The market size of the global synthetic food market in the year 2021 is valued at 17.72 billion and is predicted to reach 30.01 billion by the year 2030 at an 6.19% CAGR during the forecast period.
The term "artificial food items" also applies to synthetic food products. Synthetic food items are prepared with the use of biotechnological techniques. Synthetic food items maintain their original appearance, flavor, color, and nutritional content despite being created through biotechnology. Proteins, lipids, vitamins, their constituent parts, and trace elements are dietary components of synthetic food products. Milk, ice cream, cereals, cakes, and bread are some of the most come synthesized foods. Since it can be challenging for the food industry to obtain farm-fresh fruits and vegetables, artificial food products have recently gained attention. It is, therefore, safe to predict that the global market for synthetic food will generate a sizable amount of money throughout the forecast period. Some of the key factors driving the growth of the global synthetic food market include the adoption of ready-to-eat products, rising consumption of synthetic food, rising demand for synthetic dairy products, energy drinks, soft drinks, etc., increasing demand for processed and packaged food, rising population, changing lifestyles, and the presence of numerous restaurant chains.
The market for synthetic food is expanding due to the widespread usage of synthetic food by restaurant chains to preserve the freshness of their produce. Although there aren't many rules governing food safety, synthetic food products concerns limit the market's expansion. Other issues that hinder the expansion of synthetic food products include the usage of pricey organic components, an increase in raw material prices, and a shift in customer preference toward organic food items due to increased health consciousness.
Market Segmentation:
The synthetic food market is segmented on the product, end users and distribution. Based on product, the market is segmented into synthetic color, enzymes, hydrocolloids, antioxidants, flavor and fragrances and fats and oils. Based on the end users, the market is segmented into beverages, bakery and confectionery, dairy and frozen products, animal and pet food and savory and snacks. Based on the distribution, the market is segmented into supermarkets, convenience stores and online.
Based on product, the hydrocolloids category is accounted as a major contributor to the synthetic food market.
The hydrocolloids category dominated the market in 2021. Demand for products is driven by the growing need to provide various beverages' stabilization, suspension, thickening, and mouthfeel control. Due to the rising popularity of reduced-calorie drinks, the diabetic population is projected to fuel market expansion. Several reasons, including rising disposable income, evolving consumer tastes, and the growth of upscale restaurant chains, are anticipated to drive market share.
The bakery and confectionery category witnessed growth at a rapid rate
The bakery and confectionery category dominated the market in 2021. The acceptance of healthier and safer food options will be fueled by the rising health concerns surrounding issues like vaccinations, diabetes, and obesity. Product penetration is probably being aided by the quick movement in consumer preferences away from nutritional products and toward sweets like cakes, pastries, cookies and chocolates among all age groups. Increased consumption of various beverages, such as tea, soda, juices, coffee, aerated drinks, and mineral waters, will boost demand in this market.
The North American synthetic food market holds a signification revenue share.
The North American synthetic food market is expected to register the highest market share in revenue in the near future. Due to a busy lifestyle, the need for processed and ready-to-eat food is increasing, which will help the region thrive. Furthermore, it is anticipated that rising consumer knowledge of the primary advantages of artificial ingredients, such as their low sugar content, will spur market expansion. The widespread presence of FMCG producers and the sizable consumer base is fostering regional industry growth. The U.S. synthetic food market, a key contributor, earned almost USD 1.5 trillion in sales from the supermarket sector. Demand has been positively influenced by rising RTE consumption and high disposable income. In addition, Asia Pacific is projected to grow rapidly in the global synthetic food market due to the region's growing working population and consumers' desire for ready-to-eat cuisine. Consumer behaviors have changed significantly, particularly in urban areas. Urban areas create 80% of packaged consumer goods. The expansion of the local synthetic food industry is greatly influenced by the quick rise in dual incomes and the expanding demand for frozen, processed, and other dairy products. Synthetic food items are also widely used in Asia to satisfy the tremendous demand for food in China and India.
Competitive Landscape
Key players in the synthetic food market are Aarkay Food Products, Archer Dainels Midland Company, Allied Biotech Corp, BASF, Biolanders SAS, Chr. Hansen, Dohler Group, Frutarom Industries, Falcon Essentials Oils and Fiorio Colori.
