Table of Contents
Introduction
The Global Chicory Market is poised for substantial growth over the next decade. Currently valued at USD 755.2 million in 2023, the market is projected to expand to approximately USD 1,253.8 million by 2033, exhibiting a CAGR of 5.2% during the forecast period from 2024 to 2033. This growth can be attributed to several factors, including the increasing consumer preference for health-oriented and plant-based products, as well as the widespread adoption of chicory in food and beverage applications due to its health benefits and as a coffee substitute.
However, the market faces challenges such as fluctuating prices and availability of raw materials, which could impact overall production costs and supply chains. Recent developments in the sector include innovations in processing techniques and the introduction of organic chicory products, catering to the rising demand for organic and natural food options. These factors are instrumental in driving the market forward, despite the hurdles that may arise.
Recent developments in the chicory industry reveal a dynamic market characterized by various strategic moves by key players like Cargill, Incorporated, Wilmar Delecto Foods Pvt Ltd., Starwest Botanicals, and Leroux. These companies are actively pursuing growth through new product launches, expansions, and strategic collaborations, adapting to the increasing demand for chicory-based products due to their health benefits.
Cargill, Incorporated has been at the forefront, enhancing its product lines and production capabilities. For instance, in 2023, BENEO, a part of the Südzucker Group and an associate of Cargill, expanded its production line for chicory root fiber, significantly extending its shelf life and meeting the rising demand for chicory derivatives in the food and beverage sector.
Wilmar Delecto Foods Pvt Ltd. is another prominent player, focusing on leveraging chicory’s potential in food and beverage applications. The company aims to cater to the growing consumer preference for plant-based and health-centric products, which has led to increased innovations and product diversifications in the chicory segment.
Leroux has also been active in the chicory market, primarily focusing on the European market where chicory is a popular coffee substitute. The company has been enhancing its product offerings to include more diverse applications of chicory, from pharmaceuticals to dietary supplements, responding to the global shift towards health and wellness products.
Key Takeaways
- Market Value: The Chicory Market is expected to rise from USD 755.2 million in 2023 to USD 1,253.8 million by 2033, growing at a CAGR of 5.2%.
- Product Type Analysis: Chicory roots lead with 42.1%, valued for their versatility and extensive use in food, beverages, and health products.
- Form Analysis: Instant powder dominates the form category with 41.2%, favored for its convenience and widespread use as a coffee substitute.
- Application Analysis: The food and beverages segment leads with 50.2%, owing to chicory’s role in promoting digestive health and its use as a natural sweetener.
- Dominant Region: APAC dominates with a 39.6% market share, spurred by high demand for functional foods.
- High Growth Region: North America is poised for growth at a CAGR of 5.8%, supported by a strong demand for functional foods and beverages.
Chicory Statistics
- Chicory is mainly produced in South Africa’s Eastern Cape, using imported seeds, with a growing period of 7-8 months before harvest and processing. Major buyers include Nestlé, National Brands, and various retail chains.
- Chicory root contains up to 68% inulin, a polymer of fructose and dietary fiber, which serves as a low-calorie sugar alternative.
- One raw chicory root (approximately 60 grams) provides about 43 calories, 0.1 grams of fat, 10 grams of carbohydrates, and 0.9 grams of fiber.
- Chicory generally contains 22-24% crude protein (CP) on a dry matter basis.
- The total digestible nutrients (TDN) in chicory range from 50-55% on a dry matter basis.
- Chicory is a good source of calcium (Ca), containing 1.70%.
- Chicory also provides phosphorus (P) at a level of 0.50%.
- The condensed tannins in chicory are present at 0.04%, which prevents bloat in cattle.
- In 2022, world exports of chicory roots fit for human consumption, fresh, chilled, frozen, or dried, whether or not ground, exceeded $18.6 million, decreasing from $22 million in 2021.
- The top exporters of chicory roots in 2022 were Hungary ($7.9 million), Belgium ($3.49 million), Poland ($2.59 million), India ($1.4 million), and France ($1.06 million).
- In 2022, world imports of chicory roots fit for human consumption exceeded $11.5 million, up from $10.1 million in 2021.
