Food Premix Market is Estimated to Witness High Growth Owing to Increasing Consumption of Nutraceutical & Functional Food Products and Growing Focus on Preventive Healthcare
The Food Premix Market is estimated to be valued at USD 7.65 Billion in 2024, exhibiting a CAGR of 7.3% over the forecast period (2024-2031). The growth of the market can be attributed to rising health awareness among consumers and demand for nutritional & functional food products. Furthermore, the increasing focus on preventive healthcare is also driving the demand for food premixes globally.
Firstly, rising awareness about health and wellness is encouraging consumers to opt for dietary supplements and functional foods to meet their daily nutritional requirements. Food premixes are widely used by supplement and nutraceutical manufacturers to formulate vitamins, minerals, amino acids, and other nutritional components in supplements.
Secondly, the focus on preventive healthcare has increased significantly in recent years. Food premixes help in adding essential micronutrients to staple food products to make them more nutritional. This supports in the prevention and management of lifestyle-related diseases and deficiencies.
Increasing Demand for Fortified Food Products is Driving the Growth of the Food Premix Market
The demand for fortified food products is continuously growing across the globe. This is mainly due to rising health consciousness among people and growing awareness about the importance of micronutrients and vitamins in daily diet. Food premixes help manufacturers easily fortify their food products with important micronutrients without altering the original taste and texture of the product. This increasing focus on adding nutritional value to food products through fortification is a major factor boosting the growth of the global food premix market.
Changing Lifestyles and Busy Schedules are Fueling the Consumption of Processed Foods
The fast-paced lifestyle coupled with long working hours has compelled people to rely more on packaged and ready-to-eat food products. Processed foods require fortification to maintain the nutrient levels, which generates higher demand for food premixes from manufacturers. The increasing consumption of packaged bakery products, infant nutrition products, clinical nutrition products, dairy products, and beverages like milk, juices, etc. is propelling the growth of the global food premix market. With the use of food premixes, manufacturers can easily fortify processed food products according to customer needs in terms of micronutrient supplementation.
Stringent Regulations and Certification Standards Restrain the Growth of the Market
Food premix production and sales are strictly regulated by international food safety organizations and regional authorities to ensure product quality and safety. Manufacturers need to abide by stringent guidelines at each stage from production to packaging. Also, obtaining certifications and approvals for new premix products involves lengthy processes. This regulatory compliance drives up overall production and marketing costs. The extensive certification requirements from organizations like FDA, USDA, and FSSAI restrain small manufacturers lacking resources from entering the food premix market. Excessive dependence on certifying agencies delays new product launches and negatively impacts the growth prospects.
High Capital Requirements Restrict the Entry of New Players
Producing high-quality food premixes involve significant initial capital investments in setting up a facility, purchasing processing equipment, and attaining necessary certifications. New entrants also need to invest heavily in R&D activities to develop innovative formulas and gain consumer trust. The high capital requirements for premix production pose a major challenge for small businesses with limited funds. This barrier restricts the entry of new local and regional companies in the highly competitive global food premix market dominated by large multinational producers. The substantial capital requirements curb market opportunities for small startups with brighter product concepts but less financial strength.
Increasing Demographic Dividend in Developing Nations Offers Huge Opportunities
Developing economies in Asia Pacific and Latin America present massive opportunities for food premix manufacturers attributed to growing population and changing demographics. Rapid urbanization and rising disposable incomes are driving the demand for packaged and processed convenience food products in these emerging markets. With over 60% of the global population, countries like India, China, and Brazil offer a huge consumer base for fortified food products. Their young demography and increasing health awareness will boost food premix consumption. Further, growing malnutrition issues in Africa and Southeast Asia Pacific generate opportunities for companies offering diversified and cost-effective nutritional premix solutions.
Surging Demand for Clean Label Products Present Remunerative Growth Avenues
Today's health-conscious consumers prefer food formulations with simple and easily comprehensible ingredients labels. They demand products with minimal processing and artificial additives. This clean label trend disrupts the food premix market by influencing formulation strategies. Manufacturers are focusing on developing all-natural premixes containing whole-food based, organic, and minimally processed ingredients to meet evolving customer preferences. The market shift towards clean label formulations opens up lucrative prospects. Production of premixes from ingredients like fruits, vegetables, herbs, etc. compliant with the clean label trend provides new opportunities for market expansion.
Link - https://www.coherentmarketinsights.com/market-insight/food-premix-market-3676
Key Developments
- In 2023, Primaria Nutrition, a leading global provider of customized nutrient premixes, announced the opening of a new state-of-the-art premix manufacturing facility. This strategic investment is part of Primaria's ongoing efforts to expand its production capacity and enhance its ability to serve its growing customer base worldwide.
- In 2023, Fermenta Biotech, a leading manufacturer of vitamins, enzymes, and other nutraceutical ingredients, inaugurated its new premix manufacturing plant. This strategic investment is part of Fermenta's ongoing efforts to expand its production capabilities and strengthen its position in the growing premix market.
- In 2021, SternVitamin, a leading manufacturer of vitamins and micronutrients, introduced a range of micronutrient premixes specifically designed to support immune health. This innovative product line is part of SternVitamin's ongoing efforts to provide high-quality, customized nutrient solutions to the food, beverage, and pharmaceutical industries.
- In 2021, Cargill, a global leader in the food, agriculture, and nutrition industries, announced the opening of a new state-of-the-art premix and nutrition facility in the United States. This strategic investment is part of Cargill's ongoing efforts to expand its production capabilities and better serve its customers in the North American market.
Key Players
Archer Daniels Midland Company, Koninklijke DSM N.V., Glanbia plc, Jubilant Life Sciences, Hexagon Nutrition Pvt. Ltd., Fenchem, SternVitamin, Lycored, Barentz, WATSON-INC, Prinova Group LLC, Farbest Brands, B&H Biotechnology Co. Ltd., Barentz International, Daniels Midland Company, Glanbia PLC., and Prinova Group LLC.
