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Global Food Ingredient Industry

The global food and beverage additive market (which represent a large segment in the food manufacturing industry) is expected to surpass the $8 billion mark in 2012, reports Freedonia. Demand will be fuelled by rising additive use to boost the quality of finished products, control costs, and meet demand for newer food and beverage products, such as flavored waters.

Food ingredients are used to boost the quality, appearance, or nutritional value of various food and beverage products, reports Koncept Analytics. Food ingredients are also often used to extend the shelf life of food and beverages, make products microbiologically safe, boost nutritional value, facilitate processing as well as enhance food color, texture and flavor. Rising income, growing population, changing consumer habits and the increasing popularity of packaged goods are all factors fuelling demand for food ingredients.

Key Segments

Flavoring represents the leading segment in the food ingredient market, reports Koncept Analytics. Flavoring is followed by hydrocolloids, sweeteners, emulsifiers, preservatives, colors and food cultures. Beverages account for the majority of the flavor market segment, with dairy products in second place followed by bakery products, and savory and convenience foods.

Low-calorie sweeteners are becoming increasingly popular for their dental health benefits as they prevent cavities due to the fact that they do not produce acids, unlike sugar. This segment benefits from demand from specific population segments, such as those suffering from diabetes and obesity.

Colorants are used mainly in soft drinks, confectionary, and meat and savory products. Consumer trends and increasing awareness regarding health issues are driving demand for natural colors, in particular.

Food preservatives extend shelf life and prevent the growth of harmful substances like yeasts, molds and bacteria, reports Markets and Markets. Food preservation aims to protect food from microorganisms, with specific additives used for specific purposes like chelating agents, antioxidants and enzyme attackers.

Global demand for gelatin is expected to reach a volume of almost 396 thousand metric tons by 2017, according to research from Global Industry Analysts. Demand is driven by the world’s aging population, increasing awareness of health issues, and end-use industries including pharmaceuticals, nutraceuticals, and food and beverages. Demand in emerging markets such as India and China will also fuel expansion, along with rising standards of living and the availability of vegetarian gelatin options. Obstacles to industry growth include consumer concerns regarding the potential health threat in using products derived from animal body parts.

The worldwide emulsifier industry is expected to exceed a volume of 2.5 million metric tons in 2017, reports Global Industry Analysts. Emulsifiers are used not only in food and beverage products but also in the personal care industry. Consumers are readily opting for natural emulsifiers. The market is also being driven by the trend of fat replacement in food products and product innovation.

The global sugar and sweetener market is witnessing the addition of many sweeteners made from corns, such as high fructose corn syrup. Sugar still dominates the market, reports Koncept Analytics, followed by high fructose corn syrup and high-intensity sweeteners. High-intensity sweeteners hold strong market growth potential due to advantages over other traditional caloric sweeteners.

Sugar production has grown in recent years due to rising supply from India and Brazil. Sugar consumption has been increasing in tandem with per-capita income levels. China, India and the EU are the world’s largest sugar consumers. North America is the largest high-intensity sweetener market, followed by the EU.

The worldwide yeast market is expected to reach almost $5 billion in 2015, reports BCC Research. This represents a $2 billion increase in six years for a yearly growth rate of almost 8%. Bakery yeast represents the leading market segment, worth $904 million in 2009, and is forecast to record yearly growth of 8% to reach $1.4 billion by 2015.

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