Asia Pacific Savory Ingredients Market is Estimated to Witness High Growth Owing to Increasing Consumption of Processed Foods and Growing Trend of International Cuisines
The Asia Pacific savory ingredients market is estimated to be valued at USD 6.81 Bn in 2024, exhibiting a CAGR of 4.5% over the forecast period (2024-2031). Furthermore, the increasing demand for convenience food products is driving the market growth.
Market Dynamics:
The rising consumption of processed food such as snacks, ready meals, and other convenience food products is fueling the demand for savory ingredients in the region. Savory ingredients like yeast extracts, vegetable proteins, and monosodium glutamate are widely used in processed food to enhance taste. With increasing globalization and western influence, the Asian population is widely getting exposed to different cuisines from all over the world. This has raised the demand for international dishes in restaurants as well as homemade foods. Savory ingredients allow chefs as well as homemakers to recreate various continental and global flavors using local available foods. This growing trend of international flavors is acting as a key driver for the Asia Pacific savory ingredients market.
Growing Consumer Preference for Convenience Food Driving Demand
One of the major drivers for the Asia Pacific savory ingredients market is the growing consumer preference for convenience food. With changing lifestyles and hectic schedules, people are opting for ready-to-eat meals and snacks which require savory ingredients like seasonings, flavors, and mixes. Savory ingredients help enhance the taste and flavor of these convenience foods while reducing preparation time. Countries like China, India, and Indonesia have witnessed a rise in demand for packaged food products which use various savory ingredients. Moreover, increasing disposable incomes allow consumers to spend more on convenient food options. This growing demand for convenience is a key factor propelling the growth of the Asia Pacific savory ingredients market.
Increase in Snacking Occasions is Fueling Market Growth
Another major driver is the rise in snacking occasions among Asian consumers. People are consuming snacks not just as hunger busters between meals but also as mini meals. This has expanded the opportunities for various savory snacks which utilize ingredients like yeast extracts, hydrolyzed proteins, and monosodium glutamate (MSG). The growth in out-of-home consumption of snacks and packaged foods in countries like China, India, and Indonesia is supporting the increased use of seasonings and flavors in snack production. Moreover, busy schedules leave less time for formal meals driving the intake of savory snacks. The growth in snacking culture is thus accentuating demand for different savory ingredients in the Asia Pacific region.
Stringent Regulations on Food Additives Represent Key Restraints
One of the major restraints for the Asia Pacific savory ingredients market is stringent regulations imposed on certain food additives. Regulatory bodies like China’s State Administration for Market Regulation (SAMR) closely monitor levels of ingredients like MSG, gluconeogenesis enhancers, and flavor enhancers in packaged foods. Exceeding prescribed limits can attract heavy penalties and legal action. Moreover, frequent changes in formulations to comply with evolving standards necessitates additional R&D investments and documentation from manufacturers. Such stringent norms squeeze profits and increase the cost of operations for savory ingredient suppliers. This regulatory challenge is a noteworthy factor hindering the revenue streams of market players.
Health Concerns Related to Synthetic Additives Limits Market Growth
Health concerns pertaining to synthetic food additives represent another key restraint. There is growing skepticism among Asian consumers regarding the possible adverse effects of msg, artificial flavors, and chemical preservatives. This is encouraging the preference for clean label and organic products prepared without synthetic enhancers. Regulators are also promoting natural ingredients and adding warning labels or restricting overly processed foods. Such shifts in consumer and regulatory sentiment pose challenges to manufacturers dependent on artificial additives. The adverse health perception curtails the demand and revenue potential of synthetic ingredients constraining market opportunities.
Expanding Organized Retail Sector is Opening New Avenues
One of the major opportunities for savory ingredients market in Asia Pacific is the expansion of organized retail sector. Countries like India are witnessing increased penetration of supermarkets, hypermarkets, and online grocery platforms. This allows international and local ingredient suppliers greater reach while helping consumers assess product choices. Moreover, organized retail assures standardized storage facilities elongating shelf-life of ingredients. Rising suburbanization and improving infrastructure is catalyzing retail diversification presenting market participants with larger distribution networks. Suppliers can also leverage retail chains to promote new product lines and brand themselves effectively. The growth of organized retailers broadens accessible markets for savory ingredients.
Growing Food Service Industry Spurs Ingredient Innovation
Another promising opportunity for market growth is the expansion of Asia Pacific’s food service sector with increasing numbers of restaurants, hotels, cafes and takeaway joints. This intensifies demand for value-added ingredients from both domestic and international food brands. Suppliers are innovating new savory solutions tailored for application across cuisines and dishes. They are developing customized blends, natural flavor enhancers and ready-to-use mixes to aid efficient food production. The boom in food service establishments along with rising health-consciousness also drives demand for clean label, vegan, and allergen-free ingredient varieties. The vibrant food industry acts as a platform spurring product advances and widening the scope for savory ingredients.
Link: https://www.coherentmarketinsights.com/market-insight/asia-pacific-savory-ingredients-market-3666
Key Developments:
- In February 2024, McDonald's launched a limited-edition sauce named Savory Chili WcDonald's Sauce as part of a promotional campaign associated with an anime series. The sauce is packaged in a manga-inspired design and is made from a mix of garlic, soy, and other ingredients. The company’s mission is to make “delicious feel-good moments easy for everyone,” and it has long been committed to providing quality food, excellent customer service, and community engagement. McDonald's operates with a combination of company-owned restaurants and franchised locations. As of recent years, the vast majority of McDonald's locations are franchised. The company earns revenue from both the sales of food and beverages at its company-owned locations, as well as from franchise royalties, rent, and fees.
- In August 2021, Angel Yeast Co., Ltd. formed a joint venture to acquire Shandong Bio Sunkeen Co., Ltd. This acquisition enables Angel Yeast to increase its production capacity by an additional 15,000 tons of yeast extracts and yeast. Angel Yeast Co., Ltd. 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 Player:
Ajinomoto Co., Inc., Koninklijke DSM N.V., Kerry Group PLC, Tate & Lyle PLC, Symrise AG, Givaudan SA, Sensient Technologies Corporation, Savoury Systems International LLC, P. Ingredients Ltd., and Synergy Flavors
