Market Challenges: Availability of substitutes

The availability of substitutes is posing a serious threat to the growth of the inulin market. There are several substitutes available for inulin that perform similar functionalities in food and beverages. One of the major substitutes is oligofructose, which like inulin, is a fructan obtained from chicory and Jerusalem artichoke. Oligofructose provides prebiotic benefits and can be used interchangeably with inulin in many applications. It is cheaper than inulin and widely available globally. This has prompted many manufacturers to switch to oligofructose from inulin.

Market Opportunities: Emerging markets in Asia Pacific and South America

The emerging markets in Asia Pacific and South America offer immense potential for growth in the inulin market. These regions have seen significant economic development and rise in disposable incomes over the past decade. This has boosted the demand for higher value food and beverage products where inulin can provide numerous functional benefits. Countries like India, Indonesia, Brazil, and Mexico in particular stand out as markets that can drive the future of inulin. With large and youthful populations, growing health awareness and shifts towards western diets, these nations are increasingly looking for ingredients that can offer multiple nutritional advantages. Inulin being a soluble fiber with prebiotic properties is well-positioned to take advantage of this trend. Food companies in these regions have already started exploring inulin's application in various product categories like dairy, bakery, beverages and snacks to boost their nutritional profiles.