A recent report from the Business Research Company indicates a significant surge in consumer demand for better-for-you options, driving growth in the food ingredients market from 2024 to 2028. With health-conscious consumers increasingly dictating purchasing trends, bioactive food ingredients like omega-3 fatty acids, antioxidants, probiotics, soy protein, and beta-carotene are witnessing higher incorporation rates into meals.
Key trends forecasted for the period include the introduction of natural food colours, facility expansions, the development of innovative ‘plug and play’ solutions, sustainable product development, and a focus on partnerships and collaborations.
The report projects the food ingredients market to reach $91 billion by 2028, reflecting a compound annual growth rate of 6.6%. Notably, more food ingredient companies are leveraging technology to develop innovative solutions, particularly in the realm of “next-generation alternative proteins” and other ingredients, to meet evolving consumer preferences.
Leading ingredient producers have introduced novel alternatives in recent months, such as MycoTechnology’s discovery of a natural sweetener in honey truffles and Kerry’s launch of Tastesense Salt, a sodium-free ingredient that preserves salty taste for snack formulations like potato chips.
With snacking gaining popularity, ingredient manufacturers face pressure to reformulate products to align with healthier preferences. Consumer scrutiny of ingredient labels is also intensifying, as revealed by recent data from Ardent Mills.
Moreover, the report highlights the anticipated impact of natural food colours on market trends, particularly in light of legislative measures such as California’s Assembly Bill 418, which prohibits certain food additives like Red Dye 03, set to take effect in 2027. Similar initiatives in states like New York, Illinois, Missouri, and Washington are expected to reshape ingredient choices for confectionery companies and drive further innovation in the food ingredient sector.