- The top importers of chicory roots in 2022 were the USA ($2.36 million), Spain ($2.13 million), Switzerland ($1.11 million), the Netherlands ($1.08 million), Germany ($892 thousand), and Italy ($657 thousand).
Emerging Trends
- Increased Use in Functional Foods: Chicory root, known for its prebiotic properties, is increasingly added to functional foods to enhance digestive health. Manufacturers are leveraging chicory’s health benefits to appeal to health-aware consumers, incorporating it into products like cereals, dairy goods, and snacks.
- Growth in Gluten-Free Products: With the rise of gluten intolerance and celiac disease, chicory flour is gaining popularity as a gluten-free alternative. Its application in baking and food processing is expanding, providing new opportunities for product development in the gluten-free market segment.
- Expansion of Inulin Market: Inulin, a fiber derived from chicory root, is witnessing a surge in demand due to its health benefits, such as improving gut health and aiding in weight management. The food and beverage industry is incorporating inulin into a variety of products, boosting the growth of this segment.
- Rising Popularity in Beverages: Chicory is becoming a popular coffee substitute due to its similar flavor profile and health benefits. The trend towards reducing caffeine intake is propelling chicory’s inclusion in beverage products, ranging from instant chicory powders to chicory-blended coffees.
- Increased Adoption in Cosmetics and Personal Care: Chicory’s anti-inflammatory and antioxidant properties are being recognized in the cosmetics industry. It is being used in skincare products to improve skin health and appearance, capitalizing on the growing demand for natural cosmetic ingredients.
- Sustainability Initiatives: As consumers become more environmentally conscious, the demand for sustainable and ethically sourced ingredients is rising. Chicory cultivation is being promoted as a sustainable crop with low environmental impact, which aligns with the global push towards sustainable agriculture practices.
- Technological Advancements in Extraction Processes: Enhancements in technology for extracting chicory root fiber are making it more cost-effective and efficient. These advancements are allowing for higher yields and purity of chicory-derived products, facilitating broader uses in pharmaceuticals, food, and other industries.
Use Cases
- Coffee Substitute: Chicory root is popularly used as a coffee substitute because it tastes similar to coffee but doesn’t contain caffeine. This makes it an excellent choice for people who want to avoid caffeine or reduce their coffee consumption.
- Prebiotic Supplements: The root of the chicory plant is high in inulin, a type of fiber that helps improve digestive health. It supports the growth of good bacteria in the gut, making it a key ingredient in supplements aimed at boosting gut health.
- Gluten-Free Baking: For those who cannot consume gluten, chicory root flour serves as a great alternative in baking. It helps produce gluten-free baked goods that are tasty and have a pleasant texture, making it a valuable resource for gluten-free diets.
- Herbal Remedies: Chicory has a long history in herbal medicine, often used to help with digestive issues such as indigestion and constipation. It’s also used to support liver health and purify the blood.
- Salads and Cooking: Young chicory leaves are used in salads for their slightly bitter taste, adding a unique flavor profile. The roots can also be cooked and eaten like a vegetable, offering a nutritious addition to meals.
- Natural Sweetener: Inulin from chicory is used as a natural sweetener in foods and drinks. It’s low in calories and doesn’t spike blood sugar levels, making it a healthier alternative to artificial sweeteners and sugar.
- Cosmetic Products: Chicory is also finding its way into cosmetic products. Its extracts are used in skin care to help hydrate the skin and reduce inflammation. This application leverages the natural properties of chicory to enhance beauty products.
Key Players Analysis
Cargill, Incorporated, a leading agribusiness company, recently completed the acquisition of a 77% stake in the Performance Technologies and Industrial Chemicals Businesses from Croda International Plc for approximately £670 million. This strategic move, finalized in June 2022, aims to enhance Cargill’s capabilities in smart materials, energy technologies, and industrial chemicals. Cargill’s extensive operations, spanning food, agriculture, and industrial sectors, generated a revenue of $177 billion in 2023.
