Food Premix Market

Food Premix Market Outlook

The global food premix market will likely reach a value of US$ 2.73 Bn by the end of the 2022-2032 forecast period.

The demand for food premix is anticipated to be a value CAGR of 5.6% for the aforementioned assessment period and is anticipated to reach US$ 1.58 Bn in 2022. Amino acid based food premixes will likely capture 33% of total market revenue.

 Report Scope

Market Size (2022)	US$ 1.58 Bn
Projected Market Forecast Value by 2032	US$ 2.73 Bn
Value CAGR (2022-2032)	5.6%
Key Companies Profiled	Glanbia Plc Archer Daniels Midland Company Koninklijke DSM N.V. Jubilant Life Sciences BASF SE Farbest Brands Fenchem Biotek Ltd. Prinova Group LLC Watson Inc. Barentz International LycoRed Ltd. SternVitamin GmbH Hexagon Nutrition Pvt. Ltd.

Demand Analysis of Food Premixes for 2017-2021 Vs Market Outlook for 2022 to 2032

As per Fact.MR – market research and competitive intelligence provider, during the historic period of 2017 to 2021, the market expanded at a CAGR of around 4%. Mounting instances of appetite loss among the aging population has led them to spend more on fortified and functional food.

The growing requirements for nutrition-rich food among health-conscious consumers have led manufacturers to incorporate health-benefiting ingredients such as vitamin premixes.

Food manufacturers are utilizing various ingredients to enhance the appeal, flavor, and functionality of food products. Nearly 735,000 tons of food premix is estimated to be sold globally by 2032-end.  Considering the aforementioned factors, the market for food premix is projected to touch US$ 2.73 Bn by the end of the forecast period (2022-2032).

Will the Rising Demand for Food Fortification Impact Growth?

Demand for food fortification is on a significant rise, driven high prevalence rate of the micronutrient deficiency diseases among the population worldwide, which in turn has propelled the cases of malnutrition. Food products such as sugar, flour, maize, vegetable oils, and wheat are generally fortified with minerals and vitamins for ensuring better health, which in turn has been driving demand for food premix over the past few years.

Consumption of nutrient premix, such as amino acid-based infant formula, is also showcasing a surge, driven by the growing preference of consumers for nutritional fortification of baby food products and infant formula. 

In addition, Ingredients such as arachidonic acid (ARA) and docosahexaenoic acid (DHA) are also being added to food premix along with vitamins and iron, which in turn has proliferated the adoption of food premixes.

Will the Children’s Consumption Propel the Market Growth?

A large number of pre-school and school-going children between the age group 2 and 12 years old are affected with anemia, with a majority among them suffering from iron deficiency. Point-of-use food fortification with micronutrient powders has been recommended for trimming the prevalence of pediatric anemia.

In order to assess its effectiveness, researchers as Micronutrient initiative in Canada, WHO, and Centers for Disease Control and Prevention (CDC) in the U.S., have conducted a review of quasi-RCT and RCT trials. According to the research, point-of-use food fortification with micronutrient powders that comprise iron has the potential to alleviate iron deficiency and anemia in children.

The focus of future research regarding the same is being directed toward increasing the evidence on adverse effects, developmental outcomes, morbidity, and mortality. Developments such as these are likely to significantly influence the growth of the global food premix market in the upcoming years.

Country-Wise Analysis

Why is the U.S a Highly Lucrative Market for Food Premix?

The United States food premix industry is projected to hold the maximum share and is predicted to remain the most lucrative across North America. Increasing population is one of the key factors behind the rising consumption of food premixes.

Considering this, the manufacturers of food premix are using this opportunity to strategically attain growth. In addition to this, the prevalence of large-scale food processing factories in the region is propelling the demand for food premix.

Furthermore, consumer demand for convenience products, offering taste good and health benefits. Furthermore, the cost-effectiveness of food premix is likely to drive the evolution of food premixes in the food and beverage industry. As per Fact.MR, the U.S is forecast to register a CAGR worth 6% until 2032.

What’s Bolstering the Growth of Players in India?

According to Fact.MR’s analysis, the Indian market for food premix is projected to show a significant growth rate, at a CAGR of 5.5%. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The growth of the market is attributed to the increasing urbanization, the introduction of various HoReCa chains, and changing lifestyles. 

In addition to this, the rising middle-class income and an increasing number of working women have led to increased meat consumption. This boosts the demand for feed premixes since poultry is the most preferred segment for meat consumption in India.

What’s Spurring Demand for Food Premix in Germany?

The companies across Europe are entering into partnerships and mergers to hold a greater market share. They are spending more on R&D projects and offering products with the latest technology and maximum efficiency. The per capita spending on healthy and nutritious food is increasing across the European region and people’s desire to remain fit has brought about an incremental shift in food expenditure. 

These factors have generated significant opportunities for players to invest in the regional markets over the forecast period. According to Fact.MR, revenues from sales of food premix in North America and Europe will collectively account for over 3/5th revenue over the period of forecast.

Category-Wise Insights

Why Form of Food Premix is Turning Out to Be the Most Lucrative One?

According to Fact.MR’s analysis, the powder form of food premix is expected to be sought-after among consumers worldwide in the upcoming years, on account of their ease of use and storage convenience. Revenues from sales of powdered food premixes will remain considerably larger than those procured from liquid food premixes.

What Share does Amino Acids Hold as an Ingredient Type?

Amino acids will endure as the preferred ingredient type in food premix, with an envisaged market revenue share of over 33% from 2022 to 2032. Revenue shares of vitamins and minerals in the market will also remain significant. Sales of nucleotides will record the fastest sales expansion in the market, in terms of value, through 2032.

Which is the Most Prominent Function of Food Premix?

Weight management and energy will continue to be preferred functions in food premix among consumers, so as to curtail challenges related to obesity and overweight, highly prevalent pandemic ailments.

What Kind of Application is significantly contributing to Growth?

Food & beverages are likely to remain dominant applications of food premix. Sales of food premix in nutritional improvement programs will record a similar CAGR as that in food & beverage application, although estimated to account for the least market revenue share during the forecast period.

Competitive Landscape

The competitive landscape of the food premix market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. Some notable developments are as follows:

• In July 2021, Corbion closed an agreement to acquire full ownership of Granolife. With the addition of the footprint, expertise, blending capabilities, and application labs of Granolife, the company expects the capability to make a step-change in the Mexican market. 
• In December 2020, Prinova launched a range of premixes for dairy replacement products to help manufacturers respond to the plant-based revolution. In a new white paper, the company highlights the growing prevalence of vegan and other non-dairy diets and their impact on plant-based markets. In line with Innova Market Insights’ “Plant-Forward” trend, the ever-evolving plant-based definition expands vegetarian and vegan NPD into the mainstream. 

Key Segments Covered in Food Premix Market Study

• Form Type

  • Powdered Food Premix
  • Liquid Food Premix

• Ingredient Type

  • Vitamin Food Premix
  • Mineral Food Premix
  • Nucleotides Food Premix
  • Amino Acids Food Premix
  • Botanical Food Premix

• Function Type

  • Food Premix for Bone Health
  • Food Premix for Immunity
  • Food Premix for Digestion
  • Food Premix for Energy
  • Food Premix for Heart Health
  • Food Premix for Weight Management
  • Food Premix for Vision Health
  • Food Premix for Brain Health & Memory
  • Food Premix for Other Function Types

• Application

  • Food Premix for Early Life Nutrition/Baby Food
  • Food Premix for Food & Beverages
  • Food Premix for Dietary Supplements
  • Food Premix for Pharma OTC
  • Food Premix for Nutritional Improvement Program