Global Food Additives Sector Hits $24.5 Billion

SURREY, EnglandGrowing demand for functional foods and beverages that help consumers improve diet, health and well-being are driving growth in the $24.5 billion global food additives market, according to new market data from Leatherhead Food Research. The sector grew 4% in 2010, with modest growth expected to continue over the next few years.

According to The Global Food Additives Market, 5th Edition", improving overall health and the desire for natural ingredients are key factors driving demand for a host of additives including emulsifiers, hydrocolloids, sweeteners, vitamins and minerals, soya ingredients, omega-3 fatty acids, probiotics, prebiotics and plant stanol esters. Consumer demand for natural food and drink products also is forcing additive suppliers to develop ingredients from natural sources for the flavors and colors categories.

Enzymes, acidulants and hydrocolloids are experiencing the highest growth rates in the food additives sector due to increased material and energy costs, while preservatives and sweeteners are seeing the lowest growth rates as many manufacturers are moving away from using artificial additives and ingredients.

Analysis predicts natural flavors and colors, food hydrocolloids, enzymes and some of the functional food ingredients will continue to drive the sector growth for the next few years; however, much of the future growth in demand for food additives will be heavily influenced by factors such as the global economic situation and the resulting impact upon consumption levels, the regulatory environment and what is taking place within the global food and drinks industry.

The trend towards natural and/or additive-free food and drinks is expected to continue in the short-term, largely due to increasing consumer concern over artificial ingredients. For similar reasons, demand for food and drinks positioned on some form of health and wellness platform is expected to remain fairly high.