Food additives in the US: Key market research findings
- Preference for low-calorie and low-fat food drives market growth
- Ongoing shift towards natural sweeteners among consumers
- Key vendors – Chr. Hansen, Givaudan, and Ingredion
Technavio’s market research analysts predict the food additives market in the US to grow at a CAGR of around 4% between 2016 and 2020. The growth of this market is augmented by the increasing preference for low-fat and low-calorie food products. Artificial sweeteners and fat replacers are in demand due to heightened health consciousness among consumers. Consumers prefer low-fat and low-calorie diets to reduce cholesterol and sugar levels in food products and health issues such as obesity, diabetes, and cardiac ailments. Emulsifiers derived from fat sources are similar to those found in fats in terms of texture and flavor, minus the harmful calories. Use of emulsifiers has allowed manufacturers to produce low-fat products that have a fat content of around 10%-40%.
The new market research report from Technavio presents a breakdown and analysis of the food additives segments based on the product.
“Consumers are gradually transitioning towards naturally-derived sweeteners from their artificial counterparts. In light of the increased availability of low-calorie sweeteners and rising awareness about them, stevia has emerged as a popular sugar substitute. Stevia is derived from the plant of the same name. The active compounds present in this plant are about 150 times sweeter than sugar and have a negligible effect on blood glucose levels,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the flavors and enhancers segment will continue its dominance over the food additives market in the US by accounting for about 36% of the overall market revenue. Flavors and enhancers provide aroma and structure to the food while adding nutritional value. These additives can be derived from natural sources or artificial sources. The highest demand for flavor comes from beverage manufacturers due to the emergence of and the increasing demand for flavored drinks around the globe. An increase in the number of food manufacturers and a rise in demand for flavored food will fuel the growth of this segment during the forecast period.
The key vendors in the food additives market in the US include Chr. Hansen, Givaudan, and Ingredion. Increasing competition may lead to vendors reducing their product prices, which will negatively affect profit margins and market growth. The current market includes companies of varying sizes. Some companies are also more specialized than others as they have access to larger financial resources, which enables them to develop new products to meet changing end-user demands. Intense competition among vendors coupled with rapid technological changes constitutes significant risk factors to vendor operations.
A more detailed analysis is available in the Technavio report, Food Additives Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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