MARKET ANALYSIS
Savory ingredients are food components that add a savory or umami flavor to food. These ingredients are typically used to enhance the taste and depth of savory dishes, adding richness, complexity, and a satisfying mouthfeel. At the same time, the concept of savory flavors can vary across different cultures worldwide. Savory ingredients used in cooking include salt, herbs, garlic, spices, soy sauce, toppings, etc.
GROWTH DRIVERS AND CHALLENGES
Gradually, the populace's lifestyle has changed. People are gaining awareness about healthy foods and health-related diets. Consumers are becoming more conscious of their dietary choices and seeking savory ingredients offering nutritional benefits. They are looking for ingredients low in sodium, natural, and free from artificial additives, providing flavor without compromising health. Rising demand for ready-to-eat food, food exploration, and growing interest in plant-based and vegan foods bolster the market growth for savory ingredients. These ingredients are commonly used for manufacturing of packaged food products in the food processing industry as they are very cost-effective. Further, the market growth and demand for savory ingredients is expected to boost as consumers seek flavorful, nutritious, and culturally diverse food experiences. However, stringent regulations concerning food flavors may hinder the growth of the market, particularly in North America and Europe.
REPORT SEGMENTATION AND SCOPE
The "Global Savory Ingredients Market Analysis to 2030" is a specialized and in-depth study with a major focus on the global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation by type, origin, form, application, and geography. The global savory ingredients market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of savory ingredients worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the savory ingredients market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the savory ingredients market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global savory ingredients market, which helps understand the entire supply chain and various factors affecting the market growth.
SEGMENTAL ANALYSIS
The global savory ingredients market is segmented on the basis of type, origin, form, and application. Based on type, the savory ingredients market is segmented into monosodium glutamate, hydrolyzed vegetable proteins, hydrolyzed animal proteins, nucleotides, and other types. The monosodium glutamate segment holds the largest share in the savory ingredients market. This dominance is owing to the increase in demand for convenience food and functional food products. Thus, manufacturers are introducing various product formulations to meet consumers' demands and increase market share.
By origin, the global savory ingredients market is bifurcated into synthetic and natural. The natural segment is expected to hold the largest share during the forecast period. Natural ingredients are easily available in retail and local markets.
Based on form, the global savory ingredients market is segmented into powder, liquid, and other forms.
Based on application, the global savory ingredients market is segmented into food, prepared meals, snacks, feed, and other food applications. The snacks segment is projected to have the largest market share owing to changing behavior of consumers towards ready-made food.
REGIONAL ANALYSIS
The report provides a detailed overview of the global savory ingredients market with respect to five major regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Leading countries in North America region, including US and Canada, dominate the market owing to the increase in the intake of supplements based on savory ingredients and their use as an ingredient in most functional food and beverages. Also, the government in the region promotes awareness into population about food safety and food hygiene which is driving the market of savory ingredients.
Asia Pacific is estimated to accounted for the largest share in the savory ingredients market due to the huge consumption of savory ingredients in soups, vegan foods, and curated meat products. The food & beverage industry in the Asia Pacific is constantly evolving, which is estimated to create opportunities for numerous other food manufacturers in the region. For instance, the increasing consumption of noodles in evolving economies due to the rising number of working professionals, busy lifestyles, and the growing young population is expected to boost the market growth.
FUTURE OPPORTUNITIES
The demand for organic products is constantly increasing across the world due to rising awareness among consumers. Thus, wide-ranging organic food products are very easily available on both online and offline sales channels. Additionally, awareness concerning medical benefits of organic food together with its rising cultivation is expected to appeal a number of manufacturers engaged in F&B industry. Thus, driving the demand for natural savory ingredients, for instance starch and yeast extract.
- December 2022: IFF announced it has entered into an agreement to divest the Savory Solutions Group to PAI Partners. The deal values the business at around US$ 900 million. The sale aligns with IFF’s strategy to focus on highest-return businesses, improve capital structure and enhance its growth profile.
- December 2021: Solina, the leading European producer of savory ingredients solutions for the food industry, has announced the acquisition of Asenzya, formerly Foran Spice Company.
IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION
The COVID-19 outbreak had positively impacted the global savory ingredient market. The sudden announcement of lockdown in several countries worldwide resulted in hoarding of packaged foods by the people due to uncertainty of future availability of food products. Further, the low availability of fresh food products also resulted in increased demand for packaged food, which bolstered the savory ingredients market growth. Moreover, the extended lockdown witnessed an increased demand for high-end packaged foods such as packaged meat, frozen desserts, etc.
The ongoing recession is expected to decrease the consumer spending on non-essential expenses, such as fancy dining, tourism, etc. owing to inflation. This might hamper the growth demand for savory ingredients. Furthermore, the rising labor costs is likely to disrupt the supply chain in the F&B industry. Several large F&B manufacturers are expected to shift their focus on margins than market share, which would offer opportunities to smaller companies’ operating in the industry.
COMPETITIVE LANDSCAPE AND KEY COMPANIES
Some of the key players operating in the global savory ingredients market include, ABF Ingredients (OHLY), Ajinomoto Co. Inc., Angel Yeast Co. Ltd, Cargill, Givaudan S.A., Kerry Group plc, Koninklijke DSM N.V., Lesaffre Group, Sensient Technologies Corporation, Symrise AG, Tate & Lyle plc, Vedan International (Holdings) Limited, and Vinayak Ingredients India Pvt Ltd., among others.