Fortified Ingredients Market

Report Code UC-F-6570
Published in Dec, 2024, By MarketsandMarkets™
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Fortified Ingredients Market by Raw Material (Flours, Rice, Salt, Milk, Oil, and Sugar), Ingredient Type (Vitamins, Minerals, Protein & Amino Acids, Lipids, Prebiotics & Probiotics, Carbohydrates, And Other Ingredient Types), Application (Infant Formula, Dairy & Dairy-Based Products, Cereals & Cereal-Based Products, Fats & Oils, Beverages, Dietary Supplements, and Other Applications), Processing, Distribution Channel and Region - Global Forecast to 2029

Overview

The global fortified ingredients market growth is on a trajectory of significant expansion, with an estimated value projected to reach USD XX billion by 2029 from the 2024 valuation of USD XX billion, displaying a promising Compound Annual Growth Rate (CAGR) of XX%. Global demand for fortified ingredients is therefore rising in response to increasing nutritional and health awareness, along with other public health initiatives. The World Health Organization has long been a proponent of massive food fortification, as it is relatively inexpensive to overcome vitamin and mineral deficiencies, including iodine deficiency, anemia, and neural tube defects. This effort has received increased momentum among civil society with support from a resolution issued by countries, including Australia, Canada, and Brazil. Over 50 organizations have appealed to WHO to step up efforts on micronutrient fortification. They emphasize the fact that deficiency in micronutrients hampers communities across the world, regardless of their income. The need for improvement in food fortification programs must, therefore, be pursued. This is according to the United Nations Decade of Action on Nutrition 2016-2025, focusing on better nutrition in the world and contributing to the achievement of the Sustainable Development Goals by 2030.

Fortified Ingredients Market

Attractive Opportunities in the Fortified Ingredients Market

NORTH AMERICA

Increasing consumer awareness about nutrient deficiencies and the health benefits of fortified foods is driving demand for fortified ingredients in various products.

Easy availability of fortified ingredients in supermarkets and online has facilitated access for consumers to the product.

Product launches and acquisitions are expected to present profitable prospects for industry participants in the coming five years. Growth in demand has been consistently contributed by consumers leaning toward a healthier approach to diet.

Supportive government policies and recommendations from organizations like WHO promote large-scale food fortification to combat malnutrition, boosting the fortified ingredients market globally.

Continuous innovations in fortified food and beverage formulations, targeting specific health needs like immunity and bone health, contribute significantly to the market's growth.

Global Fortified Ingredients Market Dynamics

Drivers: Increased focus on addressing under-nutrition through micronutrient fortification

The most paramount growth drivers for the fortified ingredients market are the increased focus on reducing under-nutrition through micronutrient fortification. Companies are investing highly in research and innovation in order to develop affordable, nutritious products that best meet consumer needs. For instance, in 2020 Nestlé S.A (Switzerland) delivered more than 196 billion servings of fortified food in regions with significant nutritional deficiencies. The popularity of brands such as Maggi, Bear Brand, and Cerevita has been enhanced by the addition of essential micronutrients to them, with such nutrients including iron, iodine, vitamin A, and zinc-the "Big Four." 81 percent of these products bear at least one of these essential nutrients, showing a super commitment towards enhancing public health and nutrition in all parts of the world. It remains a great attraction in the market and addresses some of the gravest issues related to health in a society.

Restraints: Cost concerns hindering growth in fortified ingredients market

Cost is quite a concern for the fortified ingredient market as the process of fortification itself is quite costly- sourcing high-quality nutrients, testing for safety and efficacy, and ensuring regulatory compliance are typically involved at additional cost. The cost barrier may be too much to overcome for small manufacturers, and they are afraid to enter into the market or to expand their lines of products. Take, for instance, the example of a small bakery that wishes to produce fortified bread but would ultimately be prevented from doing so because of the expense of fortifying the flour itself and procuring the certifications. Such reluctance would discourage broader supply, limiting consumer choice and hindering public health initiatives aimed at reducing nutrient deficiencies.

