ROCKVILLE, MD, September 2, 2026 — International Flavors & Fragrances Inc. (IFF) announced a nearly $70 million expansion of its Cedar Rapids, Iowa, facility in February 2025 to produce TAURA by IFF fruit-based ingredients for snack manufacturers. The 47,000-square-foot expansion was designed to become operational in the latter half of 2026 and is expected to create up to 40 new jobs. The investment adds U.S. manufacturing capacity for fruit pieces and pastes used across snacks, cereals, bakery products and confectionery.

The expansion arrives as food manufacturers increasingly use processed fruit formats to deliver recognizable fruit taste, texture and visual identity while managing moisture, shelf life and production requirements. Fact.MR estimates the Fruit-Based Food Inclusions Market at USD 2.6 billion in 2026, with revenue forecast to reach USD 4.8 billion by 2036, representing a 6.4% CAGR.

Get detailed market forecasts, competitive benchmarking, and pricing trends:
https://www.factmr.com/connectus/sample?flag=S&rep_id=16060

Why are food manufacturers increasing their use of fruit inclusions?

Fruit inclusions are moving beyond their traditional role as flavor additions. Food manufacturers are using pieces, dices, fillings, flakes, pastes and IQF fruit to create visible fruit identity while adapting formulations to commercial processing conditions.

IFF's Cedar Rapids investment is a useful indicator of this shift. The company said the expanded facility would focus on TAURA fruit ingredients that can be integrated into food manufacturing processes, with applications including grab-and-go snacks, chocolates, cereals and bakery products. Its proprietary processing removes moisture while retaining the integrity of the original fruit.

This creates a direct link between consumer-facing product differentiation and ingredient engineering. Manufacturers want fruit that remains recognizable after mixing, baking, freezing or storage, while procurement teams need predictable supply and consistent specifications.

Fact.MR estimates that fruit pieces and dices will account for 34.0% of the inclusion-type segment in 2026, equivalent to approximately USD 884 million.

Which fruit and applications are leading demand?

Berries are projected to hold a 31.0% share of the fruit segment in 2026. Strawberry, raspberry and blueberry formats can be supplied as pieces, fillings, purees, flakes and IQF ingredients, allowing suppliers to serve multiple finished-food categories.

Bakery is expected to remain the largest application, accounting for 33.0% of the market in 2026. Fruit fillings and inclusions can be incorporated into cakes, pastries, bars, cookies and other baked products, but their commercial value depends on their ability to withstand heat while retaining the desired fruit characteristics.

IQF/frozen formats are also important. Fact.MR projects this processing category to represent 44.0% of the market in 2026. Rapid freezing provides manufacturers with a way to work with fruit beyond immediate harvest periods while maintaining a repeatable ingredient format.

The underlying issue is supply continuity. Seasonal crop variation can affect both availability and quality, so manufacturers increasingly need suppliers capable of combining different fruit origins and processing formats.

Analyst Perspective

S.N. Jha, Principal Consultant at Fact.MR, said:

“Fruit inclusions gain value when they remain recognizable after processing. Buyers are evaluating the fruit format together with moisture behavior, line stability and the sensory role it has to perform in the finished product.”

For suppliers, this means competition is increasingly tied to application performance rather than fruit sourcing alone. Piece integrity, water activity, color retention, freeze-thaw stability and processing compatibility can influence whether an ingredient moves from product development into regular commercial supply.

Market Snapshot

2026 market value: USD 2.6 billion.
2036 projected value: USD 4.8 billion.
Forecast CAGR, 2026–2036: 6.4%.
Absolute opportunity: USD 2.235 billion between 2026 and 2036.
Leading inclusion type: Fruit pieces/dices, with a 34.0% share in 2026.
Leading fruit category: Berries, with a 31.0% share.
Leading application: Bakery, with a 33.0% share.
Leading processing format: IQF/frozen, with a 44.0% share.
Largest listed country market: United States, with a 28.0% share in 2026.
Fastest-growing listed country: United States, with an 8.2% CAGR from 2026 to 2036.
What's Driving Near-Term Demand?

