Food Additives

Rebounding food production to spur additives demand

Following a period that included several years of subpar growth, US shipments of food products are expected to register more substantial advances through 2008. This will be among the primary factors driving demand for food additives. Other major factors include the increased use of vitamins and other nutraceuticals in fortified foods such as the increasingly popular energy bars and meal replacements; as well as the broadening market presence of newer artificial sweeteners -- such as sucralose and ace-K -- in food processing applications.

Flavors, enhancers to remain largest product type

Flavors and flavor enhancers will continue to account for the largest share of overall food additive demand, due to their extensive use in many processed foods, dairy products, baked goods and candy. Although the flavors market is relatively mature in terms of volume, opportunities are constantly being created by consumer demand for new flavors based on ethnic cuisines and more intense flavor preparations.

Alternative sweeteners, nutraceuticals to record robust growth

Although alternative sweeteners are most widely used in soft drinks, they are also finding greater use in food products. The current trend favoring lower carbohydrate consumption has led to growing popularity of sugar-free and reducedsugar products such as ice cream and other frozen desserts, pies and other baked goods, and various confections.

Nutraceuticals, including vitamins, minerals and other additives, will register strong growth due to increasing consumer preference for fortified snack foods such as sports and energy bars, as well as meal replacement products. Additionally, the addition of vitamins and minerals is expanding beyond its most established applications, such as breakfast cereals.

Grain mill products, baked goods, snack foods to lead market gains

Grain mill products will present strong growth opportunities for growth, despite the current consumer reluctance for carbohydrates. In addition to fortified breakfast cereals, other grain mill products are expected to become more substantial markets for nutraceutical additives. Additionally, dog and cat foods will remain a major outlet for functional and nutritional additives.

Gains for snack foods will be boosted by growing demand for more intense and exotic flavors in chips and other snacks, while baked goods will be an important outlet for enzymes, artificial sweeteners and preservatives.

Study coverage

Food Additives, a new Freedonia industry study. It provides historical US demand data 1993, 1998, 2003) plus forecasts to 2008 and 2013 by type and application. It also examines the market environment, evaluates company market share and profiles over 30 leading US industry competitors.