 

Opportunities: Growing demand for fortified ingredients in health-centric products

Fortified ingredients is a strong growth area, within emerging product lines. Indeed, Glanbia plc (Ireland) article says meat alternatives in Europe with fortified claims increased 105% from 2019 to 2020. Similarly, growing up milks posted a 31% increase in new fortified product launches over the same period as well. In respect of good fortification features to watch, inclusion of B vitamins, representing energy, was present in more than 60% of new product formulations, closely followed by vitamin C in supporting immunity functions, calcium, and vitamin D for bone. With consumers directing their interest to more health-centric products, food and beverage companies could capitalise on this trend by increasing the number of fortified products.

Challenges: Challenges of quality control in the fortified ingredients

Quality control in the fortified ingredients market is essential but challenging. Inconsistent sourcing practices and diverse ingredient formulations can deteriorate reliability in the final product. Raw material variability leads to variations in nutrient content with inevitable consequences on the efficacy and safety level. Furthermore, over-fortification turns out to be a critical health risk due to the potential effects of toxicity or even imbalance caused by excess nutrients. Right balance is the essential and necessary requirement to fulfill the public health needs without exceeding the recommended dietary limits. Proper testing, standardization of sourcing, and regulation guidelines are required, which makes it even more important that firms are of utmost importance to have thorough quality assurance measures in place to ensure consumer health while effectively delivering fortified products.

Global Fortified Ingredients Market Ecosystem Analysis

Top Companies in Fortified Ingredients Market
 

PROTEIN & AMINO ACIDS SEGMENT ACCOUNTED FOR A HIGHER MARKET SHARE AMONG INGREDIENT TYPE SEGMENT IN 2023.

Protein and amino acids are the market leaders of the fortified ingredients segment, capturing the largest share in the ingredient-type segment. This can be accounted for by the growing health awareness and surging demand for high-protein diets, augmented by the greater benefits from achieving fitness and wellness. Improvements in food formulation and increased application of plant-based proteins. Key market players, like ADM provide a myriad of protein and amino acid products. ADM is investing heavily in several companies, including Air Protein and Nature's Fynd, to become a leader in alternative proteins. ADM is adding additional processing capacity through greenfield projects, including a new pea-protein plant in North Dakota, and a USD 300 million investment to nearly double its soy protein concentrate capacity in Decatur, which is expected to be completed early in 2025.

THE DAIRY AND DAIRY-BASED PRODUCTS SEGMENT IS PROJECTED TO BE THE DOMINANT DURING THE FORECAST PERIOD IN BY APPLICATION SEGMENT.

Dairy and dairy-based products have dominated the market by application segment, due to increased demand from the consumer for nutritionally superior and healthy offerings. Support comes through higher levels of consciousness of consumers regarding the nutritional values of calcium, protein, and vitamins provided in fortified dairy products. Product formulation innovations and increases in the overall trend of a healthy diet contribute to this expansion. The three giant players in the fortified variants are Danone (France), Nestlé S.A (Switzerland), and Lactalis (France). In September 2024, Danone launched the fortified Actimel+ Triple Action, which is enriched with vitamins D and B6 in support of immune function stimulation, magnesium to reduce tiredness, and vitamin C for antioxidant properties.

NORTH AMERICA REGION IS EXPECTED TO DOMINATE FOR FORTIFIED INGREDIENTS MARKET AMONG THE REGIONS.

Fortified ingredients hold the largest share in North America, mainly due to strict regulatory frameworks and policies of mandatory fortification. According to Food Fortification Association, the United States is a global leader: there is a need for fortification of wheat flour, maize flour, and rice to ascertain very high standards in public health. Wheat flour fortification is compulsory; however, voluntary fortification of rice is offered to the country, hence giving it an added edge in the region. Mexico also has a requirement for fortification for both wheat and maize flour; thus, these measures affect the general market trend. Such legislation provides nutrient supplies wherever public health is an issue, thereby increasing the demand for these fortified products. North America promotes fortification because the Food Fortification Initiative promotes better nutrition in the Americas. General Mills (US), ADM (US), and Kellanova (US) are some of the major companies headquartered in the U.S. within the fortified ingredients market.

