Additives market forecast to grow
The demand for food and beverage additives is forecast to expand 3.5 per cent annually to US$8.5 billion by 2014, reports The Freedonia Group Inc.
These and other trends are found in The Freedonia Group’s new study Food & Beverage Additives.
The study predicts flavour products and alternative sweeteners will likely remain the largest product types, while nutraceuticals (such as vitamins, minerals, herbal extracts, probiotics) will see the most rapid gains.
Where demand will come from
A story on Prepared Foods.com reports that advances will be driven by increasing consumer interest in nutritionally enriched products and all-natural foods, which tend to promote demand for high-value premium and natural additives.
As consumers are moving away from ingredients that sound artificial, processors are responding with cleaner ingredient labels. This will mean an increase in demand for natural additives.
As probiotics, a nutraceutical, are being added to a wider variety of foods and beverages, reports Prepared Foods.com, the sector will benefit as these nutraceuticals often have a bitter taste that need to be masked by flavour additives.
Also, the move to reduce sodium will have a positive affect on the sector. Sodium reduction promotes demand for flavour enhancers.