The IFF Cedar Rapids expansion provides a clear commercial development behind the market's near-term direction. Announced on February 25, 2025, the project represents a nearly $70 million investment and expands the company's ability to manufacture TAURA fruit ingredients closer to U.S. customers. IFF said the facility would incorporate automation and advanced packaging while supporting supply-chain efficiency.

The company also identified clean-label fruit and vegetable pieces and pastes as applications for differentiated food products. This is relevant to manufacturers developing snacks, cereals and bakery products where recognizable ingredients can serve both sensory and positioning objectives.

Agricultural supply conditions remain another consideration. Fact.MR identifies seasonal raw-fruit variability and crop-quality swings as the market's main restraint, with moisture migration, color bleed, texture loss and cold-chain costs adding further pressure on commercial formulations.

Which regions offer the strongest growth opportunities?

The United States holds a projected 28.0% share in 2026 and is forecast to expand at an 8.2% CAGR through 2036. Its large processed-food base, established frozen-fruit specifications and broad use of fruit ingredients across bakery, dairy, cereals, snacks and confectionery support continued demand.

The United Kingdom follows with a projected 8.1% CAGR, while France is forecast to grow at 7.3%. Germany and the Netherlands are each projected at 6.6%, and Italy at 5.6% over the same period.

The regional picture also highlights why sourcing flexibility matters. Climate variability, seasonal production and changing crop economics can make a single-origin supply strategy less attractive for large food processors.

Unlock 360° insights for strategic decision making and investment planning:
https://www.factmr.com/report/fruit-based-food-inclusions-market

About the Report

The Fact.MR study evaluates fruit-based food inclusions across Inclusion Type, Fruit, Application and Processing.

The inclusion-type analysis covers fruit pieces/dices, fruit pastes and fillings, infused/IQF fruit, and fruit flakes and powders. Fruit categories include berries, tropical fruits, citrus, stone fruits, and apple and pear.

Applications analyzed include bakery, dairy and ice cream, cereals and snacks, and confectionery. Processing formats covered are IQF/frozen, dried/dehydrated and concentrated/paste. Geographic analysis covers North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East & Africa, with detailed country analysis for the United States, Germany, France, United Kingdom, Netherlands and Italy.

Key companies profiled include AGRANA Fruit S.A.S., International Flavors & Fragrances Inc. (TAURA by IFF), Kerry Group plc, Puratos Group NV, SVZ International B.V. and Balchem Corporation.

The analysis combines supplier portfolio reviews, public agricultural statistics, food-processing evidence and market modelling. Primary research includes fruit-ingredient suppliers, food developers, formulators, procurement teams and processors that specify fruit inclusions for commercial production.

Explore More Related Studies Published by Fact.MR Research:

High-Solubility Protein Isolates Market: https://www.factmr.com/report/high-solubility-protein-isolates-market

Bloom-Resistant Coating Fats Market: https://www.factmr.com/report/bloom-resistant-coating-fats-market

Functional Pea Flours Market: https://www.factmr.com/report/functional-pea-flours-market

Low-Trans Fat Replacers Market: https://www.factmr.com/report/low-trans-fat-replacers-market

Multi-Texture Confectionery Blends Market: https://www.factmr.com/report/multi-texture-confectionery-blends-market

About Fact.MR

Fact.MR is a market research and consulting firm providing industry intelligence across consumer goods, food and beverages, healthcare, technology, chemicals and materials, industrial goods and other sectors. Its research process combines primary industry interviews with secondary data, company information, government sources and industry publications to develop market estimates and forecasts.

For information about Fact.MR's research approach and methodology, see the Fact.MR methodology resource.

Media Contact

Fact.MR
11140 Rockville Pike, Suite 400
Rockville, MD 20852, United States
Tel: +1 (628) 251-1583
Email: [email protected]

Disclosure: This release is based on FMI syndicated research. Market figures represent estimates and forecasts available as of the publication date and may be revised as additional information becomes available.