HIGHEST CAGR (2024-2029)
INDIA FASTEST-GROWING MARKET IN THE REGION
Fortified Ingredients Market

Recent Developments of Fortified Ingredients Market

  • In February 2024, ADM (US) closed its acquisition of Fuerst Day Lawson (FDL), and its capabilities in the fortified ingredients market improved. With FDL's diverse skills in the development of custom flavours, energy blends, and fortification solutions, ADM was able to expand its options in that regard, especially in terms of natural taste and nutrition. This will help strengthen its international presence as well as new markets available throughout Europe, the U.S. and Asia and will further advance ADM's leadership in human and animal nutrition.
  • In May 2022, dsm-firmenich (Switzerland) and the World Food Programme extended partnership to further boost global rice fortification and better nutrition for vulnerable populations. Through this collaboration, dsm-firmenich is able to bring their technical know-how and assets to support 35 million people per year and creates a stronger presence in fortified ingredients as DSM addresses nutritional gaps while supporting local food systems for the betterment of communities and DSM's drive in nutrition.
  • In November 2022, Glanbia plc. (Ireland) developed FerriUp, a whey protein concentrate enhanced with the added benefits of lactoferrin and vitamin B12. This one squarely targeted the active woman. This innovation helped put Glanbia on more solid footing in the fortified ingredients market-iron and energy levels demand were considerable; the demographic in sports nutrition was largely underserved.

Key Market Players

List of Fortified Ingredients Market Companies

 

Key Questions Addressed by the Report

What is the current size of the fortified ingredients market?
The fortified ingredients market forecast is estimated at USD XX billion in 2024 and is projected to reach USD XX billion by 2029, at a CAGR of XX% from 2024 to 2029.
Which are the key players in the market, and how intense is the competition?
Fortified ingredients market players Nestlé S.A (Switzerland), BASF SE (Germany), Kellanova (US), General Mills Inc. (US), ADM (US), Cargill, Incorporated (US), dsm-firmenich (Switzerland), Glanbia plc (Ireland), Bühler SAS (Switzerland), and Ingredion (US). These companies boast reliable fortified ingredients facilities alongside robust distribution networks spanning crucial regions. They possess a well-established portfolio of esteemed services, commanding a sturdy market presence supported by sound business strategies. Additionally, they hold substantial market share, offer services with versatile applications, cater to a diverse geographical clientele, and maintain an extensive service range.
Which region is projected to account for the largest share of the fortified ingredients market?
Key players operating in the food and beverage metal cans equipment market include Probi (Sweden), Royal Canin (France), Nestlé Purina PetCare(US), Mars Inc. CHR. Hansen (Denmark), Kinglike DSM N.V (Netherlands), Dow DuPont (US), Evonik Industries (Germany).
What kind of information is provided in the company profile section?
The company profiles mentioned above offer valuable information such as a comprehensive business overview, including details on the company's various business segments, financial performance, geographical reach, revenue composition, and the breakdown of their business revenue. Additionally, these profiles offer insights into the company's product offerings, significant milestones, and expert analyst perspectives to further explain the company's potential.
What are the growth prospects for the fortified ingredients market in the next five years?
The fortified ingredients market will be positive in the next five years as a result of increased health consciousness among consumers, higher usages of dietary supplements, and innovation in technologies for nutrient delivery.

 

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Table of Contents

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TITLE
PAGE NO
TABLE OF CONTENTS
 
1 INTRODUCTION 
    1.1 STUDY OBJECTIVES 
    1.2 MARKET DEFINITION 
    1.3 STUDY SCOPE 
           1.3.1 MARKET SEGMENTATION
           1.3.2 INCLUSIONS & EXCLUSIONS
           1.3.3 REGIONS COVERED
           1.3.4 YEARS CONSIDERED
    1.4 UNIT CONSIDERED 
           1.4.1 CURRENCY/ VALUE UNIT
           1.4.2 VOLUME UNIT CONSIDERED
    1.5 STAKEHOLDERS 
    1.6 SUMMARY OF CHANGES 
 
2 RESEARCH METHODOLOGY 
    2.1 RESEARCH DATA 
           2.1.1 SECONDARY DATA
                    2.1.1.1 Key data from secondary sources
           2.1.2 PRIMARY DATA
                    2.1.2.1 Key data from primary sources
                    2.1.2.2 Key Primary Insights
                    2.1.2.3 Breakdown of Primary Interviews
    2.2 MARKET SIZE ESTIMATION 
           2.2.1 BOTTOM-UP APPROACH
           2.2.2 TOP-DOWN APPROACH
    2.3 DATA TRIANGULATION 
    2.4 RESEARCH ASSUMPTIONS 
           2.4.1 ASSUMPTIONS OF THE STUDY
    2.5 LIMITATIONS AND RISK ASSESSMENT 
 
