The caramel ingredients market is projected to grow at a CAGR of 7.5% during the forecast period to reach USD 2.65 billion by 2021.
The market is driven by factors such as demand for caramel in bakery and confectionery products due to changing consumer preferences. Furthermore, factors such as increasing disposable incomes and rapid urbanization have also increased the demand for caramel ingredients. The high growth potential in emerging markets and unexplored regions provides new growth opportunities for market players.
The Asia-Pacific region is projected to be the fastest-growing market during the forecast period, with investments from key players in the emerging market, due to countries' low-cost labor and lower raw material prices. The economic growth in Asian countries such as China, India, Japan, and Australia-New Zealand offers great market investment opportunities to the food & beverage manufacturers. These countries are expected to become major regional markets that would contribute to the growth of the global caramel ingredients market in the near future.
The prices of caramel ingredients have been increasing tremendously since the last decade owing to the constantly rising prices of ingredients used in caramel production. This rise in the prices of raw materials is expected to lead to a subsequent rise in the price of caramel ingredients, which in turn is expected to hamper the market growth.