ASIA PACIFIC SAVORY INGREDIENTS MARKET ANALYSIS

Asia Pacific Savory Ingredients Market Size and Trends

The Asia Pacific savory ingredients market is estimated to be valued at USD 6.81 Bn in 2024 and is expected to reach USD 9.27 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.

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Increasing consumption of savory snacks and bakery & confectionery products along with rising disposable income levels in developing Asian countries is driving the demand for savory ingredients. Additionally, growing health-consciousness among consumers has led to higher demand for clean-label and natural savory ingredients with lower salt and fat content. Industry players are launching novel product variants made from plant based ingredients to cater to the needs of health-conscious consumers. However, high prices of clean-label and natural savory ingredients remain a key challenge for their widespread adoption.

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Insights By Product Type - Yeast Demand Rises Owing to Versatile Functional Properties

In terms of product type, yeast segment is estimated to contribute the highest market share of 28.2% in 2024, owing to its versatile functional properties and widespread applications in food processing. Being a microbial organism, yeast has the unique ability to convert sugars like glucose into cellular mass, carbon dioxide, and energy through fermentation.

Insights By Form – Ease of Handling Fuels Powder Segment’s Dominance

In terms of form, powder segment is estimated to contribute the highest market share of 26.3% of this market in 2024, owing to its ease of handling, dosing, and incorporation into various food systems. In the powdered form, savory ingredients like yeast, vegetable proteins, and monosodium glutamate (MSG) exhibit superior mixing and dispersing properties.

Insights By Application - Food Segment Leads Due to Extensive Usage

In terms of application, the food segment is estimated to contribute the highest market share of 25.3% of this market in 2024, due to the extensive usage of yeast extracts, hydrolyzed vegetable proteins, and glutamates across staple cuisines. Savory tastes and umami qualities provided by these ingredients have been an integral part of traditional Asian food practices over centuries.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Asia Pacific Savory Ingredients Market Players

• Established players focus on extensive research and development to innovate high-performance products. Companies like Ajinomoto and Kerry Group invest over 5% of annual revenues in R&D. This helps them stay ahead of competition and develop new product categories.
• Mid-level players focus on delivering quality, cost-effective solutions targeting price-sensitive consumers. Companies customize their product offerings based on regional taste preferences and budget constraints. They also collaborate with other mid-sized companies to gain access to new technologies and expand production capabilities.
• Small-scale players specialize in niche market segments and tap opportunities in emerging economies. They utilize cutting-edge technologies to produce unique ingredients and seasonings. Some partner with local food manufacturers and restaurants to pilot test innovative products. Such technologies could transform real-time decision making in the industry.

Emerging Startups in the Asia Pacific Savory Ingredients Market

Innovative startups are developing advanced technologies like smart sensors and AI-based solutions. For example, Indonesia's Keenytics uses computer vision and IoT sensors to monitor seasoning levels in food production lines. This helps reduce waste and optimize ingredient usage.

Sustainable startups are focusing on eco-friendly products and recycled materials. A Bangladesh-based brand, Green Crescent, produces seasoning powders from food waste, helping cut down on food leftovers in landfills. Their innovations set an example for companies on responsible consumption and production.

Some startups address niche cultural food habits. An India-based, startup called Homefoodi, taps into the demand for homemade snacks by supplying do-it-yourself seasoning kits. It collaborates with women entrepreneurs on production and sourcing. Such partnerships unlock community-driven solutions and new revenue streams.

In conclusion, while established players lead through scale and R&D, startups bring fresh market perspectives through novel technologies and sustainability initiatives.

Asia Pacific Savory Ingredients Industry News

• In February 2024, McDonald's unveiled a limited-edition sauce, Savory Chili WcDonald's Sauce as part of a promotional campaign tied to an anime series, showcased in manga-style packaging. The sauce is made from a combination of garlic, soy, and several other ingredients. McDonald's Corporation is a global leader in the fast-food industry, known for its iconic Golden Arches and its broad network of over 38,000 restaurants worldwide.
• In August 2021, Angel Yeast Co., Ltd. formed a joint venture to acquire Shandong Bio Sunkeen Co., Ltd. This acquisition enables Angel Yeast Co, Ltd. to enhance its production capacity by an additional 15,000 tons of yeast extracts and yeast. Shandong Bio Sunkeen Co., Ltd. is a leading manufacturer based in Shandong Province, China, specializing in yeast products for both human and animal nutrition. The company produces a wide range of products including active dry yeast, yeast extract, sweet potato starch, and various yeast-based animal feeds. Their product portfolio also features specialized products such as selenium yeast, yeast hydrolysates, and Bacillus subtilis.

Key Takeaways from Analyst

• This market is experiencing substantial growth, driven by increasing consumer demand for savory flavors in processed foods and snacks. Savory ingredients are widely used in various industries, including food and beverage, snacks, sauces, and seasonings, contributing significantly to market expansion. The rising trend towards health and wellness is influencing the market, with consumers increasingly seeking natural and organic savory ingredients.
• Companies are investing in research and development to create innovative savory products that cater to diverse consumer preferences, including plant-based and low-sodium options. Countries like China, India, and Japan are leading the market due to their large population bases, growing urbanization, and changing dietary habits.

Market Report Scope

Market Dynamics

Market Driver - Increasing disposable income

With rapid economic growth and population expansion across the Asia Pacific region, disposable incomes of consumers have risen substantially over the past decade. Countries like India, Indonesia, and Philippines have seen strong double-digit growth in average wages as more workers are getting employed in manufacturing and service industries. For instance, according to the Asia-Pacific Population and Development Report 2023, the working age population (15-64 years) in Asia Pacific will increase by over 250 million from 2023-2050.

Market Challenge - Stringent food regulations

The market faces stringent food safety and quality regulations enforced across different countries in the region. Compliance with various regulatory standards such as Food Safety and Standards Authority of India (FSSAI) in India, State Food and Drug Administration ("SFDA") of the People’s Republic of China, and Indonesia Food and Drug Administration (FDA) adds to production and operation costs for manufacturers. For instance, countries like India have banned the use of Monosodium Glutamate (MSG) in several packaged food items citing potential health hazards.

Market Opportunity - Increasing health-conscious population

The growing health-conscious population across major Asia Pacific countries presents significant opportunities for the savory ingredients market. This drives the demand for clean label, natural flavors containing no artificial preservatives, or monosodium glutamate (MSG). For instance, in May 2022, according to the Food and Agriculture Organization (FAO), Asia Pacific accounts for 60% of the world's population but only 38% of the world's agricultural land.

Market Segmentation

• By Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Yeast
  • Proteins
  • Starches
  • Monosodium Glutamate (MSG)
  • Others
• By Form Insights (Revenue, USD Bn, 2019 - 2031)
• • Powder
  • Liquid
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Food
  • Processed Foods
  • Snacks
  • Feed
  • Others
• Key Players Insights
• • Ajinomoto Co., Inc.
  • Koninklijke DSM N.V.
  • Kerry Group PLC
  • Tate & Lyle PLC
  • Symrise AG
  • Givaudan SA
  • Sensient Technologies Corporation
  • Savoury Systems International LLC
  • Ingredients Ltd.
  • Synergy Flavors