3 EXECUTIVE SUMMARY 
 
4 PREMIUM INSIGHTS 
 
5 MARKET OVERVIEW 
    5.1 INTRODUCTION 
    5.2 MACROECONOMIC OUTLOOK 
    5.3 MARKET DYNAMICS 
           5.3.1 DRIVERS
           5.3.2 RESTRAINTS
           5.3.3 OPPORTUNITIES
           5.3.4 CHALLENGES
    5.4 IMPACT OF AI/GEN AI 
 
6 INDUSTRY TRENDS 
    6.1 INTRODUCTION 
    6.2 VALUE CHAIN ANALYSIS 
    6.3 TRADE ANALYSIS 
    6.4 TECHNOLOGY ANALYSIS 
           6.4.1 KEY TECHNOLOGIES
                    6.4.1.1 KEY TECHNOLOGY 1 
                    6.4.1.2 KEY TECHNOLOGY 2
           6.4.2  COMPLIMENTARY TECHNOLOGY
           6.4.3  ADJACENT TECHNOLOGY
    6.5 PRICING ANALYSIS 
           6.5.1  AVERAGE SELLING PRICE TREND, BY RAW MATERIAL
           6.5.2  AVERAGE SELLING PRICE TREND, BY REGION
    6.6 ECOSYSTEM ANALYSIS/MARKET MAP 
           6.6.1 DEMAND SIDE
           6.6.2 SUPPLY SIDE
    6.7 TRENDS/DISRUPTIONS IMPACTING THE CUSTOMERS’ BUSINESS 
    6.8 PATENT ANALYSIS 
           6.8.1 LIST OF MAJOR PATENTS PERTAINING TO THE MARKET
    6.9 KEY CONFERENCES & EVENTS 2024-2025 
    6.1 TARIFF & REGULATORY LANDSCAPE 
                    6.10.1  TARIFF DATA FOR COMPONENTS 
           6.10.2 REGULATORY BODIES, GOVERNMENT AGENCIES, & OTHER ORGANIZATIONS
    6.11 PORTER’S FIVE FORCES ANALYSIS 
           6.11.1 INTENSITY OF COMPETITIVE RIVALRY
           6.11.2 THREAT OF NEW ENTRANTS
           6.11.3 THREAT OF SUBSTITUTES
           6.11.4 BARGAINING POWER OF SUPPLIERS
           6.11.5 BARGAINING POWER OF BUYERS
    6.12 KEY STAKEHOLDERS & BUYING CRITERIA 
           6.12.1 KEY STAKEHOLDERS IN THE BUYING PROCESS
           6.12.2 BUYING CRITERIA
    6.13 CASE STUDY ANALYSIS 
    6.14 INVESTMENT AND FUNDING SCENARIO 
 
7 FORTIFIED INGREDIENTS MARKET, BY RAW MATERIAL 
    7.1 INTRODUCTION 
    7.2 FLOURS  
           7.2.1 RICE FLOURS 
           7.2.2  WHEAT FLOURS 
           7.2.3  CORN FLOURS
    7.3 RICE  
    7.4 SALT  
    7.5 MILK  
    7.6 OIL 
    7.7 SUGAR  
 
8 FORTIFIED INGREDIENTS MARKET, BY INGREDIENT TYPE 
    8.1 INTRODUCTION 
    8.2  VITAMINS 
    8.3 MINERALS 
    8.4 PROTEIN & AMINO ACIDS 
    8.5 LIPIDS 
    8.6 PREBIOTICS & PROBIOTICS  
    8.7 CARBOHYDRATES 
    8.8 OTHER INGREDIENT TYPES 
 
9 FORTIFIED INGREDIENTS MARKET, BY APPLICATION 
    9.1 INTRODUCTION 
    9.2 INFANT FORMULA 
    9.3 DAIRY & DAIRY-BASED PRODUCTS  
    9.4 CEREALS & CEREAL-BASED PRODUCTS  
    9.5 FATS & OILS  
    9.6 BEVERAGES  
    9.7 DIETARY SUPPLEMENTS  
    9.8 OTHER APPLICATIONS   
 
