With more consumers seeking healthier food options, niche products are having their moment.
The specialty food ingredient market is poised for substantial growth from 2024 to 2030, according to a recent report by DataM Intelligence. This surge is driven by changing dietary preferences, a growing population, and increasing consumer awareness of the health benefits associated with specialty ingredients.
With a growing focus on health and wellness, the category is expected to continue its upward trajectory. The market size, which was $112.4 million in 2022, is projected to reach $168.6 million by 2031, growing at a compound annual growth rate of 5.2%.
Specialty food ingredients, as defined by the report, typically preserve, texture, emulsify, colour, help process, and improve the nutritional profile of processed foods. These ingredients are used by chefs and food manufacturers to differentiate their products, create unique culinary experiences, meet dietary preferences or restrictions, and appeal to health-conscious consumers.
For instance, the sweetener market is experiencing significant innovation, with companies utilizing ingredients like honey, truffles, and other sweet proteins to mimic the taste of sugar. Other companies are replacing artificial colouring agents with natural alternatives, such as Spirulina.
Additionally, specialty ingredients targeting specific health concerns—such as cardiovascular health, digestive health, and weight management—are expected to gain traction in the coming years.