Press release
APAC Savoury Ingredients Market to Increase in Value US$ 8.8 Bn by 2026
The APAC savoury ingredients market is estimated to project a value of US$ 5.0 Bn by the end of 2016 and is expected to account for US$ 8.8 Bn by the end of 2026, registering a CAGR of 5.8% in terms of value over the forecast period. On the basis of type, the APAC savoury ingredients market is segmented into yeast extract, monosodium glutamate, hydrolysed vegetable protein, hydrolysed animal protein, and nucleotides and others. Monosodium Glutamate (MSG) is projected to be the fastest growing segment over the forecast period with a CAGR of 7.4%, owing to the rising demand for flavour intensifiers and an increasing consumption of packaged foods containing MSG. MSG is expected to account for approximately 32.7% of the total APAC savoury ingredients market share in 2016 while yeast extract accounts for 32.3% market share.Market dynamics
The APAC savoury ingredients market is impacted by several factors including increasing adoption of savoury flavours, rising preference and demand for hydrolysed protein-based meat products, a growing inclination towards convenience food, and an awareness of the usage of yeast extracts in lieu of salt, which provide the same taste while ensuring a reduced dietary sodium content at the same time. A growing demand for instant food such as noodles and sauces containing savoury ingredients is expected to drive growth of the food application segment in markets across the globe. Also, an increasing application of hydrolysed vegetable protein in food products to cater to demands from health conscious consumers is a major factor expected to drive market growth. However, stringent government regulations on the use of monosodium glutamate may hamper the growth of the APAC savoury ingredients market.
The APAC savoury ingredients market is likely to witness some key trends in the forecast period. The most predominant trend is companies’ preference of natural savoury flavours and ingredients over artificial flavours. Several companies are also moving towards adoption of yeast extract in food, which imparts a salty and savoury flavour and also reduces bitterness.
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Market projections by geography
Of all the markets in the APAC region, China is the fastest growing market followed by markets in the ASEAN countries. The market in China is estimated to represent the highest value share of 35.1% in 2016 and is expected to register a CAGR of 6.6% in terms of revenue over the forecast period. The ASEAN market is likely to represent 25.4% value share by the end of 2016 and is anticipated to register the second-highest CAGR of 6.5% in terms of value over the forecast period. The savoury ingredients market in India is expected to expand at a CAGR of 5.9% over the forecast period. The Japan savoury ingredients market is expected to grow at a CAGR of 4.5% over the forecast period.
The APAC region offers immense growth opportunities for companies operating in the savoury ingredients space. The primary reason for this is a growing demand for instant food such as noodles and savoury snacks in these markets, augmented by a substantial increase in the disposable income of people. Further, sales of savoury ingredients in these countries already accounts for a substantial revenue share of the APAC savoury ingredients market and revenue from these markets is expected to continue to increase significantly over the forecast period.
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Leading market players
Leading companies operating in the APAC savoury ingredients market include 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).
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