10 FORTIFIED INGREDIENTS MARKET, BY PROCESSING 
     10.1 INTRODUCTION 
     10.2 DRYING   
               10.2.1  OVEN DRYING
               10.2.2  DRUM DRYING 
               10.2.3  SPRAY DRYING
     10.3 EXTRUSION  
     10.4 COATING & ENCAPSULATION          
     10.5 OTHER PROCESSING TYPE  
 
11 FORTIFIED INGREDIENTS MARKET, BY DISTRIBUTION CHANNEL 
     11.1 INTRODUCTION 
     11.2 MODERN TRADE   
     11.3 DEPARTMENTAL STORES   
     11.4 ONLINE RETAILERS   
     11.5 OTHER DISTRIBUTION CHANNELS 
 
12  FORTIFIED INGREDIENTS MARKET, BY REGION 
     12.1 INTRODUCTION 
     12.2 NORTH AMERICA 
             12.2.1 US
             12.2.2 CANADA
             12.2.3 MEXICO
     12.3 EUROPE 
             12.3.1 ITALY
             12.3.2 GERMANY
             12.3.3 UK
             12.3.4 FRANCE
             12.3.5 SPAIN
             12.3.6 REST OF EUROPE
     12.4 ASIA PACIFIC 
             12.4.1 AUSTRALIA 
             12.4.2 NEW ZEALAND
             12.4.3 INDIA
             12.4.4 CHINA
             12.4.5 JAPAN 
             12.4.6 REST OF ASIA PACIFIC
     12.5 SOUTH AMERICA 
             12.5.1 BRAZIL
             12.5.2 ARGENTINA
             12.5.3 REST OF SOUTH AMERICA
     12.6 REST OF THE WORLD 
             12.6.1 MIDDLE EAST
             12.6.2 AFRICA                                          
 
13 COMPETITIVE LANDSCAPE 
     13.1 OVERVIEW 
     13.2 KEY PLAYERS STRATEGIES/ RIGHT TO WIN  
     13.3 REVENUE ANALYSIS (2021 – 2023)   
     13.4 MARKET SHARE ANALYSIS, 2023 
     13.5 COMPANY VALUATION AND FINANCIAL METRICS  
     13.6 BRAND/PRODUCT COMPARISON 
     13.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023 
             13.7.1 STARS
             13.7.2 EMERGING LEADERS
             13.7.3 PERVASIVE PLAYERS
             13.7.4 PARTICIPANTS
             13.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
                       13.7.5.1 Company Footprint
                       13.7.5.2 Region Footprint
                       13.7.5.3 Ingredient Type Footprint
                       13.7.5.4 Raw Material Footprint
     13.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023  
             13.8.1 PROGRESSIVE COMPANIES
             13.8.2 RESPONSIVE COMPANIES
             13.8.3 DYNAMIC COMPANIES
             13.8.4 STARTING BLOCKS
               13.8.5  COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023
                       13.8.5.1 Detailed list of key start-up/SMEs
                       13.8.5.2 Competitive benchmarking of key start-up/SMEs
     13.9 COMPETITIVE SCENARIO AND TRENDS 
             13.9.1 NEW PRODUCT LAUNCHES
             13.9.2 DEALS
             13.9.3 EXPANSIONS
             13.9.4 OTHERS
 
14 COMPANY PROFILES 
     14.1 KEY PLAYERS 
             14.1.1 NESTLÉ S.A 
             14.1.2 BASF SE 
             14.1.3 KELLANOVA  
             14.1.4 GENERAL MILLS INC. 
             14.1.5 ADM  
             14.1.6 CARGILL, INCORPORATED 
             14.1.7 DSM-FIRMENICH  
             14.1.8 GLANBIA PLC  
             14.1.9 BÜHLER SAS  
               14.1.10 INGREDION  
               14.1.11 KERRY GROUP PLC 
               14.1.12 CORBION 
               14.1.13 TATE & LYLE  
               14.1.14 BUNGE   
               14.1.15 UNILEVER  
 
15 ADJACENT & RELATED MARKETS 
 
16 APPENDIX 
     16.1 DISCUSSION GUIDE 
     16.2 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 
     16.3 AVAILABLE CUSTOMIZATIONS 
     16.4 RELATED REPORTS 
     16.5 AUTHOR DETAILS 

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Growth opportunities and latent adjacency in Fortified Ingredients Market

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