Inulin Market In-depth Analysis by Leading Players - Jarrow Formulas, Beneo-Orafti, Cosucra and Sensus
Food & beverage applications were the largest segment and accounted for more than 65% of the total volume in 2014. Dietary supplement application is likely to grow at a steady rate over the forecast period. The global probiotics market is expected to exceed USD 53 billion by 2023.
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Europe inulin market size was estimated over 125 kilo tons in 2015 and is expected to witness moderate gains over the forecast period. Asia Pacific is likely to witness highest gains of above 10% from 2016 to 2023 owing to increase in functional foods consumption, particularly in China, Australia and India.
Increase in application scope for probiotic ingredients market, for food & beverages industry is likely to favor inulin market growth. Demand is likely to majorly come from dairy industry where it is used for formulations in cheese, ice creams and spoonable yogurts. Growing importance of low caloric sugar consumption in food & beverages industry is also likely to drive demand. Stable inulin market price trend is expected to aid application development and penetration.
Food & beverages application is likely to dominate over the forecast period owing to increasing functional ingredients demand used for sugar level reduction and enhancing gut health function. Growing diary product demand in regions such as Asia Pacific and MEA is likely to force manufacturers to increase beverage production capacity. This factor is likely to positively influence market growth.
Inulin helps to stimulate bacterial growth through its non-digestible fiber which helps in maintaining human body calorie level. This factor is expected to promote its use in dietary supplement fortification. It is also used in applications such as construction coatings and animal feed.
Increasing application scope in pharmaceutical industry is likely to drive growth over the forecast period. FDA has attributed it as generally recognized as safe (GRAS), which is expected to pave way in pharmaceutical applications.
Rising use of alternative probiotic ingredients such as GOS and MOS is likely to challenge industry participant’s growth. Abundant raw material availability in the form of chicory root in Europe and China is likely to ensure continuous supply at stable rates and avoid market volatility. Europe is likely to add manufacturing site in the region.
Europe dominated the regional demand owing to favorable regulatory policies for incorporating functional ingredients for food & beverages applications. Sluggish food & beverages industries growth in countries such as Germany, Spain and Italy coupled with restriction in inulin production capacity by EU Commission is likely to affect overall profitability in the region.
North America is likely to grow at steady rates owing to pharmaceutical application growth in U.S. inulin market share. Latin America is likely to witness significant gains owing to increasing consumption of dairy products in Brazil. MEA is also likely to grow at significant rates owing to growth in food & beverages industry.
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Asia Pacific is likely to be the fastest growing region owing to growth of end-use industries such as food & beverages, pharmaceuticals and dietary supplements. China and India inulin market expected to benefit from government policies favoring FDI for the aforementioned industries coupled with financial incentive schemes. Increase in functional food demand particularly for infant formula coupled with growth in per-capita middle class spending capacity is likely to favor market growth over the forecast period.
Baby food manufacturers such as Nestle and Danone have recently announce an increase in production capacity in India and China, which is expected to positively influence demand. Indian government had announced for subsidiary to chicory farming in India at state level. This initiative is likely to boost chicory roots production in India and ensure stable raw material supply in the region.
The global inulin market share is consolidate and also is highly competitive with limited number of companies. Key industry participants include Jarrow Formulas, Beneo-Orafti, Cosucra and Sensus. Companies are involved in strategic partnerships for product innovation for increasing application areas.
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