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Food Decorations And Inclusions Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global food decorations and inclusions products market was valued at USD 13.7 billion in 2022 and is projected to expand at a CAGR of 5.9% from 2023 to 2030. Food decorations and inclusions are used to enhance the appearance and texture of food products. Food decoration and inclusions are food products that are used for the purpose of providing aesthetics, texture, flavour, and nutrition to the food. Inclusions such as nuts, raisins, seeds, and others are used in the manufacturing of baked goods, confectionery items, ice cream, and other food products.
The growing demand for convenience foods and ready-to-eat products has increased the demand for food decorations and inclusions. Increasing demand for ice creams, frozen desserts, and bakery products has driven the demand for food decorations and inclusions in the market. Furthermore, rising disposable income and changing lifestyles have led to an increase in the expenditure capacity of consumers, which has further fueled the demand for food decorations and inclusions products.
Furthermore, the increasing trend of premiumization and indulgence among the consumers is driving the demand for food decorations and inclusions products. Manufacturers are launching new products to cater to the increasing demand for premium and indulgent products. For instance, in June 2021, Nestlé launched a new range of premium ice creams, called the ‘Nestlé After Dark’, which is made with Belgian chocolate and salted caramel. The product is designed to appeal to adult consumers and is an indulgent treat.
Furthermore, increasing demand for organically sourced ingredients is expected to have a positive impact on the market in the coming years. Manufacturers are launching organic food decorations and inclusions products to cater to the growing demand for organic food. For instance, in October 2021, Nature’s Garden launched a range of certified-organic sprinkles with a focus on natural colors and flavors. The range includes pastel sprinkles, fruity cereal crunch, and crunchy candy-coated sprinkles.
In addition, the increasing demand for healthy and natural food products is expected to drive the demand for food decorations and inclusions. The health and wellness trend has led to the growth of the food decorations and inclusions market. Consumers are increasingly opting for healthy food decorations and inclusions, such as nuts, seeds, fruits, and vegetables. For instance, in April 2021, Mars, Inc. launched a new range of healthy snacks, called ‘Mars Balanced’, which contains a mix of nuts, seeds, and dried fruits.
Product Insights
The confectionery inclusions segment held the majority of the market share in 2022 and is expected to witness significant growth over the forecast period. The increasing demand for innovative and flavored confectionery products, such as chocolate bars, ice creams, and bakery items, among consumers is propelling the demand for confectionery inclusions. According to an article published by Markets Insider, in October 2020, the confectionery industry is expected to reach a value of USD 178.8 billion by 2026, with a CAGR of 6.3% during the forecast period. Furthermore, the rising awareness among consumers about health benefits, such as rich in antioxidants, minerals, and vitamins, and the growing demand for natural and organic products are expected to boost the demand for food decorations and inclusions.
The bakery inclusions segment is expected to witness a substantial growth rate over the forecast period. This is mainly due to the rising demand for customized bakery products, such as cakes, cookies, and muffins, among consumers. Moreover, the emergence of clean label and allergen-free bakery inclusions, along with the increasing demand for healthy bakery products, is driving the demand for bakery inclusions. According to an article published by Mordor Intelligence, in August 2020, the bakery inclusions market is expected to reach a value of USD 2.2 billion by 2026, with a CAGR of 6.2% during the forecast period.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest market share of 44.3% in 2022. The growth of the segment is mainly attributed to the increasing consumer preference for supermarkets & hypermarkets as the prime source to purchase food decorations and inclusions. Moreover, supermarkets & hypermarkets offer a wide variety of food decorations and inclusions, which are comparatively priced and assist customers in making quick purchasing decisions. In addition, the availability of extensive product ranges and a large number of discount offers is expected to propel the segment growth in the near future.
The online segment is estimated to register the highest CAGR of 13.7% during the forecast period. Rising penetration of the internet has changed the buying behavior of consumers, with the majority of customers opting for online shopping for food decorations and inclusions. According to a study by Statista in 2020, around 64% of the population in the U.S. prefer online shopping for food decorations and inclusions due to the presence of various online retail stores, such as Amazon, eBay, Walmart, and others. Moreover, the availability of discounts and offers for online shoppers is further expected to drive the segment growth.
Type Insights
The inclusion segment accounted for the highest revenue share of 59.2% in the year 2022. The growing use of food inclusions as a decorative item in bakery, confectionery, and other food products is driving the market for inclusion. Also, the increasing demand for processed food products such as flavored ice creams and cakes is boosting the demand for inclusions. For instance, in June 2020, Unilever launched Magnum Gold which is a premium ice cream with a combination of Belgian chocolate and gold dust. This product has helped the company to increase its market share in the western countries.
