The U.S. ingredients market is anticipated to reach USD 42.6 billion by 2025, according to a new report by Radiant insights, inc. Shift in consumer preferences towards environment-friendly and natural products has forced the ingredient manufacturers to focus more on research & development of naturally extracted, with minimum processing and nutrient rich ingredients.

To fulfill the evolving product demand along with compliance to stringent regulatory frameworks in the U.S., manufacturers have been focusing majorly in technological development, such as the enzyme-catalyzed technology. The main advantage of this process is that it produces minimal wastage during product processing. Another instance would be introduction of the micro-encapsulation technology, a novel process designed and triggered for the enhancement of constituents’ shelf-life and influence of these products on the finished products.

The regulatory trends are more favorable for the natural and green ingredients in comparison to the synthetic ones. The major concern in the region is regarding the formulation process of organic raw materials with the minimal utilization of petrochemicals, adhering to the regulatory requirements.

The industrial ingredients were the largest end-use category in 2015 and is expected to grow at a CAGR of over 4.0% from 2016 to 2025. Significant requirements from metalworking fluids, specialty coatings, and lubricant additives sectors have contributed to the market penetration in the sector.

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Further Key Findings from the Study Suggest:

The U.S. natural packaged food & bakery ingredient market accounted for around 68% market share in 2015. The segment is anticipated to gain substantial share in the next nine years owing to growing health awareness and change in bakery and packaged food consumption trends in the region.

In the homecare segment, specialty natural ingredients market is expected to reach USD 276 million by 2025 with a projected growth rate of 5.8% over the forecast period. High demand for customized chemicals such as rheology modifiers and various novel detergent blends which are utilized during manufacturing different natural home care products.

Shift in the consumption trends towards natural and allergen free products is projected to propel the natural ingredients segment in the personal care market over the forecast period. The segment generated revenue exceeding worth USD 1,950 million in 2015.

Key players including BASF, DuPont, PPG Industries, Sherwin Williams, Arkema, Evonik and Ashland Inc. account for approximately 48% of sales value in the region. Acquisitions continue to concentrate on the manufacturing and the supplier base.

Some of the recent launches in the market include BASF’s 10% Beta Carotene Colorant, a novel ingredient for nutrition-rich, food & beverage end use products. The company has developed this product specially targeting formulators that are in search for a replacement for Azo dyes yellow 5 and 6 in soups, beverages, and nutrition & confections products.

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Table of Contents


Chapter 1. Methodology and Scope

1.1. Research Methodology

1.2. Research Scope & Assumptions

1.3. List of Data Sources

Chapter 2. Executive Summary

2.1. Market Snapshot

Chapter 3. U.S. Ingredients Industry Outlook

3.1. Market segmentation

3.2. Market size and growth prospects, 2011 – 2025

3.3. Value chain analysis

3.4. Regulatory Framework

3.5. Research and Development

3.5.1. Novel Applications

3.5.2. Chemical products v/s organic products: Comparative analysis

3.6. Market dynamics

3.6.1. Market driver analysis

3.6.2. Market restraint analysis

3.7. Market opportunities

3.8. Industry analysis – Porter’s

3.9. PESTEL analysis, 2015

Chapter 4. U.S. Ingredients Market: End-Use Outlook

4.1. U.S. ingredients market share by end-use, 2015 & 2025

4.1.1. Packaged Food & Bakery Ingredients

4.1.1.1. Market estimates and forecast, 2011 – 2025 (USD Million)

4.1.1.2. Market estimates and forecast by product, 2011 – 2025 (USD Million)


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About Radiant Insights

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