Some of the challenges facing the global food additives market include static or falling demand in many end-user sectors due to the protracted impact of the global economic downturn, significant changes to the regulatory environment in certain parts of the world, including the rising cost of energy and raw materials.
However, demand continues to increase from emerging economies such as China and India, which has led many suppliers to establish bases in these parts of the world. Chinese producers have assumed an increasingly significant presence in sectors of the market such as vitamins.
Consumer demand for healthier products (eg low fat and sugar) and functionality is leading to increased demand for additives such as emulsifiers, hydrocolloids, sweeteners, probiotics and prebiotics and plant stanol esters. Growing demand for natural ingredients also continues to have a significant bearing on the market, most notably for colours and flavours, the research shows.
One of the major trends to have affected the industry in recent years has been increasing consolidation with BASF’s recent acquisition of Cognis representing one such example. Industry consolidation has been driven by a number of major factors, examples of which have included intense competition from Chinese producers, the increasing purchasing power of major multinational food manufacturers and retailers and a growing demand among customers for application-specific ingredients and tailored solutions.
Source: MarketResearch.com
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