Savory Ingredients Market Size, Share, Forecast, & Trends Analysis by Ingredient Type (Yeast Extracts, HVP, Nucleotides, Starches), Source (Natural, Synthetic), Form (Powder, Liquid), Application (Food & Beverages, Animal Feed) - Global Forecast to 2031

The Savory Ingredients Market was valued at $8.62 billion in 2023. This market is expected to reach $13.38 billion by 2031 from an estimated $9.07 billion in 2024, at a CAGR of 5.7% during the forecast period from 2024 to 2031.

Savory Ingredients Market Size & Forecast

The growth of this market is driven by the growing demand for convenience foods, consumers’ shift towards wholesome food and healthy alternatives, increasing demand for natural-sourced savory ingredients, and a surge in end-use applications. However, the high cost of raw materials and stringent regulations are expected to restrain the growth of this market.

Emerging economies in Asia-Pacific, Latin America, and the Middle East & Africa are expected to generate growth opportunities. However, the complex sourcing of natural ingredients is a major challenge for the players operating in this market. Prominent trends in the savory ingredients market include increasing demand for functional ingredients and clean labels.

Savory Ingredients Market Growth Drivers

Growing Demand for Convenience Foods

Consumer demand for convenience foods has significantly increased over the past decade. Ready-to-eat and ready-to-cook meals and snacks have become popular due to their time-saving benefits compared to cooking from scratch. Shoppers are looking for products that offer ease of preparation while still delivering unique flavors and high-quality ingredients. Additionally, busy lifestyles have further fueled the demand for processed foods. A survey conducted by the International Food Information Council in November 2022 revealed that 81% of 1,000 American respondents kept shelf-stable, canned, or packaged foods in their households.

Additionally, increasing urbanization is anticipated to drive demand for convenience foods, driven by changing lifestyles, a rise in nuclear families, and the growth of fast-paced work environments. Currently, over half of the global population resides in urban areas, with virtually all countries experiencing heightened urbanization. According to the United Nations World Urbanization Prospects, in 2021, approximately 56.6% of the world's population lived in urban areas, a figure projected to rise to 68% by 2050. Urbanization enhances living standards and raises incomes, which positively impacts the affordability of convenience foods.

Consequently, the rise of convenience foods is driving the demand for savory ingredients, as they offer a diverse range of quality, safe, tasty, and healthy options. These ingredients enhance the nutritional profile of processed foods and play a crucial role in food and beverage processing and manufacturing. As a result, the global demand for savory ingredients is projected to grow in the coming years.

Increasing Demand for Natural-sourced Savory Ingredients

As consumers become more health-conscious and prioritize clean-label products, there is a growing preference for natural ingredients that are free from artificial additives, preservatives, and flavor enhancers like monosodium glutamate (MSG). This shift towards natural options has driven demand for plant-based seasonings, spices, herbs, and natural flavor enhancers, as well as ingredients sourced from fermentation processes or traditional culinary methods. In response, food manufacturers are reformulating their products to align with consumer preferences for transparency, sustainability, and healthier ingredient profiles, creating significant growth opportunities for companies that provide natural savory ingredients.

Furthermore, the increasing interest in global and ethnic flavors is boosting the demand for natural savory ingredients. Consumers are seeking authentic, bold, and diverse taste experiences, leading to greater use of naturally sourced herbs, spices, and flavor compounds from various cuisines. Natural umami enhancers, yeast extracts, and vegetable-based flavorings are gaining popularity, aligning with consumers' preferences for both flavor richness and natural sourcing. This trend is impacting not only the packaged food industry but also restaurant menus and food service providers, further propelling the savory ingredients market as brands adapt to evolving consumer tastes.

Savory Ingredients Market Trends

Increasing Demand for Functional Ingredients

Consumers are increasingly prioritizing the health benefits of food consumption. Functional ingredients that offer added health benefits beyond basic nutrition are becoming more popular in savory products, such as sauces, seasonings, and snacks. Ingredients like plant-based proteins, probiotics, fiber, and antioxidants are being increasingly incorporated to enhance nutritional profiles. This trend is driven by a growing consumer desire for foods that support digestive health, immunity, and overall well-being, prompting manufacturers to reformulate their products with these ingredients. Health-conscious consumers are particularly attracted to savory products that promote benefits like heart health, gut health, or improved energy levels, thereby fueling demand for foods rich in functional ingredients.

