LONDON--(BUSINESS WIRE)--The global caramel ingredient market is expected to grow at a CAGR of more than 8% during the period 2017-2021, according to a new market research study by Technavio.
The report presents a comprehensive breakdown of the global caramel ingredient market by application (bakery products, beverages, confectionery products, and ice creams), by forms (liquid form, solid form, and powdered form), and by distribution channel (hypermarkets and supermarkets, food and drink specialists, online stores, and warehouse clubs). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.
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Market driver: increase in applications of caramel
One of the key drivers of the global caramel ingredient market is the growing scope of its application. Caramelization is the oldest method used for food coloring. Caramel is used to give the deep brown color to colas and carbonated drinks and amber gold color to beer or other alcoholic drinks. Consumers are also adopting the trend of food decoration. Apart from this, caramel is extensively used in the personal care industry. Consumer demand for natural personal care products is increasing. This has created interest in caramel as a personal care colorant. Caramel is also used for coloring hair.
According to Manjunath Reddy, a lead analyst at Technavio for food research, “In May 2017, Mars Chocolate North America and Wrigley showcased 30 new innovative products that will be added to their portfolio at the National Confectioners Association Sweets & Snacks Expo in Chicago, US. The products unveiled include M&M'S Caramel Chocolate Candies, a new flavor to be introduced in M&M’s product range, and TWIX Dark Chocolate Cookie Bars. M&M’s caramel flavored candies are milk chocolate with a caramel center.”
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Market trend: organic caramel products gaining traction
There is a rapid increase in the demand for organic food products. Manufacturers are focusing on providing healthier products by using high-quality ingredients and raw materials. The caramel ingredients industry is witnessing rising preference for organic caramel ingredients such as organic caramel sauce, organic caramel syrup, and organic salted caramel. Growing health awareness among consumers and multiple health benefits of natural organic caramel ingredients, especially natural flavors, are driving the demand for organic products. Consumers consider organic caramel ingredients to be healthier and safer than artificial caramel ingredients, as organic caramel ingredients are free from pesticides and chemicals.
Market challenge: increasing raw material prices
Commodities such as sugar, sweetened condensed milk, corn syrup, oil, and calcium carbonate are used in making bakery and confectionery products. But, these commodities are subject to price fluctuations. Any significant increase in the price of raw materials may have an adverse impact on the final production and pricing of products. The price of these commodities fluctuates due to government policies and regulations, weather conditions, and demand. This, in turn, has a direct effect on the price of the end-products. Butter, which is added to provide better taste, proves to be an expensive ingredient for mass production.
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Key vendors in the market
- Cargill
- DDW The Colour House
- Kerry
- PURATOS GROUP
- Sensient Technologies
- Sethness Products Company
The global caramel ingredient market is highly fragmented owing to the presence of small and large vendors. Vendors in the market compete based on numerous factors such as price, quality, innovation, distribution, and promotion. Constantly changing consumer demands and preferences influence the food and beverage industry in terms of product differentiation. Manufacturers are introducing new varieties of food products that have caramel as an ingredient. Economic well-being has improved the living standards and brought about changes in consumers' preferences and spending patterns.
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