Wilmar Delecto Foods Pvt Ltd. focuses on the chicory sector by producing high-quality chicory root products. Recently, the company launched a new range of chicory-based food ingredients aimed at health-conscious consumers. This launch aligns with Wilmar Delecto’s strategy to expand its footprint in the natural food ingredients market, reflecting the growing demand for healthier and sustainable food options. The company continues to innovate within the chicory sector, contributing to its broader portfolio of food products.
Starwest Botanicals, a Sacramento-based distributor of organic botanicals, including chicory, was acquired by Incline Equity Partners in 2021. This strategic acquisition aims to accelerate Starwest’s growth through investments in marketing and technology. Known for its extensive global supply chain and quality control, Starwest serves over 10,000 customers with a diverse product range. The company continues to strengthen its market presence in the chicory sector through strategic enhancements and operational improvements.
Leroux, a renowned French company specializing in chicory products, offers a wide range including chicory root, powder, and coffee alternatives. Known for its strong brand and product quality, Leroux has maintained steady sales and revenue, supported by its reputation and market presence. The company continues to innovate and expand within the chicory market, focusing on providing high-quality, sustainable products to meet growing consumer demand.
Pioneer Chicory, based in India, is a significant player in the chicory market, focusing on producing high-quality chicory root powder, extract, and inulin. The company has seen steady growth due to increasing demand for chicory as a coffee substitute and its health benefits. Recently, Pioneer Chicory has expanded its market presence by enhancing its product range and improving production processes to meet the growing global demand. The company remains committed to sustainability and innovation in the chicory sector.
Nature’s G, also known as Nature’s Gold, is a prominent Dutch company in the chicory market. They specialize in producing chicory root products, including chicory extract and powder. The company has recently introduced new organic and non-GMO chicory products to cater to the growing consumer demand for clean-label and sustainable ingredients. This expansion aligns with Nature’s G’s strategy to strengthen its market position and meet the rising demand for natural health products.
Organic Herb Trading Co., based in Somerset, UK, celebrated its 40th anniversary in 2022. The company is a leading supplier of organic herbs, including chicory, to various sectors such as herbal tea, food, skincare, and medicinal markets. Known for its ethical sourcing and high-quality products, Organic Herb Trading collaborates with renowned brands like Pukka Herbs and Neal’s Yard Remedies. The company continues to grow by expanding its product range and maintaining strong relationships with global suppliers, sourcing over 500 products from more than 60 countries.
Jamnagar Chicory Industries, based in India, is a prominent manufacturer in the chicory market, specializing in producing chicory root, powder, and extracts. The company is noted for its high-quality products and commitment to sustainability. Recently, Jamnagar Chicory Industries has focused on expanding its production capacity and enhancing its product offerings to meet increasing global demand. This strategic move is aimed at strengthening its market position and catering to the rising need for chicory as a coffee substitute and health ingredient.
STOKROS Company Ltd., a leading Russian firm in the chicory market, has been producing and distributing chicory products since 2003. Known for its brands “Russian Chicory” and “Fitodar,” STOKROS continues to innovate with a range of coffee alternatives and health drinks. The company has a significant market presence in Russia and the CIS, and it recently expanded its product line to include chicory-based health beverages, aiming to cater to the increasing demand for natural and healthy products.
FARMVILLE, an emerging player in the chicory market, focuses on producing high-quality chicory root powder and extracts. Recently, the company launched a new line of instant chicory products aimed at health-conscious consumers. FARMVILLE’s strategic expansions and innovative product offerings have positioned it well in the growing market for chicory-based coffee substitutes and health supplements, contributing to its steady revenue growth and market penetration.
Conclusion
The chicory market exhibits significant potential for growth, driven by the increasing consumer preference for natural and health-oriented products. The versatility of chicory, utilized in various forms such as roots, leaves, and extracts, supports its expansion across multiple sectors including food and beverage, dietary supplements, and pharmaceuticals.
Key market players are encouraged to leverage this rising trend by investing in innovative chicory-based products and sustainable production techniques. Furthermore, ongoing research and development in the health benefits of chicory could enhance its appeal and utility, thereby stimulating further market growth. Stakeholders should remain attentive to consumer trends and regulatory changes to strategically position themselves in this evolving market landscape.
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