Additionally, the rising trend of clean-label products is driving demand for functional ingredients in the savory ingredients market. Consumers are increasingly scrutinizing ingredient labels and favoring products made with natural, recognizable components that provide additional health benefits. This shift has prompted manufacturers to move away from artificial additives and preservatives, focusing instead on incorporating functional ingredients that enhance both flavor and nutritional value. In response to this growing demand, companies are developing innovative savory solutions that include fortified seasonings, protein-rich snacks, and nutrient-dense condiments, making this a prominent trend in the savory ingredients market.

Savory Ingredients Market Opportunity

Emerging Economies in Asia-Pacific, Latin America, and the Middle East & Africa 

Emerging economies in the Asia-Pacific, Latin America, and the Middle East & Africa present significant growth opportunities for the savory ingredients market, driven by expanding middle-class populations, increasing urbanization, and rising disposable incomes. As consumers in these regions adopt more Westernized diets and seek convenient, flavorful food options, the demand for savory ingredients such as monosodium glutamate, yeast extracts, and hydrolyzed vegetable proteins is growing rapidly. Furthermore, the shift towards processed and packaged foods creates substantial opportunities for companies offering savory ingredients that enhance taste, texture, and shelf life. Local food manufacturers are increasingly incorporating these ingredients to align with evolving consumer tastes and preferences, further driving demand in these emerging markets.

Moreover, the rising health and wellness trend in these regions is influencing consumer choices and promoting the adoption of healthier savory ingredients. As more individuals in Asia-Pacific, Latin America, and the Middle East & Africa become health-conscious, there is an increasing interest in natural, clean-label, and functional ingredients that offer both flavor and nutritional benefits. This shift presents a significant opportunity for savory ingredient manufacturers to expand their product offerings to include items such as plant-based proteins, low-sodium seasonings, and natural flavor enhancers.

Savory Ingredients Market Analysis: Key Findings

The Monosodium Glutamate (MSG) Segment to Dominate the Savory Ingredients Market in 2024

Based on ingredient type, the savory ingredients market is segmented into monosodium glutamate (MSG), yeast extracts, hydrolyzed vegetable proteins (HVP), nucleotides, hydrolyzed animal proteins (HAP), starches, vinegar, and other ingredient types. In 2024, the monosodium glutamate segment is expected to account for the largest share of 55.4% of the savory ingredients market. The large market share of this segment is primarily attributed to its flavor-enhancing capabilities, making it a widely used additive in processed and packaged foods. The growing demand for sauces, cheeses, dairy and meat products, baked goods, and instant noodles has led to a notable increase in the adoption of MSG. As urbanization continues to rise and consumers seek more flavorful and convenient food options, the reliance on MSG as a cost-effective flavor enhancer is expected to further drive growth in this segment.

However, the yeast extracts segment is slated to register the highest CAGR of 7% during the forecast period. This rapid growth is driven by the rising demand for bakery products, the growing vegan and vegetarian population, increased interest in alcoholic beverages, and the ongoing efforts to reduce salt consumption.

The Natural Segment to Witness High Demand During the Forecast Period

Based on source, the savory ingredients market is segmented into natural and synthetic. In 2024, the synthetic segment is expected to account for a larger share of the savory ingredients market. This segment's large market share is primarily attributed to its enhanced stability, extended shelf life, and lower cost compared to natural savory ingredients. In addition, synthetic savory ingredients are produced in a consistent and controlled manner, allowing manufacturers to meet high demand without facing the supply and price fluctuations often associated with natural ingredients. This cost-effective advantage positions synthetic savory ingredients as a budget-friendly option for food manufacturers.

