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Increasing penetration of clean-label, natural ingredients
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Monday, 12 January, 2026, 15 : 00 PM [IST]
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Dr Ashish Garg
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Introduction
The food ingredients sector plays a pivotal role in the global food and beverages value chain, providing essential components that enhance taste, texture, nutrition, safety, and shelf life of food products. Ingredients range from basic compounds such as spices, emulsifiers, and preservatives to sophisticated functional and specialty ingredients like probiotics, plant proteins, and flavour enhancers. In South Asia, a region marked by diverse culinary traditions and rapidly evolving dietary patterns, the food ingredients market is expanding rapidly in response to urbanisation, rising incomes, and changing consumer preferences toward healthier and more convenient food products. Industry stakeholders in South Asia are increasingly focusing on innovation in clean-label ingredients, fortified foods, and natural additives to meet both domestic and international demand.
Food Ingredients Sector
In South Asia, a number of organisations contribute significantly to the food ingredients landscape through diversified products that cater to local flavours, health trends, and global food manufacturing needs. In India, specialty food ingredients companies include Aarkay Food Products Ltd, Flex Foods Limited, Epsilon Ingredients Pvt Ltd, and Capricorn Food Products India Ltd, among others. These firms supply a range of products such as spice extracts, flavours, seasonings, and natural food additives for use in processed foods, snacks, and beverages. Many companies are also engaged in producing functional ingredients aimed at boosting nutrition in bakery, dairy, and beverage sectors, aligning with the region’s growing functional food trend.
Another significant player in the South Asian landscape is Camlin Fine Sciences Ltd in India, which has emerged as a major producer of food antioxidants (including TBHQ and BHA) and one of the world’s leading vanillin producers ingredients that are essential for preserving food quality and delivering desirable sensory attributes.
Beyond South Asia local firms, global ingredient suppliers such as Cargill, Nestlé, Ajinomoto, and DSM operate through regional branches or distribution partners, bringing in health-oriented functional compounds like probiotics, amino acids, and specialty emulsifiers that align with the regional market’s shifting demand for wellness and nutrition.
Current Market Growth
The food ingredients market in South Asia is experiencing solid growth driven by several macro-economic factors. Urbanisation and rising disposable incomes have led to higher consumption of processed and convenience foods. In India alone, the specialty food ingredients market is projected to reach US$8.3 billion by 2033, driven by demand for clean-label, plant-based, and functional ingredients that support healthier eating patterns. Across the Asia Pacific, which includes South Asia, the functional food ingredients market is forecast to grow substantially from US$5.0 billion in 2025 to US$9.7 billion by 2035, reflecting a strong CAGR and indicating rising preference for ingredients that support gut health, immunity, and preventive nutrition. Key segments such as probiotics, vitamins, prebiotics, and omega-3 fatty acids are gaining momentum as consumers increasingly adopt functional foods that deliver tangible health benefits. Savoury and flavour enhancing ingredients are also witnessing strong demand, particularly in processed foods such as snacks, sauces, ready meals, and noodles, a trend reinforced by the busy lifestyles of urban consumers and evolving taste preferences. The shift toward natural, minimally processed ingredients with traceable sourcing and clean-label credentials has stimulated innovation in plant-based proteins (e.g., pulse or millet-derived ingredients), seaweed extracts, and fibre enhancers. This aligns with broader health and sustainability trends among younger demographics in South Asia seeking transparency and functional nutrition.
Current & Future Market Scenario
Currently, the South Asian food ingredients market is at a transformative stage where traditional culinary heritage blends with modern health and convenience trends. As e-commerce expands, ingredient suppliers are able to reach deeper into tier-2 and tier-3 cities, broadening access to fortified and functional products. The rise of digital platforms accelerates market penetration, particularly for specialised ingredients that support disease-preventive nutrition and wellness. In the near future, the sector is expected to benefit from rising regulatory support for innovation and safety standards, enabling local companies to compete effectively with international players. Investment in R&D and collaborations with global suppliers can further enhance product portfolios, focusing on personalised nutrition and localised ingredient solutions. Beyond regional consumption, South Asia’s ingredient manufacturers are likely to increasingly tap export opportunities as global food processors seek cost-competitive yet high-quality ingredient sources. With India and neighbouring economies strengthening their processing capabilities, the region is poised to become a major production hub for functional and specialty food ingredients, complementing established markets in East and Southeast Asia. The future scenario also suggests stronger growth for segments such as plant-based proteins, natural flavours, and nutraceutical ingredients, driven by consumer health-consciousness and a global shift toward sustainable food systems. Urbanisation and demographic shifts toward younger populations present opportunities for ingredients targeting immune health, digestive wellness, and active lifestyles areas ripe for innovation and investment.
Conclusion
The food ingredients sector in South Asia is undergoing rapid evolution, driven by robust market demand for processed, convenient, and health-oriented foods. Regional companies across India, Pakistan, Bangladesh and Sri Lanka are expanding their product offerings, from traditional spice blends to advanced functional and specialty ingredients, supported by global collaborators and shifting consumer trends. Growth projections indicate strong momentum over the next decade, with increasing penetration of clean-label, natural, and fortified ingredients shaping the future of food formulation. As the sector embraces innovation, regulatory support, and emerging consumer needs, South Asia is poised to become a critical contributor to the global food ingredients industry, blending heritage flavours with science-driven nutrition.
(The author is from Sir Atma Ram Institute of Pharmacy & Technology, Jabalpur, MP. He can be reached at ashish.garg071010@gmail.com)
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