cafe industry will boost the growth of the global bulk food ingredients market.

On the other hand, rising volatile prices of food ingredients, lack of facilities for storing bulk food ingredients and rapid deterioration of these ingredients are some of the factors impeding the growth of the global bulk food ingredients market during the projection period. The shift in consumer preference towards premium and exclusive food products will witness a demand for gourmet ingredients which will provide several market opportunities to the key players.

Growing demand for convenient packaged and processed food products will encourage growth

One of the primary factors boosting the growth of the bulk food ingredients market is the growing demand for convenient packed and processed food & beverage products from consumers. Changes in lifestyle choices, hectic daily schedules and corporate work culture are forcing people to look for easy-to-prepare and eat food products. This factor is leading to the increasing adoption of packaged and processed food items such as ice creams, yoghurt, snacks, beverages, confectionery items etc. Moreover rising living standards, an increase in the number of women in the workforce, and a quick increase in the number of major retail chains are all contributing to the expansion of the convenience food sector.  The principal manufacturing firms buy food components in bulk, which contributes significantly to the final packaged product.

The desire to eat packaged food and beverage products in turn drives the demand for bulk food ingredients. For instance, according to the official data, the average American diet is mostly composed of processed foods—nearly 70 % of it. Fast food accounts for 10% of Americans' discretionary income. The annual financial report of Nestle shows that in 2021, 54.3 per cent of their annual revenue comes from packed and processed food and beverage products sales.

Asia Pacific is anticipated to hold a substantial portion of the global market share during the projection period

Asia Pacific region will hold a major amount of global market share in bulk food ingredients. Rising personal income, rapid urbanization and the demand for western-style food products are supporting the growth of the bulk food ingredients market in this region. Developing markets such as India, South Korea and China are experiencing a high demand for packaged and processed food products. The expansion of the regional market is being attributed to factors including changes in eating patterns, a return to traditional snacking behaviours, and a rise in the consumption of processed RTE food items.

In addition, rising nuclear families, growth in the number of working women and an exponential increase in the number of supermarkets and hypermarkets along with growing HoReCa and food service industry are also augmenting the market growth. According to a recent poll by the Associated Chambers of Commerce and Industry of India, the spending power for packaged goods has grown significantly by 20 per cent to 25 per cent. Moreover, the emergence of new players such as Tata Lyle Plc, Cargill, Dupont etc is also driving the demand. Additionally, these Asia-Pacific nations have cheaper labour costs and ingredient costs than other nations, which helps the market even more.

Market Key Developments

• In January 2023, IRCA, a world leader in chocolate, creams, and other premium semi-finished food ingredients, and Kerry Group plc entered into exclusive discussions for the sale of IRCA's Sweet Ingredients Portfolio's business and assets for a sum of €500 million.
• In January 2023, a contract manufacturing facility will get a €12 million investment from the French ingredient expert Activ'Inside in Beychac and Caillau. The firm is now trying to accelerate its development by delivering a 360° service, from scientifically validated components to customised dietary supplements. This is done by building on its success and the experience it has amassed in the scientific, analytical, regulatory, and marketing domains.

Global Bulk Food Ingredients Market Scope:

Segmentation:

• By Product Type
  • Vegetable Oil
  • Sea Salt
  • Sugar and Sweeteners
  • Flour
  • Processed grains, pulses and cereals
  • Dried fruit and processed nuts
  • Processed herbs and spices
  • Others
• By Application
  • Bakery and Confectionary
  • Beverages
  • Meat and Poultry
  • Sea Food
  • Ready Meals
  • Dairy Products
  • Snacks and Savoury
  • Sauces and Dressings
  • Frozen Foods
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others