Health and wellness trend is showing its impact in the food processing industry as well. Consumer demand for clean label products has forced the industry to include natural and organic ingredients in their offerings. Demand for natural has put pressure on suppliers to maintain a seamless supply of ingredients. Although there is a wide range of additives that can be broadly classified as ‘natural’, fulfilling the GRAS and FDA regulations is another challenge that the industry has to face.
Another challenge in adoption of natural additives is finding that elusive ingredient that works well across a range of product formulations. Cost is a key factor that companies have to factor in when adopting an additive en masse. Incorporating a combination of natural additives in food products to improve shelf life has its advantages, but it can also have an impact on the food matrix and end-cost, which invariably is passed to the end user.
Although demand for products containing natural antioxidants is a trend that is all-pervasive, it is more pronounced in the developed regions of the world. Therefore, developing countries, especially those in Asia Pacific and Latin America continue to be lucrative for manufacturers.
Among the various types of additives available in the market, demand for food flavours is the highest. Other high demand additives include hydrocolloids and flavour enhancers.
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Food additives find their applications in a number of end-use industries ranging from meat to dairy. Meat, poultry, and sea foods have shorter spoilage times, owing to which demand for additives is strong in the industry. Meat, poultry, and sea food is the largest end-use application segment for additives and it is anticipated to remain so, but it will witness a drop in its market share. From 28% in 2013, the share of the market will go down to 27.3% by 2020.
Although the primary use of additives in food processing industry is to increase shelf life and enhance aroma, demand for preservatives that increase the nutritional quotient of food is on the rise. Of particular interest to manufacturers are rosemary extracts, which are known to promote health and well-being.
Region-wise, North America is the largest market for food additives, representing nearly 35% revenue share in 2013. The food processing industry in the US and Canada is among the largest in the world. Strong demand from the region for food additives, especially natural preservatives is expected to remain consistent in the future as well.
Asia Pacific is a rapidly emerging market for food additives, as the strong middle class in countries like China, India, and Indonesia scours for natural and organic products. Although awareness about ill-effects of artificial preservatives is currently limited to urban areas, rising awareness and increasing disposable income are expected to boost demand in the future.
Currently, the key players operating in the global food additives market include DuPont, BASF SE, Kerry Group, JEY’S F.I. Inc, Cargill Incorporated, Celanese Corporation, Chr. Hansen A/SCorbion N.V., Koninklijke DSM N.V and The Archer Daniels Midland Company.
In a bid to consolidate their position in the global food additives market, these companies are strengthening their supply chain by typing up with ingredient suppliers. It is estimated that the global additives market will reach a valuation of US$ 2.5 billion by the end of 2020, and the leading players in the market are closely looking at developments in the market to increase their share.
The information presented in this article is based on Future Market Insights’ report, “Food Preservatives Market: Global Industry Analysis and Opportunity Assessment 2014-2020”. You can request a sample of the report at http://www.futuremarketinsights.com/reports/sample/REP-GB-99