The decoration segment is anticipated to expand at the highest CAGR of 9.8% over the forecast period. The growing demand for food decorations from the confectionery industry is driving the market for food decorations. Furthermore, the introduction of innovative products such as edible decorations is also a key driver of food decorations. For instance, in August 2020, Sugar Craft launched an innovative product, the Edible Cake Toppers, that is made up of sugar, cornstarch, and food colouring. This product has helped the company to increase its market share in the western countries.
Regional Insights
Europe is projected to dominate the food decorations and inclusions products market and is estimated to account for a market share of over 36.5% in 2022. This is mainly attributed to the increasing demand for healthy snacks coupled with the presence of major players in the region. Additionally, rising consumer preference for convenient and visually appealing food products is also driving the market growth. For instance, in April 2021, Mondelez International launched New Oreo Thins Sandwich Cookies with new flavours and decorations.
The Asia Pacific is expected to witness the fastest growth during the forecast period. This is attributed to the rising demand for healthy snacks and convenience food products in the region. Moreover, the increasing disposable income of the population and changing lifestyle preferences of consumers are also driving the demand for food decorations and inclusion products in the region.
Financial Projections
In this part of the Food Decorations and Inclusions Products business plan, we will provide an accurate breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your venture. Generally, these projections are drafted for a 5-year period.
Revenue Assumptions
The primary source of revenue for a food decorations and inclusions products business is the sale of its products. Other potential sources of income include the sale of related products and services, such as promotional items, hosting events, and consulting.
Projecting Expenses
In this section, all the regular expenses related to keeping the food decorations and inclusions products business running will be described. These include costs of materials, labor, rent, utilities, insurance, advertising, and other related expenses. Additionally, it is important to consider the cost of research, development, and testing of new products and services.
Key companies & market share insights
Some of the key companies operating in the food decorations and inclusions market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In September 2022, Barry Callebaut launched the new range of chocolate decorations, including flakes, chips, and sprinkles.
– In October 2022, Cargill launched a range of inclusions such as nuts, dried fruits, and edible decorations.
– In November 2022, Mars, Incorporated launched a range of edible decorations and inclusions for ice cream, cakes, and baked goods.
Some of the prominent players in the food decorations and inclusions market include:
– Barry Callebaut
– Cargill
– Mars, Incorporated
– Tate & Lyle
– Givaudan
– Kerry Group
– Archer Daniels Midland Company
– Ingredion Incorporated
– Unilever
– I. du Pont de Nemours and Company
Global Food Decorations And Inclusions Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global food decorations and inclusions products market based on product type, application, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Sprinkles
– Icings & Glazes
– Coloured Sugars
– Nuts & Seeds
– Chocolate & Candy Pieces
– Others
2. Application Outlook (Revenue, USD Million, 2017 – 2030)
– Bakery
– Confectionery
– Dairy Products
– Fruits & Vegetables
– Others
3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Modern Trade
– Online
– Convenience Stores
– Specialty Stores
– Others
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Drivers for the Food Decorations and Inclusions Market?
[A]: The rising demand for convenience and customisation products, along with the growing popularity of food trends such as plant-based and vegan diets, are the primary drivers of the food decorations and inclusions market. Additionally, the increasing popularity of premium and exotic food products, along with the growing demand for gourmet food, is expected to further drive the market growth.
[Q]: Which Are the Major Players Operating in the Food Decorations and Inclusions Market?
[A]: Major players operating in the food decorations and inclusions market include Nestle S.A., Archer Daniels Midland Company (ADM), Cargill Incorporated, Kerry Group plc, Ingredion Incorporated, and Tate & Lyle Plc.
[Q]: What is the Potential of Product Innovation?
[A]: The food decorations and inclusions market is expected to witness significant growth due to product innovations and increasing consumer demand for novel and unique food products. Companies are investing in research and development activities to create new products with enhanced sensory qualities, such as flavour, texture, and nutrition. Additionally, companies are focusing on developing products with natural ingredients, such as fruits and vegetables, to cater to the growing demand for health and wellness products.
[Q]: What is the Outlook for the Food Decorations and Inclusions Market?
[A]: The food decorations and inclusions market is expected to witness significant growth over the forecast period, due to the increasing demand for convenience, premium, and gourmet food products. The rising demand for plant-based and vegan diets, along with the increasing popularity of food trends, is expected to further drive the market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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