Caramel Ingredient Market Trends, Analysis, Growth, Industry Outlook and Overview Report 2022 By Million Insights

The Caramel ingredients market is expected to grow at a sizable CAGR over the forecast period. Key drivers for this market are the rapidly growing bakery, confectionery, and beverages industries and innovative applications. Phenomenal growth in the convenience food industry is driving this market exponentially. Burgeoning demand for Natural label products is expected to augment this market in foreseeable future. Rapid urbanization, rising population, and high disposable incomes in emerging markets are also spurring market growth.

On the other hand, steep prices of raw material and rising awareness about the adverse effects of Caramel are restraining market growth. Market ecosystem consists of raw material producers, Caramel ingredients manufacturers, regulatory bodies, suppliers and distributors, and the end user food & beverages industry. It is thus a vertical market catering to a niche industry.

Caramelization is the process which produces Caramel. It removes water from sugar, by applying heat of around 170 Degree C, which imparts a characteristic dark brown color and flavor to the residue. Low molecular weight compounds obtained from caramelization are volatile and thus impart flavor. Glucose extracted from wheat or corn syrup and invert sugar is added to Caramel to prevent crystallization. Caramel is used in caramel sauce, caramel candies, toffee, milk caramel, cream caramel, puddings, custards, bonbons, brittles, pralines, nougats, caramel apples, crème brulee, caramel corn, dodol, and as swirls of caramel in ice creams.

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The Caramel ingredients market is segmented on the basis of form, type, application, and the geographical region. The segments based on the form of Caramel ingredients include liquid, solid, granular, and powder. Types of Caramel ingredients are toppings, fillings, colors, flavors, inclusions, icings, and coatings. Applications of Caramel ingredients include ice creams & desserts, bakery products, confectionery products, breakfast cereals, malted foods, sauces, alcoholic and non-alcoholic beverages. The geographical regions for this market are Asia Pacific, Europe, North America, Latin America, and Middle East & Africa.

Powder and granular form of Caramel is expected to reach the high water mark in terms of CAGR in the forecast period. Colors segment is projected to lead the market in foreseeable future; with more demand in Latin American and African markets. Rising trend of Cordon Bleu dining, increased disposable income, and readymade desserts will spur the growth of toppings segment in the forecast period. Consequently, ice-creams and desserts hold a large market share due to easy availability and a plethora of choices. Due to the presence of already established players and spending capacity of the consumer base, North America and Europe lead the current market. Europe aces the market for confectionery, while America is a frontrunner for ICE ice-creams and desserts segment; with liquid caramel being in great demand. On the other hand, Asia Pacific is expected to witness phenomenal growth in the forecast period. This can be attributed to rising disposable income, changing dietary habits, and demand for natural label products in India, China, and Japan. Africa leads the MEA market, while Latin America aces in RoW.

Key players in the Caramel Ingredients Market are Puratos Group, Cargill Inc, Sethness Caramel Color, Kerry Group, Sensient Technologies Corporation, Metarom, DDW The Color House, Nigay, Martin Braum KG, Bakels Worldwide, Goteborgs food Budapest ZRT. Regulatory bodies for Caramel ingredients are FDA, EUROPA, EFSA, FSANZ, and Codex Alimentarius. Prominent players have adopted M&A strategies and new product launches in order to spur growth. Latest being the acquisition of Chololat Schonenberger AG by Bakels Worldwide in July 2014. Kerry (Canada) Inc acquired Metarom Canada in December 2002 and thus gained a stronghold on the aromas and flavoring market.

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