Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Asia-Pacific Savory Ingredients Market 2017-2027
Savory ingredients are flavors that are used to enhance and modify the taste and flavors of the food such as snacks and frozen savory meals. These ingredients provide an appealing smell and taste to the food and also improve the quality of the food. They are also used across feed applications as they act as an important ingredient during the production of foods. Savory ingredients can be classified into hydrolyzed animal protein, soy sauce powder, monosodium glutamate, yeast extracts, hydrolyzed vegetable protein, and nucleotides. They can be produced synthetically and are also available in natural form. Moreover, they are available in a variety of forms such as powder, paste, liquid, and spray.
The Asia-pacific savory ingredients market is projected to surpass US$ 5.5 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.9% during the forecast period (2019 to 2027).
Growing demand for savory ingredients from meat and poultry products is expected to propel the market growth of savory ingredients. In meat and poultry savory ingredients are used to marinate and barbecue the meat product. For instance, in February 2015, Frutarom Savory Solutions introduced three savory marinades for meat and fish, which include ‘Bali’ and ‘Sereh’ imparting Asian style flavors, and ‘Delikata’ which imparts rustic onion flavor. These flavors and marinades and MSG-free.
Growing preference for hydrolyzed protein-based meat products across the Asia-Pacific region coupled with the increasing consumption of meat in the region is expected to augment the market growth of savory ingredients. According to the Coherent Market Insights analysis, the consumption of meat is growing at a robust rate in China. China accounts for a quarter of all the meat products produced worldwide in terms of consumption, owing to the increasing demand for protein-rich food.
Among countries, China dominated the Asia-Pacific savory ingredients market in 2018, reporting 36% market share in terms of revenue, followed by ASEAN countries and India, respectively.
Figure 1. Asia-Pacific Savory Ingredients Market, Revenue Share (%), By Countries, 2018
A concern associated with the side-effects upon consumption of savory ingredients as it has health hazards is expected to restrict the market growth of savory ingredients. Moreover, rising demand for clean label products for simple ingredients and real food featuring which are easy to recognize is expected to hinder the market growth of savory ingredients over the forecast period.
The higher cost of convenience food coupled with the lack of freshness in the convenience food is expected to hinder the market growth of savory ingredients. Moreover, convenience foods are mainly high in calories, saturated fat, fat, sugar, and trans-fats and they also lack freshness which is restricting their adoption across the consumer. Therefore, lesser adoption of convenience food is projected to hamper market growth.
Rising demand for pet food with various ingredients in order to enhance flavor is projected to create high potential opportunities for pet food manufacturers in the ASIA-PACIFIC Region. India is home to approximately 20 million pet dogs. The value of the food they consume is to the tune of US$150 million annually and the market is growing at 13.9% annually and will be worth roughly US$ 430 million by 2020.
The rise in disposable income is encouraging the consumer to spend more processed and packaged food which is boosting the market of the food industry. This will favor the market growth of savory ingredients. According to the India Brand Equity Foundation, the Indian food and grocery market is the world’s sixth-largest, with retail contributing 70% of the sales. The Indian food retail market is expected to reach US$ 894.98 billion by 2020.
Figure 2. Asia-Pacific Savory Ingredients Market – Opportunity Analysis
Shifting preferences among consumers for savory snacks is expected to be a major trend and this is encouraging manufacturing to launch variety in savory snacks. For instance, in September 2019, ReGrained, an ingredient and packaged goods innovator that leverages patented technology to transform food manufacturing byproduct into tasty super foods announced that it has updated its brand aesthetic and will soon enter the savory snack space with an innovative new snack puff.
Growth in demand for savory ingredients for alcoholic beverage applications will favor the market growth of the savory ingredients over the forecast period. For instance, in March 2017, Coca-Cola has launched the first alcoholic drink “Chu-Hi”. It is canned sparkling flavored drinks that include a local spirit called shochu.
Figure 3. Asia-Pacific Savory Ingredients Market, Revenue Share (%), By Product Type, in 2018
On the basis of product type, monosodium glutamate dominated the Asia-Pacific savory ingredients market in 2018 with around 33% of market share in terms of revenue, followed by yeast extract and hydrolyzed vegetable protein, respectively.
Key players operating in the Asia-pacific savory ingredients market Angel Yeast Co., Ltd, AB, Mauri Food Inc., Ajinomoto Co., Inc., Foodchem International Corporation, The Fufeng Group, Halcyon Proteins, Sensient Technologies Corporation, Royal DSM, Lesaffre (Biospringer), and ABF Ingredients (Ohly)
Few Recent Developments
- In July 2016, the company introduced a new product line of U.S. made Organic Certified Bakers’ Yeast Extracts, at North America IFT Food Expo, which is ideal for vegan products, soups, sauces and snacks
- In June 2016, the company launched Springer Organic Baker’s Yeast Extract, which enhances flavors of dressings, snacks, sauces, soups, vegetarian products, and gravies. This launch will help the company to develop more custom solutions for client-specific needs.
- In March 2016, the company inaugurated Biospringer Culinary Centre in Campinas, Brazil. The company has other Culinary Centres in France, the US, and China.