Ingredients - Food Additives

Additives Add a Twist to the Food Industry

January 2018

Ingredients - Food Additives

Additives Add a Twist to the Food Industry

January 2018
Growing urbanization, hectic lifestyles, need for food preservation, growing concerns towards food safety due to contamination, rising health concerns, consumer demand for better quality, and increasing consumption of premium food products have increased the demand for food additives. They are used to enhance the taste, color, texture of food, and at the same time, to maintain the freshness and nutritional content. As a result, additives have gained global importance over the years, and are being widely used in existing as well as new & emerging food applications.

The global food additive market is expected to cross USD65.6 billion by 2022; growing at a CAGR of 5.6 percent from 2017 and 2022, according to Mordor Intelligence. The market for food additives has a significant impact on the development of the global food & beverage sector. Food additives are broadly categorized into acidulants, anti-caking agents, colors, emulsifiers, enzymes, flavors, hydrocolloids, preservatives, and sweeteners on the basis of type. The largest segment in the market is of flavors and flavor enhancers which recorded USD12 billion in 2016, followed by Hydrocolloids which functions as texturizer, thickening, stabilizing and gelling agents, according to Markets and Markets. Food emulsifiers and food enzymes are expected to grow at a CAGR of 5.4 percent and 8 percent during the forecast period. The Fastest growing segment is enzymes. Other major segment is the sweetener which is seen as an alternative to sugar used in food and beverages. The growing consumer demand for low fat options and low wastage costs is expected to drive the demand for fat replacers and Antioxidants. In the food colorants market, the natural color additives recorded 45 percent in 2016, thereby reducing the share of synthetic colors. In the sweetener market the Stevia extracts are used as natural additives. Preservatives particularly are considered very important to reduce the food spoilage that occurs due to microbial reactions. Flavors and sweeteners have been witnessing significant growth as an important component in food products due to the different flavor demands, according to Mordor Intelligence. The consumption of sweeteners in food products has attained global importance owing to its sugar substitution ability thereby impacting the health of consumers. According to a recent report by Global Industry Analysis, the United States represents the largest market worldwide, supported by well-established and food processing infrastructure and the presence of numerous large scale companies. However, the restraint is in the slow urbanization rates in spite of an increase in demand. Many countries follow the standard US regulatory approved additives, so, the US regulatory provides stringent laws to determine the safe additives. This is making the process complex for companies to register new additives. Strong organic movement and decreasing use of synthetic chemicals owing to adverse effects on human health will also challenge the overall food additives industry growth and also impact the food additives market, according to Mordor Intelligence. Food Additives find major applications in Fruits & vegetables, Bakery & Confectionary, Dairy & Frozen products, Oils & Fats, Savory snacks, Meat poultry & Sea food products. Based on application type, the market comprises six key segments - bakery & confectionery, dairy & frozen desserts, snacks & convenience food, beverages, meat & poultry products, and others (including sauces, soups, and baby food). Beverages segment is foreseen to remain dominant in terms of value over the forecast period, expanding at nearly 7.1 percent of CAGR.