However, the natural segment is slated to register the highest CAGR during the forecast period. This rapid growth can be attributed to the rising demand for organic food products, increasing awareness of the health risks associated with synthetic food ingredients, and heightened focus on sustainable sourcing and advancements in food technology. Additionally, natural savory ingredients not only enhance flavor but also offer various health benefits, including anti-inflammatory and antioxidant properties. This growing awareness and preference for health-promoting ingredients are driving the growth of the natural savory ingredients market.

The Powder Segment to Dominate the Savory Ingredients Market in 2024

Based on form, the savory ingredients market is segmented into powder, liquid, and other forms. In 2024, the powder segment is expected to account for the largest share of the savory ingredients market. The large market share of this segment is primarily driven by its versatility and convenience. These ingredients can be easily incorporated into a diverse array of food and beverage products. Their powdered form ensures uniform distribution, providing consistent flavor in every application. Moreover, powdered savory ingredients have a longer shelf life compared to liquid alternatives, minimizing the risk of spoilage and waste. This makes them a cost-effective solution for both manufacturers and consumers, as they can be stored for extended periods without compromising flavor intensity.

However, the liquid segment is slated to register the highest CAGR during the forecast period. This segment's rapid growth is mainly due to its ability to be easily mixed and blended without additional processing steps, simplifying production and reducing preparation time.

The Food & Beverages Segment to Dominate the Savory Ingredients Market in 2024

Based on application, the savory ingredients market is segmented into food & beverages and animal feed. In 2024, the food & beverages segment is expected to account for a larger share of the savory ingredients market. The large market share of this segment is primarily attributed to shifting consumer lifestyles and an increasing preference for convenience foods driven by busy schedules and higher disposable incomes. The expansion of international cuisines, including Asian, Mediterranean, and Latin American dishes, is also promoting the use of savory ingredients that enhance flavor complexity and authenticity.

Moreover, the food & beverage segment is slated to register the highest CAGR during the forecast period. The rapid growth of this segment is primarily driven by increasing consumer preference for organic foods, prompting savory ingredient manufacturers to innovate their products to retain customers.

Geographical Analysis

Asia-Pacific Dominates the Savory Ingredients Market

Based on geography, the savory ingredients market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 62.9% of the savory ingredients market, followed by North America, Europe, Latin America, and the Middle East & Africa. The Asia-Pacific savory ingredients market is estimated to be worth USD 5,699.2 million in 2024. Asia-Pacific's large market share can be attributed to several key factors, including rapid urbanization, rising disposable incomes, an expanding food processing industry, the growing popularity of international cuisines, the adoption of Western eating habits, and increased consumption of savory snacks and ready-to-eat meals.

However, North America is slated to register the highest CAGR during the forecast period. Increasing health concerns, rising consumer demand for natural and clean-label foods, a growing interest in functional food ingredients, and high demand for processed and convenience foods drive this growth.

Savory Ingredients Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the savory ingredients market are Ajinomoto Co., Inc. (Japan), AngelYeast Co., Ltd. (China), Kerry Group plc (Ireland), Vedan International (Holdings) Limited (Hong Kong), Sensient Technologies Corporation (U.S.), Tate & Lyle PLC (U.K.), Archer-Daniels-Midland Company (U.S.), DSM-Firmenich AG (Switzerland), Givaudan SA (Switzerland), Associated British Foods plc (U.K.), Lesaffre (France), Synergy Flavors, Inc. (U.S.), Ohly GmbH (Germany), and SPAC Starch Products (India) Private Limited (India).

Savory Ingredients Industry Overview: Latest Developments from Key Industry Players

• In December 2023, Ohly GmbH partnered with Caldic B.V. (Netherlands), a solutions provider, to market their ingredients range to food & beverage manufacturers in the Midwest U.S.
• In August 2023, Kerry Group acquired Shanghai Greatang Orchard Food Co., Ltd. (China). This acquisition strengthened the company's foothold in China and enhanced its standing in the global savory taste market.
• In March 2023, Archer-Daniels-Midland Company signed a joint venture agreement with Marel hf. (Iceland), a provider of advanced food processing solutions, to start an alternative protein innovation center in the Netherlands.

Savory Ingredients Market Research Summary

Key questions answered in the savory ingredients market report: