In 2018, the global caramel ingredients market was worth USD 2.5 billion. It is predicted that this market will grow at 7.2% between 2019 and 2025. Caramel can be used in confectionery products for flavoring, topping, coating, coloring, and filling. This market is driven mainly by a growing convenience food industry, an increase in disposable income of customers, and widespread urbanization in the developing world.
Due to increasing consumer demand for confectionery and bakery products, caramel ingredients are gaining acceptance around the world. This ingredient is also used in beverages, including syrups and powders in teas, lemonades and fruit drinks, as well as beer, just to name a few. Recognizing the many uses of this ingredient, large and small companies have sought to capitalize on ongoing food and consumer trends to stay ahead. Some of the strategies for growth are product innovation, attractive packaging solutions and investments in marketing and promotion, collaborations in marketing and promotional, as well as collaborations with product manufacturer in other application segments and capacity expansion in more markets.
The market is already well-established in North America and Europe. However, there are still opportunities for growth in Asia Pacific and South America. The strong influence of Western-style diets in countries such as India, China and Brazil has led to untapped potential in confectionery and bakery segments. This, combined with rising disposable incomes and changing lifestyles has created a diverse market that offers a huge opportunity for growth. Companies can make a lot of money by catering to smaller but more lucrative markets, taking into account the preferences, buying habits, and tastes.
Recent years have seen the introduction of alternative caramel ingredients pose a threat to the market. The market has been facing a number of challenges over the past decade, including rising concerns about the dangers of caramel ingredients as a color agent. This has been exacerbated by consumers switching to healthier, lower-carb, and higher-sugar food choices. Many manufacturers are finding this a major roadblock. A further obstacle to market growth will be the rising costs of caramel ingredients and other raw material.
Caramel ingredients can be classified by their form into three categories: liquid, solid, or granular. Due to their extensive use in the beverage industry (primarily sodas and colas), liquid ingredients dominate the market. It is used extensively in the manufacture of various alcoholic beverages, including whiskey, scotch and dark rum. Salted caramel porter is a popular fall beer. Every year, companies add new twists to the original recipe to offer consumers something different. In December 2018, Biggby Coffee teamed up to create the Salted Caramel Coffee Porter. The limited edition version of this seasonal favorite was made available at selected retail locations across the U.S.
Because it has a longer shelf life than other forms, the granulated and powdered versions of the ingredient are expected to show the greatest growth. It is used extensively in baked goods and packaged foods as a flavoring and topping ingredient.
The caramel ingredients market can be divided by end-use into confectionery and bakery, , ice cream, desserts, beverages and other. In 2018, the confectionery segment was the most lucrative and will continue to be the dominant market throughout the forecast period. Caramel is a classic ingredient in many confectionery products, and it will continue to be on-trend. Confectionery manufacturers, large and small alike, are constantly coming up with interesting and new combinations to capitalize on the versatility of this ingredient. Quality Street, a well-known brand of chocolates, toffees and sweets from Nestle, will debut a caramel brownie chocolate as part of its 2019 Christmas collection. Dove, an American chocolate brand known as 'Galaxy" in other countries will introduce a fall-inspired White Chocolate Caramel Apple variant in the autumn of 2019.
The market can be divided into flavoring, topping and coloring based on its application. With a market share of over 35.0%, coloring dominated the market in 2018. The use of caramel ingredients in beverages and foods as coloring agents is a long-standing practice. Consumers place a lot more importance on appearance than flavor when choosing food or drinks. Some of the most popular items that contain caramel are soft drinks, baked goods and sauces. Recent studies have shown that certain caramel colorings may cause cancer. These findings have had a negative impact on consumer behavior and decision making and could be a limiting factor in segment growth.
The toppings segment is expected to grow at 8.1% from 2019 to 2025. Caramel toppings are a popular addition to many frozen desserts, as well as in smoothies and shakes. Dairy Queen added two new Blizzards in its 2019 fall menu. One of these was the Heath Caramel Brownie Blizzard. This frozen vanilla treat is available at Dairy Queen locations across the U.S. and includes brownie pieces, Hershey's heath pieces, and a caramel topping.
In 2018, North America was closely followed by Europe as the top market. The two markets combined accounted for just over half of the total market in 2018, largely due to the presence and dominance of global players. These regional markets have seen significant growth due to caramel's increasing popularity as an ingredient in many applications, including desserts, frozen and packaged foods, confectionery, and bakery items. Innovation and seasonal favorites have been a key strategy for growth by companies. This will ensure that North America and Europe remain at the forefront of their game during the forecast period. Mars Wrigley International Travel Retail will launch its limited-edition M&M's as well as Twix selections at 2019 TFWA World Conference & Exhibition. M&M's Crunchy Caramel and Twix Salted Caramel are designed to provide consumers with something unexpected and fun to enhance their travel experience.
Asia Pacific will likely emerge as the fastest growing region for caramel ingredients. The forecast period sees a 7.7% CAGR. Many countries in the region, including India, China and Indonesia, as well as Korea, Malaysia, Thailand, Malaysia, Indonesia, Malaysia, Korea and Malaysia are important revenue sources for both new and established players. Major global companies are expanding in this region to capitalize on the lucrative opportunities presented by rapid urbanization, rising disposable income, improved logistics, and a growing food and beverage industry.
The market is dominated by Cargill, Inc., Nestle S.A., Mars Inc., Kerry Group, Ferrero SpA, Sensient Technologies Corporation, Goetze's Candy Company, Inc., Frito-Lay, DDW The Color House, Sethness-Roquette Caramel Color, Bakels Worldwide, Alvin Caramel Colours, and Metarom. A variety of uses for caramel are being explored by confectioners. Mars Corporation, for instance, announced that a new Milky Way variety will be available on the market in January 2020. Milky Way Salted Caramel bars are a new twist on the classic candy bar. The company also makes Milky Way Caramel Apple, Milky Way Simply Caramel, and other products.
This report predicts revenue growth at the global, regional and country level and offers an analysis of industry trends in each sub-segment from 2015 to 2025. Grand View Research has divided the global caramel ingredients market report by form, application, end use, and region.
Form Outlook (Revenue USD Million, 2015-2025)
Solid
Granulated
Liquid
Application Outlook (Revenue USD Million, 2015-2025)
Coloring
Topping
Flavoring
Other
End-use Outlook (Revenue USD Million, 2015-2025)
Bakery
Confectionery
Ice Cream & Desserts
Beverages
Other
Regional Outlook (Revenue USD Million, 2015-2025)
North America
The U.S.
Europe
Switzerland
Belgium
Asia Pacific
India
China
Central & South America
Brazil
Middle East & Africa
South Africa
b. Global caramel ingredients market was valued at USD 2.63 Billion in 2019, and is projected to grow to USD 2.82 Billion by 2020.
What is the growth rate of the caramel ingredients market?b. Global caramel ingredients market will grow at 7.2% compound annual growth rate between 2019 and 2025, to reach USD 4 Billion by 2025.
Which market segment had the largest share of caramel ingredients?b. With a market share of 28.7%, North America was the dominant country in caramel ingredients in 2019, This is due to caramel's increasing popularity as an ingredient in many applications, including desserts, baked goods, confectionery, and packaged foods.
What are the major players in the caramel ingredients market?b. Cargill, Inc., Nestle S.A., Mars Inc., Kerry Group, Ferrero SpA, Sensient Technologies Corporation, Goetze's Candy Company, Inc., Frito-Lay, Frito-Lay, DDW The Color House, Sethness-Roquette Caramel Color, Bakels Worldwide, Alvin Caramel Colours, and Metarom are some of the key players in the caramel ingredients industry.
What are the main factors that drive the caramel ingredient market?b. The market growth is driven by rising consumer consumption of bakery and confectionery products. This ingredient is also prominently used in beverages, such as syrups or powders in teas and lemonades.
Up Market Research published a new report titled “Caramel Ingredients Market research report which is segmented by Application (Coloring, Topping, Flavoring), by End-use (Beverages, Ice Cream & Desserts, Confectionery, Bakery), By Players/Companies include Milky Way Caramel Apple and Milky Way Simply Caramel, Inc; Frito-Lay; DDW The Color House; Sethness-Roquette Caramel Color; Bakels Worldwide; Alvin Caramel Colours; and Metarom Caramel is an extremely versatile ingredient and is being adopted by an increasing number of confectioners in their products For instance, Inc; Nestl© SA; Mars Inc; Kerry Group; Ferrero SpA; Sensient Technologies Corporation; Goetze’s Candy Company, Mars Corporation announced a new variety of Milky Way to be introduced in the markets in January 2020 The Milky Way Salted Caramel bar is a twist on the original candy bar Other products by the company, Cargill, which has significantly focused on caramel ingredients”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Caramel Ingredients Market Research Report |
By Application | Coloring, Topping, Flavoring |
By End-use | Beverages, Ice Cream & Desserts, Confectionery, Bakery |
By Companies | include Milky Way Caramel Apple and Milky Way Simply Caramel, Inc; Frito-Lay; DDW The Color House; Sethness-Roquette Caramel Color; Bakels Worldwide; Alvin Caramel Colours; and Metarom Caramel is an extremely versatile ingredient and is being adopted by an increasing number of confectioners in their products For instance, Inc; Nestl© SA; Mars Inc; Kerry Group; Ferrero SpA; Sensient Technologies Corporation; Goetze’s Candy Company, Mars Corporation announced a new variety of Milky Way to be introduced in the markets in January 2020 The Milky Way Salted Caramel bar is a twist on the original candy bar Other products by the company, Cargill, which has significantly focused on caramel ingredients |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 200 |
Number of Tables & Figures | 140 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Application (Coloring, Topping, Flavoring), by End-use (Beverages, Ice Cream & Desserts, Confectionery, Bakery).
Caramel Ingredients Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Caramel Ingredients Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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