Chicory Market | COVID-19 Impact | Challenges for Manufacturers

Posted on 2021-08-23 by MarketsandMarkets in Food & Beverage // 0 Comments

The Chicory Market size is estimated to be valued at USD 685 million in 2020 and is projected to reach USD 905 million by 2025, recording a CAGR of 5.7%, in terms of value. Rising prices of coffee beans along with increasing consumption of coffee, is navigating the coffee and other food & beverage manufacturers to adopt to chicory ingredient, as a cheaper substitute to coffee. Also, high medicinal values and health benefits associated with the consumption of chicory, is expected to further propel the market. Furthermore, easy cultivation process of the crop and rising number of new entrants in the market, is substantially snowballing the growth prospects.

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COVID-19 Analysis:

Owing to the COVID-19 pandemic, the consumption of ready-to-mix and ready-to-drink beverages has witnessed a substantial increase. This largely includes drinks such as coffee, juices, and flavored milks. Due to the lockdowns and curfews imposed by various regional and national governments, the work-from-home culture experienced a boost. Due to the increased work-life stress and busier lifestyles, the population across the globe started increasingly consuming coffee in order to have increased concentration and focus on work.

To cater to this growing demand, the coffee manufacturers boosted/enhanced their production capabilities and volumes. Owing to this, the consumption of chicory has increased simultaneously, as it is used as a blend in the majority of the ready-to-mix and ready-to-drink coffee products. As it is a caffeine-free, healthier, and low-cost substitute to coffee, manufacturers have largely started including it in the coffee processing process. Consumers are also leaning toward chicory blends to minimize health risks associated with caffeine. Thus, the pandemic has bolstered the growth prospects for chicory, not only being a cheaper substitute for coffee, but also due to its health benefits offerings.

Challenges: Higher technical expertise required for producing certain chicory-based products

The chicory root is used to produce many varieties of chicory products; hence, a lot of expertise is required to extract each product one after the other while processing. For manufacturing chicory inulin, hydrolysates, and derivatives of inulin by conventional manufacturing techniques from roots of chicory, they are required to be grown in appropriate regions and also have to be processed under proper climatological temperature conditions. Selection of said proper conditions enables to provide a growing and/or processing period for the chicory roots, which may partly or wholly extend beyond the conventional periods.

The preparation of instant chicory coffee requires a high amount of energy and is a continuous ongoing process. Temperature conditions are the most vital factor for chicory production. If the production by any chance suddenly gets interrupted, the entire mass of chicory solidifies inside the processing units causing huge damage to the machinery and a large amount of material gets wasted; this caused companies to incur huge amounts of losses. For this reason, it is necessary for manufacturers to evaluate the whole process (while main attention should be brought to the most energy-consuming processes) and techniques used to achieve the most efficient result. Different production plants and countries assume that the energy consumed in the two processes of drying and roasting mostly defines the price of the chicory coffee. Thus, the difficult and high technical expertise required for the production of chicory-based products hinders the market growth potential.

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Key players in this market include Cosucra Groupe Warcoing (Belgium), Delecto Foods Pvt Ltd (India), BENEO GmbH (Germany), Sensus (Netherlands), Leroux (France), Cargill Incorporated (US), Reily Foods Company (US), Pioneer Chicory (India), PMV Nutrient Products Pvt Ltd (India), Farmvilla Food Industries Pvt Ltd (India), Murlikrishna Foods Pvt Ltd (India), Starwest Botanicals (US), STOKROS Company Ltd (Russia), Nature’s Gold Production (Netherlands), Organic Herb Trading Co (UK), Narasu’s Coffee Company (India), NP Nutra (US), Shaanxi Sciphar Natural Product Co Ltd. (China), Jamnagar Chicory Industries (India), and Herbs & Crops Overseas (India).

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