Inulin Market Driver, Trends, Applications & Business Strategy Forecast 2020

Global Inulin Market demand was estimated at 246.5 kilo tons in 2013. The demand is for these products is expected to witness rapid growth owing to increasing usage of prebiotic ingredients for production of different food & beverages products. The growing application in manufacturing of dairy products such as ice creams, yogurts, and cheese is expected to further augment demand for inulin over the forecast period. Increasing awareness regarding low sugar consumption and low calorie foods due to rise in lifestyles related disease is expected to a have positive impact on inulin demand over the forecast period.

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Growing popularity of nutraceuticals is expected to positively impact market demand as it is used in these products as a functional ingredient. U.S. FDA has categorized inulin as a safe product owing to which manufacturers now prefer these products over other substitutes. It is used in inhibiting growth of pathogenic bacteria which aids in getting better colon health. Rising cultivations of chicory roots in Europe and China is likely to boost consumption of inulin in end-use industries.

Application Insights

Food & beverages dominated the application segment and accounted for over 65% of market share by volume in 2013 and is expected to witness growth over the forecast period owing to rising usage of probiotic functional ingredients that aid in reduction of sugar level and improving gut health. Inulin contains non-digestable fiber which helps in stimulating bacterial growth in human body, owing to which the demand for these products in dietary supplements is expected to remain high over the forecast period. The other applications of inulin include coating, construction, and animal feed industries.

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Regional Insights

Europe dominated the global inulin market by accounting over 40% in 2013 and is expected to witness growth on account of regulatory support over the usage of functional ingredients in food & beverage industry in this region. Slow growth of food & beverage industry in Spain, Italy, and Germany coupled with European Commission’s limitation over the production quota of inulin is expected to act as a challenge to the market growth.

North America is the second largest market driven by rising health awareness and growing expenditure on wellness products. The rising innovation on sugar free products coupled with growing demand for diverse low fat and dietary supplements is expected to boost demand for these food ingredients.

Growing dairy industry in Asia Pacific countries such as China and India owing to strong regulatory support coupled with growing domestic demand is expected to propel the inulin demand. The market in India has received a boost as the government is providing subsidies for farmers involved in the cultivation of chicory roots. Growing food & beverage industry in Brazil and Saudi Arabia is expected to have a positive impact on inulin demand over the forecast period.

Competitive Insights

The industry environment is competitive due to the presence of less number of manufacturers. Key players in the market are Cosucra, Sensus, Jarrow Formulas, and Beneo-Orafti. Technological advancements coupled with new product development and strategic partnerships are the key factors responsible for growing market share.

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