How are Organic Trends Influencing US Food Additives Market?
Product Overview:
The
expanding worldwide population and their modernized lifestyles are resulting in
a significant increase in sale of packaged foods and ready-to-eat meals, which
in turn, has increased demand for food additives globally. Major types of food
additives used in packaged foods include colorants, flavors & flavor
enhancers, preservatives, emulsifiers and sweeteners. These food additives are
added to improve appearance, texture, longevity and quality of food products.
Consequently, food additives find a gamut of applications in beverages, bakery,
confectionary, dairy and meat & poultry products, which is propelling the Global Food Additives Market at a significant rate
through 2026.
Country
Insights:
Over the
past few years, the United States has witnessed a paradigm shift towards
consumption of processed and packaged foods due to busier lifestyles and
growing working population. This, in turn, is propelling food manufacturers to
use specialty chemicals called food additives to enhance the color, flavor,
texture and shelf life of processed food products.
US Household Consumer Expenditure, By Sector,
2016
Quest for Clean Label and Green Label in the
United States:
The US food
and beverages industry is showcasing immense inclination towards the organic
food, thereby shifting the market towards organic food ingredients or
additives, which includes natural sweeteners, preservatives, stabilizers, etc. The
growing health-conscious consumers amidst their hectic lifestyle are fueling
the demand for natural & dietary food, beverages, confectionery, etc.
Moreover, the growing number of cases related to diabetes and other lifestyle
related disorders in the US are leading to replacement of high calorie containing
drinks and food items with low calorie, all natural and high intensity
sweeteners such as Stevia.
As a result,
movements such as “Go Clean Label” which promotes transparent display of
information regarding nutritional ingredients on the food pack are suppressing
the demand for artificial or synthetic food additives.
Per Capita Calorie Consumption of High Fructose
Corn Syrup (HFCS), 2000-16 (Lbs/Year)
Rising innovations, technological
advancements and bio-based product developments by the food & beverage
manufacturers to capture the new market opportunities are anticipated to drive
the US food additives market at a modest pace over
the coming years.
Strong Demand for Food
Additives by US Beverages Industry:
As per the American Beverage Association (ABA), the
non-alcoholic beverages including carbonated soft drinks, fruit & vegetable
juices, coffee, tea, sports drinks, etc. account for a sizable contribution to
the US economy. Leading US Players such as Coca-Cola, PepsiCo, etc. are spearheading
various initiatives to reduce beverage calories from sugar. For instance, Coca-Cola
has announced prize of USD1 Million for researcher(s) who are able to develop a
natural, safe and low-calorie compound to produce zero calorie beverages
US Non-Alcoholic RTD Beverages Market, By Type,
By Value, 2016 (USD Billion)
Source: TechSci Research Estimates
Conclusion:
In
conclusion, the Global Food Additives market recorded total sales of USD36.7
billion during 2016 and is projected to grow at a steady rate during the
forecast period. The global food additives market would register growth at a
CAGR of 3.4% during 2017-26, thereby reaching USD51.27 Billion by the end of
2026. On account of changing lifestyle of population, the consumer trend is
witnessing a shift towards convenient processed & packaged foods. The
growing emphasis on food quality in terms of color, taste, texture, etc. and safety
by the packaged food industry is driving the sales of food additives worldwide.
Moreover, rising complication in the overall supply chain of food &
beverages due to increasing logistics cost is fostering the adoption of food
additives to reduce the spoilage and wastage costs, subsequently promulgating
the global food additives market through 2026.
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